Kingtk
1. A manager reviews market data to recommend a new product for…
1. A manager reviews market data to recommend a new product for development. The CEO wants to release a new product in three months, which means that the manager has limited time and data from which to make inferences. What is this an example of?
a. common law
b. nonmarket strategy
c. bounded rationality
d. institutional work
2. A multinational enterprise operates in two countries: the United States and China. In the United States, government decisions are made by elected representatives, whereas in China the decisions are made by one party. What is this an example of?
a. political system
b. political risk
c. economic system
d. property right
3. A firm’s market in Taiwan is undergoing significant changes related to how the government will continue to allow foreign direct investments. What is this an example of?
a. political risk
b. property right
c. economic system
d. regulatory pillar
4. A firm is considering foreign direct investment in an emerging market. After conducting further research, the CEO decides not to enter the market due to the risk that a facility could be taken over by the government. This decision relates to which concept?
a. marketing rights
b. property rights
c. normative pillar
d. norms
5. A U.S. firm enters into a legal dispute with a foreign firm related to its trade name. The issue occurred in the foreign market. The U.S. firm is not concerned about where the legal case will be heard, based on the use of global comprehensive statutes and codes that will guide the decision. Which type of law will the dispute follow?
a. common
b. civil
c. property right
d. theocratic
6. A U.S. firm selects the foreign markets it will enter by the importance it places on countries that honor its legal protection on new product design and marketing. Markets that do not honor the legal rights have been known to manufacture and sell inferior products and claim that they are the firm’s branded items. What is the firm concerned about?
a. distribution
b. copyrights
c. piracy
d. pricing
7. A French firm plans to enter a market in Malaysia. The firm just created an innovative product that has not yet been sold in any market. To protect its design, what kind of intellectual property rights should the firm seek before entering Malaysia?
a. trademark
b. copyright
c. patent
d. piracy
8. A U.S. manager is tasked with choosing the next foreign market in which to establish a manufacturing facility. The manager needs to choose between a market that allows for the firm to derive income from its facility and one where facilities are partially owned by the government. Which factor is the manager considering?
a. democracy
b. property rights
c. common law
d. patents
9. A manager has been asked to forecast sales of the firm’s newest product line. The manager considers the economic climate to determine how the forces of supply and demand could impact the sale of the products. Which economic system is the manager considering?
a. command
b. market
c. mixed
d. planned
10. A trade representative is visiting a foreign market in which the government holds ownership of manufacturing inputs. Which type of economy is the trade representative visiting?
a. market
b. mixed
c. common
d. command
11. A startup firm needs access to natural resources required for the manufacture of its food products. Which driver of economic development is the startup considering?
a. institutions
b. culture
c. geography
d. ownership
12. A country has experienced economic and social disruption in the last five years due to capitalism that has encouraged profit-seeking decisions without accountability. This has resulted in record levels of unemployment, poverty, and crime without consequences for those who made the decisions. This is an example of what concept?
a. property rights
b. mixed economy
c. moral hazard
d. political risk
13. A newly appointed manager to a firm’s international division asks the CEO for advice. The CEO shares examples of how the global business environment has changed since the peak of globalization and says that the manager needs to learn about institutions and deglobalization. What topic should the manager study?
a. democracy
b. intellectual property
c. market economy
d. geopolitics
14. A firm in the United Kingdom is disputing a standard legal issue with another firm in the same geographic region. The dispute will use legal precedents and traditions to resolve the case. Which type of law will they follow?
a. common
b. property rights
c. theocratic
d. civil
15. A manager is doing business in a country that emphasizes informal, relational exchanges and has a relatively weak legal system. Why is relationship building important in this market?
a. Strong institutions eliminate political risk in all situations.
b. Informal exchanges engage regulatory pillars in markets.
c. Business relationships result in formal regulations.
d. Relationship building fills the gap in strong legal protection.
