Global Strategic Rivalry Theory by fiv10297


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									                     Sample Questions for Mid-term Exam
                                 BUS676: Global Business

Multiple Choice Questions

  1. Who is responsible for developing the theory of absolute advantage?
     a. David Ricardo                            b. Raymond Vernon
     c. Adam Smith                               d. Wassily Leontief

  2. Which of the following theories argues that in oligopolistic industries FDI flows are a
     reflection of strategic rivalry between firms in that global marketplace?
     a. Knickerbocker theory                         b. Dunning’s eclectic theory
     c. Organizational learning theory               d. Product life cycle theory

  3. Which of the following is NOT regarded as a determinant of culture?
     a. Education                               b. Social structure
     c. Society                                 d. Religion

  4. According to the decision framework, if both transaction costs and tariffs are low, firms
     should be engaged in ________.
     a. horizontal FDI                            b. vertical FDI
     c. licensing                                 d. export

  5. The three values – loyalty, reciprocal obligations and honesty in dealings with others –
     are central to __________.
     a. Confucianism                                b. Christianity
     c. Buddhism                                    d. Islam

  6. Which of the following religions prohibits the payment or receipt of interest?
     a. Christianity                                b. Islam
     c. Buddhism                                    d. Hiddhism

  7. The main tenet of __________ was that it was in a country’s best interests to maximize
     exports through subsidies.
     a. Comparative Advantage                  b. Absolute Advantage
     c. Mercantilism                           d. H-O Theory

  8. Which of the following aspects does NOT belong to the four attributes of national
     competitive advantage?
     a. Factor endowments                      b. Demand conditions
     c. Entrepreneurship                       d. Firm strategy, structure, and rivalry

  9. Which of the following is NOT used by governments as a form of subsidies?
     a. Cash grants                             b. Import quotas
     c. Equity participation                    d. Low interest loans

  10. The two terms: economies of scale and learning effects, are particularly important for
      which of the following international trade theories?
      a. H-O theory                                 b. Comparative advantage theory
      c. New trade theory                           d. Product life-cycle theory

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