International Business Environments & Operations 16e AEM 2022

1) The widening set of interdependent relationships among people from different parts of the world is known as ________.

• A) globalization
• B) offshoring
• C) franchising
• D) outsourcing

2) Which of the following best defines international business?

• A) It includes all 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.
• D) It includes all business transactions in countries other than your home country.

3) 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 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 profits

4) 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 ________.

• 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 overseas

5) Which of the following is an indication of the increased globalization of business since the end of World War II?

• A) Foreign trade has largely replaced foreign ownership as a means of conducting international business.
• B) World trade has grown more rapidly than world production.
• C) Globally, consumers now depend on foreign output for more than half their consumption.
• D) Countries have increased their import restrictions to counter the rising tide of imports.

6) According to the A.T. Kearny/Foreign Policy Globalization Index, 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

15) The shifting of national borders has most likely created which of the following situations for international business?

• A) It has left rural residents more isolated from technology.
• B) It has complicated the understanding of behavioral factors affecting business.
• C) It has increased physical barriers to exporting.
• D) It has slowed communications between a company's headquarters and foreign operations.

16) 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

17) 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 prices of natural resources

18) Which of the following has MOST influenced 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.