Busi 303 Satterly Questions and Answers
1. T or F: The health of a given economy can be measured in part by the number of exports it has relative to the
number and economic value of its imports: True
2. Market factors are the , , and that vary
from one region to another.: Demographic, sociologic, and economic forces
3. T or F: Sanctions refer to the taxes on imported goods.: False
4. has emerged as a cost-leading manufacturer of products ranging from consumer goods to
industrial equipment.: China
5. T or F: Economic health varies in moderate correlation with the amount of international trade activity in
each host country.
Group starts:: True
6. , increasing market audience, receiving foreign direct investment are reasons international trade is
important to the United States.: Maximizing pro- duction and efficiency
7. T or F: Foreign direct investment allows domestic firms to receive capital financing from foreign entities.:
True
8. T or F: The Industrial Revolution heralded the introduction of mass pro- duction, improved transportation,
technological progress, and the industrial factory system.: True
9. Economic health is considered when a country imports consid- erably more
than it exports: Negative
10.Multinational corporations (MNCs) are often divided into three broad groups based on , , and :
production, oper- ations management, and functionality
11.T or F: Africa was one of the oldest examples of an international trading community.: False
12.T or F: There is no notable difference in the way a nation conducts business versus the way a large
corporation conducts business.: False
13.T or F: Ownership control risk can be defined as the risk of monetary losses resulting from inadequate
or failed internal processes, people, and systems: False
14.T or F: Foreign investment does not include the outbound investment of host country capital into foreign
economies.: False
15.T or F: Horizontal integration extends a firm's competitive scope within the same industry by performing
production activities normally provided by a supplier or distributor: False
16.The top four export partners of the United States are as follows:
, , , and .: Canada, Mexico, Chi- na, and
Japan
, Busi 303 Satterly Questions and Answers
17.T or F: The rank of the top five countries (largest to smallest) by GDP
as of 2015 are as follows: United States, China, Germany, Japan, and United Kingdom.: False
18.T or F: Tariffs are the restrictions of the import of something to a specific quantity.: False
19.When a firm in one nation exchanges products, services, resources, or capital with a firm located in
another nation, this exchange constitutes a(n)
: international transaction
20.T or F: The North American Free Trade Agreement was enacted to provide uniform standards and rules of
engagement to a growing international trade market.: False
21.Which of the following are driving forces behind the trend towards increas- ing globalization?: Advances in
communication and transportation technologies.
Reductions in barriers to trade
Reductions in barriers to foreign investments
22.The brought about the first efficient forms of mass transporta- tion using machine
power.: Steam engine
23. are much more narrowly defined than knowledge areas in that they represent quantifiable
measures.: Skills
24.T or F: The U.S. is home to some of the world's leading hardware and software manufacturers.: True
25.T or F: The global business manager must possess a strong international awareness and must understand
the unique factors that contribute to the success of a global business, including formal education.: True
26.Which of the following is not included in the set of shared categories that characterizes a culture?:
Motivation
27.T or F: Globalization creates interdependencies, requires transparency, necessitates that business people
understand the ideal goal of having a seamless international marketplace, and involves blending and merging
of various cultures.: True
28.T or F: Pax Americana, Latin for "American peace," is the period of relative peace in the Western world
since the end of World War II in 1945, which coincided with the dominant military and economic position of the
U.S.: True
29.T or F: The international market removes the boundaries of local market territories, thereby decreasing
the potential market audience.: False
30.T or F: Production is efficient when any increase or decrease in output would cause a disproportionate
increase in the cost of production and when
, Busi 303 Satterly Questions and Answers
there is no alternative that would lead to a more profitable production of a given product.: True
31.T or F: Diversified integration occurs when a firm expands its business into different products that are not
similar to current lines.: True
32.T or F: Scope, cultural influence, and market practices are considerable operational differences of global
businesses from that of domestic business- es.: True
33.Which of the following is not one of the ways political risks can be classi- fies?: functional
34.T or F: Improvement in transportation, advances in communications tech- nology, and trade-friendly
legislation have all contributed to the desire to produce a seamless global economy.: True
35.Exploration and trade from Western European nations during the Renais- sance led to an increased supply
of from the New World, leading to an international economy based on money rather than barter.: Precious
metals
36.T or F: The top four export partners of the United States are as follows: Canada, Mexico, China, and
Japan.: True
37. is the official measure of total output of goods and services in a nation's economy: GDP
38.Significant fluctuations in can reduce the actual value of each dollar that a
foreign investor has vested in his or her foreign portfolio, po- tentially prompting the investor to withdraw from a
market entirely.: Currency exchange rates
39.The was enacted to provide uniform standards and rules of engagement to a growing
international trade market.: NAFTA
40.T or F: Any corporation or enterprise that manages production establish- ments or delivers services in at
least three countries may be considered a MNC.: False
41.T or F: Foreign direct investment is an attractive option for firms looking to diversify their investment
portfolios and creating opportunities for firms looking to enter emerging markets.: True
42.T or F: Taiwan has emerged as a cost-leading manufacturer of products ranging from consumer goods to
industrial equipment.: False
43.Through , the domestic firm is able to focus its resources on areas in which it maintains
a distinct competitive advantage, such as service offerings or research and development: Outsourcing
44.T or F: ISO standards are designed to be implemented worldwide.: True
1. T or F: The health of a given economy can be measured in part by the number of exports it has relative to the
number and economic value of its imports: True
2. Market factors are the , , and that vary
from one region to another.: Demographic, sociologic, and economic forces
3. T or F: Sanctions refer to the taxes on imported goods.: False
4. has emerged as a cost-leading manufacturer of products ranging from consumer goods to
industrial equipment.: China
5. T or F: Economic health varies in moderate correlation with the amount of international trade activity in
each host country.
Group starts:: True
6. , increasing market audience, receiving foreign direct investment are reasons international trade is
important to the United States.: Maximizing pro- duction and efficiency
7. T or F: Foreign direct investment allows domestic firms to receive capital financing from foreign entities.:
True
8. T or F: The Industrial Revolution heralded the introduction of mass pro- duction, improved transportation,
technological progress, and the industrial factory system.: True
9. Economic health is considered when a country imports consid- erably more
than it exports: Negative
10.Multinational corporations (MNCs) are often divided into three broad groups based on , , and :
production, oper- ations management, and functionality
11.T or F: Africa was one of the oldest examples of an international trading community.: False
12.T or F: There is no notable difference in the way a nation conducts business versus the way a large
corporation conducts business.: False
13.T or F: Ownership control risk can be defined as the risk of monetary losses resulting from inadequate
or failed internal processes, people, and systems: False
14.T or F: Foreign investment does not include the outbound investment of host country capital into foreign
economies.: False
15.T or F: Horizontal integration extends a firm's competitive scope within the same industry by performing
production activities normally provided by a supplier or distributor: False
16.The top four export partners of the United States are as follows:
, , , and .: Canada, Mexico, Chi- na, and
Japan
, Busi 303 Satterly Questions and Answers
17.T or F: The rank of the top five countries (largest to smallest) by GDP
as of 2015 are as follows: United States, China, Germany, Japan, and United Kingdom.: False
18.T or F: Tariffs are the restrictions of the import of something to a specific quantity.: False
19.When a firm in one nation exchanges products, services, resources, or capital with a firm located in
another nation, this exchange constitutes a(n)
: international transaction
20.T or F: The North American Free Trade Agreement was enacted to provide uniform standards and rules of
engagement to a growing international trade market.: False
21.Which of the following are driving forces behind the trend towards increas- ing globalization?: Advances in
communication and transportation technologies.
Reductions in barriers to trade
Reductions in barriers to foreign investments
22.The brought about the first efficient forms of mass transporta- tion using machine
power.: Steam engine
23. are much more narrowly defined than knowledge areas in that they represent quantifiable
measures.: Skills
24.T or F: The U.S. is home to some of the world's leading hardware and software manufacturers.: True
25.T or F: The global business manager must possess a strong international awareness and must understand
the unique factors that contribute to the success of a global business, including formal education.: True
26.Which of the following is not included in the set of shared categories that characterizes a culture?:
Motivation
27.T or F: Globalization creates interdependencies, requires transparency, necessitates that business people
understand the ideal goal of having a seamless international marketplace, and involves blending and merging
of various cultures.: True
28.T or F: Pax Americana, Latin for "American peace," is the period of relative peace in the Western world
since the end of World War II in 1945, which coincided with the dominant military and economic position of the
U.S.: True
29.T or F: The international market removes the boundaries of local market territories, thereby decreasing
the potential market audience.: False
30.T or F: Production is efficient when any increase or decrease in output would cause a disproportionate
increase in the cost of production and when
, Busi 303 Satterly Questions and Answers
there is no alternative that would lead to a more profitable production of a given product.: True
31.T or F: Diversified integration occurs when a firm expands its business into different products that are not
similar to current lines.: True
32.T or F: Scope, cultural influence, and market practices are considerable operational differences of global
businesses from that of domestic business- es.: True
33.Which of the following is not one of the ways political risks can be classi- fies?: functional
34.T or F: Improvement in transportation, advances in communications tech- nology, and trade-friendly
legislation have all contributed to the desire to produce a seamless global economy.: True
35.Exploration and trade from Western European nations during the Renais- sance led to an increased supply
of from the New World, leading to an international economy based on money rather than barter.: Precious
metals
36.T or F: The top four export partners of the United States are as follows: Canada, Mexico, China, and
Japan.: True
37. is the official measure of total output of goods and services in a nation's economy: GDP
38.Significant fluctuations in can reduce the actual value of each dollar that a
foreign investor has vested in his or her foreign portfolio, po- tentially prompting the investor to withdraw from a
market entirely.: Currency exchange rates
39.The was enacted to provide uniform standards and rules of engagement to a growing
international trade market.: NAFTA
40.T or F: Any corporation or enterprise that manages production establish- ments or delivers services in at
least three countries may be considered a MNC.: False
41.T or F: Foreign direct investment is an attractive option for firms looking to diversify their investment
portfolios and creating opportunities for firms looking to enter emerging markets.: True
42.T or F: Taiwan has emerged as a cost-leading manufacturer of products ranging from consumer goods to
industrial equipment.: False
43.Through , the domestic firm is able to focus its resources on areas in which it maintains
a distinct competitive advantage, such as service offerings or research and development: Outsourcing
44.T or F: ISO standards are designed to be implemented worldwide.: True
