MGRADES
MBA Test UPDATED Exam Questions and
CORRECT Answers
____________ suggests that FDI, unrestricted by government intervention, will enable countries
to tap into their absolute or comparative advantages by specializing in the production of certain
goods or services.
a. The radical view
b. Pragmatic nationalism
c. The monopolistic view
d. The free-market view - CORRECT ANSWER - d. The free-market view
____________ refers to non-financial companies spreading out its activities in different currency
zones in order to offset the currency losses in certain regions through gains in other regions.
a. Currency swapping
b. Currency hedging.
c. Strategic hedging
d. Currency pegging - CORRECT ANSWER - c. Strategic hedging
Laws that make it illegal for an exporter to sell goods below cost abroad with the intent to raise
prices after eliminating local rivals are called ____________
laws.
a. collusion
b. anticartel
c.antidumping
d. antitrust - CORRECT ANSWER - c. antidumping
, MGRADES
Which of the following industry characteristics contributes to collusion?
a. Existence of many firms in the market
b. Low barriers to entry
c. Existence of an industry price leader
d. Lack of market commonality - CORRECT ANSWER - c. Existence of an industry
price leader
Which of the following is true of modes of entry?
a. Non-equity modes require the establishment of independent organizations overseas.
b.Non-equity modes are methods used to enter a market in the home country.
c.Equity modes do not require the establishment of independent organizations overseas.
d.Equity modes are indicative of relatively larger, harder-to-reverse commitments. - CORRECT
ANSWER - d.Equity modes are indicative of relatively larger, harder-to-reverse
commitments.
Which of the following entry modes is a type of strategic alliance?
a. Wholly owned subsidiary
b. Licensing
c. Export
d. Acquisition - CORRECT ANSWER - b. Licensing
The ________ theory is based on the assumption that the wealth of the
world is fixed.
a. strategic trade
b. mercantilism
MBA Test UPDATED Exam Questions and
CORRECT Answers
____________ suggests that FDI, unrestricted by government intervention, will enable countries
to tap into their absolute or comparative advantages by specializing in the production of certain
goods or services.
a. The radical view
b. Pragmatic nationalism
c. The monopolistic view
d. The free-market view - CORRECT ANSWER - d. The free-market view
____________ refers to non-financial companies spreading out its activities in different currency
zones in order to offset the currency losses in certain regions through gains in other regions.
a. Currency swapping
b. Currency hedging.
c. Strategic hedging
d. Currency pegging - CORRECT ANSWER - c. Strategic hedging
Laws that make it illegal for an exporter to sell goods below cost abroad with the intent to raise
prices after eliminating local rivals are called ____________
laws.
a. collusion
b. anticartel
c.antidumping
d. antitrust - CORRECT ANSWER - c. antidumping
, MGRADES
Which of the following industry characteristics contributes to collusion?
a. Existence of many firms in the market
b. Low barriers to entry
c. Existence of an industry price leader
d. Lack of market commonality - CORRECT ANSWER - c. Existence of an industry
price leader
Which of the following is true of modes of entry?
a. Non-equity modes require the establishment of independent organizations overseas.
b.Non-equity modes are methods used to enter a market in the home country.
c.Equity modes do not require the establishment of independent organizations overseas.
d.Equity modes are indicative of relatively larger, harder-to-reverse commitments. - CORRECT
ANSWER - d.Equity modes are indicative of relatively larger, harder-to-reverse
commitments.
Which of the following entry modes is a type of strategic alliance?
a. Wholly owned subsidiary
b. Licensing
c. Export
d. Acquisition - CORRECT ANSWER - b. Licensing
The ________ theory is based on the assumption that the wealth of the
world is fixed.
a. strategic trade
b. mercantilism
