Global Dimensions of Business Quiz

Christie’s and Sotheby’s both have a dominant place in the auction market and have both become more aggressive about increasing the commissions that buyers must pay without any kind of agreement between them to do so. This is an example of

Correct Answer

Tacit collusion

Explicit collusion

Exchange Rigging

Incorrect Response

Monopoly

Through this type of regulation, U.S. industries may petition the government for relief from imports that are sold in the United States at less than fair value or which benefit from subsidies provided through foreign government programs.

Anti-monopoly

Antidumping

Anti-collusion

Price fixing

This international business strategy is a strategy by which companies try to achieve maximum local responsiveness by customizing both their product offering and marketing strategy to match different national conditions.

Multi-domestic strategy

Global strategy

Transnational strategy

Semi-global strategy

When compared to a competitive market, monopolies will tend to exhibit:

Incorrect Response

Lower profit, lower quantities sold

Correct Answer

Higher profit, higher quantities sold

Higher profit, lower quantities sold

Lower profit, higher quantities sol

The arrangement a firm makes that allows another one to use its intellectual property such as brand name, copy right, patent, technology, trademark and so on for a specific period of time.

Correct Answer

Licensing

Free trade

Direct investment

Incorrect Response

Franchising

This strategy sacrifices responsiveness to local markets in favor of efficiency. Microsoft, for example, offers the same software programs around the world but adjusts the programs to match local languages.

Transnational strategy

Multinational strategy

Multidomestic strategy

Global strategy

Assume that there are four major cable providers in the U.S. The four companies meet secretly and agree not to compete with one another for customers in certain geographic areas of the country. This is an example of:

Monopoly

Oligopoly

Collusion

Price fixing

The value of direct investment made by the resident of the reporting economy to external economies.

Correct Answer

FDI net outflow

Incorrect Response

Outward direct investment

Capital expenditure

FDI net inflow

Which of the following is an example of horizontal FDI?

Correct Answer

General Motors Corporation builds a plant in China to supply Buicks to the Chinese market

Incorrect Response

Ford Motor Company acquires the British firm Jaguar.

The Venezuelan government acquires the Venezuelan operations of BP Petroleum.

Lenovo, a Chinese company, acquires IBM’s personal computing business.

Motorola and Toshiba joined to develop manufacturing processes for microprocessors. This is an example of.

Free trade

Direct Investment

Franchising

Strategic alliance

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