IBUS/MGMT 471 Summer 2021 Final

Multiple Choice

1._________ refers to the confiscation of foreign property by host governments.

1. Expatriation
2. Expropriation
3. Extraterritoriality
4. None of the above

2.In which stage of the product life cycle do firms begin production abroad?

1. First
2. Second
3. Third
4. Fourth

3.MNCs should locate their operations in countries that offer which of the following:

1. High-cost labor
2. Host-government resistance
3. Monetary compensation
4. A large market for the company's goods or services

4.MNCs will find a host country to be a less attractive destination when . . .

1. Company earnings are not easily repatriated
2. The government is stable
3. Exchange rates between the home and host countries do not fluctuate
4. None of the above

5.The wine industry in France has been threatened by all of the following except

1. Foreign wine producers
2. Subsidies from the French government
3. Unpredictable weather
4. Mergers and acquisitions

6.The social responsibilities of corporations are likely to include all of the following except

a.Selling safe product

b.Treating employees fairly

c.Offering the highest bid suppliers

d.Being truthful with customers

7.Developing countries may not be able to protect their environments from the effects of industrialization, however harmful, because

a.They are not interested in the deleterious consequences.

b.They will value increased employment more than they will value the health and safety of citizens.

c.They cannot afford the technologies necessary to manufacture in a more eco-friendly manner.

d.None of the above.

8.Which of the following statements most accurately describes the relationship that a firm should have with its stakeholders?

a.Customers demand quality goods at a fair price and in exchange are expected not to sue the company if something goes wrong.

b.Firms receive capital from stockholders and in exchange provide healthy returns.

c.Stakeholders provide inducements to the firms, and in exchange, firms contribute to all stakeholder groups.

d.Firms value all stakeholder groups equally at all times.

9.As one of an MNC's stakeholder groups, host governments expect all of the following except

a.Free merchandise

b.Increased employment for locals

c.Tax payments

d.Respect for local customs and culture

10.Most of the ocean's seabed does not fall under any country's jurisdiction because

a.It is too deep to determine its ownership.

b.The minerals found there are very valuable.

c.It is beyond the 200 miles of ocean claimed by many territories.

d.None of the above.