INB 300 Exam 1 UNCW (Allen Patrick) – Study Guide, Practice Questions & Exam
Review
According to one of the three views of globalization, globalization is _____. - ANS ✔✔a process
similar to the swing of a pendulum
According to the Pendulum view on globalization, globalization is very recent and one-
directional. - ANS ✔✔False
Malt Hanks Inc., a leading American firm, starts its operations in China. It incurs a lot of
additional costs in comparison to the local firms. These costs originate in limited local
knowledge and local stakeholders' discriminatory attitudes. Which of the following best
describes the problem faced by Malt Hanks? - ANS ✔✔Liability of foreignness
LindaLoel Corp. extensively uses the technique of scenario planning. Scenario planning is the
identification and assessment of risks and the preparation to minimize the impact of high-risk,
unfortunate events. - ANS ✔✔False - Risk management
Which of the following is a reason that expats are often hired away by competitor firms? - ANS
✔✔The competitor firms are interested in globalizing their business by using expat expertise.
Which of the following statements is true of purchasing power parity (PPP)? - ANS ✔✔It is an
adjustment to reflect the differences in cost of living among different countries.
The goal of the CEO of the new East India Company was to unlock and strengthen the potential
value of the world's first multinational. - ANS ✔✔true
Which of the following is a difference between risk management and scenario planning? - ANS
✔✔Risk management is the identification and assessment of risks, whereas scenario planning is
a technique to prepare and plan for multiple situations.
, Which of the following statements is true of foreign direct investment? - ANS ✔✔It is the
process of investing in, controlling, and managing value-added activities in other countries.
Which of the following expression does the author use to describe globalization in the recent
times? - ANS ✔✔Total globalization
Which of the following statements is true of institutions? - ANS ✔✔They mean the formal and
informal rules of the game.
Individuals who make less than $2000 a year comprise the base of the pyramid (BoP). - ANS
✔✔true
Which of the following statements is true of the second tier of the global economy pyramid? -
ANS ✔✔It consists of a billion people making $2,000 to $20,000 a year.
George and John are both managers at Routen Plan Inc. based in Washington, but only George
receives a significant international premium compensation as he is an expatriate manager of
Routen Plan, Germany. - ANS ✔✔true
Formal institutions include culture, ethics, and values. - ANS ✔✔False - laws, regulations, rules
The _____ consists of North America, Western Europe, and Japan. - ANS ✔✔triad
The old East India Company is a household name because of its political abilities to leverage and
control the rules of the game around the world. - ANS ✔✔true
BRIC is an acronym for the emerging economies of _____. - ANS ✔✔Brazil, Russia, India, and
China
Review
According to one of the three views of globalization, globalization is _____. - ANS ✔✔a process
similar to the swing of a pendulum
According to the Pendulum view on globalization, globalization is very recent and one-
directional. - ANS ✔✔False
Malt Hanks Inc., a leading American firm, starts its operations in China. It incurs a lot of
additional costs in comparison to the local firms. These costs originate in limited local
knowledge and local stakeholders' discriminatory attitudes. Which of the following best
describes the problem faced by Malt Hanks? - ANS ✔✔Liability of foreignness
LindaLoel Corp. extensively uses the technique of scenario planning. Scenario planning is the
identification and assessment of risks and the preparation to minimize the impact of high-risk,
unfortunate events. - ANS ✔✔False - Risk management
Which of the following is a reason that expats are often hired away by competitor firms? - ANS
✔✔The competitor firms are interested in globalizing their business by using expat expertise.
Which of the following statements is true of purchasing power parity (PPP)? - ANS ✔✔It is an
adjustment to reflect the differences in cost of living among different countries.
The goal of the CEO of the new East India Company was to unlock and strengthen the potential
value of the world's first multinational. - ANS ✔✔true
Which of the following is a difference between risk management and scenario planning? - ANS
✔✔Risk management is the identification and assessment of risks, whereas scenario planning is
a technique to prepare and plan for multiple situations.
, Which of the following statements is true of foreign direct investment? - ANS ✔✔It is the
process of investing in, controlling, and managing value-added activities in other countries.
Which of the following expression does the author use to describe globalization in the recent
times? - ANS ✔✔Total globalization
Which of the following statements is true of institutions? - ANS ✔✔They mean the formal and
informal rules of the game.
Individuals who make less than $2000 a year comprise the base of the pyramid (BoP). - ANS
✔✔true
Which of the following statements is true of the second tier of the global economy pyramid? -
ANS ✔✔It consists of a billion people making $2,000 to $20,000 a year.
George and John are both managers at Routen Plan Inc. based in Washington, but only George
receives a significant international premium compensation as he is an expatriate manager of
Routen Plan, Germany. - ANS ✔✔true
Formal institutions include culture, ethics, and values. - ANS ✔✔False - laws, regulations, rules
The _____ consists of North America, Western Europe, and Japan. - ANS ✔✔triad
The old East India Company is a household name because of its political abilities to leverage and
control the rules of the game around the world. - ANS ✔✔true
BRIC is an acronym for the emerging economies of _____. - ANS ✔✔Brazil, Russia, India, and
China
