International Management

1. What is considered a major driver of globalization in the last three decades?

A) Increase in government ownership of corporations

B) Advances in communication and transportation technologies

C) Decline in multinational enterprises

D) Isolationist trade policies

2. Which international institution promotes global trade by reducing trade barriers?

A) IMF

B) WTO

C) UN

D) OPEC

3. Which of the following best illustrates a negative impact of globalization?

A) Job displacement in industrialized economies

B) Improved technology diffusion

C) Economies of scale

D) Access to larger markets

4. What characterizes a collectivist society according to Hofstede?

A) Emphasis on individual rights and freedom

B) Preference for low power distance

C) Strong loyalty to the group or community

D) Focus on short-term profits

5. Which of the following countries would most likely score high on uncertainty avoidance?

A) United States

B) China

C) Greece

D) India

6. In Hill's framework, which political system combines collectivism with a totalitarian regime?

A) Liberal democracy

B) Communist totalitarianism

C) Tribal totalitarianism

D) Theocratic rule

7. Which of the following statements is true about civil law systems?

A) Legal reasoning is based mostly on precedent

B) Law is mainly derived from religious texts

C) Laws are codified and applied deductively

D) They are common in the United States and UK

8. Which economic system offers the least amount of government intervention?

A) Command economy

B) Market economy

C) Mixed economy

D) Socialist economy

9. What best explains the rapid expansion of supply chains across borders?

A) Political decentralization

B) Technological advances and lower transportation costs

C) Elimination of currencies

D) Increased government regulation

10. What is a risk typically associated with investing in countries with weak legal institutions?

A) Price wars

B) Lack of property rights enforcement

C) Free trade zones

D) Subsidies for foreign firms

11. Which of the following countries is typically high in power distance?

A) Malaysia

B) Sweden

C) Australia

D) Canada

12. What is a typical trait of an indulgent culture?

A) Strict social norms

B) Suppression of desires

C) Focus on leisure and gratification

D) Long-term planning

13. Which of the following is an example of an ethical dilemma in international business?

A) Expanding into a developed country

B) Paying bribes to local officials to secure contracts

C) Acquiring a local firm

D) Participating in trade fairs

14. Which theory justifies ethical behavior by evaluating the consequences for overall welfare?

A) Utilitarianism

B) Rights Theory

C) Justice Theory

D) Virtue Ethics

15. Which statement best reflects short-term oriented cultures?

A) Focus on savings and persistence

B) Emphasis on quick results and traditions

C) Emphasis on learning and planning

D) Strong family ties

16. Which of the following is a characteristic of tribal totalitarianism?

A) Rule by a single political party

B) Political dominance based on ethnic group affiliation

C) Governance by religious leaders

D) Monarchy-based leadership

17. Which Hofstede dimension addresses emotional gender roles and assertiveness?

A) Masculinity vs. Femininity

B) Power Distance

C) Individualism vs. Collectivism

D) Uncertainty Avoidance

18. What does “cultural relativism” imply in business ethics?

A) Universal ethical principles apply globally

B) Ethics are culturally bound and context-specific

C) Companies should enforce home-country values

D) Ethics are irrelevant in global markets

19. What is a key implication of high-context cultures?

A) Communication relies heavily on implicit cues

B) Messages are always direct and literal

C) Contracts are strictly enforced

D) Time is seen as linear

20. What kind of institution is the rule of law an example of?

A) Informal institution

B) Formal institution

C) Religious norm

D) Custom

21. Which of the following best describes ethical universalism?

A) Ethical norms should follow the host culture

B) Certain moral principles apply globally regardless of culture

C) Ethics depend solely on profitability

D) Corporate social responsibility is optional

22. What challenge does cultural misunderstanding most often create in international management?

A) Technological incompatibility

B) Misaligned expectations and communication failures

C) Currency risk

D) Regulatory arbitrage

23. Which of the following describes a “low-context” culture?

A) Reliance on gestures and body language

B) Direct and explicit communication

C) Importance of tradition

D) Use of symbols

24. What is a defining feature of theocratic totalitarianism?

A) Rule based on religious authority

B) Control by ethnic groups

C) Emphasis on democratic elections

D) Laissez-faire economic policies

25. What ethical concern arises from offshoring production to developing countries?

A) Labor exploitation and unsafe working conditions

B) High corporate taxes

C) Reduced transaction costs

D) Brand loyalty erosion

26. What would be a likely impact of high uncertainty avoidance on business?

A) Preference for rules and structured environments

B) Greater risk-taking in investment decisions

C) Informal contracts

D) Rapid decision-making

27. Which system provides the most discretion to judges in interpreting the law?

A) Civil law

B) Common law

C) Theocratic law

D) Socialist law

28. Why is knowledge of Hofstede’s model important for managers?

A) It helps adapt leadership, motivation, and communication styles

B) It ensures uniform global strategies

C) It enables tax optimization

D) It minimizes legal disputes

29. Which institution measures corruption perceptions worldwide?

A) WTO

B) Transparency International

C) IMF

D) UNDP

30. What describes a country with low individualism?

A) Strong focus on personal achievement

B) Group loyalty and collective identity

C) Weak social bonds

D) High entrepreneurial drive

31. What is the central ethical question in "sweatshop labor"?

A) Price transparency

B) Fair wages and working conditions

C) Carbon footprint

D) Trade quotas

32. In international management, CSR refers to:

A) Government compliance only

B) Investor protection schemes

C) Voluntary corporate initiatives for ethical and sustainable practices

D) Host-country tax law

33. What typically characterizes a high masculinity culture?

A) Emphasis on harmony and modesty

B) Focus on achievement, competition, and material success

C) Preference for cooperation over conflict

D) Egalitarian roles

34. Which concept argues for applying consistent ethical standards across all subsidiaries?

A) Ethical absolutism (universalism)

B) Ethical relativism

C) Cultural alignment

D) CSR divergence

35. Which institutional context is most likely to result in expropriation risk?

A) Democratic capitalism

B) Civil law economy

C) Politically unstable and authoritarian regimes

D) Regional integration blocks

36. What is one major benefit of globalization for consumers?

A) Greater product variety and lower prices

B) High entry barriers

C) Cultural imperialism

D) Reduced labor mobility

37. Which is an example of ethical supply chain management?

A) Ignoring subcontractor practices

B) Focusing solely on cost-cutting

C) Auditing suppliers for labor and environmental standards

D) Bypassing trade regulations

38. What does “justice theory” focus on in ethics?

A) Fair distribution of benefits and burdens

B) Maximum profit

C) Religious morality

D) Market-based ethics

39. Which cultural dimension is most directly linked to long-term planning and persistence?

A) Masculinity

B) Indulgence

C) Power Distance

D) Long-term orientation

40. A global strategy that ignores cultural differences would likely fail due to:

A) Supply chain complexity

B) Lack of cultural adaptation and customer rejection

C) Currency fluctuations

D) Trade tariffs

41. Which is a characteristic of market-based economies?

A) Private ownership and minimal regulation

B) State-owned enterprises dominate

C) Price controls are widespread

D) Government decides allocation

42. A multinational firm considers entering a country with weak contract enforcement. What is the risk?

A) Difficulty enforcing legal agreements

B) Language barriers

C) Currency appreciation

D) High production costs

43. What typically characterizes corporate behavior under cultural relativism?

A) Applying global ethical standards

B) Adapting ethics to local cultural norms

C) Following the home country’s law only

D) Seeking legal arbitrage

44. What dimension of Hofstede would affect attitudes toward hierarchy and authority?

A) Power Distance

B) Masculinity

C) Individualism

D) Indulgence

45. Which is an institutional feature that affects foreign direct investment attractiveness?

A) Population growth

B) Strength of property rights protection

C) Climate

D) Level of urbanization

1. What is a core characteristic of a global strategy?

A) Strong local responsiveness

B) High cost efficiency and standardization

C) Regional autonomy

D) Product diversification by market

2. Which strategy emphasizes local responsiveness over global efficiency?

A) Global standardization strategy

B) Transnational strategy

C) Multidomestic strategy

D) International strategy

3. Which strategy seeks both global integration and local responsiveness?

A) Multidomestic

B) Transnational

C) Global

D) Export-driven

4. Which is a disadvantage of a transnational strategy?

A) Weak brand consistency

B) High organizational complexity

C) Lack of local adaptation

D) Few synergies across countries

5. Which company structure supports a multidomestic strategy?

A) Centralized product divisions

B) Regional (area-based) structure

C) Functional structure

D) Matrix structure

6. A matrix structure typically leads to which management challenge?

A) Weak headquarters control

B) Delayed market entry

C) Dual reporting and role conflict

D) High costs of franchising

7. What is a typical benefit of licensing as an entry mode?

A) Full control over operations

B) Strong protection of IP

C) Fast and low-cost market access

D) Risk-free technology transfer

8. What is the main risk in licensing agreements?

A) High capital costs

B) Strong local adaptation

C) Loss of intellectual property

D) Import duties

9. Which entry mode gives a firm the most control?

A) Joint venture

B) Wholly owned subsidiary

C) Export

D) Licensing

10. In which scenario is a joint venture often preferred?

A) When market conditions are transparent

B) When full control is required

C) When local regulation restricts full ownership

D) When IP protection is essential

11. What is a disadvantage of joint ventures?

A) Strategic conflicts between partners

B) Lower local responsiveness

C) Minimal setup costs

D) High exchange rate risks

12. A greenfield investment refers to:

A) Exporting via third-party distributor

B) Building a new subsidiary from scratch

C) Licensing to a new partner

D) Joint venture setup with government

13. What best describes the polycentric staffing approach?

A) Home-country managers dominate all subsidiaries

B) Local managers lead local subsidiaries

C) Employees are hired globally without regard to nationality

D) Headquarters directly controls HR

14. What is a primary challenge of expatriate assignments?

A) Inconsistent policies

B) Cultural adjustment and family issues

C) Lack of formal contracts

D) Currency mismatch in salary

15. What is the main benefit of a geocentric staffing policy?

A) Cost reduction

B) Optimal global talent deployment

C) Local employment quotas

D) Political risk mitigation

16. Which element is usually not included in expat compensation packages?

A) Hardship allowance

B) Tax equalization

C) Sales commissions

D) Housing subsidies

17. What is a main driver of failure in expatriate assignments?

A) Poor family adjustment

B) Salary disputes

C) Political instability

D) Language laws

18. Which organizational structure best fits global standardization strategy?

A) Area structure

B) Functional structure

C) Global product division structure

D) Matrix structure

19. What is typically true for an area (regional) structure?

A) High responsiveness to local market needs

B) High product integration globally

C) Unified global branding

D) Low coordination costs

20. What type of control relies on shared values and norms?

A) Bureaucratic control

B) Financial control

C) Cultural control

D) Technical control

21. What risk arises when consolidating financial reports of foreign subsidiaries?

A) Transaction risk

B) Translation risk

C) Operational risk

D) Licensing risk

22. A sudden 20% depreciation of the local currency affects a firm’s:

A) Long-term strategy only

B) Short-term cash flows (transaction risk)

C) Product design

D) Management hierarchy

23. What is a key characteristic of economic (operational) exposure?

A) It only affects accounting results

B) It impacts future competitiveness and profitability

C) It applies only to importers

D) It is hedged through translation

24. Which is a hedging instrument against exchange rate risk?

A) Sales discount

B) Forward contract

C) Stock option

D) Export license

25. A firm bills all customers in its home currency. This:

A) Eliminates exchange rate risk

B) Transfers exchange rate risk to the customer

C) Reduces market size

D) Is mandatory by WTO

26. Political risk is best defined as:

A) Financial market instability

B) Governmental actions affecting foreign business operations

C) Changes in inflation

D) War between companies

27. What is a form of expropriation risk?

A) Change in local taste

B) Currency fluctuation

C) Forced asset seizure by the government

D) Import duties

28. What strategy best mitigates political risk?

A) Investing in high-risk states

B) Partnering with local firms or governments

C) Moving HQ abroad

D) Floating exchange rates

29. What does the MIGA (World Bank) provide?

A) WTO licenses

B) Political risk insurance for foreign investors

C) Export subsidies

D) Tax breaks for MNEs

30. Which country scenario likely presents high political risk?

A) Transparent legal system

B) High HDI

C) Authoritarian regime with weak institutions

D) Eurozone member state

31. Which HR practice supports knowledge transfer within MNEs?

A) Polycentric staffing

B) Global rotation of managers

C) Decentralized compensation

D) Outsourcing HR

32. What is the main function of cross-cultural training for expats?

A) Raise salary expectations

B) Improve adjustment and effectiveness abroad

C) Ensure legal compliance

D) Reduce workload

33. The primary goal of international HRM is to:

A) Cut wages

B) Align people management with global strategy

C) Outsource all non-core tasks

D) Localize all decision rights

34. What does a high-context culture imply for HRM?

A) Focus on performance metrics

B) Written contracts are central

C) Emphasis on relationships and implicit communication

D) Immediate feedback culture

35. Which strategy benefits most from expatriates in top roles?

A) Polycentric

B) Global standardization

C) Regiocentric

D) Franchising

36. What kind of control uses detailed procedures and manuals?

A) Bureaucratic control

B) Cultural control

C) Economic control

D) Transaction control

37. A firm uses export as its only entry mode. Which is a likely drawback?

A) High control over distribution

B) Low capital requirement

C) Weak local market responsiveness

D) Legal independence

38. Which is a feature of franchising as an entry mode?

A) Full ownership

B) Use of standardized business model with local operators

C) Total operational autonomy

D) Prohibited in EU markets

39. What is a long-term impact of currency appreciation for exporters?

A) Easier hedging

B) Loss of price competitiveness

C) Stronger IP enforcement

D) Reduced customs duties

40. Which staffing policy supports local adaptation best?

A) Ethnocentric

B) Polycentric

C) Geocentric

D) Transnational

41. Which structure is most complex to manage?

A) Functional

B) Global division

C) Area-based

D) Matrix

42. Why are joint ventures popular in developing markets?

A) Easy divestment

B) Help navigate legal and cultural barriers

C) Full profit retention

D) Total operational control

43. What role does translation exposure play in financial statements?

A) Impacts export revenue

B) Affects reported consolidated earnings

C) Determines currency invoicing

D) Reduces dividend flow

44. What’s a key feature of a geocentric staffing approach?

A) Nationality-based promotion

B) Best person for the job regardless of nationality

C) No expats used

D) Only used for entry-level jobs

45. Which mode of entry typically offers fastest market access?

A) Greenfield investment

B) Joint venture

C) Licensing

D) Subsidiary

46. What happens in a greenfield investment?

A) A firm builds a new operation in the host country

B) Acquisition of local rival

C) Export via partner

D) Use of international contractors

47. Which risk arises even if operations are profitable abroad?

A) Labor turnover

B) Capital transfer restrictions (political risk)

C) Translation gains

D) Economies of scale

48. Why are cultural controls important in transnational strategies?

A) Avoid taxation

B) Reduce exchange risk

C) Align decentralized units with global values

D) Facilitate franchising

49. A firm using functional structure faces difficulty when:

A) It grows in one region

B) It has only one product

C) It expands globally with diverse markets

D) It outsources manufacturing

50. What is a key challenge of managing global HR policies?

A) Taxation

B) Balancing consistency with local adaptation

C) Hiring local vendors

D) Standardizing logistics