MNB3701 ASSIGNMENT 6 STUDY GUIDE 2026
COMPLETE SOLUTIONS AND ANSWERS || 100%
GUARANTEED PASS <RECENT VERSION>
1. What is the primary distinction between international business and
domestic business?
a) The use of different currencies.
b) The scope of operations across national borders.
c) The need for multilingual staff.
d) The complexity of marketing strategies.
2. Which of the following is NOT a key driver of globalization?
a) Technological innovation.
b) Declining trade and investment barriers.
c) Growing consumer preferences for local products.
d) The integration of global financial markets.
3. The PESTEL analytical framework is used to analyze the:
a) Internal strengths of a corporation.
b) Five forces of industry competition.
c) Macro-environmental forces.
d) Financial viability of a project.
4. A country with a high Gross National Income (GNI) but a small population
is likely to have:
a) A low GDP.
b) A low standard of living.
c) A high GNI per capita.
d) A large informal economy.
5. The "liability of foreignness" refers to the:
a) Legal taxes a firm must pay in a host country.
b) Competitive disadvantage faced by foreign firms.
c) Cost of translating documents into another language.
d) Risk of currency fluctuation.
, 6. Which internationalization theory suggests firms internationalize
incrementally as they gain market knowledge?
a) The Eclectic Paradigm.
b) The Uppsala Model.
c) The Diamond Model.
d) The Product Life Cycle Theory.
7. According to Dunning's Eclectic Paradigm (OLI Framework), a firm needs
all of the following to engage in Foreign Direct Investment (FDI) EXCEPT:
a) Ownership-specific advantages.
b) Location-specific advantages.
c) Internalization advantages.
d) Government-specific advantages.
8. Political risk in an international context can be best defined as:
a) The risk of a change in government.
b) The likelihood that political forces will cause drastic changes in a country's
business environment.
c) The risk of war breaking out.
d) The instability of a country's currency.
9. A legal system based on religious teachings is known as a:
a) Common law system.
b) Civil law system.
c) Theocratic law system.
d) Traditional law system.
10. Corruption, as measured by Transparency International's Corruption
Perceptions Index, is:
a) The same in every developing country.
b) A minor inconvenience for large multinationals.
c) A significant risk that increases the cost of doing business.
d) Only prevalent in the public sector.
11. A culture with high power distance is characterized by:
a) The acceptance of wide inequalities in power.
COMPLETE SOLUTIONS AND ANSWERS || 100%
GUARANTEED PASS <RECENT VERSION>
1. What is the primary distinction between international business and
domestic business?
a) The use of different currencies.
b) The scope of operations across national borders.
c) The need for multilingual staff.
d) The complexity of marketing strategies.
2. Which of the following is NOT a key driver of globalization?
a) Technological innovation.
b) Declining trade and investment barriers.
c) Growing consumer preferences for local products.
d) The integration of global financial markets.
3. The PESTEL analytical framework is used to analyze the:
a) Internal strengths of a corporation.
b) Five forces of industry competition.
c) Macro-environmental forces.
d) Financial viability of a project.
4. A country with a high Gross National Income (GNI) but a small population
is likely to have:
a) A low GDP.
b) A low standard of living.
c) A high GNI per capita.
d) A large informal economy.
5. The "liability of foreignness" refers to the:
a) Legal taxes a firm must pay in a host country.
b) Competitive disadvantage faced by foreign firms.
c) Cost of translating documents into another language.
d) Risk of currency fluctuation.
, 6. Which internationalization theory suggests firms internationalize
incrementally as they gain market knowledge?
a) The Eclectic Paradigm.
b) The Uppsala Model.
c) The Diamond Model.
d) The Product Life Cycle Theory.
7. According to Dunning's Eclectic Paradigm (OLI Framework), a firm needs
all of the following to engage in Foreign Direct Investment (FDI) EXCEPT:
a) Ownership-specific advantages.
b) Location-specific advantages.
c) Internalization advantages.
d) Government-specific advantages.
8. Political risk in an international context can be best defined as:
a) The risk of a change in government.
b) The likelihood that political forces will cause drastic changes in a country's
business environment.
c) The risk of war breaking out.
d) The instability of a country's currency.
9. A legal system based on religious teachings is known as a:
a) Common law system.
b) Civil law system.
c) Theocratic law system.
d) Traditional law system.
10. Corruption, as measured by Transparency International's Corruption
Perceptions Index, is:
a) The same in every developing country.
b) A minor inconvenience for large multinationals.
c) A significant risk that increases the cost of doing business.
d) Only prevalent in the public sector.
11. A culture with high power distance is characterized by:
a) The acceptance of wide inequalities in power.
