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International Business-Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Ch1:   ________ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

a)

International business

b)

Market entry strategy

c)

Globalization

d)

E-business

2.

Ch1: Which of the following is NOT a likely reason to study international business?

a)

Global events affect almost all companies.

b)

Differences among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to country.

c)

Business conducted outside the limits of any one country is inexplicably on the decline.

d)

Firms may be better able to obtain better or less expensive resources by operating internationally.

3.

Ch2: Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following?

a)

observe the behavior of people who have gained respect within that cultural environment

b)

rely on stereotypes, which are based on averages, to gain an understanding of the culture

c)

avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors

d)

 memorize the cultural variations that are typically encountered in a specific cultural environment

4.

Ch3: Which of the following political ideologies states that every aspect of people's lives must be controlled for a nation's political system to be effective?

a)

totalitarianism

b)

capitalism

c)

anarchism

d)

pluralism

5.

Ch3:  The main goal of privatization is to ________.

a)

lower responsibility and accountability

b)

increase economic efficiency

c)

increase subsidies to companies

d)

slow economic growth

6.

Ch4: Which of the following terms refers to the broadest measure of economic development of a country?

a)

gross domestic product (GDP)

b)

purchasing power parity (PPP)

c)

human development index (HDI)

d)

gross national product (GNP)

7.

Ch5:  The term ________ refers to the voluntary exchange of goods, services, assets, or money between one person or organization and another across national borders.

a)

international trade

b)

sales

c)

transaction

d)

strategic management

8.

Ch6: Three main goals of the ________ are to help the free flow of trade, help negotiate the further opening of markets, and settle trade disputes between its members.

a)

General Agreement on Tariffs and Trade (GATT)

b)

World Trade Organization (WTO)

c)

World Bank

d)

International Monetary Fund (IMF)

9.

Ch6: Which of the following statements is true about cultural influences?

a)

Culture and trade are independent of each other.

b)

Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful.

c)

The cultures of countries are independent of the effects of exposure to the people and products of other cultures.

d)

The culture of the United States is readily adapted into the local culture of countries all over the world.

10.

Ch7: Which type of investment involves the acquisition of foreign assets for the purpose of controlling them?

a)

foreign portfolio investment

b)

capital investment

c)

controlling ownership

d)

foreign direct investment

11.

Ch8: The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products, people, or capital is called ________.

a)

regional economic integration

b)

protectionism

c)

mercantilism

d)

economic nationalism

12.

Ch9: The world's three most important financial centers are ________.

a)

Bonn, Zurich, and New York

b)

London, Amsterdam, and Sydney

c)

New York, Tokyo, and Bombay

d)

Tokyo, London, and New York

13.

Ch10: When the value of a country's currency declines, the price of its ________.

a)

exports and imports on world markets declines

b)

exports and imports on world markets increases

c)

exports on world markets declines and the price of its imports increases

d)

exports on world markets increases and the price of its imports declines

14.

Ch10: Managers prefer that exchange rates be ________.

a)

stable

b)

 freely floating

c)

volatile

d)

unpredictable

15.

Ch12: Countries differ significantly in their cultures, politics, laws, and economies. International managers must work to understand these differences and to incorporate their understanding into market- and site-selection decisions. Which of the following is the correct sequence in the screening process for potential markets and sites?

a)

Measure market/site potential, identify basic appeal, select market/site, assess the national business environment

b)

Identify basic appeal, assess the national business environment, measure market/site potential, select the market/site

c)

Assess the national business environment, identify basic appeal, select the market/site, measure the potential

d)

Select the market/site, measure the potential, assess the national business environment, identify basic appeal