Question 1

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

Question 2

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

Question 3

What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations?

Accepted Answer

A) to gain an advantageous division of labor 
B) to be in compliance with United Nations' requirements 
C) to attack problems jointly that one country acting alone cannot solve 
D) to assure that all countries get an equitable share of taxes from multinational enterprises 
A) to gain an advantageous division of labor 
B) to be in compliance with United Nations' requirements 
C) to attack problems jointly that one country acting alone cannot solve 
D) to assure that all countries get an equitable share of taxes from multinational enterprises

Question 4

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

Question 5

Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization?

Accepted Answer

A) A large country on which they depend may pressure them on political matters. 
B) A large international firm may dictate its terms of operations in a small country. 
C) A large company may exploit legal loopholes to avoid tax payments. 
D) A large country may substantially increase its demand for the small country's production. 
A) A large country on which they depend may pressure them on political matters. 
B) A large international firm may dictate its terms of operations in a small country. 
C) A large company may exploit legal loopholes to avoid tax payments. 
D) A large country may substantially increase its demand for the small country's production.

Question 6

When companies face the same competitors in almost all countries where they operate, ________.

Accepted Answer

A) what they learn about one another in one country is useful in predicting the others' strategies and actions elsewhere 
B) the market leader is the same everywhere 
C) there is less need to understand the physical and societal factors of each country 
D) they are less likely to enter joint ventures with other companies 
A) what they learn about one another in one country is useful in predicting the others' strategies and actions elsewhere 
B) the market leader is the same everywhere 
C) there is less need to understand the physical and societal factors of each country 
D) they are less likely to enter joint ventures with other companies

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

The production of goods by a French company in Italy for sale in Italy is an example of an Italian merchandise import.

Accepted Answer

A) True 
 B)False

Question 10

Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies.

Accepted Answer

A) True 
 B)False

Question 11

Elway, 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 12

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

Question 13

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 14

Import restrictions are becoming less important because consumers increasingly want to buy goods and services produced in their own countries.

Accepted Answer

A) True 
 B)False

Question 15

The recent expansion of technology has contributed to the growth in international business by creating new products that are important in world trade.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

A company starting out with a global focus, usually because of the international experience of its founders, is called a ________.

Accepted Answer

A) multinational enterprise 
B) transnational company 
C) strategically allied company 
D) born-global company 
A) multinational enterprise 
B) transnational company 
C) strategically allied company 
D) born-global company

Question 19

A joint venture is an example of a portfolio investment.

Accepted Answer

A) True 
 B)False

Question 20

Globalization refers to all economic transactions among countries.

Accepted Answer

A) True 
 B)False

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

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

What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations?

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?

Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization?

When companies face the same competitors in almost all countries where they operate, ________.

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

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

The production of goods by a French company in Italy for sale in Italy is an example of an Italian merchandise import.

Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies.

Elway, 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?

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

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

Import restrictions are becoming less important because consumers increasingly want to buy goods and services produced in their own countries.

The recent expansion of technology has contributed to the growth in international business by creating new products that are important in world trade.

A foreign direct investment occurs when ________.

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.

A company starting out with a global focus, usually because of the international experience of its founders, is called a ________.

A joint venture is an example of a portfolio investment.

Globalization refers to all economic transactions among countries.

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters

Exam 1: Globalization and International Business

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

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

What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations?

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?

Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization?

When companies face the same competitors in almost all countries where they operate, ________.

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

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

The production of goods by a French company in Italy for sale in Italy is an example of an Italian merchandise import.

Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies.

Elway, 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?

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

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

Import restrictions are becoming less important because consumers increasingly want to buy goods and services produced in their own countries.

The recent expansion of technology has contributed to the growth in international business by creating new products that are important in world trade.

A foreign direct investment occurs when ________.

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.

A company starting out with a global focus, usually because of the international experience of its founders, is called a ________.

A joint venture is an example of a portfolio investment.

Globalization refers to all economic transactions among countries.

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters