International Business Test 1 Study Guide
Questions Correctly Solved
Which of these companies exemplifies the globalization of markets? - Answer Fluffy Pillows, a U.S.-based
pillow company, sells the same pillows worldwide.
One cost-cutting measure used by Garr Tool Corp. is sourcing the parts it uses from companies in
Germany, Ireland, and Canada that are more economical than home-country sources. The choice to use
these sources is an example of the - Answer globalization of production.
What organization is often seen as the lender of last resort to nation-states whose economies are in
turmoil and currencies are losing value against those of other nations? - Answer International Monetary
Fund (IMF)
California-based Urban Health Source has invested resources in business activities in Italy. What type of
business activity does this represent? - Answer foreign direct investment
According to globalization opponents, what is a disadvantage of globalization? - Answer Globalization
results in companies "exporting jobs" to low-wage nations.
According to globalization supporters, what is an advantage of globalization? - Answer Globalization
helps create jobs in all countries that participate in the global trading system.
Why was the World Trade Organization established? - Answer to police the international trading system
Canadian company Yummy Snacks exports a number of products to consumers in Peru, Chile, and
Argentina. According to this information, Yummy Snacks is most likely involved in - Answer international
trade.
Which institution was established as a result of the Uruguay Round of GATT? - Answer World Trade
Organization
, A form of government in which political power is monopolized by a party, group, or individual that
governs according to religious principles is called what type of totalitarianism? - Answer theocratic
James is the warehouse supply manager for a major tool corporation. It is his job to take inventory of
the tools the company has available and send orders to make more tools when supplies run low. This
supply and demand form of production is an example of a ________ economy. - Answer market
In the country of Doran, all businesses are owned by the state. The government plans production, fixes
commodity prices, and also directs investments to ensure they benefit the nation as a whole and not
only a few individuals. What type of economy has the country of Doran adopted? - Answer command
In a pure command economy, the prices at which goods and services are sold are planned by the -
Answer government.
Members of the legal profession would refer to tradition, precedent, and custom in a(n) ________ law
system. - Answer common
As a judge in France, Maurice is not allowed to interpret the law but relies on a strict set of codes to
determine the outcome of a case. Which type of law is in place in France? - Answer civil law system
AllSpice Incorporated plans to do business with a company located in the Leone Republic, a common law
country. The companies have agreed to draft the business contract in the Leone Republic. Since the
contract will be drafted under a common law framework, what best characterizes the contract? -
Answer very detailed with all contingencies spelled out
The United Nations Convention on Contracts for the International Sale of Goods (CISG) was introduced
to - Answer resolve disputes that arise in international trade regarding which country's laws to apply.
HealthWise Corporation has developed a new diet supplement to assist with weight loss. Which type of
legal protection grants HealthWise Corporation exclusive rights for a defined period to the manufacture,
use, or sale of this new diet supplement? - Answer patent
TimeForce, a U.S.-based company, is planning to expand operations to a foreign country. Considering
the factors that make a country attractive as a place in which to do business, which country should
Questions Correctly Solved
Which of these companies exemplifies the globalization of markets? - Answer Fluffy Pillows, a U.S.-based
pillow company, sells the same pillows worldwide.
One cost-cutting measure used by Garr Tool Corp. is sourcing the parts it uses from companies in
Germany, Ireland, and Canada that are more economical than home-country sources. The choice to use
these sources is an example of the - Answer globalization of production.
What organization is often seen as the lender of last resort to nation-states whose economies are in
turmoil and currencies are losing value against those of other nations? - Answer International Monetary
Fund (IMF)
California-based Urban Health Source has invested resources in business activities in Italy. What type of
business activity does this represent? - Answer foreign direct investment
According to globalization opponents, what is a disadvantage of globalization? - Answer Globalization
results in companies "exporting jobs" to low-wage nations.
According to globalization supporters, what is an advantage of globalization? - Answer Globalization
helps create jobs in all countries that participate in the global trading system.
Why was the World Trade Organization established? - Answer to police the international trading system
Canadian company Yummy Snacks exports a number of products to consumers in Peru, Chile, and
Argentina. According to this information, Yummy Snacks is most likely involved in - Answer international
trade.
Which institution was established as a result of the Uruguay Round of GATT? - Answer World Trade
Organization
, A form of government in which political power is monopolized by a party, group, or individual that
governs according to religious principles is called what type of totalitarianism? - Answer theocratic
James is the warehouse supply manager for a major tool corporation. It is his job to take inventory of
the tools the company has available and send orders to make more tools when supplies run low. This
supply and demand form of production is an example of a ________ economy. - Answer market
In the country of Doran, all businesses are owned by the state. The government plans production, fixes
commodity prices, and also directs investments to ensure they benefit the nation as a whole and not
only a few individuals. What type of economy has the country of Doran adopted? - Answer command
In a pure command economy, the prices at which goods and services are sold are planned by the -
Answer government.
Members of the legal profession would refer to tradition, precedent, and custom in a(n) ________ law
system. - Answer common
As a judge in France, Maurice is not allowed to interpret the law but relies on a strict set of codes to
determine the outcome of a case. Which type of law is in place in France? - Answer civil law system
AllSpice Incorporated plans to do business with a company located in the Leone Republic, a common law
country. The companies have agreed to draft the business contract in the Leone Republic. Since the
contract will be drafted under a common law framework, what best characterizes the contract? -
Answer very detailed with all contingencies spelled out
The United Nations Convention on Contracts for the International Sale of Goods (CISG) was introduced
to - Answer resolve disputes that arise in international trade regarding which country's laws to apply.
HealthWise Corporation has developed a new diet supplement to assist with weight loss. Which type of
legal protection grants HealthWise Corporation exclusive rights for a defined period to the manufacture,
use, or sale of this new diet supplement? - Answer patent
TimeForce, a U.S.-based company, is planning to expand operations to a foreign country. Considering
the factors that make a country attractive as a place in which to do business, which country should
