INTERNATIONAL MANAGEMENT QUIZ CHAPTER 1

Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent economy?

• A) communism

• B) nationalization

• C) socialism

• D) globalization

Which of the following best describes nationalization?

• A) Outsourcing of governmental functions to private entities

• B) Hiring preferences given to locals rather than expatriates

• C) Government's gradual and subtle actions against a firm

• D) Forced sale of an MNC’s assets to local buyers

_________ includes the initiation of joint ventures with nationals (individuals or those in firms, labor unions, or government ) to reduce political risks.

• A) development assistance

• B) Equitysharing

• C) Localization of the operation

• D) Participative management

In which of the following groups of trade blocs does most of today's world trade take place?

• A) Middle East, China, and India

• B) North America, Africa, and Canada

• C) Western Europe, Asia, and the Americas

• D) Saudi Arabia, Western Europe, and the Gulf

The European Union currently consists of how many nations?

• A) 12

• B) 27

• C) 34

• D) 46

Which is the fourth largest trading bloc after the EU, NAFTA, and ASEAN and established in 1991?

• A) SAARC

• B) ASEAN

• C) NAFTA

• D) MERCOSUR

Which of the following is a true statement about China?

• A) The Chinese government's shift from communism to capitalism has led to an increase in FDI.

• B) China attracts FDI because the government has eliminated elaborate bureaucracies.

• C) The Chinese government manipulates market activities for political purposes.

• D) China lacks an educated pool of employees due to slowly developing industrialization

Which of the following countries is today known as the world's services supplier, providing highly skilled and educated workers to foreign companies?

• A) China

• B) Brazil

• C) Mexico

• D) India

________ results from the lessening of trade barriers and the increased flow of goods and services, capital, labor, and technology around the world.

• A) Economic integration

• B) Nationalization

• C) Protectionism

• D) Mercantilism

Expropriation occurs when a local government seizes and provides inadequate compensation for the foreign-owned assets of an MNC when no compensation is provided, it is _______________?

• A) Privatization

• B) Confiscation

• C) Socialism

• D) Globalization