GLOBUS 201 FINAL EXAM STUDY GUIDE:
INTERNATIONAL BUSINESS & GLOBAL STRATEGY
COMPREHENSIVE ASSESSMENT WITH PRACTICE
QUESTIONS AND ANSWERS
SECTION A: MULTIPLE CHOICE QUESTIONS (Questions 1-100)
Instructions: Select the best answer from the options provided. Each question carries 2
marks.
1. The Globus simulation primarily focuses on which aspect of international business?
A) Domestic market expansion
B) Global strategic management
C) Local supply chain optimization
D) Regional marketing only
Answer: B) Global strategic management
Rationale: The Globus simulation is designed to help students understand the complexities
of managing a multinational corporation across different countries and regions, focusing on
strategic decision-making at the global level.
2. In the Globus simulation, how many geographic regions are available for market entry?
A) 3
B) 4
C) 5
D) 6
Answer: C) 5
Rationale: The Globus simulation includes five geographic regions: North America, Europe-
,Africa, Asia-Pacific, Latin America, and a fifth region that varies depending on the
simulation version, allowing companies to compete globally.
3. Which of the following is NOT a key performance indicator in the Globus simulation?
A) Earnings per share
B) Return on equity
C) Customer satisfaction index
D) Employee turnover rate
Answer: D) Employee turnover rate
Rationale: While employee turnover is important in real business, Globus focuses on
financial metrics like EPS, ROE, and customer satisfaction rather than HR-specific metrics.
4. The concept of "competitive advantage" in Globus is primarily achieved through:
A) Cost leadership only
B) Product differentiation only
C) Both cost leadership and differentiation
D) Market monopolization
Answer: C) Both cost leadership and differentiation
Rationale: In Globus, companies can compete through cost leadership by offering lower
prices or through differentiation by offering superior product quality and features.
5. What is the primary currency used for financial reporting in the Globus simulation?
A) US Dollar
B) Euro
C) Local currency of each region
D) A basket of currencies
Answer: A) US Dollar
Rationale: All financial statements and performance metrics in Globus are reported in US
Dollars to standardize comparisons across regions and companies.
6. Exchange rate fluctuations in the Globus simulation affect:
,A) Only import costs
B) Only export revenues
C) Both import costs and export revenues
D) Neither imports nor exports
Answer: C) Both import costs and export revenues
Rationale: Exchange rates affect all international transactions, including the cost of
imported goods and the revenue from exports, impacting overall profitability.
7. The "balanced scorecard" approach in Globus evaluates performance based on:
A) Financial metrics only
B) Customer and internal processes only
C) Financial, customer, internal, and learning perspectives
D) Market share only
Answer: C) Financial, customer, internal, and learning perspectives
Rationale: Globus uses a balanced scorecard approach to provide a comprehensive view
of company performance across multiple dimensions.
8. In the Globus simulation, research and development investments primarily impact:
A) Product quality
B) Employee satisfaction
C) Marketing effectiveness
D) Supply chain efficiency
Answer: A) Product quality
Rationale: R&D investments in Globus are directly linked to product quality improvements,
which in turn affect customer satisfaction and competitive positioning.
9. The "PESTEL" framework in international business includes all EXCEPT:
A) Political factors
B) Economic factors
C) Social factors
D) Production factors
, Answer: D) Production factors
Rationale: PESTEL stands for Political, Economic, Social, Technological, Environmental,
and Legal factors. Production factors are not part of this framework.
10. Market share in the Globus simulation is determined by:
A) Price only
B) Quality only
C) Price, quality, and marketing efforts
D) Random factors
Answer: C) Price, quality, and marketing efforts
Rationale: Market share is a function of multiple variables including price competitiveness,
product quality, and marketing effectiveness in each region.
11. The concept of "global strategy" in international business refers to:
A) Selling products in multiple countries
B) Coordinating operations across countries to achieve competitive advantage
C) Outsourcing production to low-cost countries
D) Focusing only on domestic markets
Answer: B) Coordinating operations across countries to achieve competitive
advantage
Rationale: Global strategy involves integrating and coordinating activities across different
countries to create synergies and achieve competitive advantage.
12. In Globus, the "CORE" strategy stands for:
A) Cost, Operations, Revenue, Efficiency
B) Competitive, Organizational, Regional, Enterprise
C) Cost, Quality, Responsiveness, Efficiency
D) Customer, Operations, Resources, Environment
Answer: A) Cost, Operations, Revenue, Efficiency
Rationale: CORE strategy in Globus represents the fundamental pillars of business
strategy: Cost management, Operations optimization, Revenue generation, and Efficiency
improvement.
INTERNATIONAL BUSINESS & GLOBAL STRATEGY
COMPREHENSIVE ASSESSMENT WITH PRACTICE
QUESTIONS AND ANSWERS
SECTION A: MULTIPLE CHOICE QUESTIONS (Questions 1-100)
Instructions: Select the best answer from the options provided. Each question carries 2
marks.
1. The Globus simulation primarily focuses on which aspect of international business?
A) Domestic market expansion
B) Global strategic management
C) Local supply chain optimization
D) Regional marketing only
Answer: B) Global strategic management
Rationale: The Globus simulation is designed to help students understand the complexities
of managing a multinational corporation across different countries and regions, focusing on
strategic decision-making at the global level.
2. In the Globus simulation, how many geographic regions are available for market entry?
A) 3
B) 4
C) 5
D) 6
Answer: C) 5
Rationale: The Globus simulation includes five geographic regions: North America, Europe-
,Africa, Asia-Pacific, Latin America, and a fifth region that varies depending on the
simulation version, allowing companies to compete globally.
3. Which of the following is NOT a key performance indicator in the Globus simulation?
A) Earnings per share
B) Return on equity
C) Customer satisfaction index
D) Employee turnover rate
Answer: D) Employee turnover rate
Rationale: While employee turnover is important in real business, Globus focuses on
financial metrics like EPS, ROE, and customer satisfaction rather than HR-specific metrics.
4. The concept of "competitive advantage" in Globus is primarily achieved through:
A) Cost leadership only
B) Product differentiation only
C) Both cost leadership and differentiation
D) Market monopolization
Answer: C) Both cost leadership and differentiation
Rationale: In Globus, companies can compete through cost leadership by offering lower
prices or through differentiation by offering superior product quality and features.
5. What is the primary currency used for financial reporting in the Globus simulation?
A) US Dollar
B) Euro
C) Local currency of each region
D) A basket of currencies
Answer: A) US Dollar
Rationale: All financial statements and performance metrics in Globus are reported in US
Dollars to standardize comparisons across regions and companies.
6. Exchange rate fluctuations in the Globus simulation affect:
,A) Only import costs
B) Only export revenues
C) Both import costs and export revenues
D) Neither imports nor exports
Answer: C) Both import costs and export revenues
Rationale: Exchange rates affect all international transactions, including the cost of
imported goods and the revenue from exports, impacting overall profitability.
7. The "balanced scorecard" approach in Globus evaluates performance based on:
A) Financial metrics only
B) Customer and internal processes only
C) Financial, customer, internal, and learning perspectives
D) Market share only
Answer: C) Financial, customer, internal, and learning perspectives
Rationale: Globus uses a balanced scorecard approach to provide a comprehensive view
of company performance across multiple dimensions.
8. In the Globus simulation, research and development investments primarily impact:
A) Product quality
B) Employee satisfaction
C) Marketing effectiveness
D) Supply chain efficiency
Answer: A) Product quality
Rationale: R&D investments in Globus are directly linked to product quality improvements,
which in turn affect customer satisfaction and competitive positioning.
9. The "PESTEL" framework in international business includes all EXCEPT:
A) Political factors
B) Economic factors
C) Social factors
D) Production factors
, Answer: D) Production factors
Rationale: PESTEL stands for Political, Economic, Social, Technological, Environmental,
and Legal factors. Production factors are not part of this framework.
10. Market share in the Globus simulation is determined by:
A) Price only
B) Quality only
C) Price, quality, and marketing efforts
D) Random factors
Answer: C) Price, quality, and marketing efforts
Rationale: Market share is a function of multiple variables including price competitiveness,
product quality, and marketing effectiveness in each region.
11. The concept of "global strategy" in international business refers to:
A) Selling products in multiple countries
B) Coordinating operations across countries to achieve competitive advantage
C) Outsourcing production to low-cost countries
D) Focusing only on domestic markets
Answer: B) Coordinating operations across countries to achieve competitive
advantage
Rationale: Global strategy involves integrating and coordinating activities across different
countries to create synergies and achieve competitive advantage.
12. In Globus, the "CORE" strategy stands for:
A) Cost, Operations, Revenue, Efficiency
B) Competitive, Organizational, Regional, Enterprise
C) Cost, Quality, Responsiveness, Efficiency
D) Customer, Operations, Resources, Environment
Answer: A) Cost, Operations, Revenue, Efficiency
Rationale: CORE strategy in Globus represents the fundamental pillars of business
strategy: Cost management, Operations optimization, Revenue generation, and Efficiency
improvement.
