Question 1

Assume that company executives at the firm would like to increase sales by expanding into an international market.Which of the following factors,if true,best supports a decision to expand sales globally?

Accepted Answer

A)   It can offshore most of its production.
B)   It can obtain all of its resources for the same price overseas.
C)   Its costs of making additional sales would not increase disproportionately.
D)   The foreign market has higher real interest rates.E) B) and C)
F) None of the above

Question 2

In addition to understanding the laws affecting business in countries where their companies operate,it is most important for managers to understand the ________.

Accepted Answer

A)   methods for appointing local judges
B)   ethical rationale behind the laws
C)   history of the local legal system
D)   degree of law enforcementE) All of the above
F) B) and C)

Question 3

By operating internationally,a company may take advantage of business-cycle differences among countries and thereby reduce its financial risks.

Accepted Answer

A) True 
 B)False

Question 4

International business includes all commercial transactions between two or more countries.

Accepted Answer

A) True 
 B)False

Question 5

Critics of offshoring claim all EXCEPT which of the following?

Accepted Answer

A)   Cost savings are seldom passed on to final consumers.
B)   Offshoring reduces the incomes of people in low-wage countries.
C)   Incomes of workers in countries whose companies offshored production have gone down as a percentage of national income.
D)   Many workers who have been displaced by offshoring do not have the skills needed for higher-value jobs.E) C) and D)
F) B) and D)

Question 6

Although globalization may bring economic growth,critics nevertheless contend that ________.

Accepted Answer

A)   the growth is too fast
B)   the inequality of gains puts some people in a relatively worse economic situation
C)   this growth is mainly for the future, thus ignoring present economic growth needs
D)   the cultural foundations of sovereignty are supported by globalizationE) All of the above
F) A) and B)

Question 7

The owner of a U.S.football team and the owner of a Canadian hockey team purchase a British soccer team.This is an example of a ________.

Accepted Answer

A)   royalty
B)   portfolio investment
C)   turnkey operation
D)   joint ventureE) A) and B)
F) C) and D)

Question 8

What is foreign direct investment? What social factors in the external environment might affect FDI?

Accepted Answer

In foreign direct investment (FDI),somet...

Question 9

Which of the following statements would most likely NOT be supported by an advocate of offshoring?

Accepted Answer

A)   Offshoring increases the number of high-value jobs in the home countries of offshoring companies.
B)   Offshoring is fundamentally better for workers than the introduction of labor-saving technologies.
C)   Workers displaced due to offshoring are able to find new jobs as easily as those displaced by technology.
D)   There are upper limits to offshoring because of the lack of skilled workers willing to work permanently for low wages.E) B) and C)
F) A) and B)

Question 10

Globalization refers to all economic transactions among countries.

Accepted Answer

A) True 
 B)False

Question 11

The production of goods by a French company in Italy for sale in Italy is an example of an Italian merchandise import.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other?

Accepted Answer

A)   to attack problems jointly that one country acting alone cannot solve
B)   to deal with issues that lie outside the territory of any nation
C)   to gain reciprocal advantages
D)   to establish a common languageE) A) and B)
F) A) and C)

Question 13

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method.

Accepted Answer

Globalization refers to the widening set...

Question 14

Countries have reduced import trade barriers in the expectation that other countries will do the same.

Accepted Answer

A) True 
 B)False

Question 15

The view that globalization is inevitable is most likely based on the belief that ________.

Accepted Answer

A)   international organizations will replace nation-states
B)   protesters against globalization will be persuaded to change their views
C)   people want more global homogeneity of cultures
D)   technical advances in transportation and communications are highly persistentE) C) and D)
F) B) and D)

Question 16

The lowering of tax rates around the world is one of the seven major forces behind recent globalization.

Accepted Answer

A) True 
 B)False

Question 17

In terms of international business,it is most accurate to say that ________.

Accepted Answer

A)   there is a universal "best way" to conduct business
B)   global competition affects large companies but not small ones
C)   most firms 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 profitsE) A) and B)
F) None of the above

Question 18

Imported flowers are now a stronger competitor to U.S.grown flowers in the U.S.market.Which of the following is likely the MOST important factor for this increase in imports?

Accepted Answer

A)   more effective production techniques
B)   advances in communication systems
C)   advances in transportation and logistics
D)   cross-national cooperationE) All of the above
F) A) and C)

Question 19

The view that regionalization,rather than globalization,will prevail in the future is largely based on the use of common languages among countries in a region.

Accepted Answer

A) True 
 B)False

Question 20

Governments have signed treaties to protect foreign-owned property rights,such as investments and patents.A primary reason for doing so is to ________.

Accepted Answer

A)   gain reciprocal advantages
B)   reduce the domestic effects of other countries' economic policies
C)   deal with areas of concern outside the territory of any one country
D)   reduce national conflicts leading to violent political demonstrationsE) A) and D)
F) B) and D)

Exam 1: Globalization and International Business

Imported flowers are now a stronger competitor to U.S.grown flowers in the U.S.market.Which of the following is likely the MOST important factor for this increase in imports?

Correct AnswerverifiedShow Answer

In addition to understanding the laws affecting business in countries where their companies operate,it is most important for managers to understand the ________.

Correct AnswerverifiedShow Answer

In terms of international business,it is most accurate to say that ________.

Correct AnswerverifiedShow Answer

By operating internationally,a company may take advantage of business-cycle differences among countries and thereby reduce its financial risks.

Correct AnswerverifiedShow Answer

International business includes all commercial transactions between two or more countries.

Correct AnswerverifiedShow Answer

The view that regionalization,rather than globalization,will prevail in the future is largely based on the use of common languages among countries in a region.

Correct AnswerverifiedShow Answer

Critics of offshoring claim all EXCEPT which of the following?

Correct AnswerverifiedShow Answer

What is foreign direct investment? What social factors in the external environment might affect FDI?

Correct AnswerverifiedIn foreign direct investment (FDI),somet...View AnswerShow Answer

The lowering of tax rates around the world is one of the seven major forces behind recent globalization.

Correct AnswerverifiedShow Answer

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method.

Correct AnswerverifiedGlobalization refers to the widening set...View AnswerShow Answer

Which of the following statements would most likely NOT be supported by an advocate of offshoring?

Correct AnswerverifiedShow Answer

The owner of a U.S.football team and the owner of a Canadian hockey team purchase a British soccer team.This is an example of a ________.

Correct AnswerverifiedShow Answer

Globalization refers to all economic transactions among countries.

Correct AnswerverifiedShow Answer

The production of goods by a French company in Italy for sale in Italy is an example of an Italian merchandise import.

Correct AnswerverifiedShow Answer

The view that globalization is inevitable is most likely based on the belief that ________.

Correct AnswerverifiedShow Answer

Although globalization may bring economic growth,critics nevertheless contend that ________.

Correct AnswerverifiedShow Answer

Countries have reduced import trade barriers in the expectation that other countries will do the same.

Correct AnswerverifiedShow Answer

Governments have signed treaties to protect foreign-owned property rights,such as investments and patents.A primary reason for doing so is to ________.

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other?

Correct AnswerverifiedShow Answer

Assume that company executives at the firm would like to increase sales by expanding into an international market.Which of the following factors,if true,best supports a decision to expand sales globally?

Correct AnswerverifiedShow Answer

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In foreign direct investment (FDI),somet...
View Answer

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Globalization refers to the widening set...
View Answer

Correct Answer
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