PART A - Multiple Choice (30%) Instructions: Answer all questions in this section 1. This policy for staffing involves filling all key management positions with parent company nationals. A Polycentric B. Regiocentric C. Ethnocentric D. Geocentric 2. Firms around the world participating in international business are faced with ethical dilemmas. The answer to these dilemmas are A. Always clear-cut B. Irrelevant if the firm is doing what it thinks is best in its interest C. Difficult and there are no easy answers to these questions D. Explicit because rules to deal with these issues are available 3. Trade produces net gains for all involved and hence is a A Zero-sum game B. Balance of trade game C. Positive-sum game D. Equilibrium-gain game 4, If a government grants preferential trade terms to a country it wants to build strong relations with, the government is employing a policy A. Of retaliation B. Of human rights protection C. To protect national security D. To further foreign policy objectives 5. Most cross-border investment is A. In the form of Greenfield investments. B. Made via mergers and acquisitions C. Between American and Japanese companies D. Involved in building new facilities 6. These are the charges that most banks take for moving cash from one location to another. A. Currency taxes B. Location fee C. Exchange charges D. Transfer fee 7. The term___ has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile the goals of low cost and product customisation. A. Assembly-line-like customisation B. Economies of customisation C. Mass customisation D. Standardised customisationBA is an asset whose value is contingent upon a particular relationship persisting. A. Specialised asset B. Common asset C. Complementary asset D. Supplementary asset 9A allows for a delay in payment. A. Bill of lading B. Time draft C. Banker's acceptance D. Sight draft 40. According to the ___, in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency. A. Law of one price B. Principle of consistent pricing C. Model of fair pricing D. Principle of equitable pricing 11. When a firm has a strategic goal of pursuing a low cost strategy on a worldwide scale, the firm should follow a(n) A. Global standardisation strategy B. Localisation strategy C. International strategy D. Customisation strategy 12. ‘strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences and where cost pressures are not too intense. A. Localisation B. Transnational C. Global standardisation D. International Note in the final examination there may be more MCQ set.