Master of International Business (MIB) — Questions and Answers

Question 1: Which factor is MOST critical when segmenting international markets by behavioral variables?

GDP per capita
Population density
Consumer purchase occasion and loyalty (Correct answer)
Geographic proximity

Correct answer: Consumer purchase occasion and loyalty

Behavioral segmentation in international marketing focuses on consumer usage rates, purchase occasions, brand loyalty, and benefits sought, which often transcend national boundaries.

Question 2: In Nonaka's SECI model of knowledge creation, 'Combination' refers to:

Converting tacit knowledge to explicit knowledge through dialogue
Internalizing explicit knowledge into tacit knowledge through practice
Sharing tacit knowledge through shared experience
Combining different bodies of explicit knowledge to create new explicit knowledge (Correct answer)

Correct answer: Combining different bodies of explicit knowledge to create new explicit knowledge

Combination involves reconfiguring existing explicit knowledge (e.g., documents, databases) through sorting, adding, and categorizing to produce new explicit knowledge.

Question 3: The 'bullwhip effect' in supply chains refers to:

Sudden supplier bankruptcy
Rapid price fluctuations in commodity markets
Customs delay volatility
Increasing demand variability as orders move upstream (Correct answer)

Correct answer: Increasing demand variability as orders move upstream

The bullwhip effect describes how small demand fluctuations at the retail level get amplified into large swings in inventory and orders further up the supply chain.

Question 4: Which approach to global performance management is considered most equitable in multinational corporations?

Delegating all performance management to local HR
Combining global standards with local contextual adjustments (Correct answer)
Using only local market benchmarks for all employees
Using only headquarters-based KPIs universally

Correct answer: Combining global standards with local contextual adjustments

Effective global performance management balances globally consistent core metrics with locally relevant adjustments that account for market conditions, cultural norms, and contextual factors.

Question 5: A 'third-country national' (TCN) in international HR management is:

An employee working in a country that is neither their home nor the parent company's country (Correct answer)
A dual citizen working abroad
An employee working in their home country
A local hire in the host country

Correct answer: An employee working in a country that is neither their home nor the parent company's country

A TCN is an employee who is a citizen of neither the parent company's home country nor the host country where they are assigned to work.

Question 6: The 'dual career couple' challenge in international HR arises because:

Spousal career disruption is a major reason expatriates decline or fail international assignments (Correct answer)
Couples must file separate tax returns in host countries
Two employees in the same family cannot work for the same company
Work permits cannot be issued to spouses of expatriates

Correct answer: Spousal career disruption is a major reason expatriates decline or fail international assignments

Dual career couple challenges arise when a spouse's career would be disrupted by relocation, making employees reluctant to accept international assignments and increasing assignment failure risk.

Question 7: What is the primary purpose of a 'Harmonized System (HS) code' in international trade?

Setting international product quality standards
Classifying traded goods for customs and tariff purposes (Correct answer)
Tracking supplier performance metrics
Calculating carbon footprints of shipments

Correct answer: Classifying traded goods for customs and tariff purposes

HS codes are standardized numerical codes used by customs authorities worldwide to classify traded products, determining applicable tariffs and trade statistics.

Question 8: Which inventory management philosophy aims to receive goods only as they are needed in the production process?

Safety stock management
Vendor Managed Inventory (VMI)
Economic Order Quantity (EOQ)
Just-In-Time (JIT) (Correct answer)

Correct answer: Just-In-Time (JIT)

Just-In-Time (JIT) inventory management minimizes holding costs by synchronizing material deliveries with production schedules, requiring reliable supplier relationships.

Question 9: Which document serves as a contract of carriage and receipt of goods between a shipper and carrier in international shipping?

Commercial invoice
Letter of credit
Certificate of origin
Bill of lading (Correct answer)

Correct answer: Bill of lading

A bill of lading is a legal document issued by a carrier to a shipper that acknowledges receipt of cargo and specifies terms of delivery and transportation.

Question 10: A Brazilian executive insists on building a personal relationship before discussing business terms. This aligns with which of Trompenaars' dimensions?

Neutral vs. Affective
Sequentiality
Specific vs. Diffuse (Correct answer)
Universalism

Correct answer: Specific vs. Diffuse

In diffuse cultures, personal and professional life overlap significantly, and relationships must be established before business can proceed effectively.

Question 11: In global knowledge management, 'stickiness' refers to:

Data encryption strength in cloud systems
The retention rate of high-performing employees
Customer loyalty metrics in digital platforms
The difficulty of transferring knowledge from one context to another (Correct answer)

Correct answer: The difficulty of transferring knowledge from one context to another

Knowledge stickiness (von Hippel) describes how costly and difficult it is to move knowledge across organizational, cultural, or geographic boundaries.

Question 12: Which framework categorizes national innovation systems by the role of government, industry, and universities in producing and diffusing knowledge?

Resource-Based View
Porter's Diamond Model
Uppsala Internalization Model
Triple Helix Model (Correct answer)

Correct answer: Triple Helix Model

The Triple Helix Model (Etzkowitz & Leydesdorff) examines the interplay among government, academia, and industry as the three helices driving national innovation.

Question 13: In Hofstede's research, 'indulgence' as a cultural dimension refers to:

Acceptance of unequal power distribution
Preference for long-term planning
Tolerance for ambiguity and uncertainty
The extent to which societies allow free gratification of human desires (Correct answer)

Correct answer: The extent to which societies allow free gratification of human desires

Indulgence measures the degree to which people can freely enjoy life and have fun, versus restrained societies that suppress gratification through strict norms.

Question 14: Which of the following is an instance of the development of a new market?

Creation of microfinance services to poor creditors by a bank. (Correct answer)
Development of a cheaper drug by a pharmaceutical company.
Design of an environmentally friendly building by a construction company.
Development of a low-emission fuel for motorbikes by an oil company.

Correct answer: Creation of microfinance services to poor creditors by a bank.

The creation of microfinance services targets a previously underserved or unserved segment of the population – poor creditors – who traditionally lacked access to conventional banking. This represents the development of a completely new market for financial services. The other options involve improving existing products or processes within established markets, rather than creating entirely new ones.

Question 15: A 'host-country national' (HCN) staffing policy in MNCs offers which key advantage?

Ensures consistent global company culture
Provides local market knowledge and eliminates language barriers (Correct answer)
Minimizes need for cross-cultural training
Gives headquarters maximum control over subsidiaries

Correct answer: Provides local market knowledge and eliminates language barriers

HCN staffing leverages deep local market knowledge, cultural understanding, and language skills while also being cost-effective and avoiding work permit complications.

Question 16: What are the four universal tactics for being socially responsive?

Proaction, Defensive, Reinvestment, Reaction
Reaction, Defence, Investment, Withdrawal
Reaction, Defence, Reinvestment, Proaction (Correct answer)
Reaction, Defence, Accommodation, Proaction

Correct answer: Reaction, Defence, Reinvestment, Proaction

The four universal tactics for social responsiveness describe a spectrum of organizational responses to social issues. 'Reaction' is a passive denial of responsibility, 'Defence' involves admitting some responsibility but fighting it, 'Accommodation' (or Reinvestment) means accepting responsibility and taking action, and 'Proaction' involves anticipating issues and actively leading solutions. These tactics illustrate how firms engage with societal expectations and pressures.

Question 17: Which of the following is NOT an illustration of entry barriers?

Economies of scale
Product differentiation
Expected retaliation
Buyer switching costs (Correct answer)

Correct answer: Buyer switching costs

Buyer switching costs refer to the costs (monetary, time, effort) that a buyer incurs when changing from one supplier's product or service to another's. While they influence the bargaining power of buyers, they are not typically considered a direct barrier to entry for new firms entering an industry. Entry barriers are factors that prevent new companies from even getting into the market in the first place.

Question 18: With regard to that country, we multiply foreign revenue by the rate.

Forward rate
Spot rate (Correct answer)
Portfolio Investment
Cash Flows

Correct answer: Spot rate

To convert foreign revenue into the domestic currency for reporting purposes, a company typically uses the spot rate, which is the current exchange rate for immediate delivery of a currency. This rate reflects the present value of the foreign earnings at the time of conversion, providing an accurate representation of the revenue in the home currency.

Question 19: What is 'repatriation' in the context of global HR management?

The process of returning an expatriate employee to their home country after an international assignment (Correct answer)
Renewing work visas for foreign employees
Hiring foreign nationals for domestic positions
Transferring employee records to a new country

Correct answer: The process of returning an expatriate employee to their home country after an international assignment

Repatriation involves managing the return of expatriate employees to their home country, including role reintegration, reverse culture shock, and retaining gained international knowledge.

Question 20: Which major corporation was the first to employ scenarios?

British Airways
Shell (Correct answer)
Sony
Hewlett Packard

Correct answer: Shell

Royal Dutch Shell is widely recognized for pioneering and extensively using scenario planning as a strategic tool since the 1970s. They developed this approach to navigate the highly uncertain global energy landscape, particularly after the oil crises. Shell's innovative use of scenarios helped them anticipate future changes and build resilience into their long-term strategies.

Question 21: A 'greenfield investment' in the context of FDI means:

Purchasing minority stakes in foreign publicly listed companies
Merging with a local firm to share market risk
Building new production facilities from scratch in a foreign country (Correct answer)
Acquiring an existing foreign company outright

Correct answer: Building new production facilities from scratch in a foreign country

Greenfield FDI involves constructing new facilities abroad rather than acquiring existing ones, giving the investor full control over design and operations.

Question 22: What is a 'third-party logistics provider' (3PL)?

A company that manufactures products for clients
A firm that outsources its own logistics to others
A government customs agency
An external firm that manages logistics operations on behalf of a company (Correct answer)

Correct answer: An external firm that manages logistics operations on behalf of a company

A 3PL provider offers outsourced logistics services including warehousing, transportation, and distribution management on behalf of client companies.

Question 23: Which foreign market entry mode gives a firm the highest degree of control over overseas operations but also carries the greatest resource commitment and risk?

Joint venture
Wholly owned subsidiary (Correct answer)
Licensing
Exporting

Correct answer: Wholly owned subsidiary

A wholly owned subsidiary provides full managerial control and profit retention but requires the largest capital outlay and exposure to country risk.

Question 24: A firm tracks the ratio of revenue from new products to total revenue over time. This KPI is designed to measure:

Cost efficiency in manufacturing
Market share relative to competitors
Innovation metabolism — how quickly the firm renews its product portfolio (Correct answer)
Employee productivity in R&D departments

Correct answer: Innovation metabolism — how quickly the firm renews its product portfolio

New product revenue ratio (innovation metabolism) measures the pace at which a firm generates commercial value from innovation, indicating portfolio renewal speed.

Question 25: What is 'nearshoring' in global supply chain management?

Setting up offshore financial accounts
Outsourcing to domestic suppliers
Moving production to a distant low-cost country
Relocating operations to a nearby country (Correct answer)

Correct answer: Relocating operations to a nearby country

Nearshoring involves relocating business processes or manufacturing to a geographically close country, balancing cost savings with reduced logistics complexity.

Question 26: When a foreign government expropriates a multinational's assets with fair compensation, this is termed:

Nationalization (Correct answer)
Domestication
Creeping expropriation
Confiscation

Correct answer: Nationalization

Nationalization is the government takeover of private assets, typically with compensation, distinguishing it from confiscation where no payment is made.

Question 27: Which organization serves as the lender of last resort to member countries facing balance-of-payments crises?

International Monetary Fund (Correct answer)
Bank for International Settlements
World Bank
Asian Development Bank

Correct answer: International Monetary Fund

The IMF provides short-term financial assistance to member countries with balance-of-payments difficulties, typically with policy conditionality attached.

Question 28: In the end, the _ was changed to the _ on January 1st, 1995.

IMF, GATT
WTO, GATT
GATT, WTO (Correct answer)
GATS, WTO

Correct answer: GATT, WTO

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 29: A 'force majeure' clause in an international contract typically:

Establishes predetermined financial penalties for late or non-delivery
Requires parties to renegotiate terms whenever economic circumstances change significantly
Excuses a party from performing its obligations when extraordinary, unforeseeable events occur (Correct answer)
Designates which currency and exchange rate applies to payment obligations

Correct answer: Excuses a party from performing its obligations when extraordinary, unforeseeable events occur

Force majeure clauses relieve a party from liability for non-performance when circumstances beyond its reasonable control—such as war, natural disasters, or pandemics—make performance impossible.

Question 30: In global HR, 'country clustering' refers to:

Grouping subsidiaries into regional reporting structures
Concentrating manufacturing in select low-cost countries
Grouping employee nationalities for team assignments
Categorizing countries with similar cultural characteristics for HR policy development (Correct answer)

Correct answer: Categorizing countries with similar cultural characteristics for HR policy development

Country clustering groups nations with similar cultural, institutional, or economic characteristics, allowing MNCs to develop targeted regional HR policies rather than fully universal or fully local approaches.

Master of International Business (MIB)

The Master of International Business (MIB) is a graduate-level program that prepares students for careers in global business by covering international marketing, supply chain management, human resources, innovation, and cross-cultural business strategy across multinational environments.

Questions

35 min

Time Limit

60%

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