RIZAL TECHNOLOGICAL UNIVERSITY
College of Business Entrepreneurship and Accountancy
Bachelor of Science in Business Administration major. Human Resources
MIDTERM EXAMINATION IN INTERNATIONAL BUSINESS AND TRADE
NAME: ______________________ DATE:___________
BLOCK/SECTION:_____________ SCORE:_________
I. TRUE OR FALSE
TRUE 1. Foreign Direct Investment(FDI) refers to the formal establishment of business
operations on foreign soil- the building of factories, sales offices, and distribution networks to
serve local markets in a nation other than the company's home country.
TRUE 2. Offshoring is when the facilities set up in the foreign country replace U.S.
manufacturing facilities and are used to produce goods that will be sent back to the United
States for sale.
TRUE 3. A company that operates in many countries is called Multinational Corporation
(MNC)
TRUE 4. A production system is a group of related activities designed to create value.
FALSE 5. International Logistics involves the transportation of products through the
international supply chain, including cross-border shipping and international distribution.
TRUE 6. Air Shipping refers to actual freight transported by an air carrier.
TRUE 7. Advertising is a personal form of promotion in which a firm attempts to persuade
consumers to a particular point of view.
TRUE 8. Personal Selling is a direct form of promotion used to persuade customers to a
particular point of view.
TRUE 9. Organizational culture refers to the values and norms that are shared among
employees of an organization.
FALSEE 10. Leaders will not help to establish the culture of an organization, and set the
example that others follow.
TRUE 11. Straw men approaches offer inappropriate guidelines for ethical decision making
in a multinational enterprise
TRUE 12. Cultural relativism claims that a company’s ethics should be determined
depending on where the business is, following the famous saying of “when in Rome, do as
the Romans do”
TRUE 13. Utilitarian approaches to ethics hold that the moral worth of actions or practices
are determined by their consequences.
TRUE 14. Moral theorists argue that fundamental human rights form the basis for the moral
compass that managers should navigate by when making decisions which have an ethical
component.
FALSE 15. Justice theories did focus on the statement of a just distribution of economic
goods and services.
