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Chapter 1 review

Total questions: 13

Worksheet time: 22mins

Name
Class
Date
1.

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

a)

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

b)

recruiting employees internationally

c)

borrowing money from a major bank to finance capital improvements

d)

shipping finished products from one country to another for retail sale

2.

All of the following are benefits of international business except:

a)
expanded business opportunities
b)
increased sources of raw materials
c)
decreased competition
d)

decreased production costs

3.
International business involves the buying and selling of products or services between countries.
a)
True
b)
False
4.

Send (goods or services) to another country for sale.

a)

Embargo

b)

Export

c)

Import

d)

Foreign Direct Investment

5.

Some Vietnamese fans take Air France to watch the Tour de France bicycle competition. Their flight tickets on Air France and travel expenses in France are:

a)

Service imports for France

b)

Merchandise imports for France

c)

Service exports for France

d)

Merchandise exports for France

6.

Globalization refers to the shift toward a more ...........and ........... world economy.

(a)  

7.

Coca-Cola soft drinks, McDonald’s hamburgers, Starbucks coffee are prototypical examples of:

a)

The globalization of markets

b)

The globalization of production

8.

 

All of the following are drivers of globalization except for:

a)

Liberalization of cross-border trade

b)

Decrease in international investment barriers

c)

Decrease in global competition

d)

Technological change

9.

Merchandise exports and imports are sometimes called ........... exports and imports.

a)

Visible

b)

Invisible

10.

................ occurs when a firm exports goods or services to consumers in another country.

a)

International investment

b)

International trade

c)

International recruitment

d)

International tourism

11.

Trend by individual firms to disperse parts of their productive processes to different locations around the globe to take advantage of differences in cost

a)

The globalization of markets

b)

The globalization of production

12.

The investors purchase bonds issued by foreign companies

a)

Foreign Direct Investment

b)

Portfolio Investment

13.

A Foreign Direct Investment is a ......... ownership in a business in one country by an entity in another country.

a)

controlling

b)

noncontrolling