MNB3702 January/February Supplementary Exam Memo | Due
January/February 2026 | Global Business Management IB
(UNISA)
,Question 1:
What is the primary goal of international business?
• A) To establish domestic markets
• B) To expand into foreign markets
• C) To limit global competition
• D) To increase local employment
Correct Option: B
Rationale: The primary goal of international business is to expand into foreign markets,
allowing companies to benefit from new customer bases and opportunities.
Question 2:
Which of the following is a key advantage of globalization?
• A) Increased tariffs
• B) Access to a wider market
• C) Cultural homogenization
• D) Reduced competition
Correct Option: B
Rationale: Globalization provides access to a wider market, enabling businesses to
increase their sales and profits by reaching international consumers.
Question 3:
What is a key characteristic of multinational corporations (MNCs)?
• A) Operations in multiple countries
• B) Focus on a single domestic market
• C) Limited product offerings
• D) Emphasis on local partnerships
Correct Option: A
Rationale: Multinational corporations are defined by their operations in multiple
countries, which allows them to leverage resources and markets globally.
,Question 4:
What does the concept of 'cultural intelligence' refer to?
• A) Knowledge of foreign languages
• B) Understanding and adapting to different cultural contexts
• C) Ability to influence cultural trends
• D) Knowledge of international laws
Correct Option: B
Rationale: Cultural intelligence is the capability to understand and adjust to various
cultural contexts, crucial for success in global business environments.
Question 5:
Which strategy involves adapting products and marketing for specific local
markets?
• A) Global standardization
• B) Outsourcing
• C) Localization
• D) Market penetration
Correct Option: C
Rationale: Localization involves adapting products and marketing strategies to meet
the needs and preferences of specific local markets, enhancing customer satisfaction
and effectiveness.
Question 6:
Which trade agreement aims to reduce tariffs between member countries in North
America?
• A) EU
• B) NAFTA
• C) ASEAN
• D) WTO
Correct Option: B
Rationale: NAFTA (North American Free Trade Agreement) was designed to promote
trade between the U.S., Canada, and Mexico by reducing tariffs.
, Question 7:
What is a key benefit of joint ventures?
• A) Full control of operations
• B) Shared risk and investment
• C) Reduced competition
• D) Strict regulatory compliance
Correct Option: B
Rationale: Joint ventures allow companies to share risk and investment while
leveraging each other’s expertise and resources.
Question 8:
Which of the following is a common barrier to entry in global markets?
• A) Consumer preferences
• B) Tariffs and quotas
• C) Technological advancements
• D) Low labor costs
Correct Option: B
Rationale: Tariffs and quotas are significant barriers to entry that can hinder new
companies entering a market.
Question 9:
What is a 'glocalization' strategy?
• A) Combining global efficiency with local responsiveness
• B) Standardizing products across all markets
• C) Focusing solely on local markets
• D) Expanding through mergers
Correct Option: A
Rationale: Glocalization refers to the practice of balancing global strategies with local
adaptations to meet specific market needs.
January/February 2026 | Global Business Management IB
(UNISA)
,Question 1:
What is the primary goal of international business?
• A) To establish domestic markets
• B) To expand into foreign markets
• C) To limit global competition
• D) To increase local employment
Correct Option: B
Rationale: The primary goal of international business is to expand into foreign markets,
allowing companies to benefit from new customer bases and opportunities.
Question 2:
Which of the following is a key advantage of globalization?
• A) Increased tariffs
• B) Access to a wider market
• C) Cultural homogenization
• D) Reduced competition
Correct Option: B
Rationale: Globalization provides access to a wider market, enabling businesses to
increase their sales and profits by reaching international consumers.
Question 3:
What is a key characteristic of multinational corporations (MNCs)?
• A) Operations in multiple countries
• B) Focus on a single domestic market
• C) Limited product offerings
• D) Emphasis on local partnerships
Correct Option: A
Rationale: Multinational corporations are defined by their operations in multiple
countries, which allows them to leverage resources and markets globally.
,Question 4:
What does the concept of 'cultural intelligence' refer to?
• A) Knowledge of foreign languages
• B) Understanding and adapting to different cultural contexts
• C) Ability to influence cultural trends
• D) Knowledge of international laws
Correct Option: B
Rationale: Cultural intelligence is the capability to understand and adjust to various
cultural contexts, crucial for success in global business environments.
Question 5:
Which strategy involves adapting products and marketing for specific local
markets?
• A) Global standardization
• B) Outsourcing
• C) Localization
• D) Market penetration
Correct Option: C
Rationale: Localization involves adapting products and marketing strategies to meet
the needs and preferences of specific local markets, enhancing customer satisfaction
and effectiveness.
Question 6:
Which trade agreement aims to reduce tariffs between member countries in North
America?
• A) EU
• B) NAFTA
• C) ASEAN
• D) WTO
Correct Option: B
Rationale: NAFTA (North American Free Trade Agreement) was designed to promote
trade between the U.S., Canada, and Mexico by reducing tariffs.
, Question 7:
What is a key benefit of joint ventures?
• A) Full control of operations
• B) Shared risk and investment
• C) Reduced competition
• D) Strict regulatory compliance
Correct Option: B
Rationale: Joint ventures allow companies to share risk and investment while
leveraging each other’s expertise and resources.
Question 8:
Which of the following is a common barrier to entry in global markets?
• A) Consumer preferences
• B) Tariffs and quotas
• C) Technological advancements
• D) Low labor costs
Correct Option: B
Rationale: Tariffs and quotas are significant barriers to entry that can hinder new
companies entering a market.
Question 9:
What is a 'glocalization' strategy?
• A) Combining global efficiency with local responsiveness
• B) Standardizing products across all markets
• C) Focusing solely on local markets
• D) Expanding through mergers
Correct Option: A
Rationale: Glocalization refers to the practice of balancing global strategies with local
adaptations to meet specific market needs.
