MIB Exam#3

1. What is liability of foreignness?

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

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

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

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

2. What are expatriates (expats)?

Native employees who work in own country

Non-native employees who work in a foreign country

Ex-New England Patriots

Ex-football players

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

Price

Power

Parity

Purchasing behavior

4. What is strategic alliance?

A voluntary agreement of cooperation between firms

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

Alliances based on ownership or financial interest between the firms

One firm investing in another as a strategic investor

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

Localization

Global Standardization

Home replication

Asset Allocation

6. What are secondary stakeholders?

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

Groups that own company

Groups that buy shares

7. What is cross-shareholding?

One firm invests in another as a strategic investor

Combinations of operations and management

Control from one to other

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

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

Explicit collusion

Game Theory

Prisoner's dilemna

Competitive analysis

9. The primary participants in corporate governance are:

Shareholders, people, owners

Owners, managers, boards of directors (tripod)

Owners, managers, people

Managers, people, shareholders

10. What does "fair" in fair trade represent?

An equal barter of exchanged goods

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

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

Organically grown agricultural products

A high-quality product bought at premium

11. What is marketing mix?

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

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

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

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

12. What is proactive strategy?

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

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

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

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

13. What is global sustainability?

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

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

14. Mutual forbearance is a type of:

Cross-market retaliation

Multimarket competition

Explicit collusion

Tacit collusion

15. What is the ethnocentric approach?

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

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

An individual from the host country who works for an MNE

16. What is Corporate Social Responsibility (CSR)?

17. A manifestation of agency problems include:

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

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

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

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

18. What is investment risk?

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

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

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

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

19. What is the fair labor association?

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

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

20. What are primary stakeholders?

Constituents on which firm relies for its eventual demise

Constituents on which firm relies for its continuous survival and prosperity

Constituents on which firm relies for its continuous momentum and prosperity

21. What is an environmental group?

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

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

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

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

22. Which are the two primary pressures MNEs confront?

Ethics and governance

Cost reductions and local responsiveness

Liability of foreignness and investment risk

Local and foreign government

Mib Exam#3