Question 1

Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other?

Accepted Answer

A)  to attack problems jointly that one country acting alone cannot solve 
B)  to deal with issues that lie outside the territory of any nation 
C)  to gain reciprocal advantages 
D)  to establish a common language 
A)  to attack problems jointly that one country acting alone cannot solve 
B)  to deal with issues that lie outside the territory of any nation 
C)  to gain reciprocal advantages 
D)  to establish a common language D

Question 2

Managers who are knowledgeable about ________ are better able to identify the location,quantity,quality,and availability of the world's natural resources.

Accepted Answer

A)  political factors 
B)  geographic factors 
C)  competitive factors 
D)  cultural factors 
A)  political factors 
B)  geographic factors 
C)  competitive factors 
D)  cultural factors B

Question 3

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method.

Accepted Answer

Globalization refers to the widening set of interdependent relationships among people from different parts of a world that happens to be divided into nations.The term can also refer to the integration of world economies through the elimination of barriers to movements of goods,services,capital,technology,and people.Firms have many options available when they want to globalize their operations including licensing,franchising,turnkey operations,management contracts,and direct/portfolio investment.
a.Licensing and franchising-Licensing agreements are used when companies allow others to use their assets,such as trademarks,patents,copyrights,or expertise under contract.Franchising is a mode of business in which one party allows another party the use of a trademark that is an essential asset for the franchisee's business.
b.Turnkey operations-Refers to business operations,performed under contract,that are transferred to the owner when they are ready to begin operating.
c.Management contracts-Refers to arrangements in which one company provides personnel to perform general or specialized management functions for another company.
d.Direct and portfolio investment-A direct investment is one that gives the investor a controlling interest in a foreign company.A portfolio investment is a noncontrolling interest in a company or ownership of a loan to another party.

Question 4

The term used by the United Nations as a synonym for multinational enterprise is ________.

Accepted Answer

A)  multinational corporation 
B)  transnational company 
C)  international firm 
D)  born-global 
A)  multinational corporation 
B)  transnational company 
C)  international firm 
D)  born-global

Question 5

The fact that a company is the market leader in one country is no guarantee that it will be the leader in another country.

Accepted Answer

A) True 
 B)False

Question 6

Although the U.S. film industry depends heavily on revenue in foreign countries,revenue from international markets is usually low for a sports-themed film. This is most likely due to ________ factors.

Accepted Answer

A)  political 
B)  geographic 
C)  behavioral 
D)  legal 
A)  political 
B)  geographic 
C)  behavioral 
D)  legal

Question 7

Devon,an accounts manager at a large electronics firm,does not have any direct international responsibilities. However,Devon would most likely benefit from studying international business issues so that he can ________.

Accepted Answer

A)  conduct better job interviews 
B)  better understand how foreign operations affect the company's competitive position 
C)  supervise and evaluate subordinates who have global assignments 
D)  understand the legalities of importing and exporting products overseas 
A)  conduct better job interviews 
B)  better understand how foreign operations affect the company's competitive position 
C)  supervise and evaluate subordinates who have global assignments 
D)  understand the legalities of importing and exporting products overseas

Question 8

It is difficult to compare globalization of business over time because shifting national borders have changed the nature of transactions from domestic to international and vice versa.

Accepted Answer

A) True 
 B)False

Question 9

Globalization refers to all economic transactions among countries.

Accepted Answer

A) True 
 B)False

Question 10

Supporters of globalization assert that the process helps countries strengthen their sovereignty.

Accepted Answer

A) True 
 B)False

Question 11

A foreign direct investment occurs when ________.

Accepted Answer

A)  a company owns at least 25% of a foreign firm 
B)  a company has a controlling interest in a foreign company 
C)  foreign ownership is in private rather than government securities 
D)  a foreign firm agrees to a licensing agreement with a large conglomerate 
A)  a company owns at least 25% of a foreign firm 
B)  a company has a controlling interest in a foreign company 
C)  foreign ownership is in private rather than government securities 
D)  a foreign firm agrees to a licensing agreement with a large conglomerate

Question 12

Although globalization may bring economic growth,critics nevertheless contend that ________.

Accepted Answer

A)  the growth is too fast 
B)  the inequality of gains puts some people in a relatively worse economic situation 
C)  this growth is mainly for the future, thus ignoring present economic growth needs 
D)  the cultural foundations of sovereignty are supported by globalization 
A)  the growth is too fast 
B)  the inequality of gains puts some people in a relatively worse economic situation 
C)  this growth is mainly for the future, thus ignoring present economic growth needs 
D)  the cultural foundations of sovereignty are supported by globalization

Question 13

According to the A.T. Kearny/Foreign Policy Globalization Index,countries ________.

Accepted Answer

A)  tend to be ranked similarly on all four dimensions 
B)  are more globalized on the political dimension than on personal contact 
C)  that are large in land mass and population are less globalized than small countries 
D)  sometimes rank high on one dimension and low on another 
A)  tend to be ranked similarly on all four dimensions 
B)  are more globalized on the political dimension than on personal contact 
C)  that are large in land mass and population are less globalized than small countries 
D)  sometimes rank high on one dimension and low on another

Question 14

Some observers feel that international institutions and the people working in them cannot adequately handle the complexities of an interconnected world. Based on this,these observers believe that ________.

Accepted Answer

A)  globalization will slow in the future 
B)  globalization is nevertheless inevitable 
C)  international business will grow primarily on a regional basis 
D)  private companies will replace international organizations in running the world's economy 
A)  globalization will slow in the future 
B)  globalization is nevertheless inevitable 
C)  international business will grow primarily on a regional basis 
D)  private companies will replace international organizations in running the world's economy

Question 15

The process of shifting production to a foreign country is known as outsourcing.

Accepted Answer

A) True 
 B)False

Question 16

The ownership of foreign bonds is an example of a portfolio investment.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following has MOST influenced consumers to demand access to foreign-made products?

Accepted Answer

A)  Declining global affluence has caused consumers to seek out lower-priced products from abroad. 
B)  Consumers have become more efficient in using media and technologies to compare prices worldwide. 
C)  Fearing that their governments will enact restrictive policies on imports, consumers are stocking up on foreign products before restrictions are put in place. 
D)  Expectations of rising prices of foreign products have caused consumers to seek foreign products before their prices become prohibitive. 
A)  Declining global affluence has caused consumers to seek out lower-priced products from abroad. 
B)  Consumers have become more efficient in using media and technologies to compare prices worldwide. 
C)  Fearing that their governments will enact restrictive policies on imports, consumers are stocking up on foreign products before restrictions are put in place. 
D)  Expectations of rising prices of foreign products have caused consumers to seek foreign products before their prices become prohibitive.

Question 18

Which of the following has NOT been a major force increasing globalization in recent decades?

Accepted Answer

A)  liberalization of cross-border trade 
B)  increase in and expansion of technology 
C)  growing pressure from consumers 
D)  decreasing prices of natural resources. 
A)  liberalization of cross-border trade 
B)  increase in and expansion of technology 
C)  growing pressure from consumers 
D)  decreasing prices of natural resources.

Question 19

Which of the following is NOT a common argument for the slowing of future globalization?

Accepted Answer

A)  Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people. 
B)  Technological, transportation, and communication advances will decline in the near future. 
C)  Major countries have either ignored certain international treaties or have refused to sign them. 
D)  The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments. 
A)  Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people. 
B)  Technological, transportation, and communication advances will decline in the near future. 
C)  Major countries have either ignored certain international treaties or have refused to sign them. 
D)  The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments.

Question 20

All of the following are areas in which commercial activities take place outside the territory of any nation EXCEPT ________.

Accepted Answer

A)  noncoastal areas of the oceans 
B)  the Panama and Suez Canals 
C)  outer space 
D)  Antarctica 
A)  noncoastal areas of the oceans 
B)  the Panama and Suez Canals 
C)  outer space 
D)  Antarctica

Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other?

Managers who are knowledgeable about ________ are better able to identify the location,quantity,quality,and availability of the world's natural resources.

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method.

The term used by the United Nations as a synonym for multinational enterprise is ________.

The fact that a company is the market leader in one country is no guarantee that it will be the leader in another country.

Although the U.S. film industry depends heavily on revenue in foreign countries,revenue from international markets is usually low for a sports-themed film. This is most likely due to ________ factors.

Devon,an accounts manager at a large electronics firm,does not have any direct international responsibilities. However,Devon would most likely benefit from studying international business issues so that he can ________.

It is difficult to compare globalization of business over time because shifting national borders have changed the nature of transactions from domestic to international and vice versa.

Globalization refers to all economic transactions among countries.

Supporters of globalization assert that the process helps countries strengthen their sovereignty.

A foreign direct investment occurs when ________.

Although globalization may bring economic growth,critics nevertheless contend that ________.

According to the A.T. Kearny/Foreign Policy Globalization Index,countries ________.

Some observers feel that international institutions and the people working in them cannot adequately handle the complexities of an interconnected world. Based on this,these observers believe that ________.

The process of shifting production to a foreign country is known as outsourcing.

The ownership of foreign bonds is an example of a portfolio investment.

Which of the following has MOST influenced consumers to demand access to foreign-made products?

Which of the following has NOT been a major force increasing globalization in recent decades?

Which of the following is NOT a common argument for the slowing of future globalization?

All of the following are areas in which commercial activities take place outside the territory of any nation EXCEPT ________.

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 1: Globalization and International Business

Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other?

Managers who are knowledgeable about ________ are better able to identify the location,quantity,quality,and availability of the world's natural resources.

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method.

The term used by the United Nations as a synonym for multinational enterprise is ________.

The fact that a company is the market leader in one country is no guarantee that it will be the leader in another country.

Although the U.S. film industry depends heavily on revenue in foreign countries,revenue from international markets is usually low for a sports-themed film. This is most likely due to ________ factors.

Devon,an accounts manager at a large electronics firm,does not have any direct international responsibilities. However,Devon would most likely benefit from studying international business issues so that he can ________.

It is difficult to compare globalization of business over time because shifting national borders have changed the nature of transactions from domestic to international and vice versa.

Globalization refers to all economic transactions among countries.

Supporters of globalization assert that the process helps countries strengthen their sovereignty.

A foreign direct investment occurs when ________.

Although globalization may bring economic growth,critics nevertheless contend that ________.

According to the A.T. Kearny/Foreign Policy Globalization Index,countries ________.

Some observers feel that international institutions and the people working in them cannot adequately handle the complexities of an interconnected world. Based on this,these observers believe that ________.

The process of shifting production to a foreign country is known as outsourcing.

The ownership of foreign bonds is an example of a portfolio investment.

Which of the following has MOST influenced consumers to demand access to foreign-made products?

Which of the following has NOT been a major force increasing globalization in recent decades?

Which of the following is NOT a common argument for the slowing of future globalization?

All of the following are areas in which commercial activities take place outside the territory of any nation EXCEPT ________.

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters