1. Internationalisation occurs through two mechanisms:

Select one:

a. Direct investment and trade

b. Trade and financial flows

c. Production and consumption

d. Joint ventures and industry mergers

2. Trade and foreign direct investment are, respectively:

Select one:

a. Technology transfers from one country to another; and transfer of capital from one country to another

b. Hiring workers in one country, transferring them to another; and sending their salaries back to their home country

c. Technology transfers from one country to another; and mergers and acquisitions across countries

d. Selling goods or services made in one country in another; and transferring the funds to create productive assets from one country to another

3. Global industries are those where:

Select one:

a. International trading is high

b. Technology transfers are high

c. Foreign direct investment is low

d. Both trade and direct investment are high

4. Trade theory integrates the following elements

Select one:

a. Natural resource endowments

b. Labour resources and capital

c. Knowledge-related resources

d. All of the above

5. Ghemawat's CAGE framework can be used to:

Select one:

a. Evaluate which countries should form economic unions

b. Evaluate in which countries a firm should consider allowing locally-differentiated products to be developed

c. Evaluate in which countries a firm should not consider establishing arbitrage agents

d. All of the above

6. Major benefits of a global strategy can include:

Select one:

a. Serving customers who demand a global supplier

b. Learning how to please the most demanding customers on the planet

c. Economies of scale in R&D or product development

d. All of the above

7. Firms that have considered offering standard global products and found they must offer local variants to survive include:

Select one:

a. The world's biggest automakers: Ford, GM, Toyota and Honda

b. Very successful national retailers such as Wal-mart or Tesco

c. Cosmetics, household goods and washing machine manufacturers

d. All of the above

8. Going 'glocal' means:

Select one:

a. Developing global standard platforms for your product using local ingredients

b. Developing global standard platforms for your product with locally-differentiated variants

c. Running as tight a ship as McDonalds

d. Nothing: it's just a buzzword

9. Figure 15.7 below shows:

The Europeans: The Americans: The Japanese: Decentralized Coordinated Centralized Federations Federations HubsTight complex controls Heavy flows of and coordination and technology, finances, a shared strategic people, and materials decision process between interdependent units