NEW
Font size
WorksheetsIBI101-Chapter 1-4
Total questions: 50
Worksheet time: 25mins
Globalization mainly refers to the
expansion of multinational enterprises only
increase in domestic competition
integration and interdependence of national economies
dominance of developed countries
Which of the following best illustrates globalization of production?
A firm exporting products abroad
A firm sourcing inputs from multiple countries
A firm advertising globally
A firm standardizing prices
Which factor has most reduced the cost of coordinating global operations?
Tariff reductions
Containerization
Advances in information technology
Regional trade agreements
Foreign Direct Investment (FDI) occurs when a firm
exports goods to another country
licenses its brand abroad
invests in business activities in another country
forms a strategic alliance
Which institution primarily maintains order in the international monetary system?
WTO
IMF
World Bank
UN
The World Bank mainly focuses on
trade dispute settlement
currency stabilization
economic development projects
human rights protection
Which trend characterizes the changing global economy since 1960?
Decline of developing countries
Rising dominance of the US
Growth of developing economies
Reduction in world trade
A multinational enterprise (MNE) is best defined as a firm that
sells products in many countries
produces goods in at least two countries
has foreign shareholders
exports more than 50% of output
Which argument is commonly raised by critics of globalization?
Lower consumer prices
Faster innovation
Environmental degradation
Higher productivity
Supporters of globalization argue that free trade
reduces specialization
increases inefficiency
encourages countries to specialize
widens income equality
Which event best shows globalization-related risk?
Growth of e-commerce
COVID-19 supply chain disruption
WTO expansion
Rise of mini-multinationals
Managing international business is more complex because
firms face fewer regulations
countries are identical
problems are broader and more diverse
currencies are stable
Anti-globalization protests often target meetings of
NATO
WTO
ASEAN
OECD
Political economy refers to the interaction between
politics and culture
economy and society
political, economic, and legal systems
firms and governments
Collectivism emphasizes
individual freedom
private ownership
group goals over individual goals
free market competition
Which ideology supports state ownership of production?
Individualism
Capitalism
Socialism
Liberalism
Communism differs from social democracy because it
supports free markets
uses democratic means
requires violent revolution
protects private property
Democracy is best described as a system where
one party monopolizes power
government is by the people
military controls the state
religion governs law
Which country characteristic increases political risk?
Stable legal system
Strong property rights
Social unrest
Independent judiciary
In a command economy, resource allocation is determined by
consumers
private firms
market forces
government planners
Which economic system combines market and state ownership?
Market economy
Command economy
Mixed economy
Socialist economy
Common law is based primarily on
religious doctrine
legal codes
tradition and precedent
executive orders
Intellectual property does NOT include
patents
trademarks
copyrights
land ownership
High corruption levels typically lead to
higher FDI inflows
stronger legal systems
reduced economic growth
increased investor confidence
The Foreign Corrupt Practices Act prohibits
tax payments
bribing foreign officials
lobbying activities
facilitating payments
Product liability refers to
marketing responsibility
holding firms accountable for product harm
product pricing rules
intellectual property protection
GDP per capita measures
total national output
income distribution
average income per person
cost of living
Purchasing Power Parity (PPP) adjusts income by
exchange rates
inflation rates
cost of living differences
population size
Amartya Sen views development as
income maximization
expansion of real freedoms
industrial growth
export expansion
HDI does NOT include
life expectancy
education
income sufficiency
political freedom
Which factor strongly supports long-run economic growth?
Inflation
Innovation and entrepreneurship
Trade barriers
State ownership
Strong property rights encourage
corruption
innovation
monopolies
inflation
Countries with favorable geography tend to
avoid trade
grow more slowly
engage more in trade
restrict markets
Investment in education leads to
lower productivity
higher growth rates
labor surplus
income inequality
Deregulation mainly involves
increasing state control
removing market restrictions
nationalizing firms
raising taxes
Privatization transfers ownership from
private to public
foreign to domestic
state to private investors
managers to workers
Economic risk arises mainly from
legal uncertainty
political instability
economic mismanagement
cultural differences
Market attractiveness depends on
population size only
benefits, costs, and risks
GDP alone
political ideology
Culture consists of shared
laws and rules
values and norms
income levels
political systems
Norms that are central to society are called
folkways
rituals
mores
symbols
A society emphasizing individual achievement is likely to have
lifetime employment
high entrepreneurship
low mobility
strong group loyalty
In collectivist societies, the primary unit is
the individual
the firm
the group
the family only
A caste system is characterized by
high social mobility
open competition
fixed social positions
merit-based advancement
Religion influences business mainly through
pricing policies
ethical values
production technology
logistics systems
Confucianism emphasizes
individual freedom
short-term profit
loyalty and reciprocal obligations
religious worship
Language includes
only spoken words
only written communication
verbal and nonverbal communication
grammar rules only
Misunderstanding nonverbal cues may lead to
cost reduction
communication failure
higher efficiency
standardization
Hofstede’s power distance refers to
income inequality
acceptance of unequal power
gender roles
uncertainty tolerance
High uncertainty avoidance cultures prefer
risk-taking
innovation
job security
flexible rules
Ethnocentrism means
adapting to local culture
respecting diversity
believing one’s culture is superior
cross-cultural literacy
