1. Exporting is an easier route for company that wants to engage in international business because:
a) It is a faster way for international expansion.
b) It is suitable for most types of goods and services.
c) It involves less cost and risk
d) It is more profitable on the long term
2. An Ethnocentric manager in multinational company is the one who:
a) acts and takes decisions based only on the host country’s cultural values, behaviours and beliefs
b) acts and takes decisions based only on the organisational cultural values, behaviours and beliefs
c) acts and takes decisions based only on his/her own home country’s cultural values, behaviours and beliefs
d) does not base his actions and decisions on any cultural behaviours and beliefs.
3. When countries A and B are trading together and country A can produce more of product X with a quantity of inputs less than country B, then country A has ______
a) competitive advantage
b) Absolute advantage
c) Unique value proposition
d) comparative advantage
4. Following on the previous question, if country B can produce product Y with a quantity of input less than country A and then both countries trade together, this illustrates the theory of:
a) mutual trade theory
b) comparative advantage theory
c) absolute advantage theory
d) trade off theory
5. The Common Market for Eastern and Southern Africa (COMESA) that Egypt is a part of is a type of:
a) Unilateral trade agreement
b) Multilateral trade agreement
c) Economic union
d) All of the above
6. Factors that drive globalization include:
a) Removing trade barriers such as quotas and tariffs
b) Rising economic powers
c) Economic inflations and recent economic recessions
d) All of the above