INB 300 Exam 1 Questions with Correct Answers Graded A+
Paula recently acted as a whistleblower. Although she had a high paying management job at a
banking firm, she contacted the authorities and reported corruption. This is an example of: -
Answers The cognitive pillar overpowering the normative pillar
Even in developed economies, formal rules make up the largest part of institutional constraints,
and informal constraints are less pervasive. - Answers false
MaltHanks 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 MaltHanks? - Answers Liability of foreignness
_____ is the inherent disadvantage that firms from other countries experience in host countries
because of their nonnative status. - Answers Liability of foreignness
BRIC is an acronym for the emerging economies of _____. - Answers Brazil, Russia, India, and
China
Formal institutions include culture, ethics, and values. - Answers false
According to one of the three views of globalization, globalization is _____. - Answers a process
similar to the swing of a pendulum
Which of the following statements is true of foreign direct investment? - Answers It is the
process of investing in, controlling, and managing value-added activities in other countries.
The _____ consists of North America, Western Europe, and Japan. - Answers Triad
Which of the following statements is true of institutions? - Answers They mean the formal and
informal rules of the game.
Which of the following statements is true of the base of the pyramid? - Answers It is ignored by
most of the multinational enterprises.
If the largest MNE, Walmart, were an independent country, it would be the 27th largest economy
in the world. - Answers true
Which of the following statements is true of institutions? - Answers They are not static.
India is a democracy as its citizens elect representatives to govern the country on their behalf. -
Answers true
Which of the following statements is true of piracy? - Answers It is the unauthorized use of
intellectual property rights.
Paula recently acted as a whistleblower. Although she had a high paying management job at a
banking firm, she contacted the authorities and reported corruption. This is an example of: -
Answers The cognitive pillar overpowering the normative pillar
Even in developed economies, formal rules make up the largest part of institutional constraints,
and informal constraints are less pervasive. - Answers false
MaltHanks 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 MaltHanks? - Answers Liability of foreignness
_____ is the inherent disadvantage that firms from other countries experience in host countries
because of their nonnative status. - Answers Liability of foreignness
BRIC is an acronym for the emerging economies of _____. - Answers Brazil, Russia, India, and
China
Formal institutions include culture, ethics, and values. - Answers false
According to one of the three views of globalization, globalization is _____. - Answers a process
similar to the swing of a pendulum
Which of the following statements is true of foreign direct investment? - Answers It is the
process of investing in, controlling, and managing value-added activities in other countries.
The _____ consists of North America, Western Europe, and Japan. - Answers Triad
Which of the following statements is true of institutions? - Answers They mean the formal and
informal rules of the game.
Which of the following statements is true of the base of the pyramid? - Answers It is ignored by
most of the multinational enterprises.
If the largest MNE, Walmart, were an independent country, it would be the 27th largest economy
in the world. - Answers true
Which of the following statements is true of institutions? - Answers They are not static.
India is a democracy as its citizens elect representatives to govern the country on their behalf. -
Answers true
Which of the following statements is true of piracy? - Answers It is the unauthorized use of
intellectual property rights.
