INB 300 Exam Questions and Answers Already Passed
Global economic integration refers to efforts to reduce trade and investment barriers around the
globe. - Answers True
Which of the following improvements resulted after the establishment of the General
Agreement on Tariffs and Trade (GATT)? - Answers Trade growth consistently outpaced the
gross domestic product (GDP) growth.
Which of the following statements is true of greenfield operations? - Answers They suffer from
a slow entry speed of at least one to several years.
Last movers will build precious relationships with key stakeholders such as customers and
governments. - Answers False
Which of the following is a disadvantage of regional economic integration? - Answers It may
result in some loss of sovereignty in an economic dimension.
Flarring Corp. is a well-known company that manufactures spare parts for automobiles. The
company, based in Boston, expanded by entering the market of Nerodo. Even after 12 years of
marketing in Nerodo, the company is on the verge of failure. In this case, which of the following
factors could lead to the failure of Flarring Corp. in Nerodo? - Answers Formal rules that are
favorable to local firms
Which of the following is a difference between the General Agreement on Tariffs and Trade
(GATT) and the World Trade Organization (WTO)? - Answers The GATT does not cover
Intellectual Property (IP) protection, whereas the WTO includes IP protection.
Which of the following statements is true of research and development (R&D) contracts? -
Answers They are difficult to negotiate and enforce.
North American Free Trade Agreement (NAFTA) is a free trade agreement (FTA) among Canada,
Mexico, and the United States. - Answers true
Which of the following is a formal barrier to trade when foreign firms enter new markets? -
Answers Currency risk
Which of the following statements is true of late movers? - Answers They may be able to free
ride on the huge pioneering investments of first movers.
To overcome cultural and institutional differences, it is more important to consider strategic
goals such as market and efficiency rather than culture and institutions. - Answers true
Which of the following is a difference between first movers and late movers? - Answers First
movers face greater technological and market uncertainties, whereas late movers take
advantage of the solutions of the first movers.
, _____ is a non-equity mode of entry into a foreign market. - Answers Turnkey project
A greenfield operation refers to: - Answers building new factories and offices from scratch.
In comparison with the General Agreement on Tariffs and Trade (GATT), which of the following
statements is true of the World Trade Organization (WTO)? - Answers The World Trade
Organization (WTO) includes effective trade dispute settlement mechanism.
The _____, signed in 2007 and enacted in 2009, amended the Maastricht Treaty that served as a
constitutional basis for the European Union (EU). - Answers Lisbon Treaty
Dubai attracts numerous foreign entrants to engage in international business. It is an ideal
stopping point for air traffic between Europe and Asia, and between Africa and Asia. Which of
the following advantages has Dubai honed to attract foreign business? - Answers Location-
specific advantage
The North West Trading Zone (NWTZ) is a free trade area comprising eleven countries in the
Moresian continent. The member countries of this free trade area use different currencies. In
addition to imposing common external policies, the NWTZ permits the free movement of goods
and people. In this case, the NWTZ is a _____. - Answers common market
The region consisting of eighteen European countries using a common currency is called the
_____. - Answers euro zone
_____ has been developing because Asia-Pacific Economic Cooperation (APEC) is too big and
too difficult to get anything meaningful done. - Answers Trans-Pacific Partnership (TPP)
In the context of entering into foreign business, firms with a strategic goal to seek market
should select economies of scale and abundance of low-cost factors. - Answers false
To be successful in internationalization, managers need to understand the rules of the game,
both formal and informal, governing competition in foreign markets. - Answers true
According to the stage model, firms will enter culturally different countries during their first
stage of internationalization and will then gain more confidence to enter culturally similar
countries in later stages. - Answers false
The North Symorian Trade Confederate (NSTC) was established to promote regional economic
integration within six countries belonging to the same subcontinent. This free trade area has
imposed common external policies on nonparticipants. In this case, NSTC is a _____. - Answers
customs union
Which of the following is true of a multinational enterprise (MNE)? - Answers A firm that enters
foreign market via foreign direct investment (FDI)
Which of the following is an economic benefit of global economic integration? - Answers It
Global economic integration refers to efforts to reduce trade and investment barriers around the
globe. - Answers True
Which of the following improvements resulted after the establishment of the General
Agreement on Tariffs and Trade (GATT)? - Answers Trade growth consistently outpaced the
gross domestic product (GDP) growth.
Which of the following statements is true of greenfield operations? - Answers They suffer from
a slow entry speed of at least one to several years.
Last movers will build precious relationships with key stakeholders such as customers and
governments. - Answers False
Which of the following is a disadvantage of regional economic integration? - Answers It may
result in some loss of sovereignty in an economic dimension.
Flarring Corp. is a well-known company that manufactures spare parts for automobiles. The
company, based in Boston, expanded by entering the market of Nerodo. Even after 12 years of
marketing in Nerodo, the company is on the verge of failure. In this case, which of the following
factors could lead to the failure of Flarring Corp. in Nerodo? - Answers Formal rules that are
favorable to local firms
Which of the following is a difference between the General Agreement on Tariffs and Trade
(GATT) and the World Trade Organization (WTO)? - Answers The GATT does not cover
Intellectual Property (IP) protection, whereas the WTO includes IP protection.
Which of the following statements is true of research and development (R&D) contracts? -
Answers They are difficult to negotiate and enforce.
North American Free Trade Agreement (NAFTA) is a free trade agreement (FTA) among Canada,
Mexico, and the United States. - Answers true
Which of the following is a formal barrier to trade when foreign firms enter new markets? -
Answers Currency risk
Which of the following statements is true of late movers? - Answers They may be able to free
ride on the huge pioneering investments of first movers.
To overcome cultural and institutional differences, it is more important to consider strategic
goals such as market and efficiency rather than culture and institutions. - Answers true
Which of the following is a difference between first movers and late movers? - Answers First
movers face greater technological and market uncertainties, whereas late movers take
advantage of the solutions of the first movers.
, _____ is a non-equity mode of entry into a foreign market. - Answers Turnkey project
A greenfield operation refers to: - Answers building new factories and offices from scratch.
In comparison with the General Agreement on Tariffs and Trade (GATT), which of the following
statements is true of the World Trade Organization (WTO)? - Answers The World Trade
Organization (WTO) includes effective trade dispute settlement mechanism.
The _____, signed in 2007 and enacted in 2009, amended the Maastricht Treaty that served as a
constitutional basis for the European Union (EU). - Answers Lisbon Treaty
Dubai attracts numerous foreign entrants to engage in international business. It is an ideal
stopping point for air traffic between Europe and Asia, and between Africa and Asia. Which of
the following advantages has Dubai honed to attract foreign business? - Answers Location-
specific advantage
The North West Trading Zone (NWTZ) is a free trade area comprising eleven countries in the
Moresian continent. The member countries of this free trade area use different currencies. In
addition to imposing common external policies, the NWTZ permits the free movement of goods
and people. In this case, the NWTZ is a _____. - Answers common market
The region consisting of eighteen European countries using a common currency is called the
_____. - Answers euro zone
_____ has been developing because Asia-Pacific Economic Cooperation (APEC) is too big and
too difficult to get anything meaningful done. - Answers Trans-Pacific Partnership (TPP)
In the context of entering into foreign business, firms with a strategic goal to seek market
should select economies of scale and abundance of low-cost factors. - Answers false
To be successful in internationalization, managers need to understand the rules of the game,
both formal and informal, governing competition in foreign markets. - Answers true
According to the stage model, firms will enter culturally different countries during their first
stage of internationalization and will then gain more confidence to enter culturally similar
countries in later stages. - Answers false
The North Symorian Trade Confederate (NSTC) was established to promote regional economic
integration within six countries belonging to the same subcontinent. This free trade area has
imposed common external policies on nonparticipants. In this case, NSTC is a _____. - Answers
customs union
Which of the following is true of a multinational enterprise (MNE)? - Answers A firm that enters
foreign market via foreign direct investment (FDI)
Which of the following is an economic benefit of global economic integration? - Answers It
