INTB EXAM 1 QUESTIONS WITH
COMPLETE SOLUTIONS18
What is international business? - ANSWERS-Any commercial transaction that crosses the
borders of two or more countries
Which one of the following can best describe born global firms? - ANSWERS-Companies that
adopt a global perspective and engages in international business from the start
When IBM USA sources computer materials from different locations around the world to reduce
the cost of production, this is called ________ - ANSWERS-globalization of production
Which one of following options helps companies reduce costs when they sell consumer goods
globally? - ANSWERS-Standardizing certain marketing activities
Which one of these factors is a key driving force for globalization of market and production? -
ANSWERS-Falling barriers to trade and investment and technological innovation
Operating across borders and time zones could complicate the job of coordinating and
controlling international business activities especially for smaller firms. To operate more
efficiently, international companies tend to ________. - ANSWERS-accelerate the use ofac
technology, email, video conferencing, the Internet, and intranets.
The revision in 1994 of the GATT clearly defined intellectual property rights in order to
________. - ANSWERS-give more protection to copyrights, trademarks, and patents
A company that adopts a global perspective and engages in international business from or near
its inception is known as a(n) ____________. - ANSWERS-born global firm
,The opponents of globalization argue that freer trade and investment allows international
companies to ________. - ANSWERS-close factories in high-wage-area developed nations and
move them to low-wage developing countries
The main purpose for establishing regional trade agreements such as NAFTA and APEC is to
________. - ANSWERS-foster trade and boost cross-border investment
Opposition groups allege that globalization empowers organizations erodes the ________. -
ANSWERS-sovereignty of a nation
Some of the critics of globalization argue that the relentless pursuit of low-cost goods has led to
________ - ANSWERS-sending manufacturing jobs abroad
A firm that produces a product with universal but seasonal appeal and is trying to level its
income stream and reduce or eliminate wide variations in domestic sales can supplement its
domestic sales with ________. - ANSWERS-international sales
________ is the name we give to the trend toward greater economic, cultural, political, and
technological interdependence among national institutions and economies. - ANSWERS-
Globalization
A firm is less likely to offer a standardized product globally when __________. - ANSWERS-the
benefit of serving the customers with an adapted product may outweigh the benefit of a
standardized product
The globalization impact on the gap between rich and poor nations varies. One group of
nations, such as China and India, is closing the gap with rich economies while a second group of
poor countries is falling further behind, such as most countries in Africa. On closer inspection
this is due to which one of the following? - ANSWERS-The level of embracing globalization by
developing countries
, Which one of the following best describes the sourcing of key production inputs, such as raw
materials or products, for assembly as well as the international outsourcing of services? -
ANSWERS-Globalization of production
Why do companies typically produce goods and services abroad? - ANSWERS-To reduce their
overall labor costs
Companies that sell global products can standardize certain market activities in order to
________. - ANSWERS-reduce marketing costs
Multinational corporations are key players in international business and can be described as
companies that __________. - ANSWERS-have direct investments in the form of marketing or
manufacturing subsidiaries abroad in multiple countries
Why do most international firms today support reasonable environmental laws? - ANSWERS-
They recognize that healthy future markets require a sustainable approach to the business
expansion for future local markets for their goods and services
The convergence in buyer preferences in countries around the world is referred to as ________.
- ANSWERS-globalization of markets
The power of the WTO that sets it apart from the GATT is its capability to ______________. -
ANSWERS-penalize offending nations and the power to settle trade disputes
Japan's largest paper company, Nippon Seishi, has decided to own huge forests and
corresponding processing facilities in Australia, Canada, and the U.S. so it can ________. -
ANSWERS-guarantee a steady flow of its wood pulp
COMPLETE SOLUTIONS18
What is international business? - ANSWERS-Any commercial transaction that crosses the
borders of two or more countries
Which one of the following can best describe born global firms? - ANSWERS-Companies that
adopt a global perspective and engages in international business from the start
When IBM USA sources computer materials from different locations around the world to reduce
the cost of production, this is called ________ - ANSWERS-globalization of production
Which one of following options helps companies reduce costs when they sell consumer goods
globally? - ANSWERS-Standardizing certain marketing activities
Which one of these factors is a key driving force for globalization of market and production? -
ANSWERS-Falling barriers to trade and investment and technological innovation
Operating across borders and time zones could complicate the job of coordinating and
controlling international business activities especially for smaller firms. To operate more
efficiently, international companies tend to ________. - ANSWERS-accelerate the use ofac
technology, email, video conferencing, the Internet, and intranets.
The revision in 1994 of the GATT clearly defined intellectual property rights in order to
________. - ANSWERS-give more protection to copyrights, trademarks, and patents
A company that adopts a global perspective and engages in international business from or near
its inception is known as a(n) ____________. - ANSWERS-born global firm
,The opponents of globalization argue that freer trade and investment allows international
companies to ________. - ANSWERS-close factories in high-wage-area developed nations and
move them to low-wage developing countries
The main purpose for establishing regional trade agreements such as NAFTA and APEC is to
________. - ANSWERS-foster trade and boost cross-border investment
Opposition groups allege that globalization empowers organizations erodes the ________. -
ANSWERS-sovereignty of a nation
Some of the critics of globalization argue that the relentless pursuit of low-cost goods has led to
________ - ANSWERS-sending manufacturing jobs abroad
A firm that produces a product with universal but seasonal appeal and is trying to level its
income stream and reduce or eliminate wide variations in domestic sales can supplement its
domestic sales with ________. - ANSWERS-international sales
________ is the name we give to the trend toward greater economic, cultural, political, and
technological interdependence among national institutions and economies. - ANSWERS-
Globalization
A firm is less likely to offer a standardized product globally when __________. - ANSWERS-the
benefit of serving the customers with an adapted product may outweigh the benefit of a
standardized product
The globalization impact on the gap between rich and poor nations varies. One group of
nations, such as China and India, is closing the gap with rich economies while a second group of
poor countries is falling further behind, such as most countries in Africa. On closer inspection
this is due to which one of the following? - ANSWERS-The level of embracing globalization by
developing countries
, Which one of the following best describes the sourcing of key production inputs, such as raw
materials or products, for assembly as well as the international outsourcing of services? -
ANSWERS-Globalization of production
Why do companies typically produce goods and services abroad? - ANSWERS-To reduce their
overall labor costs
Companies that sell global products can standardize certain market activities in order to
________. - ANSWERS-reduce marketing costs
Multinational corporations are key players in international business and can be described as
companies that __________. - ANSWERS-have direct investments in the form of marketing or
manufacturing subsidiaries abroad in multiple countries
Why do most international firms today support reasonable environmental laws? - ANSWERS-
They recognize that healthy future markets require a sustainable approach to the business
expansion for future local markets for their goods and services
The convergence in buyer preferences in countries around the world is referred to as ________.
- ANSWERS-globalization of markets
The power of the WTO that sets it apart from the GATT is its capability to ______________. -
ANSWERS-penalize offending nations and the power to settle trade disputes
Japan's largest paper company, Nippon Seishi, has decided to own huge forests and
corresponding processing facilities in Australia, Canada, and the U.S. so it can ________. -
ANSWERS-guarantee a steady flow of its wood pulp
