• MNB3702 January/February Supplementary Exam
Memo | Due January/February 2026 | Global
Business Management IB (UNISA)
,Question 1:
What is the primary goal of global business strategy?
• A) To maximize domestic profits
• B) To expand market share internationally
• C) To minimize costs only
• D) To achieve sustainable competitive advantage
Correct Option: D) To achieve sustainable competitive advantage
Rationale: The primary goal of global business strategy is to create a sustainable competitive
advantage by leveraging international resources and capabilities effectively.
Question 2:
Which of the following factors does NOT influence international market entry?
• A) Cultural differences
• B) Economic stability
• C) Political risk
• D) Brand loyalty in the domestic market
Correct Option: D) Brand loyalty in the domestic market
Rationale: While brand loyalty affects domestic competition, it is not a direct influence on
factors surrounding international market entry, which focuses more on external environmental
aspects.
Question 3:
In international trade, what does the term "tariff" refer to?
• A) A tax imposed on imported goods
• B) A limitation on the quantity of goods that can be imported
• C) A subsidy given to exporters
• D) A regulation of product standards
Correct Option: A) A tax imposed on imported goods
Rationale: A tariff is a tax levied on goods and services imported into a country, which can
affect pricing and competition.
Question 4:
, Which of the following is a risk associated with globalization?
• A) Increased competition
• B) Higher trade barriers
• C) Reduced market opportunities
• D) Decreased consumer choice
Correct Option: A) Increased competition
Rationale: Globalization leads to increased competition as domestic firms face foreign
competitors in their markets, which can impact market share and profitability.
Question 5:
What is the purpose of a SWOT analysis in global business management?
• A) To identify tax liabilities
• B) To assess strengths, weaknesses, opportunities, and threats
• C) To determine employee benefits
• D) To track sales performance
Correct Option: B) To assess strengths, weaknesses, opportunities, and threats
Rationale: SWOT analysis is used to evaluate an organization’s internal strengths and
weaknesses, and external opportunities and threats, informing strategic decision-making.
Question 6:
Which of the following is a characteristic of a multinational corporation (MNC)?
• A) Operates solely in its home country
• B) Has operations in multiple countries
• C) Focuses only on exports
• D) Avoids foreign investment
Correct Option: B) Has operations in multiple countries
Rationale: MNCs are defined by their operations in multiple countries, engaging in cross-border
economic activities.
Question 7:
What does "CAGE" stand for in analyzing international markets?
• A) Cost, Advantage, Growth, Efficiency
• B) Culture, Academia, Government, Economy
Memo | Due January/February 2026 | Global
Business Management IB (UNISA)
,Question 1:
What is the primary goal of global business strategy?
• A) To maximize domestic profits
• B) To expand market share internationally
• C) To minimize costs only
• D) To achieve sustainable competitive advantage
Correct Option: D) To achieve sustainable competitive advantage
Rationale: The primary goal of global business strategy is to create a sustainable competitive
advantage by leveraging international resources and capabilities effectively.
Question 2:
Which of the following factors does NOT influence international market entry?
• A) Cultural differences
• B) Economic stability
• C) Political risk
• D) Brand loyalty in the domestic market
Correct Option: D) Brand loyalty in the domestic market
Rationale: While brand loyalty affects domestic competition, it is not a direct influence on
factors surrounding international market entry, which focuses more on external environmental
aspects.
Question 3:
In international trade, what does the term "tariff" refer to?
• A) A tax imposed on imported goods
• B) A limitation on the quantity of goods that can be imported
• C) A subsidy given to exporters
• D) A regulation of product standards
Correct Option: A) A tax imposed on imported goods
Rationale: A tariff is a tax levied on goods and services imported into a country, which can
affect pricing and competition.
Question 4:
, Which of the following is a risk associated with globalization?
• A) Increased competition
• B) Higher trade barriers
• C) Reduced market opportunities
• D) Decreased consumer choice
Correct Option: A) Increased competition
Rationale: Globalization leads to increased competition as domestic firms face foreign
competitors in their markets, which can impact market share and profitability.
Question 5:
What is the purpose of a SWOT analysis in global business management?
• A) To identify tax liabilities
• B) To assess strengths, weaknesses, opportunities, and threats
• C) To determine employee benefits
• D) To track sales performance
Correct Option: B) To assess strengths, weaknesses, opportunities, and threats
Rationale: SWOT analysis is used to evaluate an organization’s internal strengths and
weaknesses, and external opportunities and threats, informing strategic decision-making.
Question 6:
Which of the following is a characteristic of a multinational corporation (MNC)?
• A) Operates solely in its home country
• B) Has operations in multiple countries
• C) Focuses only on exports
• D) Avoids foreign investment
Correct Option: B) Has operations in multiple countries
Rationale: MNCs are defined by their operations in multiple countries, engaging in cross-border
economic activities.
Question 7:
What does "CAGE" stand for in analyzing international markets?
• A) Cost, Advantage, Growth, Efficiency
• B) Culture, Academia, Government, Economy
