International Business, 13e (Daniels/Radebaugh/Sullivan)
CHAPTER 1 - GLOBALIZATION AND INTERNATIONAL BUSINESS
1) The broadening set of interdependent relationships among
people from different parts of the world is known as .
A) globalization
B) offshoring
C) franchising
D) outsourcing
2) The term globalization is sometimes used to mean the .
A) movement of jobs to high-wage countries
B) business being undertaken outside the confines of any nation
C) uneven distribution of resources and this distribution's influence on
different products and services in different parts of the world
D) integration of world economies through the reduction of barriers to the
movement of trade, capital, technology, and people
3) Which of the following best defines international business?
A) It includes all public economic flows between two or more countries.
B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries,
whether the transactions are conducted by private or governmental
organizations.
D) It includes all business transactions in countries other than your home
country.
4) Which of the following is the most accurate comparison of how
private businesses and governments conduct international
business?
A) The objectives for private businesses and governments are the same.
B) The objective of a private business is profit, whereas a government may or
may not seek profit as an objective.
C) Governments operate strictly for nonprofit motives, but private businesses
seek profits.
D) Governments undertake international business for more long-term
objectives than private businesses do.
5) Which of the following is NOT a reason to study international
business?
A) Business conducted outside the confines of any one country is on the
decline.
B) Global events affect almost all companies.
C) By approaching operating strategies from an international standpoint, you
may be able to better obtain the resources you need.
D) The physical, social, and competitive conditions differ from country to
country.
1
,6) Of the following, it is most essential for a student of business to
.
A) travel widely in order to understand different business environments
B) take an internship with a multinational company
C) find employment with a company free from global competition
D) gain some understanding of international business
7) In terms of international business, it is most accurate to say that
.
A) there is a universal "best way" to conduct business
B) global competition affects large companies but not small ones
C) most companies, regardless of industry, depend either on foreign markets
and supplies or compete against companies that do
D) government regulation of international business has little effect on a
company's profits
8) Even if you never have direct international responsibilities, an
understanding of some of the complexities of international business
may be useful to you because .
A) it is essential for most managerial job interviews
B) it may help you make more informed operational decisions
C) you will need to supervise and evaluate subordinates who have
international responsibilities
D) you should understand importing and exporting in order to be promoted
9) The shifting of national borders has created which of the
following situations for international business?
A) It has left most people who reside in rural areas with only the barest
connection to the rest of the world.
B) It has complicated the understanding of behavioral factors affecting
business.
C) It has made comparisons of historical data on international transactions
problematic.
D) It has slowed communications between a company's headquarters
and foreign operations.
10) Which of the following is an indication of the increased
globalization of business since the end of World War II?
A) World trade has grown more rapidly than world production in almost every
year.
B) Most countries now depend on foreign output for more than half their
consumption.
C) Foreign ownership of assets has leveled off.
D) Countries have increased their import restrictions to counter the rising
tide of imports.
2
,11) Most of the world's goods and services are sold .
A) in international markets
B) in the countries where they are produced
C) through exports to small countries
D) through exports to large countries
12) According to the A.T. Kearny/Foreign Policy Globalization Index,
which ranked countries on their extent of globalization across
economic, technological, personal contact, and political dimensions,
countries .
A) tend to be ranked similarly on all four dimensions
B) are more globalized on the political dimension than on personal contact
C) that are large in land mass and population are less globalized than small
countries
D) sometimes rank high on one dimension and low on another
13) Which of the following has NOT been a major force increasing
globalization in recent decades?
A) liberalization of cross-border trade
B) increase in and expansion of technology
C) growing pressure from
consumers D) decreasing global
competition
14) Institutional development of services by business and
government has aided the expansion of international business by
.
A) providing a universally agreed upon language for conducting international
transactions
B) removing immigration restrictions so that international firms can move
personnel wherever they are most needed
C) developing means to ease the flow of goods among countries
D) spurring competition among domestic producers
15) Which of the following has caused consumers to demand access
to foreign-made products?
A) Declining global affluence has caused consumers to seek out lower-priced
products from abroad.
B) Consumers have become more efficient in using media and technologies
to compare prices worldwide.
C) Fearing that their governments will enact restrictive policies on imports,
consumers are stocking up on foreign products before restrictions are put in
place.
D) Expectations of rising prices of foreign products have caused consumers
to seek foreign products before their prices become prohibitive.
16) Which of the following is a reason that international business
3
, has grown at such a rapid pace in the past few decades?
4
CHAPTER 1 - GLOBALIZATION AND INTERNATIONAL BUSINESS
1) The broadening set of interdependent relationships among
people from different parts of the world is known as .
A) globalization
B) offshoring
C) franchising
D) outsourcing
2) The term globalization is sometimes used to mean the .
A) movement of jobs to high-wage countries
B) business being undertaken outside the confines of any nation
C) uneven distribution of resources and this distribution's influence on
different products and services in different parts of the world
D) integration of world economies through the reduction of barriers to the
movement of trade, capital, technology, and people
3) Which of the following best defines international business?
A) It includes all public economic flows between two or more countries.
B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries,
whether the transactions are conducted by private or governmental
organizations.
D) It includes all business transactions in countries other than your home
country.
4) Which of the following is the most accurate comparison of how
private businesses and governments conduct international
business?
A) The objectives for private businesses and governments are the same.
B) The objective of a private business is profit, whereas a government may or
may not seek profit as an objective.
C) Governments operate strictly for nonprofit motives, but private businesses
seek profits.
D) Governments undertake international business for more long-term
objectives than private businesses do.
5) Which of the following is NOT a reason to study international
business?
A) Business conducted outside the confines of any one country is on the
decline.
B) Global events affect almost all companies.
C) By approaching operating strategies from an international standpoint, you
may be able to better obtain the resources you need.
D) The physical, social, and competitive conditions differ from country to
country.
1
,6) Of the following, it is most essential for a student of business to
.
A) travel widely in order to understand different business environments
B) take an internship with a multinational company
C) find employment with a company free from global competition
D) gain some understanding of international business
7) In terms of international business, it is most accurate to say that
.
A) there is a universal "best way" to conduct business
B) global competition affects large companies but not small ones
C) most companies, regardless of industry, depend either on foreign markets
and supplies or compete against companies that do
D) government regulation of international business has little effect on a
company's profits
8) Even if you never have direct international responsibilities, an
understanding of some of the complexities of international business
may be useful to you because .
A) it is essential for most managerial job interviews
B) it may help you make more informed operational decisions
C) you will need to supervise and evaluate subordinates who have
international responsibilities
D) you should understand importing and exporting in order to be promoted
9) The shifting of national borders has created which of the
following situations for international business?
A) It has left most people who reside in rural areas with only the barest
connection to the rest of the world.
B) It has complicated the understanding of behavioral factors affecting
business.
C) It has made comparisons of historical data on international transactions
problematic.
D) It has slowed communications between a company's headquarters
and foreign operations.
10) Which of the following is an indication of the increased
globalization of business since the end of World War II?
A) World trade has grown more rapidly than world production in almost every
year.
B) Most countries now depend on foreign output for more than half their
consumption.
C) Foreign ownership of assets has leveled off.
D) Countries have increased their import restrictions to counter the rising
tide of imports.
2
,11) Most of the world's goods and services are sold .
A) in international markets
B) in the countries where they are produced
C) through exports to small countries
D) through exports to large countries
12) According to the A.T. Kearny/Foreign Policy Globalization Index,
which ranked countries on their extent of globalization across
economic, technological, personal contact, and political dimensions,
countries .
A) tend to be ranked similarly on all four dimensions
B) are more globalized on the political dimension than on personal contact
C) that are large in land mass and population are less globalized than small
countries
D) sometimes rank high on one dimension and low on another
13) Which of the following has NOT been a major force increasing
globalization in recent decades?
A) liberalization of cross-border trade
B) increase in and expansion of technology
C) growing pressure from
consumers D) decreasing global
competition
14) Institutional development of services by business and
government has aided the expansion of international business by
.
A) providing a universally agreed upon language for conducting international
transactions
B) removing immigration restrictions so that international firms can move
personnel wherever they are most needed
C) developing means to ease the flow of goods among countries
D) spurring competition among domestic producers
15) Which of the following has caused consumers to demand access
to foreign-made products?
A) Declining global affluence has caused consumers to seek out lower-priced
products from abroad.
B) Consumers have become more efficient in using media and technologies
to compare prices worldwide.
C) Fearing that their governments will enact restrictive policies on imports,
consumers are stocking up on foreign products before restrictions are put in
place.
D) Expectations of rising prices of foreign products have caused consumers
to seek foreign products before their prices become prohibitive.
16) Which of the following is a reason that international business
3
, has grown at such a rapid pace in the past few decades?
4
