IBA STUDY GUIDE EXAM QUESTIONS
AND ALL CORRECT ANSWERS.
A ________ strategy is an approach to internationalization in which company headquarters provides
substantial independence to its country managers, allowing them to operate independently and pursue
local responsiveness. Ch.11 - Answer multi domestic
Global ________ is the process of bringing together an organization's value-chain activities across
different countries to realize global efficiency and synergy to benefit from similarities between countries.
Ch. 11 - Answer integration
Which of the following is the LEAST adversarial method of resolving a contractual dispute?
A. Trial
B. Conciliation
C. Arbitration
D. Litigation - Answer B. Conciliation
Which of the following identifies the reporting relationships in an organization? - Answer
Organizational structure
Which one of the following approaches affords significant independence and decision-making authority
to the firm's subsidiaries around the world? - Answer Decentralized structure
Which of the following legal systems is based on legal precedents and past practices set by the nation's
courts through interpretation of statutes, legislation, and past rulings? - Answer Common
_______ represents cost alterations that indicate the amount of products that customers are able to
purchase in their own country, using their own monetary system, in accordance with their standard of
living. - Answer Purchasing power parity
, An individual from a country with a high degree of political risk would most likely be from ________ -
Answer Iraq, United States
Governments impose offensive barriers to ________ - Answer pursue strategic or public policy
objectives such as increasing employment
T/F: Organizational culture refers to managerial routines, behaviors, and mechanisms that allow the firm
to function as intended. - Answer False
T/F: Socialism is based on a collectivist ideology which assumes that the collective welfare of people
outweighs the welfare of the individual. - Answer True
Both common law and civil law systems originated in _______ - Answer Western Europe
The ________ union is the level of regional integration that remains an ideal and is yet to be achieved. -
Answer political
Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home
country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The
government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The
local fabric manufacturer is lobbying the government to remove the quota on cotton.
Which of the following best supports maintaining the existing cotton quota? - Answer Zanzi cotton
growers are protected from cheaper cotton imports.
________ enables an MNE to accommodate various country-specific challenges and opportunities. -
Answer Flexibility
Common and Civil Law (Scenario)
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a
foreign country in order to lower labor and production costs. The legal department of Zane has raised
some issues regarding two countries that are the top contenders for the new facility. The legal system of
Country A is based on civil law, while the legal system of Country B is based on common law. Other than
the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must
determine which system would be the most beneficial to Zane in the long-term.
AND ALL CORRECT ANSWERS.
A ________ strategy is an approach to internationalization in which company headquarters provides
substantial independence to its country managers, allowing them to operate independently and pursue
local responsiveness. Ch.11 - Answer multi domestic
Global ________ is the process of bringing together an organization's value-chain activities across
different countries to realize global efficiency and synergy to benefit from similarities between countries.
Ch. 11 - Answer integration
Which of the following is the LEAST adversarial method of resolving a contractual dispute?
A. Trial
B. Conciliation
C. Arbitration
D. Litigation - Answer B. Conciliation
Which of the following identifies the reporting relationships in an organization? - Answer
Organizational structure
Which one of the following approaches affords significant independence and decision-making authority
to the firm's subsidiaries around the world? - Answer Decentralized structure
Which of the following legal systems is based on legal precedents and past practices set by the nation's
courts through interpretation of statutes, legislation, and past rulings? - Answer Common
_______ represents cost alterations that indicate the amount of products that customers are able to
purchase in their own country, using their own monetary system, in accordance with their standard of
living. - Answer Purchasing power parity
, An individual from a country with a high degree of political risk would most likely be from ________ -
Answer Iraq, United States
Governments impose offensive barriers to ________ - Answer pursue strategic or public policy
objectives such as increasing employment
T/F: Organizational culture refers to managerial routines, behaviors, and mechanisms that allow the firm
to function as intended. - Answer False
T/F: Socialism is based on a collectivist ideology which assumes that the collective welfare of people
outweighs the welfare of the individual. - Answer True
Both common law and civil law systems originated in _______ - Answer Western Europe
The ________ union is the level of regional integration that remains an ideal and is yet to be achieved. -
Answer political
Cotton growers in the nation of Zanzi export nearly 700,000 bales of cotton every year. Zanzi is the home
country for a fabric manufacturing facility that exports high-quality cotton fabric around the world. The
government imposed a quota of 1 million bales of cotton that can be imported into Zanzi every year. The
local fabric manufacturer is lobbying the government to remove the quota on cotton.
Which of the following best supports maintaining the existing cotton quota? - Answer Zanzi cotton
growers are protected from cheaper cotton imports.
________ enables an MNE to accommodate various country-specific challenges and opportunities. -
Answer Flexibility
Common and Civil Law (Scenario)
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a
foreign country in order to lower labor and production costs. The legal department of Zane has raised
some issues regarding two countries that are the top contenders for the new facility. The legal system of
Country A is based on civil law, while the legal system of Country B is based on common law. Other than
the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must
determine which system would be the most beneficial to Zane in the long-term.
