Question 1

International business includes all commercial transactions between two or more countries.

Accepted Answer

A) True 
 B)False

Question 2

Geographical barriers typically affect distribution channels within countries,but they rarely affect distribution channels between countries.

Accepted Answer

A) True 
 B)False

Question 3

A joint venture is an example of a portfolio investment.

Accepted Answer

A) True 
 B)False

Question 4

Carnival Cruise Lines lowers its taxes by all of the following EXCEPT ________.

Accepted Answer

A)  hiring host-country nationals who pay no taxes 
B)  taking advantage of taxation laws in foreign countries 
C)  sailing in international waters outside countries' tax jurisdiction 
D)  paying substantial port fees instead of taxes during stopovers 
A)  hiring host-country nationals who pay no taxes 
B)  taking advantage of taxation laws in foreign countries 
C)  sailing in international waters outside countries' tax jurisdiction 
D)  paying substantial port fees instead of taxes during stopovers

Question 5

Countries have reduced import trade barriers in the expectation that other countries will do the same.

Accepted Answer

A) True 
 B)False

Question 6

In a short essay,discuss why governments have been liberalizing cross-border movements of goods,services,and resources.

Accepted Answer

Generally,governments today impose fewer

Question 7

Advanced communication systems have contributed to growth in international business by ________.

Accepted Answer

A)  enabling better oversight of global operations 
B)  reducing the effects of global competition 
C)  decreasing the cost of cargo transportation 
D)  reducing export regulations 
A)  enabling better oversight of global operations 
B)  reducing the effects of global competition 
C)  decreasing the cost of cargo transportation 
D)  reducing export regulations

Question 8

The lowering of tax rates around the world is one of the seven major forces behind recent globalization.

Accepted Answer

A) True 
 B)False

Question 9

A flag of convenience is ________.

Accepted Answer

A)  the declaration that a product is made in a country that has easier legal access to a given foreign market 
B)  a designation for products originating within a particular trading group 
C)  the registration of a shipping company in a country that charges low taxes 
D)  the indication that a shipping organization can sail in international waters 
A)  the declaration that a product is made in a country that has easier legal access to a given foreign market 
B)  a designation for products originating within a particular trading group 
C)  the registration of a shipping company in a country that charges low taxes 
D)  the indication that a shipping organization can sail in international waters

Question 10

The view that regionalization,rather than globalization,will prevail in the future is largely based on the use of common languages among countries in a region.

Accepted Answer

A) True 
 B)False

Question 11

Visible exports and imports are ________.

Accepted Answer

A)  merchandise imports and exports 
B)  the sum total of goods and services traded 
C)  international transactions paid for in money rather than barter 
D)  typically a country's least common international economic transactions 
A)  merchandise imports and exports 
B)  the sum total of goods and services traded 
C)  international transactions paid for in money rather than barter 
D)  typically a country's least common international economic transactions

Question 12

The view that globalization is inevitable is most likely based on the belief that ________.

Accepted Answer

A)  international organizations will replace nation-states 
B)  protesters against globalization will be persuaded to change their views 
C)  people want more global homogeneity of cultures 
D)  technical advances in transportation and communications are highly pervasive 
A)  international organizations will replace nation-states 
B)  protesters against globalization will be persuaded to change their views 
C)  people want more global homogeneity of cultures 
D)  technical advances in transportation and communications are highly pervasive

Question 13

A firm is currently seeking resources from foreign countries. Which of the following is the LEAST likely reason for doing so?

Accepted Answer

A)  manufacturing products at a lower cost 
B)  gaining knowledge about a specific market 
C)  following a customer into the global market 
D)  differentiating its products from the competition 
A)  manufacturing products at a lower cost 
B)  gaining knowledge about a specific market 
C)  following a customer into the global market 
D)  differentiating its products from the competition

Question 14

What is foreign direct investment? What social factors in the external environment might affect FDI?

Accepted Answer

In foreign direct investment (FDI),somet

Question 15

Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S. market. Which of the following is likely the MOST important factor for this increase in imports?

Accepted Answer

A)  more effective production techniques 
B)  advances in communication systems 
C)  advances in transportation 
D)  cross-national cooperation 
A)  more effective production techniques 
B)  advances in communication systems 
C)  advances in transportation 
D)  cross-national cooperation

Question 16

When a company successfully responds to foreign production and market opportunities,________.

Accepted Answer

A)  other companies will likely emulate its successful practices 
B)  it likely has a long-term advantage over competitors 
C)  it will downsize its domestic operations 
D)  its home government likely raises taxes on the company 
A)  other companies will likely emulate its successful practices 
B)  it likely has a long-term advantage over competitors 
C)  it will downsize its domestic operations 
D)  its home government likely raises taxes on the company

Question 17

Which of the following is NOT a likely reason to study international business?

Accepted Answer

A)  Global events affect almost all companies. 
B)  Differences among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to country. 
C)  Business conducted outside the confines of any one country is inexplicably on the decline. 
D)  Firms may be better able to obtain better or less expensive resources by operating internationally. 
A)  Global events affect almost all companies. 
B)  Differences among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to country. 
C)  Business conducted outside the confines of any one country is inexplicably on the decline. 
D)  Firms may be better able to obtain better or less expensive resources by operating internationally.

Question 18

Curtailment of logging in the Amazon region is generally viewed as environmentally beneficial for the planet as a whole. However,unemployed Brazilian workers have felt that job creation inside Brazil is more important than climate protection outside Brazil. This example best illustrates which of the following?

Accepted Answer

A)  why smaller countries are concerned that large international companies are powerful enough to dictate operating terms 
B)  why globalization is needed to foster uniform standards for combating environmental problems 
C)  how cultural homogeneity threatens the cultural foundation of smaller nations 
D)  how global interests can conflict with a country's local interests 
A)  why smaller countries are concerned that large international companies are powerful enough to dictate operating terms 
B)  why globalization is needed to foster uniform standards for combating environmental problems 
C)  how cultural homogeneity threatens the cultural foundation of smaller nations 
D)  how global interests can conflict with a country's local interests

Question 19

Governments primarily cooperate through treaties to create a global division of labor.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements would most likely be made by a supporter of globalization?

Accepted Answer

A)  Globalization encourages the adoption of uniform and superior standards for combating environmental problems. 
B)  Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources. 
C)  Global competition discourages resource-saving technologies, which are costly. 
D)  Air pollution and toxic runoff problems increase with global economic growth. 
A)  Globalization encourages the adoption of uniform and superior standards for combating environmental problems. 
B)  Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources. 
C)  Global competition discourages resource-saving technologies, which are costly. 
D)  Air pollution and toxic runoff problems increase with global economic growth.

International business includes all commercial transactions between two or more countries.

Geographical barriers typically affect distribution channels within countries,but they rarely affect distribution channels between countries.

A joint venture is an example of a portfolio investment.

Carnival Cruise Lines lowers its taxes by all of the following EXCEPT ________.

Countries have reduced import trade barriers in the expectation that other countries will do the same.

In a short essay,discuss why governments have been liberalizing cross-border movements of goods,services,and resources.

Advanced communication systems have contributed to growth in international business by ________.

The lowering of tax rates around the world is one of the seven major forces behind recent globalization.

A flag of convenience is ________.

The view that regionalization,rather than globalization,will prevail in the future is largely based on the use of common languages among countries in a region.

Visible exports and imports are ________.

The view that globalization is inevitable is most likely based on the belief that ________.

A firm is currently seeking resources from foreign countries. Which of the following is the LEAST likely reason for doing so?

What is foreign direct investment? What social factors in the external environment might affect FDI?

Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S. market. Which of the following is likely the MOST important factor for this increase in imports?

When a company successfully responds to foreign production and market opportunities,________.

Which of the following is NOT a likely reason to study international business?

Governments primarily cooperate through treaties to create a global division of labor.

Which of the following statements would most likely be made by a supporter of globalization?

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

International business includes all commercial transactions between two or more countries.

Geographical barriers typically affect distribution channels within countries,but they rarely affect distribution channels between countries.

A joint venture is an example of a portfolio investment.

Carnival Cruise Lines lowers its taxes by all of the following EXCEPT ________.

Countries have reduced import trade barriers in the expectation that other countries will do the same.

In a short essay,discuss why governments have been liberalizing cross-border movements of goods,services,and resources.

Advanced communication systems have contributed to growth in international business by ________.

The lowering of tax rates around the world is one of the seven major forces behind recent globalization.

A flag of convenience is ________.

The view that regionalization,rather than globalization,will prevail in the future is largely based on the use of common languages among countries in a region.

Visible exports and imports are ________.

The view that globalization is inevitable is most likely based on the belief that ________.

A firm is currently seeking resources from foreign countries. Which of the following is the LEAST likely reason for doing so?

What is foreign direct investment? What social factors in the external environment might affect FDI?

Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S. market. Which of the following is likely the MOST important factor for this increase in imports?

When a company successfully responds to foreign production and market opportunities,________.

Which of the following is NOT a likely reason to study international business?

Governments primarily cooperate through treaties to create a global division of labor.

Which of the following statements would most likely be made by a supporter of globalization?

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