MIB Master of International Business 4

Question 1

Which institution is primarily responsible for providing balance-of-payments support and macroeconomic stabilization loans to member countries?

Accepted Answer

International Monetary Fund

Answer

The IMF provides short-term financial assistance to countries with balance-of-payments crises and helps stabilize global monetary systems, distinct from the World Bank's development focus.

Question 2

A company that manufactures in China using Japanese components and sells finished goods in Germany is an example of:

Accepted Answer

Global value chain participation

Answer

Global value chains (GVCs) involve geographically dispersed production stages across multiple countries, with each country contributing based on its comparative advantage.

Question 3

The Eclectic (OLI) Paradigm by Dunning suggests that FDI occurs when a firm has Ownership advantages, Location advantages, AND:

Accepted Answer

Internalization advantages

Answer

The OLI (Ownership, Location, Internalization) framework holds that firms invest abroad when it is more beneficial to exploit their advantages internally (via FDI) rather than externally (via licensing or exports).

Question 4

Which trade bloc requires member countries to adopt a common external tariff against non-members?

Accepted Answer

Customs Union

Answer

A Customs Union eliminates internal tariffs among members AND establishes a unified tariff wall against outside countries, unlike a free trade area where members set their own external tariffs.

Question 5

In cross-cultural management, 'high-context' cultures rely heavily on:

Accepted Answer

Implicit communication, nonverbal cues, and shared context

Answer

In high-context cultures (e.g., Japan, China, Arab countries), much of communication is implicit — meaning is conveyed through context, relationships, and nonverbal signals rather than explicit words.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

MIB Master of International Business 4