D080 BUS 2070
Managing in a Global Business Environment
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following best describes "glocalization" in a
business context?
- A) Standardizing products across all global markets.
- B) Adapting global products for local markets.
- C) Focusing solely on domestic markets.
- D) Removing all local influences from global products.
©2024/2025
, ANS: B) Adapting global products for local markets.
Rationale: Glocalization refers to creating a product or
service that is developed and distributed globally, but also
adjusted to accommodate the consumer in a local market.
2. What is a primary characteristic of a transnational
corporation?
- A) Centralized management in the home country.
- B) Separate divisions acting independently in respective
countries.
- C) Complex structure where no single country dominates.
- D) Focus solely on export strategies.
ANS: C) Complex structure where no single country
dominates.
Rationale: Transnational companies operate across borders
with a decentralized approach, facilitating an integrated global
strategy.
3. Which cultural dimension of Hofstede’s model relates to the
tolerance of ambiguity and uncertainty in a society?
- A) Power Distance
©2024/2025
, - B) Individualism
- C) Masculinity
- D) Uncertainty Avoidance
ANS: D) Uncertainty Avoidance.
Rationale: This dimension measures how much members of a
society feel uncomfortable with uncertainty and ambiguity.
4. Which trade theory suggests that total world output increases
when countries specialize in the production of goods for which
they have an absolute advantage?
- A) Mercantilism
- B) Absolute advantage
- C) Comparative advantage
- D) Product life cycle theory
ANS: B) Absolute advantage.
Rationale: This theory, introduced by Adam Smith, states
that countries should specialize in producing goods they can
produce more efficiently.
©2024/2025
Managing in a Global Business Environment
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following best describes "glocalization" in a
business context?
- A) Standardizing products across all global markets.
- B) Adapting global products for local markets.
- C) Focusing solely on domestic markets.
- D) Removing all local influences from global products.
©2024/2025
, ANS: B) Adapting global products for local markets.
Rationale: Glocalization refers to creating a product or
service that is developed and distributed globally, but also
adjusted to accommodate the consumer in a local market.
2. What is a primary characteristic of a transnational
corporation?
- A) Centralized management in the home country.
- B) Separate divisions acting independently in respective
countries.
- C) Complex structure where no single country dominates.
- D) Focus solely on export strategies.
ANS: C) Complex structure where no single country
dominates.
Rationale: Transnational companies operate across borders
with a decentralized approach, facilitating an integrated global
strategy.
3. Which cultural dimension of Hofstede’s model relates to the
tolerance of ambiguity and uncertainty in a society?
- A) Power Distance
©2024/2025
, - B) Individualism
- C) Masculinity
- D) Uncertainty Avoidance
ANS: D) Uncertainty Avoidance.
Rationale: This dimension measures how much members of a
society feel uncomfortable with uncertainty and ambiguity.
4. Which trade theory suggests that total world output increases
when countries specialize in the production of goods for which
they have an absolute advantage?
- A) Mercantilism
- B) Absolute advantage
- C) Comparative advantage
- D) Product life cycle theory
ANS: B) Absolute advantage.
Rationale: This theory, introduced by Adam Smith, states
that countries should specialize in producing goods they can
produce more efficiently.
©2024/2025
