International Business and Globalization Quiz

What is the main difference between international business and globalization?

• International business involves only local trade, while globalization involves only international trade.

• International business refers to commerce crossing borders, while globalization includes the exchange of culture, ideas, and beliefs in addition to goods and services.

• International business is a modern concept, while globalization has existed for thousands of years.

• International business involves the use of technology, while globalization does not.

Which of the following best describes globalization?

• The process of trading goods and services within a single country.

• A shift toward a more integrated world economy where culture, ideas, and beliefs are exchanged along with goods and services.

• The exclusive use of the Internet for business transactions.

• The limitation of consumer choices to locally available goods and services.

What historical trade route is mentioned as one of the best-known and most enduring international trade routes?

• The Spice Route

• The Salt Road

• The Trans-Saharan Trade Route

• The Silk Road

What is an example of comparative advantage as described in the text?

• Ecuador being the only place in the world where bananas can be grown.

• Ecuador trading bananas for computer systems from the United States.

• The United States producing more bananas than Ecuador using the same resources.

• Ecuador importing bananas from the United States.

What is absolute advantage?

• When an entity can produce a good or service at a lower relative opportunity cost.

• When an entity is the only source of a particular product, good, or service.

• When an entity can produce more of something than another entity using the same amount of resources.

• Both B and C.

Why do countries and companies engage in global trade according to the concept of comparative advantage?

• To exploit their natural resources exclusively.

• To produce goods and services where they have an advantage, thus maximizing their opportunities.

• To avoid trading with other countries.

• To ensure they produce all types of goods and services themselves.

What is exporting?

• The process of bringing goods into a country from an external source.

• The process of taking goods produced within a company's home country and shipping them to another country.

• The process of manufacturing products in a foreign country.

• The process of selling goods within the same country.

What is one disadvantage of exporting mentioned in the text?

• High investment in factories and equipment in the target country.

• Loss of control over products once they arrive in the destination market.

• Immediate insight into local consumer preferences and demand.

• Reduced risk of products being misrepresented or copied.

Which of the following export product groups represented the highest dollar value in American global shipments during 2018?

• Vehicles

• Mineral fuels including oil

• Agricultural products

• Pharmaceuticals

What is the main difference between outsourcing and offshoring?

• Outsourcing involves relocating a business process to another country, while offshoring contracts out a business process to another party.

• Outsourcing contracts out a business process to another party, while offshoring involves relocating a business process from one country to another.

• Outsourcing and offshoring are the same and involve relocating a business process to another country.

• Outsourcing involves hiring employees in a foreign country, while offshoring involves hiring employees domestically.