Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

What is a multinational enterprise (MNE)? How do physical and social factors affect how an MNE functions in a foreign country?

Accepted Answer

The multinational enterprise (MNE)is a c

Question 4

What are the differences between merchandise and service imports and exports? Provide examples to illustrate your answer.

Accepted Answer

a.Merchandise exports are tangible produ

Question 5

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 6

Most countries' imports account for more than half of their citizens' consumption.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following BEST explains how a firm reduces risk by operating internationally?

Accepted Answer

A)  taking advantage of business-cycle differences among countries 
B)  buying competitive risk insurance unavailable domestically 
C)  preventing competitors from operating in the countries it has entered 
D)  operating in less competitive environments than those at home 
A)  taking advantage of business-cycle differences among countries 
B)  buying competitive risk insurance unavailable domestically 
C)  preventing competitors from operating in the countries it has entered 
D)  operating in less competitive environments than those at home

Question 8

Globalization of business has been stimulated by institutional developments that aid foreign trade and investment.

Accepted Answer

A) True 
 B)False

Question 9

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 limits 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 limits 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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

The terms multinational corporation and multinational company are frequently used synonyms for strategic alliances.

Accepted Answer

A) True 
 B)False

Question 13

The process of shifting production from a domestic to a foreign location is best known as ________.

Accepted Answer

A)  offshoring 
B)  outsourcing 
C)  licensing 
D)  joint venturing 
A)  offshoring 
B)  outsourcing 
C)  licensing 
D)  joint venturing

Question 14

Limitation 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 15

Which of the following best explains recent governmental relaxation of restrictions on cross-border trade or resource movements?

Accepted Answer

A)  Most countries face shortages of workers, so they seek immigrants who can help them produce more. 
B)  Governments believe that this will decrease the need to make their own companies more innovative. 
C)  Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary. 
D)  Governments believe that domestic producers will become more efficient as a result of foreign competition. 
A)  Most countries face shortages of workers, so they seek immigrants who can help them produce more. 
B)  Governments believe that this will decrease the need to make their own companies more innovative. 
C)  Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary. 
D)  Governments believe that domestic producers will become more efficient as a result of foreign competition.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 division 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 division 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 18

Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that ________.

Accepted Answer

A)  regionalization is a transition stage toward globalization 
B)  neighboring countries are more apt to disagree politically than distant countries 
C)  neighboring countries are too geographically similar to benefit from trade 
D)  business in non-territorial areas is not regional 
A)  regionalization is a transition stage toward globalization 
B)  neighboring countries are more apt to disagree politically than distant countries 
C)  neighboring countries are too geographically similar to benefit from trade 
D)  business in non-territorial areas is not regional

Question 19

The shifting of national borders has most likely created which of the following situations for international business?

Accepted Answer

A)  It has left rural residents more isolated from technology. 
B)  It has complicated the understanding of behavioral factors affecting business. 
C)  It has increased physical barriers to exporting. 
D)  It has slowed communications between a company's headquarters and foreign operations. 
A)  It has left rural residents more isolated from technology. 
B)  It has complicated the understanding of behavioral factors affecting business. 
C)  It has increased physical barriers to exporting. 
D)  It has slowed communications between a company's headquarters and foreign operations.

Question 20

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

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

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

What is a multinational enterprise (MNE)? How do physical and social factors affect how an MNE functions in a foreign country?

What are the differences between merchandise and service imports and exports? Provide examples to illustrate your answer.

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

Most countries' imports account for more than half of their citizens' consumption.

Which of the following BEST explains how a firm reduces risk by operating internationally?

Globalization of business has been stimulated by institutional developments that aid foreign trade and investment.

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

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

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

The terms multinational corporation and multinational company are frequently used synonyms for strategic alliances.

The process of shifting production from a domestic to a foreign location is best known as ________.

Which of the following best explains recent governmental relaxation of restrictions on cross-border trade or resource movements?

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

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

Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that ________.

The shifting of national borders has most likely created which of the following situations for international business?

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

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

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

Globalization and Society

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

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

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

What is a multinational enterprise (MNE)? How do physical and social factors affect how an MNE functions in a foreign country?

What are the differences between merchandise and service imports and exports? Provide examples to illustrate your answer.

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

Most countries' imports account for more than half of their citizens' consumption.

Which of the following BEST explains how a firm reduces risk by operating internationally?

Globalization of business has been stimulated by institutional developments that aid foreign trade and investment.

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

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

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

The terms multinational corporation and multinational company are frequently used synonyms for strategic alliances.

The process of shifting production from a domestic to a foreign location is best known as ________.

Which of the following best explains recent governmental relaxation of restrictions on cross-border trade or resource movements?

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

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

Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that ________.

The shifting of national borders has most likely created which of the following situations for international business?

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

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

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

Globalization and Society

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