1) Technical, cultural, and economic advances are key drivers in the advancement of:

A. foreign currency exchange rates

B. globalization

C. the Silk Road

D. Offshoring practices

2) If you are able to produce 1 piece of fine furniture or 10 birdhouses using the same resources, and your competitor is able to produce 5 pieces of fine furniture or 10 birdhouses using the same resources, who has the comparative advantage?

A. neither

B. you

C. your competitor in fine furniture

D. your supplier

3) Economies of scale and specialization are characteristics of:

A. comparative and absolute advantage

B. factors of production

C. economics of scale

D. call centers in India

4) Total inflow of money - total outflow of money is:

A. the equation for balance of trade

B. the equation for balance of payments

C. the equation for economies of scale

D. the equation for cash flow

5) A Trade Surplus is characterized by:

A. equal amount of goods imported as exported

B. more goods imported than exported

C. a debt free nation

D. more goods exported than imported

6) Bartering is a common form of:

A. balance of trade

B. trade deficit

C. trade surplus

D. countertrade

7) Denise has opened a party shop and acquires many of the items that she is selling in her party shop from another country. This is an example of:

A. exporting

B. smuggling

C. transferring

D. importing

8) Part of the benefits of being a franchisee is that you have access to:

A. the knowledge, process and trademarks of the franchisor

B. company information about the franchisor

C. marketing and advertising

D. unlimited funding from the franchisor

9) Companies expend a great deal of time and effort scrutinizing potential opportunities that are associated with Foreign Direct Investments (FDI). This is a result of the:

A. relatively low costs of FDIs

B. amount of time it takes to close a deal

C. senior management which is involved in the process

D. level of commitment and investment associated with the FDI

10) A joint venture involves ________ that are equal partners in the new firm, investing money and resources while sharing control of the newly formed firm.

A. two investors

B. two governments

C. two people

D. two companies

11) Refraining from drinking alcohol, refraining from eating beef or pork, and shopping for gifts in observance of religious holidays are all examples of:

A. cultural business norms

B. cultural barriers

C. cultural values

D. cultural religious beliefs and customs

12) Exchange rates:

A. are firmly established by the IMF

B. vary from time to time

C. are better than barter

D. are stagnant

13) Privacy laws include governing:

A. agreements about supply and delivery of goods

B. enforcing intellectual property rights

C. employee pay structures

D. data collection, storage, use and permissions

14) Selling goods in a foreign country includes non-legal considerations for:

A. financial regulatory laws

B. trade tariffs

C. cultural norms

D. local consumer group concerns

15) Setting limits on the quantity or value of incoming goods is:

A. embargo

B. tariff

C. import quotas

D. export quotas

16) The organization that is responsible for providing a forum for negotiations, agreements and settling disputes among nations is:

A. world bank

B. international monetary fund

C. united nations

D. world trade organization

17) If Haiti is seeking funding to rebuild education and industrial infrastructure after a major earthquake, then it would turn to:

A. the united nations

B. the world trade organization

C. the world bank

D. the international monetary fund

18) If Romania is looking to get credit, in order to stabilize their currency as a result of a major economic disruption, then they would turn to:

A. the world bank

B. the federal reserve

C. the international monetary fund

D. the world trade organization

19) The international monetary community created the ________ because the two organizations create an important division of labor.

A. IMF and the world trade organization

B. IMF and the united nations

C. IMF and the world bank

D. IMF and the federal reserve

20) There is a great deal of behavior that falls into a gray zone that can be difficult to analyze, however outright bribery is clearly:

A. ethical

B. unethical and illegal

C. universally acceptable

D. legal

21) The Foreign Corrupt Practices Act requires that companies in the United States ________ abide by the rules and regulations.

A. should

B. told not to

C. are encouraged to

D. must

22) According to the U.S. Government Accounting Office, a manufacturing company located in China is considered a sweatshop if they:

A. use children and pay them minimum wage

B. use children and pay them more than adult workers

C. use children and pay them less than the minimum wage

D. use children and pay them more than the minimum wage