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WorksheetsGlobal Business Practice
Total questions: 60
Worksheet time: 30mins
What is a key benefit of decentralized supply chains in global operations?
Lower production cost through centralization supply chains
Higher inventory levels
Enhanced local responsiveness and risk mitigation
Increased complexity in decision-making of the company
Why do firms engage in global sourcing and production?
To increase domestic employment and profit
To isolate supply chains from global risks and global loss
To reduce costs and access resources/markets
To avoid government regulation and business sanction
Which function is typically NOT outsourced in global operations?
Product innovation and core R&D
Call center services and home services
Component and materials manufacturing
Logistics and warehousing
Which of the following best describes a virtual manufacturing network?
A single-country factory operations and serve all internal operations
A centralized supply chain using local staff without external intervention
A digital coordination of specialized producers without owning physical assets
A manual tracking system for overseas shipments and all logistics
Which is NOT a major risk associated with global supply chains?
Labor exploitation and limitation in developing countries
Currency exchange and stock price fluctuations
Increased resilience through diversification
Data breaches from low-security regions
What is the purpose of using “Digital Twins” in supply chains?
To make exact physical copies of factories and operational offices
To reduce the need for staff in production and distribution
To simulate and optimize supply chain operations in real time
To increase shipment times across regions,
Which of the following best defines “reshoring”?
Moving production to another developing country and different factories
Relocating manufacturing back to the company's home country
Hiring only foreign workers with tight competences in domestic factories
Building new ports and shipping hubs overseas
Why does Apple centralize its design function in California?
To avoid paying overseas taxes and reduce losses
To keep manufacturing closer to suppliers and consumers
To protect its core innovation and brand control
Because most customers live there
What is a key challenge for ASEAN countries in becoming global supply chain hubs?
Lack of consumer demand and limited market expansion
Fragmented regulations and logistics inefficiencies
High production costs and potentials in losing assets
Overqualified labor markets
What is the main goal of ESG compliance in global supply chain strategy?
To delay product delivery, increase bureaucracy, and create inefficiencies in supply chains
To improve environmental, social, and governance performance
To lower product quality to meet cost targets
To avoid foreign investment
What is the main goal of trade protectionism?
To encourage unlimited imports and exports
without tariff barriers
To protect domestic from foreign competition
To increase foreign investments and laverage finance
To eliminate local content requirements
Which of the following is an example of a non-tariff barrier (NTB)?
Import tax
Export subsidies
Licensing
Foreign direct investment
Why do governments protect ‘infant industries’?
They want to prevent these industries from growing domestically and globally
These industries pollute the environment
To give time for new industries to become competitive globally
To support foreign competitors competitiveness in domestic market
Which tool allows companies to track goods in real-time using electromagnetic tags?
EDI
ERP
RFID
TQM
What is one ethical issue global supply chains face today?
Increased tariffs and non tarrifs barriers
Conflict minerals sourced from war zones
Use of AI in manufacturing, logistics, and distribution
Free trade agreements and fair trade agreements
Which strategy might a company use to avoid high import tariffs?
Ignore trade regulations and bureaucracy process
Relocate production to countries with free trade agreements
Reduce product quality and increase customer dissatisfaction
Increase export volume and strengthen international market presence
What is Electronic Data Interchange (EDI) used for in global trade?
Printing invoices manually and distributing them without digital integration
Automating business document exchange between partners
Increasing customs delays and excessive administrative procedures
Reducing tax rates
What does ERP help companies manage?
HR operations through global human resource management (HRM)
Just-in-time training sessions
Integrated business functions across departments
External government policies, including foreign investment regulations
How does trade protectionism affect global supply chains in the long run?
Makes them more efficient and innovative in all operational aspects
Reduces compliance and administrative costs
Leads to fragmentation and increased operational costs
Improves free-market access
What is one way global firms are responding to rising ethical expectations?
Avoiding traceability of goods and services
Reducing transparency and efficiency in supply chains
Embedding ethical sourcing into core strategies
Eliminating ERP systems and maximize fragmented software solutions
What is the main goal of International Human Resource Management (IHRM)?
Managing local employees effectivelly in headquarters
Avoiding cultural and political differences views in hiring process
Managing human resources across countries in MNE
Outsourcing all HR functions to agencies
Which of the following is a key challenge in IHRM?
Having too many employees in one office with complex agencies coordination
Managing identical salary systems across all branches
Dealing with different legal systems and labor laws across countries
Hiring people from the home country with differ requirements
What does the ethnocentric staffing framework emphasize?
Hiring the best talent strategically and effectivelly from any country
Using local nationals to manage all branches and factories
Sending home-country staff to manage foreign operations
Avoiding the use of expatriates, maximize the best talent from local
Which of the following is an advantage of the polycentric staffing approach?
Easier to transfer company culture and value globally
Lower cost and better local cultural understanding
Total control with centralized coordination by the headquarters
Promotes global mindset and perspective among all staff
What is a common reason for expatriate failure?
Inability of family to adapt to the host country
Over qualification of the expat
Lack of cultural, political, and mindset differences
Too much financial support
Which component is commonly included in an expatriate compensation package?
Free flight for every holiday and business trips
Lifetime pension and family beneficials
Stock options in all host country firms with percentage shareholding
Foreign service allowance and tax assistance
In the geocentric staffing model, companies focus on:
Hiring within local markets and operating domestically
Sending home-country staff to all locations
Avoiding international assignments, working by own leadership
Selecting the best talent regardless of nationality
Which skill is MOST important for a successful expatriate?
Ability to speak and write smoothly one language
Cultural adaptability and strong communication
Knowledge of domestic payroll systems and all operationals
Preference for working alone and enforce own rules
Why do companies use the balance sheet approach in expatriate compensation?
To lower salary costs and compentations in all locations
To ensure equal pay and performance bonus across all job roles
To make the expat pay more taxes abroad and align with international fiscal policies
To maintain the expatriate’s standard of living across countries
What is the first step in the country selection process for international business?
Product development
Scanning basic country data
Launching a marketing campaign
Feasibility study
What does the Opportunity–Risk Matrix help companies evaluate?
Balance between potential gain and possible risk in each country
Employee satisfaction in all aspects and in each country
Balance between tax rates and company's performance
Currency exchange profits, balance assets ownership in each country
Which of the following is an internal source of country information?
International Monetary Fund reports
World Bank data
United Nations trade publications
Feedback from sales teams
Which strategy focuses on entering many countries at once with small efforts?
Ethnocentric staffing
Geocentric strategy
Concentration strategy
Diversification strategy
What is one key benefit of the Grid Analysis tool?
Deep technical forecasting per year using qualitative data
Helps compare countries quickly using ratings or scores
Predicts climate changes in regions
Shows product compatibility by color and line shapes
What factor is considered in environmental scanning?
Internal HR capability
Product price, competitors, regulations, consumen demand
Political, economic, social, and technological trends
Brand color design, product lifetime
Which of the following is the least risky entry strategy into a foreign market?
Licensing
Joint venture
Franchising
Wholly owned subsidiary
What is a key advantage of using franchising as a global expansion method?
High capital requirement and limited access to financing
Full operational control and coordination
Total ownership of foreign and national unit
Rapid market expansion with lower risk
Which entry mode involves partnering with a local firm to share risks and profits?
Joint venture
Exporting
Licensing
urnkey project
What does a wholly owned subsidiary imply?
Foreign company owns a minority stake and collaborates in controlling the operation
Foreign company fully owns and controls the operation
Foreign company co-owns and jointly manages the operation with local partners
Foreign company holds partial ownership and participates in decision-making of the operation
Which mode of entry allows a company to avoid high tariffs by producing locally?
Direct exporting
Greenfield investment
Licensing
Piggybacking
A major disadvantage of joint ventures is:
Loss of control and potential conflicts
Retention of control and productive partnerships
The operation involves very low setup costs
The venture is characterized by very low setup costs
Which strategy involves shipping goods directly to foreign buyers?
Exporting
Franchising
Licensing
Joint venture
What is a turnkey project in international business?
A project where a firm builds a facility and hands it over when operational
A technology licensing agreement
A project where a firm invests in building a facility and maintains full ownership
A joint export partnership
Which of the following is a benefit of exporting?
Avoiding currency fluctuations
Lower transportation cost
Low investment risk
Complete market control
In a franchise agreement, the local operator is known as the:
Exporter
Parent company
Franchisor
Franchisee
Greenfield investment refers to:
Buying an existing foreign company and immediately taking over its operations in a foreign market.
Building a new facility from scratch in a foreign country
icensing a local brand to operate and expand business activities within a foreign country
Selling to foreign markets through agent
Which of the following modes offers high control but also high risk?
Franchising
Joint venture
Licensing
Wholly owned subsidiary
Why do companies sometimes choose indirect exporting?
They want full control of logistics
They lack international experience
They already have a local office abroad
They want to open a factory overseas
What is one reason companies avoid wholly owned subsidiaries?
They require minimal setup
They are managed by government agencies
They are costly and carry high risk
They allow too many partners
Which entry strategy best supports a quick and wide presence in multiple countries?
Licensing
Franchising
Exporting
Greenfield investment
What is the main purpose of organizational structure in a multinational enterprise (MNE)?
To coordinate global operations
To limit innovation and creativity
To create more hierarchy levels
To reduce the number of employees
Which structure emphasizes strict hierarchy and functional specialization?
Virtual structure
Classical structure
Network structure
Geocentric structure
What is a key feature of W.L. Gore’s organizational model?
Clear chain of command
Use of sponsors
Centralized top-down decisions
Functional silos
What is vertical differentiation in an MNE?
Grouping people by language
Splitting company into functions
Creating project teams
Allocating decision-making
Which structure divides the organization by region (e.g., Asia-Pacific, EMEA)?
Product-based structure
Geographic divisional
Functional structure
Boundaryless structure
What defines a boundaryless organization?
Focus on traditional or conventional leadership
No internal and external communication
Removal of hierarchical and functional barriers
Control and comand by external shareholders
Which control mechanism relies on shared values and company culture?
Matrix control
Market control
Bureaucratic control
Clan control
Which of the following strategies focuses on offering unique products or services in international markets?
Cost leadership strategy
Differentiation strategy
Localization strategy
Market control strategy
In the Integration-Responsiveness Grid, what is the goal of a transnational strategy?
Centralize all decision-making and ignore local needs
Focus only on rapid cost reduction
Balance global efficiency with local market responsiveness
Customize products in every market without standardization
What is the main advantage of Zara’s international business strategy?
Heavy investment in mass advertising and marketing
Fast responsiveness through vertical integration
Long product life cycles with minimal changes
Fully outsourced design and production
