Question 1

What integrate a company's information assets into a single accessible system using Internet-based technologies?

Accepted Answer

Intranets are private networks that use Internet technologies to securely connect a company's information assets, including documents, applications, and databases, into a single accessible system. They are designed for internal use only by employees of the company and provide a secure and efficient way to share information within the organization.

Question 2

According to which theory, a country that is relatively labor abundant should specialize in the production and export of that product which is relatively labor intensive?

Accepted Answer

The Theory of Factor Proportions, also known as the Heckscher-Ohlin theory, suggests that a country should specialize in and export products that use relatively abundant factors of production, while importing products that use relatively scarce factors of production. In the case of a labor-abundant country, it is expected to specialize in and export products that require relatively more labor and less of other factors of production. Therefore, choice C is the correct answer. Choice A relates to the Theory of Comparative Advantage, which suggests that a country should specialize in and export products that it can produce at a lower opportunity cost than other countries, regardless of factor endowments. Choice B refers to the Theory of Absolute Advantage, which suggests that a country should specialize in and export products that it can produce with greater efficiency than other countries. Choice D is not a recognized economic theory.

Question 3

What the simplest from the administrative point is of view because it emphasizes the basic tasks of the firm?

Accepted Answer

The functional structure is the simplest from an administrative point of view because it groups employees by their function or job type, such as finance, marketing, and production. This structure emphasizes the basic tasks of the firm and allows for clear lines of communication and decision-making. Customer structure, organizational structure, and statistical structure are not as simple and may involve more complex systems or data analysis.

Question 4

Pricing is a static element.

Accepted Answer

The answer of Pricing is a static element....

Question 5

Political risks can be broken down into which of the following risks?

Accepted Answer

Political risks can be broken down into transfer risks, operating risks, and ownership risks, which relate to the potential for government actions to affect the ability to transfer funds, operate business activities, or maintain ownership rights.

Question 6

The transfer of ownership by the host government to a domestic entity with payment of compensation is called:

Accepted Answer

Expropriation refers to the transfer of ownership from a private entity to the government, often with compensation.

Question 7

Which strategy is made complex by momentary exchange factors as well as by firms often being required to countertrade, that is, to trade by barter or a similar system?

Accepted Answer

The strategy that is made complex by momentary exchange factors and countertrade is international pricing strategy. Momentary exchange factors such as fluctuations in currency exchange rates, inflation, and interest rates can have a significant impact on pricing decisions. Countertrade, which involves trading goods and services rather than currency, can also complicate pricing strategies as bartering may not have a clear market value.

Question 8

Who is a country organization with a distinctive competence, such as product development and increasingly, country organizations are the source of new products?

Accepted Answer

A contributor is a country organization with a distinctive competence, such as product development, and is often the source of new products.

Question 9

The risks stem from government policies and procedures that directly constrain the international management and performance of local business activities is known as:

Accepted Answer

The description matches the definition of operating risks, which are risks that arise from a country's policies and regulations that can impact the day-to-day operations of a business. Foreign-exchange risks refer to the risks of currency fluctuations, market risks refer to the risks associated with changes in the market environment, and functional risks relate to operational risks within a company.

Question 10

The system which is designed to deny or at least delay the acquisition of strategically important goods by adversaries is called:

Accepted Answer

The export-control system is designed to regulate and prohibit the export of goods and technologies that could contribute to the military or WMD capabilities of countries or non-state actors. The system aims to deny or delay access to such goods by adversaries, thereby promoting national and international security interests. Export controls can take various forms, such as licensing, sanctions, embargoes, and restrictions on certain destinations, end-users, or end-uses.

Question 11

Which of the following is the element of a bureaucratic / formalized control system?

Accepted Answer

All of the choices listed are elements of bureaucratic / formalized control systems. The international budget and planning system is a tool used to control the allocation of resources across different functional areas. The functional reporting system is used to track and evaluate the performance of different departments or units within an organization. Policy manuals provide guidance on how to perform different functions and are used to ensure consistency and standardization of performance.

Question 12

What is a foreign corporation organized under the laws of a foreign host country, but owned and controlled by the parent corporation in the home country?

Accepted Answer

A wholly owned foreign subsidiary is a foreign corporation that is fully owned and controlled by the parent corporation in the home country. Therefore, option B is the correct answer. A partially owned foreign subsidiary (option A) is a foreign corporation where the parent company only owns a portion of the shares. The options C and D are not relevant to this question.

Question 13

A technique of decomposing a good into the values and quantities of the labor, capital, and other potential factors employed in the good's manufacture is known as:

Accepted Answer

Input-output analysis is a technique that examines the relationships between different sectors of an economy, including the inputs (such as labor and capital) used to produce goods and services.

Question 14

The contracts by which the holder of intellectual property will grant certain rights in that property to a foreign firm under specified conditions and for a specified time are known as:

Accepted Answer

International licensing agreements involve the holder of intellectual property granting certain rights to a foreign firm under specific conditions for a specified time, making it the best choice among the options provided. Protecting Intellectual rights Agreements and International Intellectual franchising are not specific enough to accurately describe this type of contract. Option D is incorrect since there is a specific term for this type of contract.

Question 15

The overlapping product ranges described by Linder would today be termed as:

Accepted Answer

Linder's theory describes market segments where companies produce similar products with overlapping ranges that are tailored to meet the needs of specific consumer groups. This is not about the product life cycle or capital-intensive theory, but rather focuses on the segmentation of the market for product offerings. Thus, the best choice is market segments.

Question 16

If subsidiaries are granted a high degree of autonomy, the system is called:

Accepted Answer

Decentralization refers to the process of giving decision-making power to lower-level employees or departments. When subsidiaries are granted a high degree of autonomy, they are able to make decisions independently and thus, the system would be considered decentralized.

Question 17

A firm sells the same product and uses the same promotional appeals in all markets, this leads to:

Accepted Answer

Standardizing both the product and promotional appeals is known as global standardization. This approach can lead to cost savings due to economies of scale, but may not be effective in all markets with varying cultural norms and preferences.

Question 18

Many multinational corporations, in an attempt to facilitate planning for, organizing, and controlling interdependent businesses, critical resources, strategies and geographic regions, has adopted:

Accepted Answer

The matrix structure is designed to manage complex and interdependent businesses, resources, and strategies. It allows for a dual reporting structure where employees report to both a functional manager and a project or product manager. This structure helps to facilitate cross-functional collaboration and decision making, making it a popular choice for multinational corporations.

Question 19

Entering a foreign market, what can be done?

Accepted Answer

All options are viable strategies for entering a foreign market, depending on the company's goals, resources, and the specific market conditions.

Question 20

Which of the following is NOT the stage of the product cycle?

Accepted Answer

"The marketed product" is not a recognized stage in the traditional product life cycle, which typically includes introduction, growth, maturity, and decline.

Exam 1: Certified Business Manager