GEB3373 Exam 1 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Imagine you own a business in France. If you worry about hedging costs to protect against
currency fluctuations, your business must...
A) Serve customers in Paris
B)Serve customers in France and Germany
C)Serve customers in France and the U.K.
D)Serve customers in France and Italy - CORRECT ANSWER Serve customers in
France and the U.K.
International trade and FDI dropped precipitously in 2008-2009 due to - CORRECT
ANSWER The global economic crisis
An example of FPI is..
A)GM opens a factory in Flint, Michigan
B)GM buys stock in Bank of America
C)Toyota opens a plant in Flint, Michigan
D)Toyota buys stock in Bank of America - CORRECT ANSWER D)Toyota buys stock
in Bank of America
What is FPI - CORRECT ANSWER foreign portfolio investment is the entry of funds
into a country where foreigners deposit money in a country's bank or make purchases in the
country's stock and bond markets, sometimes for speculation.
Company X's products have become so popular that almost 90% of people in its country use
them. It decides to move abroad most likely because
a. It needs to keep a rival from making inroads in a foreign market
b. Its domestic markets have become saturated
c. It believes it has a strength it can use abroad to reap more profits
, d. It needs to acquire resources unavailable in the domestic market - CORRECT
ANSWER b. Its domestic markets have become saturated
The WTO was created in - CORRECT ANSWER 1995
EU members - CORRECT ANSWER Austria, Belgium, Bulgaria, Croatia, Republic of
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, Sweden and the UK. (28)
BIG 10 countries - CORRECT ANSWER Mexico, Brazil, Argentina, South Africa,
Poland, Turkey, India, Indonesia, China, and South Korea.
Which of the following is the LEAST likely reason that firms globalize?
a. expanding into new markets
b. acquiring low-cost resources
c. leveraging core competencies
d. competing for critical workers - CORRECT ANSWER d. competing for critical
workers
Between 1970 and 2009, the US share of the world's GDP... - CORRECT
ANSWER Became smaller than the European Union's
The United States comprises _____ of the world's GDP. - CORRECT ANSWER 1/4
The EU was created in _____. - CORRECT ANSWER 1993
National legal systems typically vary for all of the following reasons EXCEPT ________.
a. history
b. culture
c. background
QUESTIONS AND CORRECT ANSWERS
Imagine you own a business in France. If you worry about hedging costs to protect against
currency fluctuations, your business must...
A) Serve customers in Paris
B)Serve customers in France and Germany
C)Serve customers in France and the U.K.
D)Serve customers in France and Italy - CORRECT ANSWER Serve customers in
France and the U.K.
International trade and FDI dropped precipitously in 2008-2009 due to - CORRECT
ANSWER The global economic crisis
An example of FPI is..
A)GM opens a factory in Flint, Michigan
B)GM buys stock in Bank of America
C)Toyota opens a plant in Flint, Michigan
D)Toyota buys stock in Bank of America - CORRECT ANSWER D)Toyota buys stock
in Bank of America
What is FPI - CORRECT ANSWER foreign portfolio investment is the entry of funds
into a country where foreigners deposit money in a country's bank or make purchases in the
country's stock and bond markets, sometimes for speculation.
Company X's products have become so popular that almost 90% of people in its country use
them. It decides to move abroad most likely because
a. It needs to keep a rival from making inroads in a foreign market
b. Its domestic markets have become saturated
c. It believes it has a strength it can use abroad to reap more profits
, d. It needs to acquire resources unavailable in the domestic market - CORRECT
ANSWER b. Its domestic markets have become saturated
The WTO was created in - CORRECT ANSWER 1995
EU members - CORRECT ANSWER Austria, Belgium, Bulgaria, Croatia, Republic of
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, Sweden and the UK. (28)
BIG 10 countries - CORRECT ANSWER Mexico, Brazil, Argentina, South Africa,
Poland, Turkey, India, Indonesia, China, and South Korea.
Which of the following is the LEAST likely reason that firms globalize?
a. expanding into new markets
b. acquiring low-cost resources
c. leveraging core competencies
d. competing for critical workers - CORRECT ANSWER d. competing for critical
workers
Between 1970 and 2009, the US share of the world's GDP... - CORRECT
ANSWER Became smaller than the European Union's
The United States comprises _____ of the world's GDP. - CORRECT ANSWER 1/4
The EU was created in _____. - CORRECT ANSWER 1993
National legal systems typically vary for all of the following reasons EXCEPT ________.
a. history
b. culture
c. background
