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MGT361_Chap1&2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following would be considered an international business transaction?

a)

recruiting employees internationally

b)

purchasing products in one country and assembling them in the same country

c)

borrowing money from a major bank to finance capital improvements

d)

shipping finished products from one country to another for retail sale

2.

The Internet has helped small businesses compete in global markets because it ________.

a)

reduces entry costs

b)

allows them to establish a physical presence in each country

c)

avoids transactions involving foreign exchange

d)

eliminates price controls

3.

Individuals should most likely study international business to ________.

a)

obtain bilingual business experience

b)

remain current on the latest business methods

c)

comply with graduate school certification requirements

d)

ensure that an employer has a global online presence

4.

Which of the following has most likely triggered the increase of small businesses involved in international business?

a)

e-commerce

b)

economic recession

c)

foreign-made materials

d)

increased cultural literacy

5.

Black and Decker produces tools at a plant in North Carolina and ships the tools to retailers in England. This is an example of which type of international business activity?

a)

merchandising

b)

Importing

c)

exporting

d)

trading

6.

The international business activity called ________ occurs when capital is supplied by residents of one country to residents of another country.

a)

global direct investment

b)

portfolio financing

c)

state capitalism

d)

international investment

7.

________ are investments made for the purpose of actively controlling property, assets, or companies located in host countries.

a)

Licensing investment

b)

Portfolio investment

c)

Foreign direct investment

d)

Indirect global investment

8.

If a company is headquartered in Taiwan, then Taiwan is the company's ________.

a)

host country

b)

home country

c)

dominant country

d)

competitive country

9.

________ are purchases of foreign financial assets for a purpose other than control.

a)

Foreign direct investments

b)

Global business investments

c)

Foreign portfolio investments

d)

Indirect investments

10.

McDonald's has licensed its brand name, operational systems, and trademarks to individual restaurant owners in Europe. This is called international ________.

a)

leasing

b)

marketing

c)

diversifying

d)

franchising

11.

Licensing usually involves permission to use which of the following?

a)

real estate

b)

trademarks

c)

labor leasing

d)

production facilities

12.

Any organization that engages in cross-border commercial transactions with individuals, private firms, and/or public sector organizations is a(n) ________.

a)

multinational corporation

b)

multinational enterprise

c)

international business

d)

international francise

13.

The term ________ is used to identify firms that have extensive involvement in international business.

a)

global operation

b)

multinational corporation

c)

international conglomerate

d)

multidomestic organization

14.

Which of the following is a common activity of MNCs?

a)

buying resources in various countries

b)

training of international managers

c)

inventing goods in a variety of countries

d)

establishing foreign exchange rates

15.

Which of the following is the most likely reason that firms globalize?

a)

boredom with existing markets

b)

the divesting of low-cost resources

c)

competing for public prestige

d)

leveraging core competencies

16.

A(n) ________ eliminates trade barriers among member countries.

a)

free trade area

b)

customs union

c)

common market

d)

economic union

17.

In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.

a)

free trade area

b)

customs union

c)

common market

d)

economic union

18.

Country X and Country Z have established a complete political and economic integration. The countries are most likely engaged in a(n) ________.

a)

customs union

b)

common market

c)

economic union

d)

political union

19.

Which of the following is part of NAFTA?

a)

Cuba

b)

Canada

c)

Peru

d)

Greenland

20.

How many countries are part of the European Union?

a)

16

b)

18

c)

20

d)

28