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International Business Quiz 1

Total questions: 12

Worksheet time: 4mins

Name
Class
Date
1.
A trade agreement between Canada, Mexico, and the US
a)

FANTA

b)

NAFTA

c)
WTO
d)

USCANMEX

2.

Developing nations tend to trade what type of goods

a)
Low skill products
b)
High tech goods
c)
finished products
d)
High skill products
3.

A global company can ___________ its experience to expand its global operations

a)

Contract

b)

Expand

c)

Leverage

d)

Minimize

4.

Mercantilism is an economic philosophy advocating that countries should simultaneously encourage imports and discourage exports.

a)

True

b)

False

5.

A situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.

a)

New trade

b)

Free trade

c)

International trade

6.

Globalization refers to:

a)

Less investment but more trade

b)

A more integrated and interdependent world

c)

More Foreign Direct Investments

d)

All of the above

7.

Which of the following is NOT a driver of globalization?

a)

The fragmentation of consumer tastes between countries.

b)

The competitive process.

c)

Multinational companies successfully persuading governments to lower trading barriers.

d)

The spread of affordable communication technology

8.

Milka is using Disney characters on the packaging of its chocolate bars. Which statement is correct?

a)

This is a case of franchising

b)

Milka is the franchisee

c)

Disney is the licensor

d)

Disney is the licensee

9.

One of the main tasks of the World Trade Organization is to handle trade disputes between its member countries

a)

True

b)

False

10.

Which of the following constitutes Foreign Direct Investment?

a)

A speculator trying to make a profit by buying company shares on a foreign stock exchange.

b)

A UK energy company buying territory abroad where it expects to find oil reserves

c)

A tourist purchasing foreign currency to spend on a holiday abroad.

d)

A company signing an agreement with a wholesaler to distribute its products in foreign markets

11.

What is the relationship between economic growth and productivity?

a)

Economic growth is the only factor that affects productivity.

b)

Productivity is the only factor that affects economic growth.

c)

Economic growth and productivity are positively related.

d)

Economic growth and productivity are not related.

12.

Which one of the following is NOT included in GDP? (choose all that apply!)

a)

a newly produced and sold computer.

b)

a newly imported computer.

c)

a newly constructed house that is sold.

d)

an old house that is resold.