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WorksheetsFM3A: SEMI FINALS
Total questions: 40
Worksheet time: 3600secs
What term refers to the broadening set of interdependent relationships among people from different parts of the world?
Offshoring
Franchising
Globalization
Localization
Which business strategy focuses on achieving low costs on a global scale, often selling a standardized product worldwide?
Localization Strategy
Transnational Strategy
Global Strategy
Multidomestic Strategy
A company that customizes its products and marketing strategy to meet the needs of specific national markets is most likely using which strategy?
Global Strategy
Transnational Strategy
Standardization Strategy
Multidomestic Strategy
The organizational structure that groups employees by specialized tasks such as marketing, R&D, and finance is the:
Divisional Structure
Geographic Structure
Functional Structure
Matrix Structure
A mechanistic structure is typically best suited for a business operating in which type of environment?
Rapidly changing environemnt
Stable and predictable environment
Creative and innovative environment
Highly complex environment
Which of the following is generally considered a driver of globalization?
High trade barriers and tariffs
Technological advancements in communication
The fragmentation of consumer tastes between countries
Weak international competition
Which mode of entry into a foreign market involves the least risk and allows for quick entry?
Joint Venture
Exporting
Foreign Direct Investment (FDI)
Wholly-Owned Subsidiary
What is the main advantage of entering a foreign market through licensing?
Very high cost of entry
Slow speed of entry due to setup time
Less control over the foreign firm's operationa
Need to integrate two corporate cultures
When a domestic manufacturer gives a foreign firm the right to use its patent, trademark, and know-how for a gee, this is known as:
Franchising
Contract Manufacturing
Joint Venture
Licensing
A mode of entry where two or more independent firms create a new, legally separate business entity is called a:
Merger
Acquisition
Strategic Alliance
Joint Venture
Which entry mode permits the greatest degree of control over overseas operations for the parent company?
Franchising
Licensing
Wholly-Owned Subsidiary
Exporting
When a firm in a developed country hires a manufacturer in a developing country to produce its products, this is an example of:
Exporting
Contract Manufacturing
Franchising
Turnkey Project
Buying a company that is already operating in a foreign country is known as:
Greenfield Investment
Licensing
Acquisition
Turnkey Project
The entry strategy that involves setting up entirely new operations in a foreign country is called a:
Acquisition
Joint Venture
Greenfield Investment
Strategic Alliance
Which entry mode typically requires the most capital investment and carries the highest level of risk?
Licensing
Exporting
Foreign Direct Investment (FDI)
Franchising
Which of the following entry mode is often preferred when the host country's laws discourage foreign ownership?
Wholly-Owned Subsidiary
Joint Ownership
Exporting
Acquisition
A strategic alliance differs from a joint venture because a strategic alliance:
Always involves the creation of a new, separate legal entity
Is les formal and does not necessarily create a new entity
Only involves sharing technology, not marketing
Is always an alternative to licensing
According to the Uppsala model for internalization, firms typically enter which type of market first?
Faraway markets with high market commitment
Nearby markets with low market commitment
Markets with high political risk
Markets that require a wholly-owned subsidiary
The main challenge of implementing a Transnational Strategy?
Achieving worldwide responsiveness without any cost savings
Managing the complexity of balancing global integration and local responsiveness simultaneously
Being unable to transfer core competencies between different national units
Focusing too heavily on cost reduction at the expense of quality
Which key characteristic defines a Matrix Structure in an international business organization?
Employees report to only one boss, who is always a country manager
It is designed to maximize global efficiency with minimal local responsiveness
Employees have dual reporting relationships
Decision-making is exclusively centralized at the corporate headquarters
In the case of Kenya, what was one major institutional challenge faced in fulfilling its WTO commitments?
Over-reliance on imports from developed countries
Lack of effective mechanisms for coordination and consultation among stakeholders
Excessive foreign investment inflows
Strict enforcement of intellectual property laws
Kenya was a signatory to which of the following agreements under WTO?
GATT and TRIPS only
GATT, the Agreement on Agriculture, General Agreement on Trade in Services, the Agreement on Textiles and Clothing and TRIPS
Only GATS and AOA
None of them
Why did the authors of the Argentina case consider Argentina's GATS commitments comparatively "generous"?
Because Argentina committed to fewer service sectors
Because commitments were limited only to domestic firms
Because the service sectors offered under GATS reflected major policy reforms Argentina wanted to lock in during a period of economic change
Because Argentina was exempt from most-favored nation obligations
Which of the following best describes the function of the Shanghai WTO Affairs Consultation Center?
To impose tariffs on imports to Shanghai
To provide legal, policy advice and training on WTO affairs to government, enterprises and public institutions in Shanghai
To promote only agricultural exports from Shanghai
To monitor immigration to Shanghai
What triggered the creation of an early-warning system for anti-dumping disputes in China?
Decline in China's exports
Frequent anti-dumping investigations against Chinese exporters by other countries after China's accession to WTO
Domestic demand for protectionism
Inflation in Chinese market
Which of the following was NOT one of the main services offered by the Shanghai Centre?
Training programs on WTO affairs
Monitoring and early-warning of trade remedy measures
Enforcement of customs tariffs on behalf of enterprises
Research on WTO-related issues
Why was stakeholder participation important for Kenya's WTO policy-making?
Because trade matters are simple and no coordination was needed
Because trade issues are complex and overlap with many sectors, thus influencing many stakeholders-broad participation helps ensure policies consider diverse interests
Because the WTO requires every citizen to vote on trade agreements
Because Kenya had too many exporting industries
What was a concrete outcome after the Shanghai Center intervened in the license plate auctioning scheme for imported vs domestic cars in Shanghai?
The system remained discriminatory
Imported cars were banned from auction
There was no floor price for imported cars and equal treatment in number of auction plates for domestic and imported cars
Domestic cars become more expensive
Which sector is mentioned as having high commitment under Argentina's GATS offer, making it vulnerable to regulatory challenges?
Agricullture
Manufacturing
Financial services
Mining
Which of the following reflects a lesson from Kenya's WTO experience?
Joining the WTO automatically ensures export success
Domestic capacity and coordination mechanisms matter greatly to benefit from WTO membership
Stakeholders should be excluded from WTO policy formulation
Services sector commitments are more important than goods sector
Which of these best describes the motivation behind establishing the Shanghai Center in 2000?
To promote Shanghai as a tourist destination
To prepare for China's WTO accession by building domestic capacity in trade law and policy adaptation
To restrict foreign trade in Shanghai
To compete with other Asian port cities
The early warning system launched by the Shanghai Center covered all Chinese export goods immediately after its first prototype?
TRUE
FALSE
The Statement is either TRUE or FALSE
None of the above
I can lead you to new market but require careful planning. What am I?
Market Entry Strategy
Diversification Strategy
Localization Strategy
New Entry Industry
I balance cost and local flavors, adapting to each place. What strategy am I?
Localization Strategy
New Market Entry Strategy
Strategic Alliance
Glocalization Strategy
I unite two companies for a common goal, but we must share control. What am I?
Strategic Alliance
Joint Venture
Market Entry Strategy
None of the Above
Which type of WTO agreements likely posted additional challenge to Kenya besides goods trade?
Agreements on space exploration
Agreements on Services (GATS)
Agreements on international human rights only
Agreements on climate change
Which best reflects how the Shanghai Center contributed to improved trade remedy awareness among exporters?
By providing subsidies to exporters
By developing an information-technology based monitoring and early-warning system and offering training and legal advice so exporters better understand and respond to anti-dumping threats
By reducing export volumes from Shanghai
By imposing tariffs on imports
In the context of Argentina's GATS commitments, what does "Locking In" reforms mean?
Permanently banning foreign service suppliers
Committing in advance to liberalization of sectors so that future governments cannot easily reverse reforms
Fixing exchange rates and committing advance sectors without violating WTO obligations
Restricting foreign investment
Kenya had strong capacity from the outset to negotiate and implement WTO agreements effectively.
The statement is either TRUE or FALSE
TRUE
FALSE
None of the Above
Which is a general lesson across the three cases case studies about participation in the WTO?
WTO membership automatically guarantees economic success
Effective domestic institutions, stakeholder coordination and capacity building are crucial to turning WTO membership into concrete benefits
The complexity, extension and coverage of GATS lists-meaning many domestic determinants interact to shape the final offer
Developing countries should avoid committing to services under GATS and WTO benefits rich countries
