Question 1

_____ occurs when a firm invests resources in business activities outside its home country.

Accepted Answer

A)  Foreign direct investment (FDI) 
B)  Direct international investment (DII) 
C)  International trade (IT) 
D)  Foreign direct production (FDP) 
A)  Foreign direct investment (FDI) 
B)  Direct international investment (DII) 
C)  International trade (IT) 
D)  Foreign direct production (FDP)

Question 2

The growth of international trade in services has been driven by advances in:

Accepted Answer

A)  communications. 
B)  transportation. 
C)  agriculture. 
D)  energy. 
A)  communications. 
B)  transportation. 
C)  agriculture. 
D)  energy.

Question 3

A company does not need a large size to facilitate, and benefit from, the globalization of markets.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following was established to maintain order in the international monetary system?

Accepted Answer

A)  The WTO 
B)  The GATT 
C)  The World Bank 
D)  The IMF 
A)  The WTO 
B)  The GATT 
C)  The World Bank 
D)  The IMF

Question 5

Outsourcing is a process that is limited to manufacturing enterprises.

Accepted Answer

A) True 
 B)False

Question 6

What is the Uruguay Round? List the measures implemented in the Uruguay Round?

Accepted Answer

Under the umbrella of GATT, eight rounds

Question 7

Discuss the demographics of world trade since the 1960s. How has the role of the United States changed? How is world trade expected to change in the future?

Accepted Answer

In the early 1960s, the United States wa

Question 8

NAFTA was passed only after:

Accepted Answer

A)  China agreed to establish a higher minimum wage. 
B)  the United States agreed to limit the number of jobs that could be outsourced. 
C)  Mexico committed to tougher enforcement of environmental protection regulations. 
D)  Canada committed to establish new limits on FDI. 
A)  China agreed to establish a higher minimum wage. 
B)  the United States agreed to limit the number of jobs that could be outsourced. 
C)  Mexico committed to tougher enforcement of environmental protection regulations. 
D)  Canada committed to establish new limits on FDI.

Question 9

Which of the following is true regarding the WTO?

Accepted Answer

A)  WTO stands for World Transition Organization. 
B)  The WTO was succeeded by GATT. 
C)  As of 2015, the WTO has 160 members. 
D)  The WTO is policed by the United Nations. 
A)  WTO stands for World Transition Organization. 
B)  The WTO was succeeded by GATT. 
C)  As of 2015, the WTO has 160 members. 
D)  The WTO is policed by the United Nations.

Question 10

According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950.

Accepted Answer

A) True 
 B)False

Question 11

What is the main reason that managing an international business differs from managing a domestic business?

Accepted Answer

A)  International managers are more experienced. 
B)  Countries differ in their cultures and systems. 
C)  Countries want to do business with their neighbors. 
D)  Countries want to keep their transactions simple. 
A)  International managers are more experienced. 
B)  Countries differ in their cultures and systems. 
C)  Countries want to do business with their neighbors. 
D)  Countries want to keep their transactions simple.

Question 12

Non-U.S. firms increasingly began to invest across national borders because they wanted to disperse production activities to optimal locations and to build a direct presence in major foreign markets.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is included in world merchandise trade?

Accepted Answer

A)  Service industry 
B)  Agricultural labor 
C)  Foreign services 
D)  Mining products 
A)  Service industry 
B)  Agricultural labor 
C)  Foreign services 
D)  Mining products

Question 14

A multinational enterprise (MNE) is a firm that:

Accepted Answer

A)  exports its products to multiple countries. 
B)  has production units in more than two countries. 
C)  does most of its business on the Internet. 
D)  lists its securities on a public exchange. 
A)  exports its products to multiple countries. 
B)  has production units in more than two countries. 
C)  does most of its business on the Internet. 
D)  lists its securities on a public exchange.

Question 15

In 2008 and 2009, the _____ became the forum though which major nations attempted to launch a coordinated policy response to the global financial crisis, which started in America.

Accepted Answer

A)  GATT 
B)  Group of Ten (G20) 
C)  Group of Twenty (G20) 
D)  World Trade Organization 
A)  GATT 
B)  Group of Ten (G20) 
C)  Group of Twenty (G20) 
D)  World Trade Organization

Question 16

Why does China represent both opportunities and threats for established international businesses?

Accepted Answer

China represents a huge and largely unta

Question 17

Consider whether the shift toward a more integrated and interdependent global economy is a good thing. Discuss the shift from the eyes of the consumer, the worker, the company, and the environmentalist.

Accepted Answer

There are many advantages of globalizati

Question 18

The rise of mini-multinationals means that:

Accepted Answer

A)  small businesses are becoming increasingly involved in international trade and investment. 
B)  it is increasingly difficult to enter the large multinational market. 
C)  countries are working together to minimize MNE influence. 
D)  there is greater state involvement in industry. 
A)  small businesses are becoming increasingly involved in international trade and investment. 
B)  it is increasingly difficult to enter the large multinational market. 
C)  countries are working together to minimize MNE influence. 
D)  there is greater state involvement in industry.

Question 19

Containerization allows:

Accepted Answer

A)  reduction of the time needed to get from one location to another. 
B)  simplification of transshipment from one mode of transport to another. 
C)  buyers and sellers to find each other easily in a global economy. 
D)  enterprises to coordinate and control a globally dispersed production system. 
A)  reduction of the time needed to get from one location to another. 
B)  simplification of transshipment from one mode of transport to another. 
C)  buyers and sellers to find each other easily in a global economy. 
D)  enterprises to coordinate and control a globally dispersed production system.

Question 20

Why is managing an international business different from managing a purely domestic business?

Accepted Answer

Managing an international business is di

_____ occurs when a firm invests resources in business activities outside its home country.

The growth of international trade in services has been driven by advances in:

A company does not need a large size to facilitate, and benefit from, the globalization of markets.

Which of the following was established to maintain order in the international monetary system?

Outsourcing is a process that is limited to manufacturing enterprises.

What is the Uruguay Round? List the measures implemented in the Uruguay Round?

Discuss the demographics of world trade since the 1960s. How has the role of the United States changed? How is world trade expected to change in the future?

NAFTA was passed only after:

Which of the following is true regarding the WTO?

According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950.

What is the main reason that managing an international business differs from managing a domestic business?

Non-U.S. firms increasingly began to invest across national borders because they wanted to disperse production activities to optimal locations and to build a direct presence in major foreign markets.

Which of the following is included in world merchandise trade?

A multinational enterprise (MNE) is a firm that:

In 2008 and 2009, the _____ became the forum though which major nations attempted to launch a coordinated policy response to the global financial crisis, which started in America.

Why does China represent both opportunities and threats for established international businesses?

Consider whether the shift toward a more integrated and interdependent global economy is a good thing. Discuss the shift from the eyes of the consumer, the worker, the company, and the environmentalist.

The rise of mini-multinationals means that:

Containerization allows:

Why is managing an international business different from managing a purely domestic business?

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 1: Globalization

_____ occurs when a firm invests resources in business activities outside its home country.

The growth of international trade in services has been driven by advances in:

A company does not need a large size to facilitate, and benefit from, the globalization of markets.

Which of the following was established to maintain order in the international monetary system?

Outsourcing is a process that is limited to manufacturing enterprises.

What is the Uruguay Round? List the measures implemented in the Uruguay Round?

Discuss the demographics of world trade since the 1960s. How has the role of the United States changed? How is world trade expected to change in the future?

NAFTA was passed only after:

Which of the following is true regarding the WTO?

According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950.

What is the main reason that managing an international business differs from managing a domestic business?

Non-U.S. firms increasingly began to invest across national borders because they wanted to disperse production activities to optimal locations and to build a direct presence in major foreign markets.

Which of the following is included in world merchandise trade?

A multinational enterprise (MNE) is a firm that:

In 2008 and 2009, the _____ became the forum though which major nations attempted to launch a coordinated policy response to the global financial crisis, which started in America.

Why does China represent both opportunities and threats for established international businesses?

Consider whether the shift toward a more integrated and interdependent global economy is a good thing. Discuss the shift from the eyes of the consumer, the worker, the company, and the environmentalist.

The rise of mini-multinationals means that:

Containerization allows:

Why is managing an international business different from managing a purely domestic business?

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters