1) Globalization is accurately defined in all of the following except:
a. a process that is expanding the degree and forms of cross-border transactions among
people, assets, goods, and services
b. the growth in direct foreign investment in regions across the world
c. the potential for sales growth and the opportunity of obtaining needed resources.
d. reflects the shift toward increasing economic interdependence
Answer: c
Diff: 2
Type: MC
Page Reference: 271
Skill: recall
Objective: LO1
2) Which of the following is perhaps the most fundamental reason for the growth in
world trade?
a. the need for businesses to expand their markets
b. cultural differences among markets
c. fluctuating exchange rates
d. political unrest
Answer: a
Diff: 2
Type: MC
Page Reference: 271
Skill: recall
Objective: LO1
3) Which of the following is not one of the factors that push organizations to go global?
a. obtaining Needed Resources
b. the Force of Competition
c. shift toward Democracy
d. reduction in Trade Barriers
Answer: a
Diff: 2
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
, Type: MC
Page Reference: 272-273
Skill: recall
Objective: LO1
4) Which of the following is one of the factors that pull businesses to enter into the
international markets?
a. competition too strong in local market
b. shift towards democracy
c. obtaining needed resources
d. potential for sales growth
Answer: d
Diff: 2
Type: MC
Page Reference: 272
Skill: recall
Objective: LO1
5) The first-mover advantage is a philosophy that involves?
a. being the first Canadian company to export goods to an established market
b. being the first to establish a strong market position in important world market
c. being the first to import goods from a supplier overseas
d. being the first to change your company’s competitive strategy to meet market needs
Answer: d
Diff: 3
Type: MC
Page Reference: 272
Skill: recall
Objective: LO1
6) Trade barriers can be defined as?
a. government barriers that allow the free flow of goods and services between countries
b. barriers set up by corporations to prevent the free flow of goods and services
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 2
a. a process that is expanding the degree and forms of cross-border transactions among
people, assets, goods, and services
b. the growth in direct foreign investment in regions across the world
c. the potential for sales growth and the opportunity of obtaining needed resources.
d. reflects the shift toward increasing economic interdependence
Answer: c
Diff: 2
Type: MC
Page Reference: 271
Skill: recall
Objective: LO1
2) Which of the following is perhaps the most fundamental reason for the growth in
world trade?
a. the need for businesses to expand their markets
b. cultural differences among markets
c. fluctuating exchange rates
d. political unrest
Answer: a
Diff: 2
Type: MC
Page Reference: 271
Skill: recall
Objective: LO1
3) Which of the following is not one of the factors that push organizations to go global?
a. obtaining Needed Resources
b. the Force of Competition
c. shift toward Democracy
d. reduction in Trade Barriers
Answer: a
Diff: 2
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
, Type: MC
Page Reference: 272-273
Skill: recall
Objective: LO1
4) Which of the following is one of the factors that pull businesses to enter into the
international markets?
a. competition too strong in local market
b. shift towards democracy
c. obtaining needed resources
d. potential for sales growth
Answer: d
Diff: 2
Type: MC
Page Reference: 272
Skill: recall
Objective: LO1
5) The first-mover advantage is a philosophy that involves?
a. being the first Canadian company to export goods to an established market
b. being the first to establish a strong market position in important world market
c. being the first to import goods from a supplier overseas
d. being the first to change your company’s competitive strategy to meet market needs
Answer: d
Diff: 3
Type: MC
Page Reference: 272
Skill: recall
Objective: LO1
6) Trade barriers can be defined as?
a. government barriers that allow the free flow of goods and services between countries
b. barriers set up by corporations to prevent the free flow of goods and services
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 2
