Question 1

A company with limited resources is more likely to achieve national distribution within a small country than within a large country.

Accepted Answer

A) True 
 B)False

Question 2

A company starting out with a global focus,usually because of the international experience of its founders,is called a ________.

Accepted Answer

A)   multinational enterprise
B)   transnational company
C)   strategically allied company
D)   born-global companyE) All of the above
F) A) and D)

Question 3

Managers who are knowledgeable about ________ are better able to identify the location,quantity,quality,and availability of the world's natural resources.

Accepted Answer

A)   political factors
B)   geographic factors
C)   competitive factors
D)   cultural factorsE) A) and D)
F) A) and C)

Question 4

Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization?

Accepted Answer

A)   A large country on which they depend may pressure them on political matters.
B)   A large international firm may dictate its terms of operations in a small country.
C)   A large company may exploit legal loopholes to avoid tax payments.
D)   A large country may substantially increase its demand for the small country's production.E) A) and B)
F) None of the above

Question 5

In a strategy known as ________,many new companies locate themselves near competitors and suppliers.

Accepted Answer

A)   offshoring
B)   franchising
C)   clustering or agglomeration
D)   exportingE) A) and B)
F) A) and C)

Question 6

Devon,an accounts manager at a large electronics firm,does not have any direct international responsibilities; however,Devon would most likely benefit from studying international business issues so that he can ________.

Accepted Answer

A)   conduct better job interviews
B)   better understand how foreign operations affect the company's competitive position
C)   supervise and evaluate subordinates who have global assignments
D)   understand the legalities of importing and exporting products overseasE) None of the above
F) A) and D)

Question 7

Because consumers want a greater variety of goods and services at lower prices,many governments have ________.

Accepted Answer

A)   reduced their restrictions on the international movement of goods and services
B)   acted to tax most imports at a lower rate than domestic products
C)   sought to eliminate reciprocal advantages negotiated through international organizations and treaties
D)   increased their participation in multinational problem-solving effortsE) B) and D)
F) None of the above

Question 8

Visible exports and imports are ________.

Accepted Answer

A)   merchandise imports and exports
B)   the sum total of goods and services traded
C)   international transactions paid for in money rather than barter
D)   typically a country's least common international economic transactionsE) All of the above
F) A) and B) A

Question 9

The fact that a company is the market leader in one country is no guarantee that it will be the leader in another country.

Accepted Answer

A) True 
 B)False

Question 10

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization?

Accepted Answer

International business comprises a large...

Question 11

Which term refers to two or more companies that share ownership of an FDI?

Accepted Answer

A)   turnkey operation
B)   transnational firm
C)   joint venture
D)   franchiseE) None of the above
F) A) and D)

Question 12

When a U.S.citizen flies Japan Airlines,the airline acts as a service exporter for Japan.

Accepted Answer

A) True 
 B)False

Question 13

Some key ________ factors in a company's international business external environment are its product strategy and access to resources.

Accepted Answer

A)   geographic
B)   political
C)   competitive
D)   behavioralE) A) and B)
F) All of the above

Question 14

Which of the following is NOT a common argument for the slowing of future globalization?

Accepted Answer

A)   Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people.
B)   Technological, transportation, and communication advances will decline in the near future.
C)   Major countries have either ignored certain international treaties or have refused to sign them.
D)   The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments.E) None of the above
F) All of the above

Question 15

Kevin,marketing manager of the North American Bowling League,has decided to televise major bowling competitions to viewers in multiple countries rather than only in Canada and the U.S.Which of the following goals would this most likely help Kevin accomplish?

Accepted Answer

A)   acquiring new resources
B)   minimizing corporate risks
C)   increasing sales and profits
D)   obtaining competitive advantagesE) B) and D)
F) None of the above

Question 16

Supporters of globalization assert that the process helps countries strengthen their sovereignty.

Accepted Answer

A) True 
 B)False  False

Question 17

The ownership of foreign bonds is an example of a portfolio investment.

Accepted Answer

A) True 
 B)False

Question 18

A multinational enterprise (MNE) is best defined as a firm ________.

Accepted Answer

A)   that is a member of the Fortune 500
B)   with foreign business partners
C)   involved in global franchising
D)   with foreign direct investmentsE) None of the above
F) A) and B)

Question 19

An example of a Japanese service export is a visit by a ________.

Accepted Answer

A)   Japanese citizen to Disneyland in the United States
B)   Japanese citizen to the Japan Pavilion at Epcot Center in the United States
C)   U.S. citizen to the Japan Pavilion at Epcot Center in the United States
D)   U.S. citizen to Tokyo Disneyland in JapanE) A) and D)
F) None of the above D

Question 20

Many companies merge with or acquire other companies to gain operating efficiencies that help them compete with or become global leaders.

Accepted Answer

A) True 
 B)False

Exam 1: Globalization and International Business

A company with limited resources is more likely to achieve national distribution within a small country than within a large country.

Correct AnswerverifiedShow Answer

A company starting out with a global focus,usually because of the international experience of its founders,is called a ________.

Correct AnswerverifiedShow Answer

Managers who are knowledgeable about ________ are better able to identify the location,quantity,quality,and availability of the world's natural resources.

Correct AnswerverifiedShow Answer

Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization?

Correct AnswerverifiedShow Answer

In a strategy known as ________,many new companies locate themselves near competitors and suppliers.

Correct AnswerverifiedShow Answer

Devon,an accounts manager at a large electronics firm,does not have any direct international responsibilities; however,Devon would most likely benefit from studying international business issues so that he can ________.

Correct AnswerverifiedShow Answer

Because consumers want a greater variety of goods and services at lower prices,many governments have ________.

Correct AnswerverifiedShow Answer

Visible exports and imports are ________.

Correct AnswerverifiedA

The fact that a company is the market leader in one country is no guarantee that it will be the leader in another country.

Correct AnswerverifiedShow Answer

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization?

Correct AnswerverifiedInternational business comprises a large...View AnswerShow Answer

Which term refers to two or more companies that share ownership of an FDI?

Correct AnswerverifiedShow Answer

When a U.S.citizen flies Japan Airlines,the airline acts as a service exporter for Japan.

Correct AnswerverifiedShow Answer

Some key ________ factors in a company's international business external environment are its product strategy and access to resources.

Correct AnswerverifiedShow Answer

Which of the following is NOT a common argument for the slowing of future globalization?

Correct AnswerverifiedShow Answer

Kevin,marketing manager of the North American Bowling League,has decided to televise major bowling competitions to viewers in multiple countries rather than only in Canada and the U.S.Which of the following goals would this most likely help Kevin accomplish?

Correct AnswerverifiedShow Answer

Supporters of globalization assert that the process helps countries strengthen their sovereignty.

Correct AnswerverifiedFalse

The ownership of foreign bonds is an example of a portfolio investment.

Correct AnswerverifiedShow Answer

A multinational enterprise (MNE) is best defined as a firm ________.

Correct AnswerverifiedShow Answer

An example of a Japanese service export is a visit by a ________.

Correct AnswerverifiedD

Many companies merge with or acquire other companies to gain operating efficiencies that help them compete with or become global leaders.

Correct AnswerverifiedShow Answer

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A

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International business comprises a large...
View Answer

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False

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