REVIEWER

Question 1

the main types of Foreign Direct Investment (FDI) are acquisitions and greenfield investments

Answer 1

TRUE

Question 2

The concept of ‘Confucian Dynamism’ by Hofstede refers to the extent to which societies tolerate unequal distribution of power

Answer 2

FALSE

Question 3

The ‘BRIC’ economies stand for Brazil, Russia, India, and China

Answer 3

TRUE

Question 4

The difference between Gross Domestic Product (GDP) and Gross National Product (GNP) is that GNP includes net overseas earnings

Answer 4

TRUE

Question 5

The main advantage of outsourcing is access to specialist skills

Answer 5

TRUE

Question 6

‘Bridging’ is a corporate political activity involving proactive actions to influence legislation

Answer 6

FALSE

Question 7

The study by Ronen and Shenkar (1985) identified cultural clusters based on characteristics like work goals and interpersonal orientations.

Answer 7

TRUE

Question 8

The ‘flexible firm’ concept is supported by the practice of offshoring

Answer 8

FALSE

Question 9

The primary agency relationship in business is that directors work on behalf of shareholders.

Answer 9

TRUE

Question 10

Core competencies’ are those that should be outsourced to trusted suppliers

Answer 10

FALSE

Question 11

The main disadvantage of outsourcing is the difficulty in predicting costs.

Answer 11

FALSE

Question 12

The ‘threshold competence’ is the level necessary for an organization to gain a competitive advantage

Answer 12

FALSE

Question 13

Hofstede’s cultural dimension of ‘Masculinity versus Femininity’ contrasts ‘assertiveness’ with ‘nurturance’

Answer 13

TRUE

Question 14

Corporate Social Responsibility (CSR) is the same as business ethics

Answer 14

FALSE

Question 15

Uncertainty avoidance’ s the degree o to which people feel threatened by risky or undefined situations

Answer 15

TRUE

Question 16

‘Offshoring’ refers to transferring activities to another country to exploit wage differentials

Answer 16

TRUE

Question 17

‘Globalization’ is characterized by the increasing importance of manufacturing industries

Answer 17

FALSE

Question 18

‘Country risk’ includes factors like expropriation of assets and unfavorable laws

Answer 18

TRUE

Question 19

‘Monetary policy’ deals with the levels of taxation and government spending.

Answer 19

FALSE

Question 20

Trompenaars and Hampden-Turner’s cultural dimensions include ‘Universalism versus Particularism’ which contrasts rules with relationships.

Answer 20

TRUE