Question 1

A criticism of globalization is that as economic growth increases,too many nonrenewable resources are used.

Accepted Answer

A) True 
 B)False

Question 2

Assume an enterprise is considering establishment of a foreign production facility. Which of the following best supports this decision?

Accepted Answer

A)  Its foreign competitors have higher production costs than it has. 
B)  Its main competitor successfully opened a foreign plant. 
C)  Its suppliers follow an agglomeration strategy. 
D)  None of its competitors have foreign production facilities. 
A)  Its foreign competitors have higher production costs than it has. 
B)  Its main competitor successfully opened a foreign plant. 
C)  Its suppliers follow an agglomeration strategy. 
D)  None of its competitors have foreign production facilities.

Question 3

In addition to understanding the laws affecting business in countries where their companies operate,it is most important for managers to understand the ________.

Accepted Answer

A)  methods for appointing local judges 
B)  ethical rationale behind the laws 
C)  history of the local legal system 
D)  degree of law enforcement 
A)  methods for appointing local judges 
B)  ethical rationale behind the laws 
C)  history of the local legal system 
D)  degree of law enforcement

Question 4

Which of the following best explains why international business has grown rapidly in the past few decades?

Accepted Answer

A)  the end of the political schism between the Communist and non-Communist blocs 
B)  greater income equality in most countries 
C)  growing concern about climate change 
D)  increased concerns about terrorism 
A)  the end of the political schism between the Communist and non-Communist blocs 
B)  greater income equality in most countries 
C)  growing concern about climate change 
D)  increased concerns about terrorism

Question 5

Improvements in transportation and communications enable managers to better oversee foreign operations.

Accepted Answer

A) True 
 B)False

Question 6

The best way of conducting business domestically is also typically the best way to conduct business internationally.

Accepted Answer

A) True 
 B)False

Question 7

Critics of offshoring claim all EXCEPT which of the following?

Accepted Answer

A)  Cost savings are seldom passed on to final consumers. 
B)  Offshoring reduces the incomes of people in low-wage countries. 
C)  Incomes of workers in countries whose companies offshored production have gone down as a percentage of national income. 
D)  Many workers who have been displaced by offshoring do not have the skills needed for higher-value jobs. 
A)  Cost savings are seldom passed on to final consumers. 
B)  Offshoring reduces the incomes of people in low-wage countries. 
C)  Incomes of workers in countries whose companies offshored production have gone down as a percentage of national income. 
D)  Many workers who have been displaced by offshoring do not have the skills needed for higher-value jobs.

Question 8

The broadening set of interdependent relationships among people from different parts of the world is known as ________.

Accepted Answer

A)  globalization 
B)  offshoring 
C)  franchising 
D)  outsourcing 
A)  globalization 
B)  offshoring 
C)  franchising 
D)  outsourcing

Question 9

Managers need to understand not only the laws of countries where they operate,but also how those laws are enforced.

Accepted Answer

A) True 
 B)False

Question 10

Most of the world's goods and services are sold ________.

Accepted Answer

A)  in international markets 
B)  in the countries where they are produced 
C)  through exports to small countries 
D)  through exports to large countries 
A)  in international markets 
B)  in the countries where they are produced 
C)  through exports to small countries 
D)  through exports to large countries

Question 11

Politics,law,culture,and economy are all examples of ________ factors that can affect the ways in which companies produce and sell their products in foreign markets.

Accepted Answer

A)  social 
B)  physical 
C)  competitive 
D)  political 
A)  social 
B)  physical 
C)  competitive 
D)  political

Question 12

A multinational enterprise (MNE)is best defined as a firm ________.

Accepted Answer

A)  that is a member of the Fortune 500 
B)  with foreign business partners 
C)  involved in global franchising 
D)  with foreign direct investments 
A)  that is a member of the Fortune 500 
B)  with foreign business partners 
C)  involved in global franchising 
D)  with foreign direct investments

Question 13

Which of the following is an indication of the increased globalization of business since the end of World War II?

Accepted Answer

A)  Foreign trade has largely replaced foreign ownership as a means of conducting international business. 
B)  World trade has grown more rapidly than world production. 
C)  Globally, consumers now depend on foreign output for more than half their consumption. 
D)  Countries have increased their import restrictions to counter the rising tide of imports. 
A)  Foreign trade has largely replaced foreign ownership as a means of conducting international business. 
B)  World trade has grown more rapidly than world production. 
C)  Globally, consumers now depend on foreign output for more than half their consumption. 
D)  Countries have increased their import restrictions to counter the rising tide of imports.

Question 14

In a strategy known as ________,many new companies locate themselves near competitors and suppliers.

Accepted Answer

A)  offshoring 
B)  franchising 
C)  clustering 
D)  exporting 
A)  offshoring 
B)  franchising 
C)  clustering 
D)  exporting

Question 15

An example of a U.S. merchandise import is an automobile made in ________ and sold ________.

Accepted Answer

A)  the United States by a Japanese company; in the United States 
B)  the United States by a Japanese company; outside the United States 
C)  Japan by a Japanese company; in the United States 
D)  Japan by a U.S. company; outside the United States 
A)  the United States by a Japanese company; in the United States 
B)  the United States by a Japanese company; outside the United States 
C)  Japan by a Japanese company; in the United States 
D)  Japan by a U.S. company; outside the United States

Question 16

A computer firm has high foreign sales in Asia and wants to expand sales into Europe. Which of the following statements provides the most appropriate advice for Elway executives?

Accepted Answer

A)  Although countries' market sizes differ, companies usually face about the same number of competitors in each national market. 
B)  In most industries, companies face the same competitors in each country where they operate. 
C)  It takes about the same amount of resources to gain national distribution in one country versus another. 
D)  Being a leader in one country does not guarantee market leadership in another country. 
A)  Although countries' market sizes differ, companies usually face about the same number of competitors in each national market. 
B)  In most industries, companies face the same competitors in each country where they operate. 
C)  It takes about the same amount of resources to gain national distribution in one country versus another. 
D)  Being a leader in one country does not guarantee market leadership in another country.

Question 17

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization?

Accepted Answer

International business comprises a large

Question 18

Governments have signed treaties to protect foreign-owned property rights,such as investments and patents. A primary reason for doing so is to ________.

Accepted Answer

A)  gain reciprocal advantages 
B)  reduce the domestic effects of other countries' economic policies 
C)  deal with areas of concern outside the territory of any one country 
D)  reduce national conflicts leading to violent political demonstrations 
A)  gain reciprocal advantages 
B)  reduce the domestic effects of other countries' economic policies 
C)  deal with areas of concern outside the territory of any one country 
D)  reduce national conflicts leading to violent political demonstrations

Question 19

It is rare for a new company to locate its operations near competitors and suppliers.

Accepted Answer

A) True 
 B)False

Question 20

In terms of international business,it is most accurate to say that ________.

Accepted Answer

A)  there is a universal "best way" to conduct business 
B)  global competition affects large companies but not small ones 
C)  most firms depend either on foreign markets and supplies or compete against companies that do 
D)  government regulation of international business has little effect on a company's profits 
A)  there is a universal "best way" to conduct business 
B)  global competition affects large companies but not small ones 
C)  most firms depend either on foreign markets and supplies or compete against companies that do 
D)  government regulation of international business has little effect on a company's profits

A criticism of globalization is that as economic growth increases,too many nonrenewable resources are used.

Assume an enterprise is considering establishment of a foreign production facility. Which of the following best supports this decision?

In addition to understanding the laws affecting business in countries where their companies operate,it is most important for managers to understand the ________.

Which of the following best explains why international business has grown rapidly in the past few decades?

Improvements in transportation and communications enable managers to better oversee foreign operations.

The best way of conducting business domestically is also typically the best way to conduct business internationally.

Critics of offshoring claim all EXCEPT which of the following?

The broadening set of interdependent relationships among people from different parts of the world is known as ________.

Managers need to understand not only the laws of countries where they operate,but also how those laws are enforced.

Most of the world's goods and services are sold ________.

Politics,law,culture,and economy are all examples of ________ factors that can affect the ways in which companies produce and sell their products in foreign markets.

A multinational enterprise (MNE)is best defined as a firm ________.

Which of the following is an indication of the increased globalization of business since the end of World War II?

In a strategy known as ________,many new companies locate themselves near competitors and suppliers.

An example of a U.S. merchandise import is an automobile made in and sold .

A computer firm has high foreign sales in Asia and wants to expand sales into Europe. Which of the following statements provides the most appropriate advice for Elway executives?

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization?

Governments have signed treaties to protect foreign-owned property rights,such as investments and patents. A primary reason for doing so is to ________.

It is rare for a new company to locate its operations near competitors and suppliers.

In terms of international business,it is most accurate to say that ________.

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

A criticism of globalization is that as economic growth increases,too many nonrenewable resources are used.

Assume an enterprise is considering establishment of a foreign production facility. Which of the following best supports this decision?

In addition to understanding the laws affecting business in countries where their companies operate,it is most important for managers to understand the ________.

Which of the following best explains why international business has grown rapidly in the past few decades?

Improvements in transportation and communications enable managers to better oversee foreign operations.

The best way of conducting business domestically is also typically the best way to conduct business internationally.

Critics of offshoring claim all EXCEPT which of the following?

The broadening set of interdependent relationships among people from different parts of the world is known as ________.

Managers need to understand not only the laws of countries where they operate,but also how those laws are enforced.

Most of the world's goods and services are sold ________.

Politics,law,culture,and economy are all examples of ________ factors that can affect the ways in which companies produce and sell their products in foreign markets.

A multinational enterprise (MNE)is best defined as a firm ________.

Which of the following is an indication of the increased globalization of business since the end of World War II?

In a strategy known as ________,many new companies locate themselves near competitors and suppliers.

An example of a U.S. merchandise import is an automobile made in ________ and sold ________.

A computer firm has high foreign sales in Asia and wants to expand sales into Europe. Which of the following statements provides the most appropriate advice for Elway executives?

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization?

Governments have signed treaties to protect foreign-owned property rights,such as investments and patents. A primary reason for doing so is to ________.

It is rare for a new company to locate its operations near competitors and suppliers.

In terms of international business,it is most accurate to say that ________.

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

An example of a U.S. merchandise import is an automobile made in and sold .