False
ANSWER:
True
36. It is advantageous for an industry to be designated "strategic," as that often means it can qualify for government subsidies and bailouts.
a.
True
b.
False
ANSWER:
True
37. The need for face masks as a result of the 2020 coronavirus outbreak demonstrated how industries that were once thought insignificant can quickly be designated as "strategic."
a.
True
b.
False
ANSWER:
True
38. While a slack-laden corporation may become inefficient, some level of organizational slack can be valuable to protect against external shocks.
a.
True
b.
False
ANSWER:
True
39. The 2020 coronavirus (COVID-19) pandemic is an example of a black swan event.
a.
True
b.
False
ANSWER:
True
40. The limitation of scenario planning is that it can be used to plan for only expected events.
a.
True
b.
False
ANSWER:
False
41. Multinational enterprises (MNEs) are firms that
a.
engage in foreign direct investment (FDI).
b.
delegate control of value-adding activities in other countries.
c.
standardize strategies across all business units.
d.
rely on the “one-size-fits-all stragegy.”
ANSWER:
a
42. Which of the following best describes foreign direct investment (FDI)?
a.
A firm’s direct investment in production and/or service activities abroad
b.
The purchases of foreign securities by people within the United States
c.
The purchases of U.S. securities by people from other countries
d.
Avoidance of brokers or other financial intermediaries when making foreign investments
ANSWER:
a
43. The crafting of a firm's strategy is known as strategy
a.
implementation.
b.
integration.
c.
formulation.
d.
intention.
ANSWER:
c
44. What country was added when the label BRIC was changed to BRICS?
a.
Sweden
b.
South Africa
c.
Switzerland
d.
Singapore
ANSWER:
b
45. Which of the following statements accurately reflects recent research in emerging economies (or emerging markets)?
a.
Most firms that are part of conglomerates experience lower profitability than independent firms.
b.
Conglomeration provides measurable performance benefits.
c.
There is a relatively negative link between conglomeration as a strategy and firm performance.
d.
A majority of firms in emerging economies are currently trying to divest and downsize.
ANSWER:
b
46. BRIC refers to
a.
Brazil, Russia, India, and China.
b.
Bolivia, Romania, Indonesia, and Columbia.
c.
Bulgaria, Romania, Italy, and Canada.
d.
Bahrain, Russia, Iran, and China.
ANSWER:
a
47. Which of the following best reflects the reality of how MNEs adapt their "global" strategies?
a.
Zoom broke records in numbers of users in March and April of 2020.
b.
The Volkswagen Golf and Ford Mondeo are popular cars throughout the world.
c.
Coca-Cola used a set of "world commercials" focused on a polar bear character.
d.
The recipe for Coke Classic is different around the world.