Untitled Flashcards Set

. What is the primary goal of multinational management?
A) To focus on domestic sales
B) To avoid global threats
C) To formulate strategies to leverage international opportunities
D) To focus solely on research and development

Answer: C

2. A multinational corporation (MNC) is defined as a company that:
A) Operates only within its national borders
B) Engages in business functions beyond its domestic borders
C) Focuses on local customers exclusively
D) Avoids foreign direct investments

Answer: B

3. What does Foreign Direct Investment (FDI) involve?
A) Selling products domestically
B) An ownership stake in a foreign organization
C) Creating local partnerships exclusively
D) Avoiding international markets

Answer: B

4. What is a global value chain?
A) A domestic supply chain
B) Steps in manufacturing and delivery in multiple countries
C) A chain of national markets
D) A focus on local suppliers

Answer: B

5. Which industry is NOT commonly associated with the emergence of MNCs?
A) Petroleum
B) Automotive
C) Healthcare
D) Retail

Answer: C

6. Globalization can be described as the:
A) Restriction of goods across borders
B) Spread of goods, services, and ideas internationally
C) Limitation of economic activities
D) Prevention of cultural exchange

Answer: B

7. The trend of interconnected world economies is known as:
A) Decentralization
B) Localization
C) Globalization
D) Nationalization

Answer: C

8. Which of the following is a result of globalization?
A) Increased trade barriers
B) Growing world interconnectedness
C) Decline in international firms
D) Limited investment opportunities

Answer: B

9. An example of a multinational company from an emerging market is:
A) Walmart
B) GM
C) Huawei
D) Toyota

Answer: C

10. A key driver of globalization is:
A) Increased national regulations
B) Advances in transportation and communication
C) Restricted international investment
D) Decline in digital technology

Answer: B

11. The World Trade Organization (WTO) was established in:
A) 1945
B) 1995
C) 2000
D) 1986

Answer: B

12. Which of the following is NOT a function of the WTO?
A) Administering trade agreements
B) Monitoring trade policies
C) Providing military support
D) Handling trade disputes

Answer: C

13. NAFTA is an agreement involving which countries?
A) Canada, US, and China
B) US, Mexico, and Brazil
C) Canada, US, and Mexico
D) Brazil, India, and China

Answer: C

14. APEC is a regional trade agreement primarily focused on:
A) South America
B) Asia-Pacific nations
C) Middle Eastern countries
D) Africa

Answer: B

15. The European Union allows for:
A) Free movement of goods, labor, and services across member countries
B) Heavy tariffs on goods
C) Restriction on services
D) Limited labor movement

Answer: A

16. Developed economies are characterized by:
A) Low per-capita GDP
B) High levels of industrialization
C) Minimal international trade
D) Limited economic growth

Answer: B

17. Which country is NOT considered a developed economy?
A) Germany
B) Japan
C) India
D) Canada

Answer: C

18. Emerging markets are known for:
A) Slow economic growth
B) Rapidly growing economies
C) Lack of international trade
D) Absence of industrialization

Answer: B

19. Which of the following is an emerging market?
A) Brazil
B) Japan
C) Germany
D) Canada

Answer: A

20. The Human Development Index (HDI) measures a country’s:
A) Industrial output only
B) Income levels only
C) Overall social and economic development
D) Population density

Answer: C

21. A characteristic of a successful multinational manager is:
A) Avoiding international assignments
B) Relying on domestic knowledge
C) Having a global mindset
D) Ignoring cultural differences

Answer: C

22. A multinational manager with high psychological capital is:
A) Resistant to change
B) Receptive to new ideas
C) Focused on domestic markets
D) Avoiding social interactions

Answer: B

23. ISO 9001:2000 standards are related to:
A) Healthcare practices
B) Quality management
C) Marketing practices
D) Environmental policies

Answer: B

24. Global civil regulation emphasizes:
A) State enforcement
B) Corporate independence
C) Multi-stakeholder involvement
D) Limiting economic standards

Answer: C

25. An advantage of globalization is:
A) Higher local prices
B) Increased monopoly power
C) Access to global markets
D) Limited job creation

Answer: C

26. A disadvantage of globalization is:
A) Limited international cooperation
B) Economic interdependency
C) Rise of local industries
D) Increased protectionism

Answer: B

27. MNCs may cause:
A) Greater national economic independence
B) Decreased environmental concerns
C) Negative social impacts in some countries
D) Reduced access to international markets

Answer: C

28. Global standards, like ISO 14000, focus on:
A) Accounting practices
B) Financial services
C) Environmental management
D) Labor management

Answer: C

29. The concept of “think globally, act locally” represents:
A) Limiting international operations
B) Localizing all practices
C) Adapting global strategies to local conditions
D) Ignoring local market needs

Answer: C

30. Which is a characteristic of emotional intelligence in multinational management?
A) Prioritizing financial metrics only
B) Avoiding cross-cultural understanding
C) Managing emotions effectively
D) Focusing only on personal goals

Answer: C

31. Intellectual capital for international leaders involves:
A) Avoiding learning opportunities
B) Focusing on personal profits
C) Building knowledge about cultural differences
D) Ignoring global challenges

Answer: C

32. A state multinational is defined as:
A) A private MNC
B) An MNC from emerging markets with state support
C) A locally focused company
D) An MNC avoiding government relations

Answer: B

33. Global customers are characterized by:
A) Seeking only domestic suppliers
B) Prioritizing national boundaries
C) Seeking suppliers globally without regard for boundaries
D) Limiting purchases to one country

Answer: C

34. An implication of increased global interconnectedness is:
A) Reduced investment opportunities
B) Decreased multinational activity
C) Increased cross-border trade
D) Isolation of national economies

Answer: C

35. Privatization in the global economy often leads to:
A) Limited foreign investment
B) Increased state control
C) Emergence of new global competitors
D) Restricted market opportunities

Answer: C

36. Emerging market multinationals commonly originate from:
A) Developed countries only
B) European countries exclusively
C) Emerging economies like India and China
D) North America exclusively

Answer: C

37. The Kyoto Protocol focuses on:
A) Trade policies
B) Climate change
C) Labor standards
D) Economic sanctions

Answer: B

38. A free market economic system is associated with:
A) Transition economies
B) Developed economies only
C) Developing economies only
D) MNCs exclusively

Answer: A

39. Examples of developing economies include:
A) United States and Japan
B) Hong Kong and Thailand
C) Canada and Britain
D) Germany and France

Answer: B

40. Cross-cultural negotiation is a skill important for:
A) Domestic managers only
B) Multinational managers
C) Financial advisors only
D) Marketing specialists only

Answer: B

41. Global products tend to:
A) Be unique to each country
B) Cater to local traditions only
C) Have a standardized appeal
D) Limit consumer choice

Answer: C

42. Emerging markets are attractive for MNCs because they:
A) Lack economic growth
B) Offer little to no opportunities
C) Have rapid economic growth
D) Avoid international trade

Answer: C

43. The Human Development Index (HDI) score of 0.8 or higher indicates:
A) A low level of development
B) An undeveloped economy
C) A highly developed economy
D) Minimal economic growth

Answer: C

44. What role do emerging market multinationals often play?
A) Avoiding local markets
B) Competing as global players
C) Limiting operations to regional areas
D) Serving only domestic customers

Answer: B

45. The WTO’s headquarters is located in:
A) New York
B) Brussels
C) Geneva
D) Paris

Answer: C

46. Intellectual capital for an international leader involves:
A) Emotional regulation
B) Building knowledge on cultural differences
C) Avoiding cultural experiences
D) Limiting social connections

Answer: B

47. Global standards aim to:
A) Reduce quality across regions
B) Establish uniform quality measures
C) Limit trade agreements
D) Focus on regional interests

Answer: B

48. Transition economies are commonly characterized by:
A) High reliance on communism
B) A shift from state control to free markets
C) Low levels of industrialization
D) No foreign investment

Answer: B

49. The Asia-Pacific Economic Cooperation (APEC) includes:
A) Only European countries
B) 21 nations with trade facilitation goals
C) 50 African countries
D) Only South American countries

Answer: B

50. The term “global mindset” in multinational management implies:
A) A narrow focus on local markets
B) Thinking globally and acting locally
C) Avoiding global operations
D) Isolating from cultural adaptation

Answer: B