MGT 510 Midterm and Final Exam – Strayer NEW



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Chapters 1 Through 15

Chapter 1 Multinational Management in a Changing World

MULTIPLE CHOICE

     1.   Businesses of all sizes are increasingly looking for global opportunities because
a.
Trade barriers are falling.
b.
Money is flowing more freely across countries.
c.
The world is becoming one interconnected economy.
d.
All of the above.



AACSB Analytic, Strategy

PTS:   1

     2.   Globalization is
a.
The trend of businesses expanding beyond their domestic boundaries.
b.
Increasing average temperature over the globe.
c.
The increased use of global satellite communication systems.
d.
A strategy of developing unique products for each nation in the world.



AACSB Reflective thinking, Environmental influence

PTS:   1

     3.   Which of the following would not be considered a basic source of globalization?
a.
Similar customer needs
b.
Falling of trade barriers
c.
Advances in communication technology
d.
Differentiation among countries



AACSB Reflective Thinking, Environmental influence

PTS:   1

     4.   Multinational management is
a.
A strategy of developing similar strategies for different countries.
b.
The trend of business expanding beyond local boundaries.
c.
The formulation and design of management systems to successfully take advantage of international opportunities and respond to international threats.
d.
None of the above



AACSB Reflective thinking, Strategy

PTS:   1

     5.   According to the text, the multinational company
a.
Is required to be a public corporation.
b.
Is any company that engages in any business function across borders.
c.
Must sell overseas to be a true multinational.
d.
Must be large.



AACSB Reflective thinking, Strategy

PTS:   1

     6.   Which of the following is not a classification of economic systems noted in the text?
a.
Domestic economies
b.
Transition economies
c.
LDCs
d.
Emerging markets



AACSB Reflective thinking, Environmental influence

PTS:   1

     7.   Transition economies are
a.
Mature economies with substantial per capita GDP and international trade.
b.
Led by Hong Kong, Singapore, South Korea, and Taiwan.
c.
Countries changing from government-controlled  or communistic economies to a more free market capitalism.
d.
None of the above



AACSB Reflective thinking, Environmental influence

PTS:   1

     8.   Emerging markets include
a.
OECD countries.
b.
Brazil, China, Russia, India.
c.
Korea, Japan and USA.
d.
Hungary, Poland, Slovakia.



AACSB Reflective thinking, Environmental influence

PTS:   1

     9.   Developing economies are
a.
Mature economies with substantial per capita GDP and international trade.
b.
Hong Kong, Singapore, and Taiwan.
c.
Countries in the process of changing their economies from government-controlled to a more free market capitalism.
d.
None of the above



AACSB Reflective thinking, Environmental influence

PTS:   1

   10.   Emerging markets are defined as those that are: 
a.
Growing rapidly.
b.
Transitioning from a communist-controlled economy to capitalism.
c.
Seen to have impact only sporadically.
d.
Enjoying a mature economy.



AACSB Reflective thinking, Environmental influence

PTS:   1

   11.   Major regional trade agreements include all of the following EXCEPT
a.
EU.
b.
NAFTA.
c.
APEC.
d.
PROTEC.



AACSB Reflective thinking, Legal responsibilities

PTS:   1

   12.   The economic agreement that links the US, Canada, and Mexico in an economic bloc that allows freer exchange of goods and services is known as the
a.
EU.
b.
OPEC.
c.
APEC.
d.
None of the above



AACSB Reflective thinking, Legal responsibilities

PTS:   1

   13.   The World Trade Organization:
a.
Is a major trading company.
b.
Succeeded the GATT agreements.
c.
Collects duties for member countries.
d.
Is a consulting group for companies who wish to engage in international trade.



AACSB Reflective thinking, Legal responsibilities

PTS:   1

   14.   Examples of developed economies would include:
a.
The U.S. and Japan.
b.
Hungary and Poland.
c.
Argentina and Brazil.
d.
Hong Kong and Singapore.



AACSB Reflective thinking, Creation of value

PTS:   1

   15.   According to your text, FDI means
a.
Foreign development initiatives.
b.
Various investment policies of the U.S. government.
c.
A foreign company has an ownership position in a company in another country.
d.
A type of international negotiation strategy.



AACSB Reflective thinking, Legal responsibilities

PTS:   1

   16.   The two forms of risk discussed in the text include
a.
Exchange rate risk and corruption risk.
b.
Business risk and social risk.
c.
Sales risk and employment risk.
d.
Economic and political risk.



AACSB Reflective thinking, Environmental influence

PTS:   1

   17.   Economic risks discussed in the text include
a.
Anything a government might do or not do that might adversely affect a company.
b.
The likelihood of losing money if one invests in stocks.
c.
Exchange and interest rates.
d.
Expropriating of foreign firms by the local government without any compensation.



AACSB Reflective thinking, Environmental influence

PTS:   1

   18.   Anything that a government might do to affect a multinational adversely is known as
a.
Exchange rate risk.
b.
Business risk.
c.
Sales risk.
d.
Political risk.



AACSB Reflective thinking, Leadership

PTS:   1

  19..   A global product or service is
a.
Adapted for each country's unique needs.
b.
A similar product or service for all customers throughout the world.
c.
A product or service that requires bilingual customers.
d.
Products developed for use outside the country.



AACSB Reflective thinking, Creation of value

PTS:   1

   20.   Which of the following statements about the Internet and Information Technology is true?
a.
The Internet is benefiting companies worldwide.
b.
Electronic communications does not allow companies to communicate with locations around the world.
c.
Information technology is not encouraging a borderless financial market.
d.
Information technology does not allow the sharing of information around the world.


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