FREE Master of International Business MCQ Questions and Answers

Question 1

Around 1870, the first stage of globalization began, and it ended with _______ .

Accepted Answer

World War I

Answer

The first stage of globalization, often dated from around 1870, is widely considered to have ended with the outbreak of World War I in 1914. This global conflict severely disrupted international trade, capital flows, and migration, leading to a period of increased protectionism and economic nationalism. The war effectively halted the momentum of increasing global integration that characterized the late 19th and early 20th centuries.

Question 2

International Bank for Reconstruction and Development, or IBRD, is another name for ______ .

Accepted Answer

World Bank

Answer

The International Bank for Reconstruction and Development (IBRD) is the original institution and core component of the World Bank Group. Established in 1944, its primary purpose was to finance the reconstruction of nations devastated by World War II and to promote economic development. Therefore, IBRD is essentially synonymous with the World Bank.

Question 3

In the end, the _________ was changed to the _________ on January 1st, 1995.

Accepted Answer

GATT, WTO

Answer

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade, which operated as a provisional treaty from 1948. On January 1st, 1995, the GATT was transformed into the World Trade Organization (WTO), which became a permanent international organization with a broader mandate and a more robust dispute settlement mechanism. This marked a significant evolution in the global trading system.

Question 4

Which steps of internationalization should be completed in what order?

Accepted Answer

Domestic, International, Multinational, Global, Transnational

Answer

The typical progression of a company's internationalization often follows a sequence: starting domestically, then expanding internationally through exports or licensing. As operations grow, it becomes multinational with direct investments in multiple countries, then global with a standardized worldwide approach. Finally, it may evolve into a transnational company, characterized by integrated global operations without a strong national identity, optimizing resources globally.

Question 5

For policy, subsidiaries take the local environment into account. Strategy development is referred to as

Accepted Answer

Regiocentric Approach

Answer

A regiocentric approach to strategy development means that a company considers the local environment within specific geographic regions when formulating policies for its subsidiaries. This approach allows for adaptation to regional market characteristics and cultural nuances, while still maintaining a broader regional strategy. It balances global integration with local responsiveness at a regional level.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

FREE Master of International Business MCQ Questions and Answers