Preparation for the Exam - Global Business PDF

Dear Students, the license agreement with International Business, 4th edition provides that this document may not be reproduced or redistributed to individuals that are not following this course. Do not publish this on Studydrive or any other platforms! Revision Questions – Chapter 1 1. What do...

Dear Students, the license agreement with International Business, 4th edition provides that this document may not be reproduced or redistributed to individuals that are not following this course. Do not publish this on Studydrive or any other platforms! Revision Questions – Chapter 1 1. What do we call a firm that is engaged in foreign direct investment? 2. What is international business? 3. Explain why businesses in Europe need to engage with both European integration and with the global economy outside Europe. 4. Explain the difference between GDP and GNP. 5. Why do some organizations report GDP data by ‘Purchasing Power Parity’ (PPP) rather than market exchange rates? 6. How can international business become highly relevant for employees working in purely domestic firms? 7. What is the overarching question in the field of international business? 8. What is the main focus of the institution-based view of international business? 9. What is the main focus of the resource-based view of international business? 10. Explain the concept of liability of outsidership. 11. Name four simplifying views on globalizations. 12. How do we define globalization in this book? 13. Why was 19th century liberalization important for the acceleration of globalization? 14. Why did British Historian Geoff Jones describe the 19th and 20th century as two waves of globalization? 15. How was the global economy in 1900 different from the global economy in 2010? How about the global economy in 1950? 16. Why did globalization gather speed in the 1990s? 17. Why is understanding emerging economies important for European businesses? 18. Does the financial crisis of 2008/09 mark the end of globalization? 19. Name the largest country by GDP, by population, and by stock of outward FDI. 20. Name some of the largest companies in the world. 21. Explain why universalists and exceptionalists are likely to fail in global business. 22. Why do cosmopolitans tend to have different views about globalization than people who spend all their life in the same town? Quiz for Chapter 1 – Globalizing Business For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning True or False? 1. ‘Reverse innovation’ is a process by which multinationals tap into local knowledge in a less developed country to advance their global products. ANS: T 2. The two core perspectives of international business are the institution-based view and the environmentalist-based view. ANS: F 3. The most fundamental question in international business is: What determines the success and failure of a firm’s foreign entry? ANS: F 4. The liability of outsidership is the inherent disadvantage that foreign firms experience in a new environment because of their lack of familiarity with local contexts and networks. ANS: F 5. Purchasing power parity (PPP) is an adjustment made to the GDP to reflect differences in the cost of living. For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  ANS: T Multiple Choice 6. Which of the following does not create a ‘liability of outsidership’? a) Lack of experience, b) Being a foreigner, c) Lack of business networks, d) Being a native? ANS: D 7. ______ refers to ‘the cognitive ability to connect your own activities to what is happening around the world’. a) Ethnocentric perspective, b) Local outlook, c) Global mindset, d) Risk management ANS: C 8. What is defined as ‘a process leading to greater interdependence and mutual awareness (reflexivity) among economics, political and social units in the world, and among actors in general’? a) Europeanization, b) EU Integration, c) Globalization, d) International Trade ANS: C 9. _______ refers to ‘the identification and assessment of risks and the action taken to minimize the impact of high-risk unfortunate events’. a) Scenario planning, b) Risk management, c) Political risk, d) Loss accounting ANS: B For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  10. ______ refers to ‘the world through the lens of their own culture and belief in the superiority of that culture’. b) Ethnocentric perspective, b) Not-invented-here syndrome, c) Best practice, d) Superior practice ANS: A Revision Questions - Chapter 4 1. In the resource based view, what are resources? 2. What is the difference between tangible and intangible assets? 3. What are reputational resources? 4. Why are human resources potentially an important resource of a firm? 5. What is the value chain of the firm? 6. Name some examples of capabilities that may enhance firms’ competitiveness. 7. Explain why resources need to fulfil the VRIO criteria to enable firms to attain sustained competitive advantage. 8. How can firms make their capabilities inimitable? 9. Why is the question of organization important? 10. How do you do a benchmarking analysis? 11. What are the different purposes for which benchmarking can be used? 12. Explain the offshoring and outsourcing terminology. 13. Explain the differences between OEM, ODM and OBM. 14. Explain the potential long-term risks of outsourcing. 15. Explain the idea of ‘dynamic capabilities’. Quiz for Chapter 4 – Firm Resources: Competitiveness and Growth True or False? 1. The resource-based view focuses on the external environment of the firm. ANS: F 2. Tangible assets are things that are observable and quantifiable. ANS: T For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  3. Nearshoring refers to the co-location of product development and manufacturing in nearby locations, for instance within the same industrial park. ANS: F 4. Dynamic capabilities are higher order capabilities that enable companies to renew their portfolio of capabilities to react to changing markets. ANS: T 5. Sustainable competitive advantage is the ability to deliver persistently above-average performance. ANS: T Multiple Choice 6. If a company sets up a subsidiary abroad to move some of its production overseas, then we talk of: a) Captive marketing b) Captive offshoring c) Captive outsourcing d) Captive management ANS: B 7. A company that is producing products on behalf of brand name companies without itself being involved in the product development is also known as: a) Original brand manufacturer b) Original equipment manufacturer c) Original market manufacturer d) Original design manufacturer ANS: B 8. The concept of _______ describes the stages of a manufacturing process necessary to produce a product or service. a) Demand product b) Value product c) Demand chain d) Value chain ANS: D For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  9. The term ‘offshore outsourcing’ refers to: a) Relocating production to an independent firm abroad b) Establishment of oil wells offshore, e.g. in the North Sea or the Gulf of Mexico c) Relocating production to a subsidiary abroad d) Nothing really because the two words mean the same thing ANS: A 10. Which of the following statements about business process outsourcing (BPO) is not correct? a) BPO is used specifically when outsourcing services to India b) A major motivation for BPO is to reduce costs c) An important motivation for BPO is to tap into suppliers’ competences d) None of the above ANS: A 11. The activity of comparing a company’s resources and capabilities with those of a leading company in the industry is also known as: a) Competitor intelligence b) Competitor analysis c) VRIO analysis d) Benchmarking ANS: D 12. Which of the following is not a question asked as part of a VRIO analysis? a) Does the resource add value? b) Is the resource rare? c) Is the resource intangible? d) Are other policies and procedures organized to support the exploitation of this resource? ANS: C Revision Questions – Chapter 10 1. What is corporate social responsibility? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  2. What are some of the recommendations on how MNEs ought to behave as responsible citizens of the world? 3. Name the most important groups of stakeholders of a firm. 4. Why are stakeholders of concern to firms? 5. Why do demands for ‘socially responsible behaviour’ often appear to contradict each other? 6. What are the pressures that may or may not induce MNEs to locate more polluting activities in less developed countries? 7. What are the pressures that may or may not induce MNEs to employ lower labour standards in countries outside their home base? 8. What is the purpose of the ‘standards of engagement’ created by many MNEs? 9. How can MNEs establish and implement ‘standards of engagement’ across their firm and their supply chain? 10. Why are European and North American debates on CSER often focusing on quite different issues? 11. Why do firms’ standards of engagement vary across the world? 12. What are the levels of strategic responses that MNE may adopt in response to pressures for CSER? 13. Are ‘social responsibility’ and ‘shareholder value’ conflicting objectives? 14. What is needed to ensure that CSER practices actually create benefits for the designated beneficiaries? 15. Should companies engage in political disputes in the countries in which they operate? Quiz for Chapter 10 – Responsible Business True or False? 1. Triple bottom line refers to social, environmental and medical performance. For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  ANS: F 2. An environmental view of CSR argues that companies should engage in CSR if and only if it has direct or indirect benefits for shareholder value. ANS: F 3. A pollution haven is a city or region that absorbs pollution created elsewhere such as to reduce overall levels of pollution. ANS: F 4. In the context of CSR, a pro-active strategy consists of actively fighting political interest groups that advocate unreasonable demands on business. ANS: F 5. A critical aspect of CSR is that it is voluntary. ANS: T 6. Human rights are rights that a person is entitled to beyond a certain level of wealth. ANS: F Multiple Choice 7. The view that companies have a moral obligation to do more for society than maximize shareholder value is generally known as: e) instrumental view f) institutional view g) normative view h) normal view ANS: C 8. ________ are used to ensure that suppliers operate to the ethical standards set by a company. a) Standards of engagement b) Codes of conduct c) Codes of ethics d) All the three terms are used, they have roughly the same meaning ANS: D For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  9. Implicit CSR refers to corporate activity that benefits society by companies: a) engaging in philanthropy b) following social and environmental requirements set by law c) initiating higher standards through their industry associations d) establishing and publicizing higher standards than what is required by law ANS: B 10. The competition between countries trying to attract foreign investors by offering them ever more lenient employment standards is also known as: a) race to the top b) race to the bottom c) stakeholder competition d) shareholder competition ANS: B 11. In a widely adapted definition promoted by the ILO, child labour refers to work done by persons under the age of: a) 8 b) 12 c) 14 d) 16 ANS: D 12. Primary stakeholders of a company are: a) those on whom the company depends for its continuous survival and prosperity b) only the owners c) only the managers and employees d) those who are able to influence the company but who are not directly engaged in transactions with the company ANS: A Revision Questions - Chapter 2 1. Explain what “institutions” are. 2. What are the differences between formal and informal institutions? 3. Explain the concepts of regulatory, normative and cognitive pillars of institutions as introduced by W. Richard Scott. For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  4. How do institutions reduce transaction costs? 5. How do institutions alter the potential for opportunistic behaviour? 6. What is institutional transition? 7. Explain two core propositions of the institution-based view. 8. What is a totalitarian state, and how do totalitarian leaders justify their existence? 9. How do governments attain their legitimacy in a democracy? 10. Explain four variations in the procedures by which democratic countries take major political decisions. 11. What are the consequences of proportional representation versus first-past-the-post election systems? 12. Why should businesses be concerned about electoral systems? 13. Explain the key differences between a market economy and a command economy. 14. Choose a country you are familiar with, explain why it should be classified as CME or LME, and how this classification may have changed over time. 15. Outline the key differences between civil law and common law countries. 16. What are the historical origins of respectively civil law and common law? 17. From a business perspective, what are the advantages and disadvantages of operating under respectively common law and civil law? 18. Why are property rights, from a business perspective, an essential element of any legal system? 19. What are intellectual property rights, and what are the main obstacles to their enforcement? 20. Why are corporate governance laws, from a business perspective, an essential element of any legal system? 21. Many scholars believe that institutional development is a major reason why some countries have been more successful than others in their economic development. Why? 22. What is political risk? 23. How does the institutional framework affect political risk? 24. Why should managers study the formal and informal institutions of a country before embarking in business there? Quiz for Chapter 2 – Formal Institutions: Political, Economic and Legal Systems True or False? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  13. Due to solid economic reforms in the early 1800s and a free trade agreement with the EU Turkey was considered an attractive location for business, especially for labour intensive industries. ANS: F 14. The resource-based view analyzes how formal and informal institutions affect firms and other economic actors. ANS: F 15. Informal institutions include edicts and regulations issued by governmental authorities. ANS: F 16. China’s economic transition has frequently been described as a ‘big bang’, whereas Russian economic transition has frequently described as ‘gradual’. ANS: F 17. Autocracy is a political system in which the legitimacy of government is derived from its election by the citizens of the country. ANS: F 18. Common law has been derived from Roman law, and has been influenced by the legal code introduced in France after the French Revolution. ANS: F 19. Corporate governance refers to the rules by which shareholders and other interested parties control corporate decision makers. ANS: T Multiple Choice 20. Which of the following are pillars of the institutional framework as described by sociologist Richard Scott? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  a) Cognitive b) Normative c) Regulatory d) All of the above answers ANS: D 21. Which of the following represents a category of institutions introduced by economic historian Douglass North? a) Formal b) Informal c) Formal and informal d) Neither formal nor informal ANS: C 22. What is not a characteristic of a market economy? a) Buyers and sellers meeting in a market b) Prices react to changes in supply and demand c) Businesses planning production to supply the market in the future d) Business producing according to an economy-wide central plan ANS: D 23. Which of the following represents a form of property right? a) Ownership of a house b) Copyright c) Shareholdings d) All of the above answers ANS: D 24. Walter Eucken is known as a key intellectual inspiration for which scholarly school of thought? a) The institution-based view b) The varieties of capitalism view c) The legal traditions view d) The German form of market economy ANS: D For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  25. Political risk is associated with the possibility of which type of event? a) The nationalization of a company’s assets abroad b) The elimination of tariffs subsequent to a company investing in local production c) Civil unrest d) All of the above ANS: D Revision Questions - Chapter 3 1. What are informal institutions? 2. What is culture? 3. What is the distinction between high-context and low-context cultures? 4. How can countries be clustered by their culture? 5. According to Geert Hofstede, what are the key dimensions by which cultures vary? 6. What are the limitations of Hofstede’s dimensions approach? 7. How do language differences affect international business? 8. How do religious differences across societies affect international business? 9. What is ethics? 10. How can businesses act ethically abroad? 11. Why does corruption vary across countries, and how should MNEs deal with that? 12. When is the nation state not the appropriate unit to identify cultures? 13. How do cultures converge, or diverge, over time? 14. How can MNEs facilitate internal communication when their employees speak many different native languages? 15. Why is the in-group out-group distinction important in collective societies? 16. How can people from different culture clusters and dimensions work together? 17. Why do many scholars consider that the studies with WEIRD people are non- representative? 18. What are five levels of cultural intelligence that international businesspeople may develop? Quiz for Chapter 3 – Informal Institutions: Analyzing Culture True or False? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning 1. Informal institutions exist in forms of norms and values. ANS: T 2. Picture postcards are an example of cultural artefacts. ANS: T 3. In high context cultures, it is not necessary to know much about the context to understand what people are saying. ANS: F 4. Long-term orientation is highest in Pakistan and lowest in China. ANS: F 5. Uncertainty avoidance indicates low risk business environments. ANS: F 6. In a religious society, you are advised not to bring items considered ‘taboo’ to a meeting. ANS: T 7. Ethical imperialism follows the advice ‘When in Rome do as the Romans do’. ANS: F 8. A cluster is a group of countries that share similar cultures together. ANS: T 9. In a secular society, the basic norms are shaped by religious beliefs. ANS: F For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning Multiple Choice 10. Which of the following indicates high power distance? e) Colleagues addressing each other by first name f) A comprehensive welfare state g) The lack of a first class compartment in trains h) None of the above ANS: D 11. A leader’s behaviour would be described as ‘masculine’ if they act: e) Assertively f) Aggressively g) Decisively h) All of the above ANS: D 12. What are you unlikely to see in a ‘feminine’ culture? a) Female soldiers b) People who care for the weak c) Aggressive leadership style d) A women prime minister ANS: C 13. In a collective society, people belonging to the ‘in-group’ have an advantage because e) Out-group members are likely to pay them bribes f) Members of other groups will show them respect g) Out-group members will show them respect h) Other members of the same group will trust them more ANS: D 14. A corporate language is A) The native language in the MNEs country of origin B) The language people use for informal chats with the colleagues C) The language used for all formal communications within an MNE D) All of the above ANS: C For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning Revision Questions – Chapter 5 1. What is the central idea of mercantilism? 2. How do absolute advantages explain why companies from different countries trade? 3. How do comparative advantages explain why companies from different countries trade? 4. How can the product life cycle explain the patterns of international trade? 5. Why can government intervention in certain industries, at least theoretically, improve a country’s trade position? 6. According to Michael Porter, what factors contribute to a country’s competitiveness? 7. What are the strengths and weaknesses of the main theories of international trade? 8. How do tariffs affect international trade? 9. How do different types of non-tariffs affect international trade? 10. Why do governments use non-tariff barriers rather than tariffs? 11. What are key economic arguments against free trade? 12. What are key political arguments against free trade? 13. Is a large trade deficit a problem for a country, and if so why? 14. Are classic trade theories still suitable in view of recent changes in the global economy? 15. Why do some scholars argue that free trade is undermining a fair and equitable distribution of income? Quiz for Chapter 5 – Trading Internationally True or False? 26. On average, EU countries export 3.5% of their exports to emerging economies. ANS: F 27. A country needs absolute rather than comparative advantages to benefit from international trade. ANS: F 28. The infant industry argument suggests that young industries do not need tariff protection because they emerge in all countries at the same time. ANS: F For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  29. Strategic trade policy is argued to be justified in industries characterized by high sunk costs, for example high costs of research and development. ANS: T 30. Mercantilism is a modern trade theory developed in response to observed inequalities of trade during the oil crisis of the 1970s. ANS: F 31. A trade embargo is a politically motivated restriction of imports from a particular country. ANS: T 32. Trade surplus is an economic condition in which a nation imports more than it exports. ANS: F Multiple Choice 33. In international trade theory, the term ‘deadweight loss’ is referring to: i) The loss to exporters due to the introduction of tariffs j) The loss to importers due to the introduction of tariffs k) The loss to consumers due to the introduction of tariffs l) The net loss to society due to the introduction of tariffs ANS: D 34. Anti-dumping duties are levied on importers who are engaging in the following practice deemed unfair in international trade: e) Failing to source locally f) Transfer pricing with the intention to minimize tax payments g) Selling below costs with the intention to push competitors from the market h) Selling at prices above competitive prices by exploiting monopolistic market positions ANS: C 35. The factor endowment theory suggests that: e) Resources are the foundation of firm’s competitive advantages For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  f) National resource endowments are the foundation for comparative advantages in international trade g) Many factors contribute to explaining the emergence of comparative advantages h) Scarce resources are the foundation for comparative trade advantages ANS: B 36. The economic advantage one nation enjoys due to higher productivity in an economic activity is known as: e) Free trade f) Comparative advantage g) Absolute advantage h) Trade deficit ANS: C 37. The costs of pursuing one alternative in terms of the forgone revenues of pursuing another alternative are known as e) Forgone costs f) Sunk costs g) Alternative costs h) Opportunity costs ANS: D 38. Which of the following is not considered a ‘modern’ trade theory? e) Factor endowment theory f) Product life cycle theory g) National competitive advantage (‘diamond model’) h) Strategic trade theory ANS: A Revision Questions – Chapter 6 1. Distinguish key terminology with respect to FDI: direct versus portfolio investment, horizontal versus vertical FDI, upstream versus downstream FDI, FDI stock versus FDI flows. 2. When do we call a firm a ‘multinational enterprise (MNE)’? 3. Why do firms need ownership advantages to compete abroad? 4. What sort of locational advantages can attract foreign investors, and why? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  5. Why would firms want to ‘internalize’ cross-border transactions within their organization? 6. Why would firms set up a FDI sales operation, rather than export from the home country? 7. Why would firm set up a subsidiary to exploit a technology rather than licensing that technology to a local partner? 8. Why would firms set up a subsidiary to manufacture abroad rather than outsource the activity to an independent manufacturer? 9. What policies do national governments use to control or restrict the activities of foreign MNEs? 10. How does national corporate taxation affect the patterns of FDI? 11. What are the potential benefits and disadvantages that local firms may experience as a result of FDI coming to their country? 12. What are the potential benefits and disadvantages that ordinary people – as consumer or workers – may experience as a result of FDI coming to their country? 13. Is FDI good or bad for the natural environment? 14. Explain the phenomenon of ‘obsolescing bargain’ in the relationship between MNEs and host governments. 15. What is the role of sovereign wealth funds in the global economy? 16. Explain the emergence of emerging economy MNEs. Quiz for Chapter 6 – Investing Abroad Directly True or False? 39. Foreign portfolio investment (FPI) is a special case of foreign direct investment (FDI). ANS: F 40. Location-bound resources are resources that cannot be transferred from one country to another. ANS: T 41. A joint venture is a company owned by one parent company. ANS: F For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  42. The expectation of knowledge spillovers is a major motivation for governments to attract foreign investors to their country. ANS: T 43. Multinational companies concerned about dissemination risk prefer to establish a licencing contract instead of a wholly owned subsidiary. ANS: F 44. Reduced contract monitoring and enforcement costs are an example of an internalization advantage. ANS: T 45. Horizontal FDI is when a firm moves upstream or downstream in different value chain stages in a host country. ANS: F Multiple Choice 46. The shift in the relative bargaining power between MNEs and host governments after the foreign investor incurred the sunk costs of their initial investment is known as: m) Obsolescing bargain n) Resurgent bargain o) Empowered negotiation p) Resurgent negotiation ANS: A 47. An FDI in which type of activity would be an example of upstream vertical FDI? i) A sales and marketing office j) A replication of the operation in the home country k) An operation covering all stages of the value chain l) A manufacturing facility for components of the firm’s main product ANS: D 48. Which of the following is not an element of the OLI paradigm? i) Locational advantages j) Ownership advantages For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  k) Internalization advantages l) All of the above answers are elements of the OLI paradigm. ANS: D 49. A multinational enterprise is defined as an enterprise that: i) Has sales in more than one country j) Has employees from more than one country k) Has subsidiaries in more than one country l) Is buying components in more than one country ANS: C 50. Assets specificity refers to investments that are: i) Specific to a business relationship j) Specific to a business function k) Specific to a country l) Specific to a product division ANS: A 51. What is the relationship between the stock and flow of FDI? i) FDI flows are generated from FDI stock j) Changes in FDI stock correspond to changes in FDI flows k) FDI stock adds to FDI flows l) FDI flows add to the FDI stock ANS: D 52. Which statement holds true about state-owned enterprises? a) The majority of big multinational enterprises from EU countries are in state ownership b) Sovereign wealth funds are the only important form of state-owned enterprises that invest abroad directly c) State-owned enterprises from non-EU countries are not allowed to invest in the EU d) State-owned enterprises play an important role in FDI from emerging economies ANS: D Revision Questions - Chapter 8 For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  1. What are the six types of regional integration? 2. What was the main achievement of the Council of Europe? 3. What were the main objectives of the establishment of the European Economy Communities, the predecessor of the EU, in 1957? 4. What have been the main steps of European integration since 1957? 5. What were the main economic challenges of Central and Eastern Europe in the early 1990s? 6. What is the ‘European Single Market’? 7. How does the European Union try to overcome trade barriers arising from differences in product standards and regulations in different EU member countries? 8. Why is the single market for services more difficult to implement than the single market for goods? 9. How does the EU facilitate student mobility? 10. Why has it been so difficult to implement passport-free travel through the Schengen agreement? 11. What are the advantages and disadvantages for a country to join the eurozone? 12. Why has the economic performance of Eurozone member countries been divergent rather than convergent since the introduction of the euro in 1999? 13. In which ways did membership in the EU help or hinder Spain’s economic prosperity since 2002? 14. What are the main political institutions governing the European Union? Quiz for Chapter 8 – European Integration True or False? 1. Business travel between Poland and Germany has become much more difficult over the past decade. ANS: F 2. The Council of Europe is another name for the Council of the European Union. ANS: F 3. A monetary union is where countries share a common currency and monetary policy. ANS: T For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  4. The European Constitution is the main basis of law in the European Union. ANS: F 5. The common market of the EU is also known as EU Multiple Market. ANS: F Multiple Choice 6. The criteria that new member countries of the European Union have to fulfil to be accepted as member in the European Union are also known as: q) Maastricht criteria r) Copenhagen criteria s) Schengen criteria t) Amsterdam criteria ANS: B 7. The Single European Act establishing the European Single Market came into effect on the first of January of which year? i) 1983 j) 1993 k) 1998 l) 2003 ANS: B 8. Which transactions are recorded in the balance of payments? i) Donations to charities based in another country j) Payments of membership dues in international organizations k) Transfers from citizens working abroad to their parents l) All of the above ANS: D 9. A customs union: e) is a deeper form of integration than an economic union f) is a deeper form of integration than a trade union g) is a deeper form of integration than a monetary union h) is a deeper form of integration than a free trade area For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  ANS: D 10. Which of the following was not a major element of economic reforms in Central and Eastern Europe in the 1990s? i) Nationalization j) Liberalization k) Privatization l) Stabilization ANS: A 11. ___________ is an important principle for the functioning of the EU Common Market. a) Mutual recognition b) Harmonized sectors c) Subsidiarity d) All of the above answers e) None of the above answers ANS: D 12. The four freedoms established in the Single European Act are: a) Free movement of people, goods, services and capital b) Freedom from oppression, servitude, torture and dictatorship c) Freedom to vote for representatives in local, regional, national and European parliaments d) Freedom from monopolies, oligopolies, unfair practices, and unfair subsidies ANS: A 13. The single European education area was established in a contract signed in the Italian city of: a) Bologna b) Milan c) Rome d) Venice ANS: A 14. When travelling across Europe without needing to show your passport at the border, you are benefitting from the: a) Copenhagen Agreement b) Treaty of Lisbon c) Schengen Agreement d) Treaty of Bologna For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  ANS: C 15. Which statement about the euro is not correct? a) The Maastricht Treaty established criteria than countries had to fulfil to be allowed to join the euro b) The euro does not have clearly defined procedures for countries that wish to leave the eurozone c) In 2011, the euro was official currency in all pre-2005 member countries of the EU d) The European Central Bank is responsible for monetary policy in the euro-zone ANS: C Revision Questions – Chapter 9 1. What are the key arguments in the EU and the USA in the Boeing-Airbus conflict? What is the role of the WTO in resolving this conflict? 2. What are the objectives of the WTO? 3. What are the areas of activity of the WTO? 4. How does the WTO dispute settlement mechanism work? 5. Why is the WTO dispute settlement mechanism controversial among some NGOs focused on environmental and health standard issues? 6. Why did recent rounds of negotiations in the WTO fail to advance trade liberalization? 7. What are the likely implications of Russia’s membership in the WTO for countries of the EU? 8. What are the objectives of the IMF? 9. How does the IMF intervene when countries face a currency crisis, and why is this practice controversial? 10. Name some important regional trade arrangements around the world. 11. What are the key arguments for and against the incorporation of ‘investor-state dispute settlement’ tribunals in international trade and investment agreements? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  12. How do regional trade agreements cause a potentially damaging side-effect called trade diversion? 13. What is the role of the World Bank in promoting economic development? 14. What is the role of the Basel Committee in promoting stability of the global financial system? Quiz for Chapter 9 – Global Integration and Multilateral Organizations True or False? 53. The WTO is a predecessor organization of the GATT. ANS: F 54. The European Bank for Reconstruction and Development is responsible for financial sector regulation in Europe. ANS: F 55. The IMF does not provide financial support to countries with temporary imbalances in their balance of trade. ANS: F 56. The Pisa Agreement and the Bristol Accord aimed to address the challenges of climate change. ANS: F 57. ASEAN is a regional free trade area in Southeast Asia. ANS: T 58. The negotiations over global regulation of the financial sector following the financial crisis of 2008/09 are known as ‘Doha round’ negotiations. ANS: F Multiple Choice 59. Which is not one of the main areas of the WTO? u) GATT For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  v) GATS w) TRIPS x) MIA ANS: D 60. Free trade areas can have a negative effect on economic welfare because of the m) Trade diversion effect n) Trade creation effect o) Trade reduction effect p) Trade exploitation effect ANS: A 61. Which is not a role performed by the IMF? m) Lending to countries in temporary financial difficulties n) Monitoring the global economy o) Financing economic development projects p) Providing technical assistance to developing countries ANS: C 62. Which of the following statements on the trade regime of the USA is false? m) The USA has bilateral free trade agreements with more than a dozen countries around the world n) The USA is a member of the WTO o) The USA is a member of NAFTA p) The USA is a member of ASEAN ANS: D 63. Which of the following statements best describes the role of the World Bank? m) The World Bank provides finance for large development projects in developing countries, such as transportation infrastructure, agricultural irrigation or banking sector reform n) The World Bank provides subsidies for large development projects in developing countries, such as transportation infrastructure, agricultural irrigation or banking sector reform o) The World Bank is a commercial bank that focuses on banking in developing countries p) The World Bank has a role similar to Central Banks in individual nation states, and acts as lender of last resort to secure the liquidity of the global financial system ANS: A For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  64. The committee of regulators and central bankers that is setting standards for financial sector regulation, such as minimum equity requirements, is known as: m) IMF n) Kyoto Committee o) Basel Committee p) EBRD ANS: C Revision Questions – Chapter 11 1. What were the challenges that start-up company Spotify experienced in establishing an international operation? 2. What is the role of entrepreneurs and entrepreneurial teams in setting-up and running a new business? 3. How does a letter of credit (L/C) help exporters and importers? 4. How can basic export and import activities be organized? 5. What is the role of trade intermediaries in international trade? 6. How can services be traded across borders? 7. What are licencing and franchising, and when can they be used in international business? 8. How are turnkey projects and build-operate-transfer project used in the construction industry? 9. How does the Uppsala model explain the process of internationalization of firms? 10. How can ‘born globals’ internationalize their operations soon after their establishment? 11. How does the institutional environment of the home country affect firms’ internationalization? 12. How does the ‘institutional distance’ between two countries affect internationalization? 13. How do existing international operations affect future internationalization? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  14. How does the evolution of the internet affect the way small businesses engage in international business? 15. What are the main lessons entrepreneurs have to remember when setting out to engage in international business? Quiz for Chapter 11 – Starting International Business True or False? 65. ‘Born globals’ are firms that ‘from inception, seek to derive significant competitive advantages from the use of resources and the sale of outputs in multiple countries’. ANS: T 66. A ‘letter of credit’ is a form of export credit risk insurance policy. ANS: F 67. Turnkey projects are common in the civil engineering and construction industries. ANS: T 68. The ‘Uppsala model’ proposes that internationalization is a dynamic process of learning in which firms take decisions over their next step based on what they know at the time.’ ANS: T 69. A distributor is a trade intermediary trading on its own account. ANS: T 70. Small- and medium-sized enterprises (SMEs) are firms with fewer than 100 employees. ANS: F Multiple Choice For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning 71. Licensing is a form of contract that: y) transfers the rights to a brand name z) transfers a technology and the rights to use it aa) establishes a long-term supplier relationship bb) combines all of the above transactions ANS: B 72. When companies form a consortium to ‘bid for a tender’, they are: q) colluding to restrict competition r) engaging in a risky investment strategy s) competing for a contract offered by, for example, a government agency t) hedging the exchange rate risks ANS: C 73. A build-operate-transfer for an infrastructure project such as a bridge contract involves: q) the construction of the bridge. r) the operation of the bridge as a for-profit venture, e.g. by collecting road toll s) the ownership-transfer for the bridge at some specified point in the future t) all of the above activities u) None of the above activities ANS: D 74. Which of the following activities does not constitute an international business activity? q) A university educating fee-paying students normally resident abroad r) A hospital offering specialized medical treatment to customers from anywhere on the world s) A tour operator to offer foreign language guided tours advertised on the internet t) All of the above activities u) None of the above activities ANS: E 75. Big hotels carrying international brand names are often not actually owned by the companies whose logo they display. This is because: q) they are franchise operations r) the real estate is owned by a local company, who has a management contract with the hotel chain company s) a local company holds the master franchise rights to the name in that territory t) all of the above are common arrangements in the hotel industry For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  u) none of the above is a normal arrangement in the hotel industry ANS: D 76. Which statement about the internationalization process model, also known as the Uppsala model is correct? q) The model suggests companies have to go through certain specified stages when developing their international business operations. r) Commitments to higher degrees of involvement in a foreign market depend on the knowledge acquired by the firm up to that time. s) The model was inspired by a study of USA companies expanding first to Canada, and then to countries further afield. t) The model mainly applies to mature multinational enterprises. ANS: B 77. A document issued by a carrier or shipping company certifying that the merchandise has been delivered and paid for is called: a) airway bill b) bill of lading c) letter of credit d) free on board ANS: B Revision Questions – Chapter 12 1. What are the main objectives that foreign investors pursue when establishing subsidiaries abroad? 2. How do companies choose where to set up subsidiaries? 3. How do trade barriers affect a foreign entry decision? 4. What are advantages and disadvantages of being a first-mover in a country? 5. How can second movers overtake first movers? 6. What are the basic entry modes? 7. What are the advantages and disadvantages of establishing a greenfield operation? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  8. What are the challenges that firms face when acquiring a local firm to enter a foreign country? 9. When would firms choose to enter by joint venture rather than with a wholly owned subsidiary? 10. What are the risks associated with different modes of foreign entry? 11. What are the managerial challenges arising in joint ventures? 12. What are partial acquisitions, and when are they used? 13. How can investors vary their acquisition strategies to make the best of opportunities in difficult local business environments? 14. How do operational questions affect decisions over location, mode and timing of foreign entry? 15. How do host country institutions influence the design of entry strategies? Quiz for Chapter 12 – Foreign Entry Strategies True or False? 78. First mover advantages are only of concern in branded consumer goods industries. ANS: F 79. Location-specific advantages are those advantages that can be exploited by those present at a location. ANS: T 80. Non-equity mode is a mode of entry that involves investing in a local firm. ANS: F 81. Equity entry modes include licensing, management contracts, and exporting. ANS: F For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  82. Market-seeking FDI is investors’ quest to go after countries that offer strong demand for their products and services. ANS: T Multiple Choice 83. High investment risk due to large capital commitment and long pay-back periods, yet no co-owner and integration risks, is associated with which entry mode? cc) Greenfield dd) Full acquisition ee) Joint venture ff) Partial acquisition ANS: A 84. Which entry mode enables a foreign investor to create a local operation in its own image without the need to incorporate existing structures or demands by local partners? u) Greenfield v) Joint venture w) Full acquisition x) Partial acquisition ANS: A 85. Which statement about joint-ventures (JVs) is not correct? v) A foreign investor could establish a JV in the form of a minority, majority or equal equity JV. w) A joint venture allows foreign investors to share costs and risks of an investment with a local partner. x) 50-50 ownership arrangements are strongly discouraged because it creates ambiguities in decision making processes. y) A JV does not normally involve integrating and restructuring of an existing operation. ANS: C 86. Which of the following statements regarding institutional frameworks and foreign entry strategies is correct? v) Regulatory institutions may prohibit certain types of operations or transactions. w) Institutional idiosyncrasies may increase the need for acquiring local knowledge. For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  x) Lack of contract enforcement institutions may increase the costs of arm-length contracts. y) All of the above statements are correct. z) None of the above statements is correct. ANS: D 87. Partial acquisitions are difficult to manage from an acquirer’s perspective; however, they have been observed frequently: u) in the context of privatization processes. v) when previous owners have a continuing interest in the company. w) where acquirers wish to provide incentives for a founding entrepreneur to stay. committed to the company after the take-over. x) all of the above situations. y) none of the above situations. ANS: D Revision Questions – Chapter 13 1. What is competitive dynamics in an oligopolistic industry setting? 2. How do awareness, motivation and capabilities influence competitors’ reaction to a competitive attack? 3. How can we use concepts from game theory to explain the challenges of maintaining a collusive agreement? 4. Under which industry condition is collusion between competitors more or less feasible? 5. How can companies use signalling in a competitive setting? 6. How do institutions shape the intensity of competition? 7. How does competition policy aim to prevent collusion between competitors? 8. What are anti-competitive practices, and how are they constrained by institutions? 9. Explain the difference relationship between ‘predatory pricing’ and ‘dumping’? 10. How do resources of the firm shape their competitive actions? 11. How can companies compete during a global recession when markets are collapsing? 12. How can companies build long-term strategies during a global recession? 13. How can small local firms compete with big multinational enterprises? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  14. Are institutions always ensuring fair competition? 15. What are the main lessons to be drawn for strategizing for competition in an oligopoly? Quiz for Chapter 13 – Competitive Dynamics True or False? 88. A ‘blue ocean’ strategy aims to attack competitors without direct confrontation with incumbents. ANS: T 89. An oligopoly is a market structure with only a small number of competing firms. ANS: T 90. Scenario analysis is a technique of looking into the past that is particularly useful in non-volatile environments. ANS: F 91. Explicit collusion involves competitors directly communicating with each other to influence the nature of competition in ways that benefit both of them. ANS: T 92. Prisoners’ dilemma is a concept from game theory that helps explaining why cartels often work effectively. ANS: F 93. Leniency programmes by competition authorities create incentive to report illegal collusion which a company has become involved in. ANS: T Multiple Choice 94. Sun Tzu’s quote ‘if you know the enemy and know yourself, your victory with stand in no doubt’ points to the importance of: gg) competitor analysis and resource analysis For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  hh) analysis of institutions and resources ii) analysis of political parties against and for capitalism jj) analysis of suppliers and customers ANS: A 95. Competitors are likely to strongly launch a counter attack if: y) they are aware of the original attack z) they are motivated to counterattack aa) they have the capabilities to launch a successful counterattack bb) all the three conditions mentioned above are present at the same time cc) none of the conditions is present ANS: D 96. Adam Smith said ‘People of the same trade seldom meet together, even for merriment and diversion, … but their conversation often ends in a conspiracy against the public.’ What sort of behaviour was he referring to? z) competitive dynamics aa) tax dodging bb) collusion cc) prisoners’ dilemmas ANS: C 97. Which of the following practices is not penalized by the European Union as a competition authority? z) fixing prices aa) entering another EU country without agreement of national authorities bb) anti-competitive practices by a dominant player in a market cc) agreements between two companies not to compete in each other’s home market ANS: B Revision Questions – Chapter 14 1. How can global strategies help firms to build competitive advantages? 2. How can MNEs’ arbitrage strategies enhance their competitiveness? 3. What are international M&As? 4. Why do MNEs acquire other MNEs? 5. What do companies do during the ‘due diligence’ stage of an acquisition? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  6. When do MNEs use strategic alliances rather than acquisitions? 7. What criteria are used by the competition authorities regulating horizontal M&As? 8. What criteria are used by the competition authorities regulating vertical M&As? 9. What actions can regulators take when M&As are deemed a threat to competition? 10. How do the resources of an MNE affects its ability to manage acquisitions? 11. What are the key challenges of managing an acquisition? 12. Why do acquisitions frequently fail? 13. What is the role of acquisitions and divestment in corporate strategic repositioning? 14. According to the institution-based view, what determines success and failure in global strategies? 15. According to the resource-based view, what determines success and failure in global strategies? Quiz for Chapter 14 – Global Growth Strategies: Partnerships and Acquisitions True or False? 98. Risk diversification is the reduction of the risk profile of a company by investing only in one country or industry. ANS: F 99. Divestment is a form of investment that diverges funds from older projects to new, high risk projects. ANS: F 100. The assessment of a target firm by a potential acquirer is known as benchmarking. ANS: F 101. In the context of mergers and acquisitions, organizational fit refers to the cultural and structural characteristics of the two organizations that affect the ability to integrate the acquired company. For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  ANS: T 102. Strategic alliances do not involve foreign direct investment. ANS: F 103. Synergies don’t arise in the form of new values created, or in the form of cost savings. ANS: F Multiple Choice 104. An ‘acquisition premium’ is: kk) The increase in the stock price of the acquirer associated with the acquisition. ll) The pay-off to the directors of the acquired company in return for their cooperation with the acquiring firm. mm) The difference between stock prices of the acquirer and the acquired company. nn) The difference between the market price of the acquired firm before the acquisition and the price offered by the acquirer. ANS: D 105. Subsidiaries that have a leading role within an MNE to develop new products or technology are also known as: v) centres of excellence w) centres of excel x) centres of hubs y) centres of hubris ANS: A 106. Which of the following is a benefit offered by centres of excellence? a) Reducing the potential replication of efforts and inconsistency of standards that may evolve if R&D is disconnected b) Exploiting comparative advantages in specialized human resources c) Interacting with different customers and hence projections on future market trends d) All of the above ANS: D For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  107. Global key accounts are: dd) cost positions that are aggregated globally ee) distribution channels that cover multiple countries ff) customers that are served at multiple sites but with central negotiation of contracts gg) suppliers that have established production facilities in several countries ANS: C Revision Questions – Chapter 15 1. What are the key trade-offs between local adaptation and global standardization? 2. What are the implications of trying to be both locally adaptive and globally integrated? 3. How do organizational structures reflect the types of strategy identified by Bartlett and Ghoshal? 4. What are the challenges of operating in a matrix structure? 5. What is a ‘home replication strategy’? 6. What is the difference between tacit and explicit knowledge, and why does that matter for knowledge management? 7. How do MNEs transform different types of knowledge to make best use of it for the organization? 8. How do knowledge flows vary across Bartlett & Ghoshal’s four types of MNE strategy? 9. How do MNEs engage with local and virtual communities of practice? 10. How do MNEs create governance structures that enhance knowledge sharing in the organization? 11. How do home country institutions shape the organizational structures adopted by MNEs? 12. How do host country institutions shape the organizational structures adopted by MNEs? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  13. How does the nature of a firm’s resources and capabilities affect its preferred organisational structure? 14. How does the nationality of the top managers of a MNEs reflect it strategy? 15. What is the role of regional headquarters in MNEs? Quiz for Chapter 15 – Organizing and Innovating in the MNE True or False? 108. Global matrix structures are not suitable for implementing transnational strategies. ANS: F 109. Global standards strategy enables firms to provide products adapted to each local context. ANS: F 110. Communities of practice have to be located at the same site to be able to share tacit knowledge amongst each other. ANS: F 111. Social capital includes the informal benefits organizations can derive from their social networks. ANS: T Multiple Choice 112. The structures and mechanisms MNEs use to facilitate the creation, integration, sharing and utilization of knowledge are known as: oo) transnational strategy pp) matrix structures qq) knowledge governance rr) corporate governance ANS: C For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning 113. Against the flow of command in hierarchical organizations, some MNE subsidiaries take proactive and deliberate action to convince their headquarters to increase the scope of their responsibility. Such action is also known as: dd) subsidiary mandate ee) worldwide mandate ff) centre of excellence gg) subsidiary initiative ANS: D 114. In large multinational organizations, the ‘not invented here syndrome’ is an obstacle to: dd) knowledge retention ee) knowledge sharing ff) communication of knowledge gg) knowledge utilization ANS: D 115. MNEs that aim to combine the advantages of global integration and local adaptation are pursuing _____ strategy. aa) transnational bb) global cc) adaptive dd) matrix ANS: A 116. Tacit organizational knowledge is embedded in: z) individual’s skills and know-how aa) databases bb) internal rules and job descriptions cc) organizational structures, cultures and routines ANS: D 117. Which statement about international strategies is correct? hh) International strategies are typical for MNEs in early stages of their internationalization. ii) International strategies enhance corporate performance. jj) International strategies allow high degrees of local adaptation. kk) International strategies allow the realization of economies of scale on a global scale. For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  ANS: A Revision Questions – Chapter 16 1. What are the three main approaches to managing people in multinational enterprises? 2. Why do many MNEs consider global talent management an important part of their long- term strategy? 3. What is the role of expatriates in MNE subsidiaries? 4. How do MNEs select individuals for expatriate assignments? 5. How should MNEs prepare expatriates for their assignments? 6. What is ‘full immersion training’? 7. What is culture shock and how can expatriates (and exchange students) manage it? 8. What challenges do expatriates face when returning to their country of origin? 9. How does an experience as an expatriate contribute to an individual’s career development? 10. What are the key challenges for MNEs in managing their local workforces? 11. How do formal and informal institutions shape human resource management practices in subsidiaries abroad? 12. How do human resources contribute to an organization’s resource and capability profile? 13. What challenges arise when working in multicultural team, and how can team members best handle a multicultural context? 14. How effective are non-traditional international assignments in substituting for the use of expatriates? 15. What are the key skills needed by an international human resource manager? Quiz for Chapter 16 – People in the MNE True or False? For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  118. An ethnocentric approach to managing an MNE subsidiary emphasizes the norms and practices of the parent company (and the parent country of the MNE). ANS: T 119. Returning to your own country after a longer period as expatriate abroad is usually much easier than the initial move away from home. ANS: F 120. An immersion approach to preparing an expatriate for his/her assignment involves comprehensive classes in the culture and language of the destination country. ANS: F 121. Expatriate success is an outcome of imbalances between expectations of the expatriate, and the abilities of the expatriate to manage in the local context. ANS: F 122. Culture shock is an expatriate’s reaction to a new, unpredictable and therefore uncertain environment. ANS: T 123. ‘Reverse culture shock’ refers to the experience of employees who are suddenly exposed to a boss who introduces a new culture to an organization. ANS: F Multiple Choice 124. What are expatriates experiencing culture shock advised to do to cope with the psychological pressures they are exposed to? ss) do physical exercise tt) meet other expatriates in a similar situation uu) modify their expectations of the job vv) all of the above activities are likely to be helpful ww) none of the above activities are likely to be helpful ANS: D For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning 125. The costs of sending expatriates – and their families – abroad are quite high, and MNEs are looking for alternative means of achieving the same objectives. Which of the following is a lower cost alternative to sending an expatriate? hh) virtual global teams ii) commuter assignments jj) contract work kk) all of the above practices ll) none of the above practices ANS: D 126. The informal understanding between an employee and their boss regarding the expected future benefits provided in appreciation of current work is known as: hh) employment contract ii) psychological contract jj) repatriation contract kk) supra-legal contract. ANS: B 127. The personal sense of wellbeing of expatriates – like exchange students – typically follows the following pattern over time. ee) frustration – honeymoon – normalization ff) honeymoon – normalization – frustration gg) frustration – normalization – honeymoon hh) honeymoon – frustration – normalization ANS: D 128. Which is not a major factor in the selection of staff for an expatriate assignment? dd) intellectual capabilities ee) psychological capabilities ff) social capabilities gg) physical capabilities ANS: D 129. MNEs in which most subsidiaries are headed by a third-country national are said to employ a _________ human resources strategy. ll) polycentric mm) tercio-centric For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning  nn) ethnocentric oo) geocentric ANS: D For use with International Business, 4e by Mike Peng and Klaus Meyer 9781473779891 © 2023 Cengage Learning