QUESTION 1
Which one of the following describes the economies of poor developing countries?
Focus on primary production, notably agriculture and natural resources
Extensive industrialization and growing service sector
Focus on service sector and high-tech manufacturing
Concentration on industrial development, especially low-cost manufacturing
QUESTION 2
Which one of the following is a negative aspect of FDI from the perspective of a developed country whose companies outsource manufacturing?
Its consumers enjoy cheap consumer products
The country loses manufacturing jobs
Increased profits flow to the country’s large companies
The companies can reach more consumers in global markets
QUESTION 3
What are the three sets of advantages in the theory of the OLI paradigm?
Location, industrialization and ownership
Ownership, location and internalization
Internationalization, technology and markets
Location, markets and supply chains
QUESTION 4
Which one of the following is a ‘pull’ factor encouraging companies to internationalize?
High production costs in the home market
Stagnant sales in the home market limiting growth
Large potential markets in emerging economies
High wages in the home country
QUESTION 5
Which of the following is not a major driver of sales for Zara?
Advertising
Location in high profile shopping areas
Online retailing
Zara store managers
QUESTION 6
Spillover effects of FDI benefit host countries because…
The foreign investor always hands over its technology to host companies
The foreign investor seeks to preserve its IP
The host country always requires the foreign investor to transfer technology
The local workers can absorb technology from the foreign investor’s operations
QUESTION 7
Which of the following is not key for the success of fast fashion:
Corporate social responsibility
Low-cost labor
Constant renewal
Responsiveness to consumer demand
QUESTION 8
What percentage of Zara’s products are made in Spain, Portugal, Morocco and Turkey?
25%
50%
75%
100%
QUESTION 9
Which one of the following most accurately characterizes the globalization of markets in consumer products?
Selling a standard product in all markets
Launching new products at the same time in all global markets
Pricing products the same in all markets
Adapting products to national markets, based on local preferences
QUESTION 10
Advocates of ‘hyperglobalization’ point to all but which one of the following phemonena?
The breaking down of borders between countries
The spread of market values globally
The persistence of national cultures
The empowerment of individuals
