Exam 1: Globalization and International Business

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

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

A major criticism of offshoring is that it ________.

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

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

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

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

Some observers feel that international institutions and the people working in them cannot adequately handle the complexities of an interconnected world.Based on this,these observers believe that ________.

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

The term used by the United Nations as a synonym for multinational enterprise is ________.

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

Although the U.S.film industry depends heavily on revenue in foreign countries,revenue from international markets is usually low for a sports-themed film.This is most likely due to ________ factors.

A flag of convenience is ________.

Which of the following has NOT been a major force increasing globalization in recent decades?

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

Reebok pays a royalty to the German Soccer League to use the team's logo on t-shirts that it sells.Reebok and the German Soccer League most likely have a ________.

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

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

The same automobile company produces Fiats and Ferraris.The company builds an engine plant in China with low production costs for Fiats but not Ferraris.The probable reason is that ________.

A joint venture is an example of a portfolio investment.