MIB Master of International Business: Global Business Environment 3

Question 1

Which dimension of Hofstede's cultural framework measures the degree to which less powerful members of a society accept unequal power distribution?

Accepted Answer

Power distance

Answer

Power distance reflects how much a society accepts hierarchy and authority differences between individuals.

Question 2

The 'resource curse' phenomenon most often describes countries that:

Accepted Answer

Have abundant natural resources but experience weak economic growth and institutions

Answer

Resource-rich countries often suffer from Dutch disease, weak governance, and lower diversification, paradoxically producing poor development outcomes.

Question 3

A firm pursuing a transnational strategy seeks to achieve:

Accepted Answer

Simultaneous global efficiency, local responsiveness, and worldwide learning

Answer

The transnational strategy integrates global efficiency with local adaptation and cross-border knowledge transfer, the most complex of the four international strategies.

Question 4

Which agreement established the World Trade Organization in 1995?

Accepted Answer

The Marrakesh Agreement

Answer

The Marrakesh Agreement concluded the Uruguay Round of GATT negotiations and formally created the WTO on January 1, 1995.

Question 5

In a country with high 'uncertainty avoidance,' businesses typically observe:

Accepted Answer

Extensive formal rules, risk aversion, and resistance to ambiguity

Answer

High uncertainty-avoidance cultures create elaborate rules and procedures to minimize ambiguity and unpredictability.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

MIB Master of International Business: Global Business Environment 3