TEST BANK FOR INTERNATIONAL BUSINESS COMPETING
IN THE GLOBAL MARKETPLACE
FINAL STUDY GUIDE EXAM (2026)
QUESTIONS AND VERIFIED ANSWERS
1) One likely consequence of the diminishing Arctic ice cap is .
A) less war
B) more affordable utility rates for lesser-developed nations
C) an increase in regional tourism
D) the creation of the Northwest Passage
Answer: D
Diff: 1
Skill: Concept
Objective: 1
2) Which of the following is a member of the Arctic Council?
A) France
B) Singapore
C) Finland
D) Mexico
Answer: C
Diff: 1
Skill: Concept
Objective: 1
3) Approximately of the world's current economic activity is concentrated in North
America, the EU, and Japan.
A) 24%
B) 46%
C) 57%
D) 72%
Answer: C
Diff: 2
Skill: Concept
Objective: 1
4) Under the United Nations Convention on the Laws of the Sea, countries are given control over
navigation within of the coastline.
A) one mile
B) five miles
C) twelve miles
D) twenty miles
Answer: C
Diff: 2
Skill: Concept
Objective: 1
,5) Companies doing international business are more likely to be successful when they .
A) conduct frequent performance appraisals
B) understand local market characteristics
C) employ primarily local managers
D) rely on experienced expatriates
Answer: B
Diff: 2
Skill: Concept
Objective: 1
6) What is London's origin as a world financial center?
A) military power of the British Empire in the nineteenth century
B) influence of royalty on the city's reputation
C) rule over several former American colonies
D) prestige of the London Stock Exchange
Answer: A
Diff: 2
Skill: Concept
Objective: 1
7) Which of the following markets has the GREATEST impact on the world's current economic
activity?
A) United States
B) European Union
C) China
D) Japan
Answer: A
Diff: 1
Skill: Concept
Objective: 1
8) In the twenty-first century, growth rates in have outpaced those in .
A) the United States and China; India and Japan
B) Canada and Japan; Germany and the U.S.
C) Japan and India; China and Canada
D) China and India; Germany and Japan
Answer: D
Diff: 3
Skill: Concept
Objective: 1
Learning Outcome: Discuss trends in and the debate over globalization
,9) The European Union accounted for about in GDP in 2011.
A) 6 trillion dollars
B) 17 trillion dollars
C) 35 trillion dollars
D) 79 trillion
Answer: B
Diff: 2
Skill: Concept
Objective: 4
10) Which country has the highest per capita income in North America?
A) the United States
B) Central America
C) Canada
D) Mexico
Answer: A
Diff: 1
Skill: Concept
Objective: 2
11) The countries of North America produce approximately percent of the world's
output.
A) 18
B) 26
C) 45
D) 52
Answer: B
Diff: 2
Skill: Concept
Objective: 2
12) is the currency in which the sale of goods and services is denominated.
A) Flight capital
B) Euro currency
C) Invoicing currency
D) Capital substitution
Answer: C
Diff: 1
Skill: Concept
Objective: 2
Learning Outcome: Define the fundamental concepts of international business
, 13) The prime market for lower-income countries that are trying to raise their living standards
through exports is .
A) the United States
B) Japan
C) Germany
D) China
Answer: A
Diff: 2
Skill: Concept
Objective: 2
14) is the money sent out of a politically or economically unstable country to one
perceived as a safe haven.
A) Invoicing currency
B) Flight capital
C) Capital substitution
D) Foreign currency
Answer: B
Diff: 1
Skill: Concept
Objective: 2
Learning Outcome: Define the fundamental concepts of international business
15) When a firm makes a sale of goods denominated in Japanese yen, the yen is referred to as
.
A) flight capital
B) export capital
C) the invoicing currency
D) the transaction currency
Answer: C
Diff: 2
Skill: Concept
Objective: 2
Learning Outcome: Define the fundamental concepts of international business
16) Which country listed below commonly attracts flight capital?
A) Germany
B) Canada
C) the United States
D) Singapore
Answer: C
Diff: 1
Skill: Concept
Objective: 2
IN THE GLOBAL MARKETPLACE
FINAL STUDY GUIDE EXAM (2026)
QUESTIONS AND VERIFIED ANSWERS
1) One likely consequence of the diminishing Arctic ice cap is .
A) less war
B) more affordable utility rates for lesser-developed nations
C) an increase in regional tourism
D) the creation of the Northwest Passage
Answer: D
Diff: 1
Skill: Concept
Objective: 1
2) Which of the following is a member of the Arctic Council?
A) France
B) Singapore
C) Finland
D) Mexico
Answer: C
Diff: 1
Skill: Concept
Objective: 1
3) Approximately of the world's current economic activity is concentrated in North
America, the EU, and Japan.
A) 24%
B) 46%
C) 57%
D) 72%
Answer: C
Diff: 2
Skill: Concept
Objective: 1
4) Under the United Nations Convention on the Laws of the Sea, countries are given control over
navigation within of the coastline.
A) one mile
B) five miles
C) twelve miles
D) twenty miles
Answer: C
Diff: 2
Skill: Concept
Objective: 1
,5) Companies doing international business are more likely to be successful when they .
A) conduct frequent performance appraisals
B) understand local market characteristics
C) employ primarily local managers
D) rely on experienced expatriates
Answer: B
Diff: 2
Skill: Concept
Objective: 1
6) What is London's origin as a world financial center?
A) military power of the British Empire in the nineteenth century
B) influence of royalty on the city's reputation
C) rule over several former American colonies
D) prestige of the London Stock Exchange
Answer: A
Diff: 2
Skill: Concept
Objective: 1
7) Which of the following markets has the GREATEST impact on the world's current economic
activity?
A) United States
B) European Union
C) China
D) Japan
Answer: A
Diff: 1
Skill: Concept
Objective: 1
8) In the twenty-first century, growth rates in have outpaced those in .
A) the United States and China; India and Japan
B) Canada and Japan; Germany and the U.S.
C) Japan and India; China and Canada
D) China and India; Germany and Japan
Answer: D
Diff: 3
Skill: Concept
Objective: 1
Learning Outcome: Discuss trends in and the debate over globalization
,9) The European Union accounted for about in GDP in 2011.
A) 6 trillion dollars
B) 17 trillion dollars
C) 35 trillion dollars
D) 79 trillion
Answer: B
Diff: 2
Skill: Concept
Objective: 4
10) Which country has the highest per capita income in North America?
A) the United States
B) Central America
C) Canada
D) Mexico
Answer: A
Diff: 1
Skill: Concept
Objective: 2
11) The countries of North America produce approximately percent of the world's
output.
A) 18
B) 26
C) 45
D) 52
Answer: B
Diff: 2
Skill: Concept
Objective: 2
12) is the currency in which the sale of goods and services is denominated.
A) Flight capital
B) Euro currency
C) Invoicing currency
D) Capital substitution
Answer: C
Diff: 1
Skill: Concept
Objective: 2
Learning Outcome: Define the fundamental concepts of international business
, 13) The prime market for lower-income countries that are trying to raise their living standards
through exports is .
A) the United States
B) Japan
C) Germany
D) China
Answer: A
Diff: 2
Skill: Concept
Objective: 2
14) is the money sent out of a politically or economically unstable country to one
perceived as a safe haven.
A) Invoicing currency
B) Flight capital
C) Capital substitution
D) Foreign currency
Answer: B
Diff: 1
Skill: Concept
Objective: 2
Learning Outcome: Define the fundamental concepts of international business
15) When a firm makes a sale of goods denominated in Japanese yen, the yen is referred to as
.
A) flight capital
B) export capital
C) the invoicing currency
D) the transaction currency
Answer: C
Diff: 2
Skill: Concept
Objective: 2
Learning Outcome: Define the fundamental concepts of international business
16) Which country listed below commonly attracts flight capital?
A) Germany
B) Canada
C) the United States
D) Singapore
Answer: C
Diff: 1
Skill: Concept
Objective: 2
