What not to do
Which of the following is not a question asked as part of a VRIO analysis?
(A) Does the resource add value?
(B) Is the resource rare?
(C) Is the resource intangible?
(D) Are other policies and procedures organized to support the exploitation of this resource?
(C) Is the resource intangible?
If a company sets up a subsidiary abroad to move some of its production overseas, then we talk of:
(A) Captive marketing
(B) Captive offshoring
(C) Captive outsourcing
(D) Captive management
(B) Captive offshoring
The activity of comparing a company’s resources and capabilities with those of a leading company in the industry is also known as:
(A) Competitor intelligence
(B) Competitor analysis
(C) VRIO analysis
(D) Benchmarking
(D) Benchmarking
Which of the following is not considered a ‘modern’ trade theory?
(A) Factor endowment theory
(B) Product life cycle theory
(C) National competitive advantage (‘diamond model’)
(D) Strategic trade theory
(A) Factor endowment theory
Implicit CSR refers to corporate activity that benefits society by companies:
(A) engaging in philanthropy
(B) following social and environmental requirements set by law
(C) initiating higher standards through their industry associations
(D) establishing and publicizing higher standards than what is required by law
(B) following social and environmental requirements set by law
Which of the following does not create a ‘liability of outsidership’?
(A) Lack of experience
(B) Being a foreigner
(C) Lack of business networks
(D) Being a native
(D) Being a native
The economic advantage one nation enjoys due to higher productivity in an economic activity is known as:
(A) Free trade
(B) Comparative advantage
(C) Absolute advantage
(D) Trade deficit
(C) Absolute advantage
What is not a characteristic of a market economy?
(A) Buyers and sellers meeting in a market
(B) Prices react to changes in supply and demand
(C) Businesses planning production to supply the market in the future
(D) Business producing according to an economy-wide central plan
(D) Business producing according to an economy-wide central plan
In international trade theory, the term ‘deadweight loss’ is referring to:
(A) The loss to exporters due to the introduction of tariffs
(B) The loss to importers due to the introduction of tariffs
(C) The loss to consumers due to the introduction of tariffs
(D) The net loss to society due to the introduction of tariffs
(D) The net loss to society due to the introduction of tariffs
Which of the following statements about business process outsourcing (BPO) is not correct?
(A) BPO is used specifically when outsourcing services to India
(B) A major motivation for BPO is to reduce costs
(C) An important motivation for BPO is to tap into suppliers’ competences
(D) None of the above
(A) BPO is used specifically when outsourcing services to India
Free trade areas can have a negative effect on economic welfare because of the
(A) Trade diversion effect
(B) Trade creation effect
(C) Trade reduction effect
(D) Trade exploitation effect
(A) Trade diversion effect
The factor endowment theory suggests that:
(A) Resources are the foundation of firm’s competitive advantages
(B) National resource endowments are the foundation for comparative advantages in international trade
(C) Many factors contribute to explaining the emergence of comparative advantages
(D) Scarce resources are the foundation for comparative trade advantages
(B) National resource endowments are the foundation for comparative advantages in international trade