Question 1

Which of the following statements regarding the European Union is true?

Accepted Answer

A) The European Union no longer exists. 
B) The European Union includes Venezuela. 
C) The European Union has a common currency. 
D) All of the above are true.

Question 2

Multinational companies are defined by all of these factors EXCEPT:

Accepted Answer

A) Engaging in business beyond its domestic borders. 
B) They may be of any size. 
C) They may be corporations. 
D) They must be public corporations.

Question 3

According to the text,the multinational company

Accepted Answer

A) Is required to be a public corporation. 
B) Is any company that engages in any business function across borders. 
C) Must sell overseas to be a true multinational. 
D) Must be large.

Question 4

The free market reforms in emerging countries are creating a potential group of

Accepted Answer

A) new competitors. 
B) old competitors. 
C) subsidized firms. 
D) government companies.

Question 5

Examples of developed economies would include:

Accepted Answer

A) The U.S.and Japan. 
B) Hungary and Poland. 
C) Argentina and Brazil. 
D) Hong Kong and Singapore.

Question 6

Global trade has this important effect on developing new competitors.

Accepted Answer

A) It facilitates the transfer of technology, allowing former assemblers to become creators. 
B) It facilitates the transfer of knowledge, allowing former builders to become assemblers. 
C) It reduces competition. 
D) It reduces rivalry.

Question 7

Multinational management is

Accepted Answer

A) A strategy of developing similar strategies for different countries. 
B) The trend of business expanding beyond local boundaries. 
C) The formulation and design of management systems to successfully take advantage of international opportunities and respond to international threats. 
D) None of the above

Question 8

The largest company in the world is:

Accepted Answer

A) Wal-Mart Stores. 
B) BP. 
C) Royal Dutch Shell. 
D) Chevron.

Question 9

Major regional trade agreements include all of the following EXCEPT

Accepted Answer

A) EU. 
B) NAFTA. 
C) APEC. 
D) PROTEC.

Question 10

One of the major reasons why global companies seek to develop standard products is because

Accepted Answer

A) A standard product allows the company to save money because the same product can be sold anywhere. 
B) A company can be more responsive to local cultural conditions. 
C) It allows the company to invest more in research and development. 
D) All of the above

Exam 1: Multinational Management in a Changing World