Question 1

Which of the following best defines international business?

Accepted Answer

A)  It includes all economic flows between two or more countries.
B)  It includes all private economic flows between two or more countries.
C)  It includes all business transactions involving two or more countries.
D)  It includes all business transactions in countries other than your home country.E) None of the above
F) B) and D)

Question 2

In addition to understanding the laws affecting business in countries where their companies operate, it is most important for managers to understand the ________.

Accepted Answer

A)  methods for appointing local judges
B)  ethical rationale behind the laws
C)  history of the local legal system
D)  degree of law enforcementE) A) and C)
F) A) and D)

Question 3

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 homeE) B) and D)
F) B) and C)

Question 4

Which of the following is an indication of the increased globalization of business since the end of World War II?

Accepted Answer

A)  Foreign trade has largely replaced foreign ownership as a means of conducting international business.
B)  World trade has grown more rapidly than world production.
C)  Globally, consumers now depend on foreign output for more than half their consumption.
D)  Countries have increased their import restrictions to counter the rising tide of imports.E) A) and D)
F) C) and D)

Question 5

The ownership of foreign bonds is an example of a portfolio investment.

Accepted Answer

A) True 
 B)False

Question 6

Managers who are knowledgeable about ________ are better able to identify the location, quantity, quality, and availability of the world's natural resources.

Accepted Answer

A)  political factors
B)  geographic factors
C)  competitive factors
D)  cultural factorsE) B) and C)
F) None of the above

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A multinational enterprise (MNE) is best defined as a firm ________.

Accepted Answer

A)  that is a member of the Fortune 500
B)  with foreign business partners
C)  involved in global franchising
D)  with foreign direct investmentsE) A) and C)
F) B) and C)

Question 10

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 interestsE) A) and B)
F) B) and C)

Question 11

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 venturingE) A) and B)
F) A) and D)

Question 12

Many companies merge with or acquire other companies to gain operating efficiencies that help them compete with or become global leaders.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  multinational corporation
B)  transnational company
C)  international firm
D)  born-globalE) B) and C)
F) A) and B)

Question 15

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.E) None of the above
F) All of the above

Question 16

Which of the following is NOT a common argument for the slowing of future globalization?

Accepted Answer

A)  Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people.
B)  Technological, transportation, and communication advances will decline in the near future.
C)  Major countries have either ignored certain international treaties or have refused to sign them.
D)  The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments.E) A) and B)
F) A) and C)

Question 17

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

Accepted Answer

In foreign direct investment (FDI), some...

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Governments have signed treaties to protect foreign-owned property rights, such as investments and patents.A primary reason for doing so is to ________.

Accepted Answer

A)  gain reciprocal advantages
B)  reduce the domestic effects of other countries' economic policies
C)  deal with areas of concern outside the territory of any one country
D)  reduce national conflicts leading to violent political demonstrationsE) A) and B)
F) A) and D)

Exam 1: Globalization and International Business

Many companies merge with or acquire other companies to gain operating efficiencies that help them compete with or become global leaders.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Managers who are knowledgeable about ________ are better able to identify the location, quantity, quality, and availability of the world's natural resources.

Correct Answer
verified

Which of the following is NOT a common argument for the slowing of future globalization?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Which of the following best defines international business?

Correct Answer
verified

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

Correct Answer
verified

Governments have signed treaties to protect foreign-owned property rights, such as investments and patents.A primary reason for doing so is to ________.

Correct Answer
verified

A multinational enterprise (MNE) is best defined as a firm ________.

Correct Answer
verified

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

Correct Answer
verified

The ownership of foreign bonds is an example of a portfolio investment.

Correct Answer
verified

Correct Answer
verified

In addition to understanding the laws affecting business in countries where their companies operate, it is most important for managers to understand the ________.

Correct Answer
verified

Which of the following is an indication of the increased globalization of business since the end of World War II?

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
In foreign direct investment (FDI), some...
View Answer

Exam 1: Globalization and International Business

Many companies merge with or acquire other companies to gain operating efficiencies that help them compete with or become global leaders.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Managers who are knowledgeable about ________ are better able to identify the location, quantity, quality, and availability of the world's natural resources.

Correct AnswerverifiedShow Answer

Which of the following is NOT a common argument for the slowing of future globalization?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following best defines international business?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Governments have signed treaties to protect foreign-owned property rights, such as investments and patents.A primary reason for doing so is to ________.

Correct AnswerverifiedShow Answer

A multinational enterprise (MNE) is best defined as a firm ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The ownership of foreign bonds is an example of a portfolio investment.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In addition to understanding the laws affecting business in countries where their companies operate, it is most important for managers to understand the ________.

Correct AnswerverifiedShow Answer

Which of the following is an indication of the increased globalization of business since the end of World War II?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedIn foreign direct investment (FDI), some...View AnswerShow Answer

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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In foreign direct investment (FDI), some...
View Answer