MIB Master of International Business 5

Question 1

In international HRM, 'ethnocentric' staffing policy means:

Accepted Answer

Filling key positions abroad with home-country nationals

Answer

An ethnocentric staffing approach assigns parent-country nationals (PCNs) to senior positions in foreign subsidiaries, prioritizing home-country management practices and control.

Question 2

Porter's Five Forces applied internationally would consider 'threat of new entrants' as lower in markets with:

Accepted Answer

High tariff barriers and strict local content laws

Answer

High tariff barriers and local content requirements raise entry costs significantly, deterring foreign competitors and reducing the threat of new entrants in that market.

Question 3

Which concept describes the tendency of trade to be inversely related to geographic and cultural distance between countries?

Accepted Answer

Gravity Model of Trade

Answer

The Gravity Model predicts that trade volume between two countries increases with their economic size (GDP) and decreases with the distance between them — analogous to Newton's law of gravity.

Question 4

A multinational's 'country risk assessment' would least likely evaluate:

Accepted Answer

The educational attainment of the CEO's home-country workforce

Answer

Country risk focuses on host-country factors like political risk, currency risk, and legal risk — the CEO's home-country workforce education is irrelevant to host-country risk assessment.

Question 5

The 'Uppsala model' of internationalization describes a firm's expansion as:

Accepted Answer

Gradual, sequential expansion starting with psychically close markets

Answer

The Uppsala model (Johanson & Vahlne, 1977) suggests firms incrementally expand internationally, first entering markets that are culturally and geographically close, then progressively more distant ones.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

MIB Master of International Business 5