Mib Exam#3

22 Questions | Attempts: 413
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Mib Exam#3 - Quiz

Questions and Answers
  • 1. 

    Which of the following is an area that studies how competing parties interact?

    • A.

      Explicit collusion

    • B.

      Game Theory

    • C.

      Prisoner's dilemna

    • D.

      Competitive analysis

    Correct Answer
    B. Game Theory
  • 2. 

    Mutual forbearance is a type of:

    • A.

      Cross-market retaliation

    • B.

      Multimarket competition

    • C.

      Explicit collusion

    • D.

      Tacit collusion

    Correct Answer
    D. Tacit collusion
  • 3. 

    What is strategic alliance?

    • A.

      A voluntary agreement of cooperation between firms

    • B.

      Associations between firms that are based on contracts and do not involve the sharing of ownership

    • C.

      Alliances based on ownership or financial interest between the firms

    • D.

      One firm investing in another as a strategic investor

    Correct Answer
    A. A voluntary agreement of cooperation between firms
  • 4. 

    What is cross-shareholding?

    • A.

      One firm invests in another as a strategic investor

    • B.

      Combinations of operations and management

    • C.

      Control from one to other

    • D.

      When both firms invest in each other to become cross-shareholders

    Correct Answer
    D. When both firms invest in each other to become cross-shareholders
  • 5. 

    Which of the following is NOT one of the four strategic choices for MNEs? 

    • A.

      Localization

    • B.

      Global Standardization

    • C.

      Home replication

    • D.

      Asset Allocation

    Correct Answer
    D. Asset Allocation
  • 6. 

    What is marketing mix? 

    • A.

      Four underlying components of marketing: product, power, promotion, place

    • B.

      Four underlying components of marketing: past, promotion, place, power

    • C.

      Four underlying components of marketing: product, price, promotion, place

    • D.

      Four underlying components of marketing: price, power, promotion, place

    Correct Answer
    C. Four underlying components of marketing: product, price, promotion, place
  • 7. 

    What are expatriates (expats)?

    • A.

      Native employees who work in own country

    • B.

      Non-native employees who work in a foreign country

    • C.

      Ex-New England Patriots

    • D.

      Ex-football players

    Correct Answer
    B. Non-native employees who work in a foreign country
  • 8. 

    What is the ethnocentric approach?

    • A.

      Any individual who is from neither the parent country nor the host country of the MNE

    • B.

      An individual who comes from the parent country of the MNE and works at its local subsiduary

    • C.

      An individual from the host country who works for an MNE

    • D.

      An emphasis on the norms and practices of the parent company (and the parent country of the MNE) by relying on PCNs

    Correct Answer
    D. An emphasis on the norms and practices of the parent company (and the parent country of the MNE) by relying on PCNs
  • 9. 

    The primary participants in corporate governance are:

    • A.

      Shareholders, people, owners

    • B.

      Owners, managers, boards of directors (tripod)

    • C.

      Owners, managers, people

    • D.

      Managers, people, shareholders

    Correct Answer
    B. Owners, managers, boards of directors (tripod)
  • 10. 

    A manifestation of agency problems include:

    • A.

      Excessive executive compensation, on-the-job consumption, low-risk short-term investments, empire-building

    • B.

      Excessive executive compensation, off-the-job consumption, low-risk short-term investments, empire-building

    • C.

      Non-excessive executive compensation, on-the-job consumption, low-risk short-term investments, empire-building

    • D.

      Excessive executive compensation, on-the-job consumption, high-risk short-term investments, empire-building

    Correct Answer
    A. Excessive executive compensation, on-the-job consumption, low-risk short-term investments, empire-building
  • 11. 

    What does "fair" in fair trade represent?

    • A.

      An equal barter of exchanged goods

    • B.

      An arms-length market price negotiated between a willing buyer and willing seller

    • C.

      A minimum price paid to the producer that that equals living expenses

    • D.

      Organically grown agricultural products

    • E.

      A high-quality product bought at premium

    Correct Answer
    A. An equal barter of exchanged goods
  • 12. 

    What is Corporate Social Responsibility (CSR)?

    • A.

      Consideration of, and response to, issues beyond the narrow social, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks

    • B.

      Consideration of, and response to, issues beyond the narrow mechanical, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks

    • C.

      Consideration of, and response to, issues beyond the narrow musical, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks

    • D.

      Consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks

    Correct Answer
    D. Consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks
  • 13. 

    What is global sustainability?

    • A.

      Consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks

    • B.

      The ability to meet the needs of the present without compromising the ability of future generations to meet their needs around the world

    • C.

      Any group or individual who can affect or is affected by the achievement of the organization's objectives

    • D.

      Economic, social, and environmental performance that simultaneously satisfies the demands of all stakeholder groups

    Correct Answer
    B. The ability to meet the needs of the present without compromising the ability of future generations to meet their needs around the world
  • 14. 

    What is proactive strategy?

    • A.

      A strategy that would only respond to CSR causes when required by disasters and outcries

    • B.

      A strategy that focuses on regulatory compliance but with little actual commitment to CSR by top management

    • C.

      A strategy that endeavors to do more than is required in CSR

    • D.

      A strategy characterized by some support from top managers, who may increasingly view CSR as a worthwhile endeavor

    Correct Answer
    C. A strategy that endeavors to do more than is required in CSR
  • 15. 

    What are secondary stakeholders?

    • A.

      Those who influence or affect, or are influenced or affected by, the corporation but are not engaged in transactions with the firm and are not essential for its survival

    • B.

      Constituents on which the firm relies for its continuous survival and prosperity

    • C.

      Groups that own company

    • D.

      Groups that buy shares

    Correct Answer
    A. Those who influence or affect, or are influenced or affected by, the corporation but are not engaged in transactions with the firm and are not essential for its survival
  • 16. 

    What are primary stakeholders?

    • A.

      Those who influence or affect, or are influenced or affected by, the corporation but are not engaged in transactions with the firm and are not essential for its survival

    • B.

      Constituents on which firm relies for its eventual demise

    • C.

      Constituents on which firm relies for its continuous survival and prosperity

    • D.

      Constituents on which firm relies for its continuous momentum and prosperity

    Correct Answer
    C. Constituents on which firm relies for its continuous survival and prosperity
  • 17. 

    Market segmentation is identifying segments of consumers who differ from others in ___________

    • A.

      Price

    • B.

      Power

    • C.

      Parity

    • D.

      Purchasing behavior

    Correct Answer
    D. Purchasing behavior
  • 18. 

    Which are the two primary pressures MNEs confront?

    • A.

      Ethics and governance

    • B.

      Cost reductions and local responsiveness

    • C.

      Liability of foreignness and investment risk

    • D.

      Local and foreign government

    Correct Answer
    B. Cost reductions and local responsiveness
  • 19. 

    What is liability of foreignness?

    • A.

      The inherent disadvantage that foreign firms experience in host countries because of their non-native status

    • B.

      The inherent advantage that foreign firms experience in host countries because of their non-native status

    • C.

      The inherent disadvantage that foreign firms experience in host countries because of their native status

    • D.

      The inherent advantage that foreign firms experience in host countries because of their native status

    Correct Answer
    A. The inherent disadvantage that foreign firms experience in host countries because of their non-native status
  • 20. 

    What is investment risk?

    • A.

      Probability or likelihood of occurrence of gains relative to the expected return on any particular investment

    • B.

      Unlikelihood of occurrence of losses relative to the expected return on any particular investment

    • C.

      Probability or likelihood of occurrence of losses relative to the expected return on any particular investment

    • D.

      Unlikelihood of occurrence of gains relative to the expected return on any particular investment

    Correct Answer
    C. Probability or likelihood of occurrence of losses relative to the expected return on any particular investment
  • 21. 

    What is an environmental group?

    • A.

      An organization that seeks to not-protect, analyse or monitor the environment against misuse or degradation from human forces.

    • B.

      An organization that seeks to protect, analyse or monitor the environment against misuse or degradation from animal forces.

    • C.

      An organization that seeks to not protect, analyse or monitor the environment against misuse or degradation from animal forces.

    • D.

      An organization that seeks to protect, analyse or monitor the environment against misuse or degradation from human forces.

    Correct Answer
    D. An organization that seeks to protect, analyse or monitor the environment against misuse or degradation from human forces.
  • 22. 

    What is the fair labor association?

    • A.

      Profit collaborative effort of universities, civil society organizations, and businesses. It describes its mission as promoting adherence to international and national labor laws.

    • B.

      Non-profit collaborative effort of universities, civil society organizations, and businesses. It describes its mission as promoting adherence to international and national labor laws.

    • C.

      Non-profit collaborative effort of universities, civil society organizations, and businesses. It describes its mission as promoting food.

    • D.

      Profit collaborative effort of universities, civil society organizations, and businesses. It describes its mission as promoting food

    Correct Answer
    B. Non-profit collaborative effort of universities, civil society organizations, and businesses. It describes its mission as promoting adherence to international and national labor laws.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Dec 30, 2020
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 05, 2014
    Quiz Created by
    Ryanbe
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