l) The broadening set of interdependent relationships among people from different pmts of the world is known as

A)Globalization

B)Offshoring

C)Franchising

D)Outsourcmg

2) The European Union is an example ofintegration.

A)Regional

B)Relative C) Global

D) Bilateral

3) Global integration occurs as countries from all over the world decide to cooperate through the

B)NAFTA agreement

C)WTO

D)CARICOM

4) Which of the following best defines intemational business? A) It includes all public 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.

5) Which of the following is NOT a likely reason to study intemational business?

A)Global events affect almost all companies.

B)Physical, social, and competitive conditions differ from country to country.

C)Business conducted outside the confines of any one countlY is Inexplicably on the decline.

D)Finns are better able to obtain needed resources by approaching operating strategies from an intemational standpoint.

6) Why should managers have an understanding of trade protectionism?

A)Trade protectionism targets factor endowments, thus affecting the best country to locate Production.

B)Trade protectionism affects a company's ability to sell abroad and ability to compete at home.

C)Trade protectionism affects the number of people pennitted to practice a specific profession.

D)Trade protectionism prevents companies' enactment of merger and acquisition agreements.

7) Why should managers in intemational business understand intemational trade theories?

A) Countries' trade policies, based on trade theories, influence which products companies might export to given countries. B) The understanding helps managers decide whether their companies should follow laissez-faire management practices.

C) The theories help managers decide whether to use large-scale versus small-scale technologies for sewing their export markets. D) The comprehension is useful when deciding whether to transfer managers abroad to manage foreign operations.

8) Which of the following undesirable results will most likely occur for a countlY Thinning a favourable balance of trade?

A)Higher unemployment

B)Higher domestic interest rates

C)Fewer funds to invest abroad

D)Granting credit that may be risky

9) Most of the world's goods and services are sold

A)In intemational markets

B)In the countlies where they are produced

C)Through exports to small countries D) Through expolts to large countries

10) Successful trade retaliation is most likely achieved

A)On agricultural products

B)On manufactured products C) By a large trading country

D) By a small trading country

I l) As a leading expolter of luxury automobiles, Gennany has built a strong reputation in engineering. Gennany's trade most likely relies on a (n)

A)Outward immigration

B)Natural advantage

C)Acquired advantage

D)Neomercantilist policy

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

A)Liberalization of cross-border trade

B)Increase in and expansion of technology

C)Growmg pressure from consumers D) Decreasing global competition

13) Nontradable goods are best defined as

A)Products and services for which expofting costs are excessive

B)Factors of production that exceed safety regulations

C)Goods used for national defence

D)Products that comprise a poltion of the inputs for finished products

14)consists of specific leamed nonns based on attitudes values, and beliefs of a group of people.

A)Ethnology

B)Civilization

C)Culture

D)Doctrine

15) Which of the following is NOT true about cultural diversity? A) Companies may gam competitive advantages by bringing together people of diverse backgrounds.

B)Cultural diversity is most successful when domestic and foreign firms establish joint ventures.

C)Cultural diversity may help a company gain deeper knowledge about products and services.

D)The process of bringing people of different national cultures together is often difficult.

16) Because people can be grouped in many ways, such as on the basis of nationality, ethnicity, religion, profession, and income level,

A)People live in a state of cultural collision

B)Cultural studies fail to understand behaviours

C)Identity crises make individual's lives chaotic

D)People have more than one cultural group membership

17) When divergent cultures come in contact,occurs.

A)Power distance

B)Culture shock

C)Cultural collision

D)Group membership

18) Which of the following best describes a condition under which cultural collision would most likely occur in mtemational business? A) A company implements practices that are less effective than intended.

B)Local employees are overlooked for promotions by home country managers.

C)Expatriate managers rely too heavily on local employees for negotiating business deals.

D)Foreign and domestic companies make adjustments for the local culture and legal environment.

19) Which of the following is a true statement about China? A) The Chinese govemment's shift from communism to capitalism has led to an increase in FDI.

B)China attracts FDI because the government has eliminated elaborate bureaucracies.

C)The Chinese government manipulates market activities for political purposes.

D)China lacks an educated pool of employees due to latent industrialization.

20) Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

A)Theft of intellectual property

B)Environmental hazards

C)Child labour violations D) Embezzlement

21) Which of the following countries has an individualistic orientation?

A)Venezuela

B)Japan

C)Egypt

D)Canada

22) Which of the following asserts that a government should NOT interfere in business affairs?

A)Collectivism

B)Laissez-faire

C)The nile of man D) Pluralism

23) The principle that an individual has the freedom to pursue his or her interests is called

A)Socialism

B)Totalitarianism

C)Individualism

D)Collectivism

24) The recent global economic crisis has led to which of the following?

A)Governments seeking to impose more constraints on capitalism

B)Govemments seeking to eliminate constraints on capitalism C) Govemments seeking to increase the interdependence of developing economies D) Governments seeking to eliminate the interdependence of developing economies

25) Which of the following is most likely a true statement about the global economy since the 1980s?

A)Socialist govemments are intervening more in global exchanges.

B)Wealthy countries are maintaining total control of expandmg markets. C) Developing countries are losing their share of foreign-exchange reserves.

D) Emergmg economies are adopting the prmciples and practices of free markets.

26) Since the late 1980s, the growing emergence of freer markets has been powered by the realization that

A)Economic growth is directly related to economic freedom

B)Economic growth has a limited effect on the standard of living

C)Adoption of free market principles contlibutes to social injustices D) Centrally planned economies are best designed to deliver progress

27) The Economic Freedom Index indicates that economic freedom is positively con-elated with all of the following EXCEPT

A)Life expectancy

B)Literacy

C)Environmental sustainability

D)Diversity

28) History suggests that if the economic Clisis worsens, we are likely to see more people question the

A)Fall of communism

B)Legitimacy of capitalism

C)Practicality of mixed market economies

D)Con-elation between economic freedom and prosperity

29) Which of the following is NOT a key stakeholder group that a company must work to satisfy in order to survive m a global environment? A) Employees

B)Competitors

C)Shareholders D) Customers

30) Which stakeholder group primarily wants additional sales and Increased productivity?

A)Customers

B)Shareholders

C)Society at large D) Govemment

31) Which stakeholder group is most interested in tmstwolthy behaviour by corporate executives and increased corporate taxes?

A)Shareholders

B)Society

C)Employees D) Customers

32) Which of the following statements is most likely tille regarding relationships between MNEs and stakeholders?

A)An MNE typically selves all stakeholder groups equally at any given time.

B)No individual stakeholder group is powerful enough to cause the demise of an MNE.

C)All stakeholders of an MNE have the same sh01t-tenn and longterm goals and interests.

D)The inability to adequately meet the long-term needs of all stakeholders increases the probability of an MNE failing.

33) Monique has recently been hired as an accounts supervisor at Ballston Entelprises. She wants to understand Ballston's values and its expectations for employee behaviour. Which of the following would most likely provide Monique with this infonnation?

A)Mission statement

B)Code of conduct

C)Vision statement

D)Employee contract

34) All countries face the questions of what, how much, and with whom they should impolt and expolt. How they answer these questions primarily affects whether

A)Non-taxable goods become tradable

B)Products go tlnough a lengthy life cycle

C)Companies adhere to laissez-faire export policies

D)A company's present production location will be competitive

35) The trade theow that says a country should expolt more than it

Impolts is known as

A)Mercantilism

B)Absolute advantage

C)Comparative advantage D) Impolt substitution

36) Under mercantilism, governments sought to influence trade by

A)Establishing bilateral trading agreements with other countries

B)Limiting exports

C)Limiting impolts and subsidizing exports

D)Encouraging the development of manufacturing in their colonies

37) Country X mns a favourable balance of trade. Which of the following undesirable results will most likely occur?

A)Higher unemployment

B)Higher domestic interest rates

C)Lower value of global investments

D)Lower credit value for purchasing goods

38) Neomercantilism describes the approach of countlies that fry to mn a favourable balance of trade to

A)Build up gold reserves

B)Achieve a political objective

C)Lower their rates of inflation

D)Buy raw materials more cheaply

39) Countries with climates and varied natural resources generallythan countries with less varied climates and natural resources.

A)Have lower per capita incomes

B)Depend less heavily on trade

C)Have more ethnic subgroups

D)Have higher endowments of capital relative to labour

40) Eight of the top 10 expolting and impolting counffies are countries with

A)Cheap labour forces

B)Small landmasses

C)Natural advantages

D)Developed economies

41) Most world trade takes place

A)Between developed countries and developing countries

B)Among developed countries

C)Among developing countries

D)Between raw material exporters and manufacturing exporters

42) Histoly suggests that if the economic crisis worsens, we are likely to see more people question the

A)Fall of communism

B)Legitimacy of capitalism

C)Practicality of mixed market economies

D)Con-elation between economic freedom and prosperity

43) Which of the following is NOT a key stakeholder group that a company must work to satisfy in order to survive in a global environment?

A)Employees

B)Competitors

C)Shareholders D) Customers

44) The recent global economic crisis has led to which of the following?

A)Govemments seeking to Impose more constraints on capitalism

B)Governments seeking to eliminate constraints on capitalism C) Governments seeking to increase the interdependence of developing economies D) Govemments seeking to eliminate the interdependence of developing economies

45) Which stakeholder group primarily wants additional sales and increased productivity?

A)Customers

B)Shareholders

C)Society at large D) Govemment

46) Ethical dilemmas tend to befor MNE managers than for domestic managers.

A)More complicated

B)Less controversial

C)Easier to decide D) Less common

47) Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

A)Intellectual property violations

B)Environmental hazards

C)Child labour violations D) Embezzlement

48) Since the late 1980s, the growing emergence of freer markets has been powered by the realization that

A)Economic growth is directly related to economic freedom

B)Economic growth has a limited effect on the standard of living

C)Adoption of free market principles contlibutes to social injustices D) Centrally planned economies are best designed to deliver progress

49) Which of the following statements best describes a pluralistic society?

A)Multiple segments of society adhere to the same political philosophy.

B)Two dominant political palties rule local and federal govemments.

C)Different ideologies are held by different segments of society.

D)Various ethnic groups belong to the official political party.

50) Which of the following most likely complicates ethical behaviour for films that expand overseas?

A)Local laws and values

B)Expatriate management

C)Unstable financial settings

D)Intemational codes of conduct

51) Which of the following is the most accurate statement about culture?

A)Cultural valiables can easily be isolated from other factors such as economic and political conditions.

B)Although most cultural vambles are universal, the fonns these variables take differ from culture to culture.

C)Most cultural vambles are superficial and can easily be influenced by environmental factors.

D)Within a culture, evewone responds to particular cultural variables the same way.

52) Which stakeholder group is most interested in tmstwolthy behaviour by corporate executives and increased corporate taxes?

A)Shareholders

B)Society

C)Employees D) Customers

53) Which of the following is a prunary business objective for pursuing ethical behaviour?

A)Avoiding industrial sanctions

B)Developing competitive advantages

C)Developing creative adveltisements

D)Discouraging false commitments to the finn

54) Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following? A) Observing the behaviour of people who have gained respect within that cultural environment

B)Relying on stereotypes, which are based on averages, to gain an understanding of the culture

C)Avoiding cultural research studies because they perpetuate urustified stereotypes and behaviours

D)Memorizing the cultural vamtions that are typically encountered in a specific cultural environment

55) The distinguishing feature of political ideologies along the political spectlllm iswith some emphasizing its prunacy and others opposing it.

A)Capitalism

B)Socialism

C)Freedom

D)Liberalism

56) In terms of intemational business, it is most accurate to say that

A)There is a universal "best way" to conduct busmess

B)Global competition affects large companies but not small ones C) Most fums depend either on foreign markets and supplies or compete against companies that do

D) Government regulation of intemational business has little effect on a company's profits

57) Which of the following statements most accurately describes the relationship between trading groups and MNEs?

A)Trading groups have no influence on the size of the regional market.

B)Regional trading groups can define the niles under which companies must operate within that region.

C)Companies never need to change their organizational stmcture to take advantage of regional trading groups.

D)Regional trading groups have no influence on an MNE's strategy since they operate worldwide.

58) Assume a govemment places restrictions on a specific product from a specific foreign country. What would be the government's most likely concem about the foreign countlY's response?

A)The foreign producers raising the prices of their expolts

B)The foreign country restricting its own impolts

C)The foreign country restricting its expolts in that industry

D)The foreign producers seeking other markets

59) Which of the following is an indication of the increased globalization of business since the end of World War Il? A) Foreign trade has largely replaced foreign ownership as a means of conducting intemational 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 impolt restlictions to counter the rising tide of imports.

60) Global integration occurs as countries from all over the world decide to cooperate tlnough the

B)NAFTA agreement

C)WTO

CARICOM