Bmgt446 Sample Exam 2

Chapter 1 Globalization and the Multinational Corporation

1) Which of the following was created in an effort to promote free trade?
A) World Trade Organization
B) the Sarbanes-Oxley Act
C) multilateral development banks
D) the Organization for Economic Cooperation and Development
Answer: A

2) What is the name for the shifting of non-strategic functions to specialist firms to reduce costs?
A) outsourcing
B) multinational company
C) globalization
D) transnational corporations
Answer: A

3) The World Bank's main goal is to ensure the stability of
A) the international monetary and financial system only in developed countries.
B) the international monetary and financial system in developing countries.
C) the international monetary and financial system in both developed and developing countries.
D) only the financial system in both developed and developing countries.
Answer: C
4) Between 2007 and 2010 the world witnessed a full-blown financial crisis that was attributed to
A) subprime mortgage repricing.
B) quantitative easing by the Fed.
C) foreign exchange imbalances.
D) banking failures.
Answer: A

5) Which of the following is NOT a protectionist tendency?
A) tariffs
B) comparative advantage
C) non-tariff barriers
D) quotas
Answer: B

6) It is the right given to firms to produce specific products in exchange for a ________ fee.
A) Joint Venture
B) Securitization
C) Licensing
D) Royalty
Answer: C

7) Which one of the following provides a specialized sales or service strategy, offers support at various levels, and occasionally invests in the firm in exchange for periodic fees?
A) joint venture
B) franchising
C) licensing
D) royalty
Answer: B

8) ________ is a company that is commonly owned and operated by two or more firms.
A) Joint Venture
B) Franchising
C) Licensing
D) Royalty
Answer: A

9) What is the name of the international organization that was founded to ensure the stability of the