International business exam 1

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses? A. capitalism B. Socialism C. Communism D. Tribalism

capitalism

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation? A) expropriation B) nationalism C) nationalization D) confiscation

confiscation

All of the following are objectives of international business operations except for: a) sales expansion b) resource acquisition c) locally expanding d) risk minimization

locally expanding

Opposition groups allege that globalization empowers organizations erodes the ________. A. local labor laws B. sovereignty of a nation C. spread of democracy D. legal system of the country

sovereignty of a nation

Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture? A) macroculture B) subculture C) cultural universal D) monoculture

subculture

Purchasing power parity is: A) The US dollar equivalent to buy a product outside of the US. B) The number of units of a currency required to buy the same amount of goods and services in the domestic market as one dollar would buy in the US. C) The foreign currency equivalent to buy a product in the US. D) None of the above.

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Uncontrollable forces that management has no direct control over include: A) Political. B) Capital. C) Raw materials. D) Production.

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Which of the following is an example of globalization of production? A) Canadian consumers who import food products from Australia B) A German company which sells car components to British car makers C) A U.S. company that builds a computer hardware manufacturing facility in India D) A Swiss watch manufacturer that builds a manufacturing facility in Switzerland

A U.S. company that builds a computer hardware manufacturing facility in India

the capacity of a nation to produce more of a good with the same amount of input than another country is known as: A) Competitive advantage. B) Perfect competition. C) Absolute advantage. D) Economies of scale.

Absolute advantage

Advances in computers and communications technology are permitting an increased flow of ideas and information across borders. This enables: A) Manufacturing personnel to concentrate more on domestic production. B) Customers to learn about foreign goods. C) Sellers of products to travel to more locations worldwide in search of buyers. D) Advertisers to focus more on specific countries where demand is the greatest

Customers to learn about foreign goods.

the most common definition of globalization is that of: A) Political globalization - the international integration of political laws and customs. B) Geographical globalization - the international integration of countries in geographical proximity to one another. C) Cultural globalization - the international integration of people with similar cultural characteristics. D) Economic globalization - the international integration of goods, technology, labor, and capital.

Economic globalization - the international integration of goods, technology, labor, and capital.

NAFTA's purpose is to: A) Create an economic union of the member countries. B) Create a political union of the member countries. C) Eliminate trade barriers among the member countries. D) Allow for the free movement of people, goods and services among the member countries.

Eliminate trade barriers among the member countries.

_______________ are the two main forces that underlie the globalization of markets and production. A. The North American Free Trade Agreement (NAFTA) B. The WTO role to enforce the rules of international trade and funding available from the IMF C. Falling barriers to trade and investment and technological innovation D. The leading role that the World Bank plays to provide financing and the dispute resolution methods of the IMF

Falling barriers to trade and investment and technological innovation

Which of the following is referred to as the predecessor to WTO? A. GATT B. OPEC C. IMF D. World Bank

GATT

________ is increasing the pace of both cultural diffusion and cultural change. A) Collectivism B) Enculturation C) Fundamentalism D) Globalization

Globalization

is the name we give to the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. A. Internationalization B. Cross-cultural communication C. Globalization D. Emerging economies

Globalization

________ is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service. A) Global offering B) Globalization of production C) Global governance D) Globalization of markets

Globalization of production

Which of the following is a characteristic of a developing nation? A) Unequal distribution of income with a very large middle class. B) Very few firms employing the latest technology. C) Undisguised unemployment or underemployment. D) High rate of illiteracy and insufficient educational facilities.

High rate of illiteracy and insufficient educational facilities.

One of management's goals is utilizing economies of scale to reduce unit costs. Which of the following would not necessarily result in economics of scale being realized? A) Globalizing product lines to reduce development costs. B) Locating production in countries where the costs of the factors of production are lower. C) Locating production in countries where the labor force is the most highly educated. D) Globalizing product lines to reduce production and inventory costs.

Locating production in countries where the labor force is the most highly educated.

A major operating objective that may induce companies to engage in international business is _____? A. To expand sales B. To maximize risk C. To acquire competitors D. None of the above

None of the above

________ place limits on the quantity of a product being imported. A) Embargoes B) Trade blocs C) Nontariff barriers D) Anti-dumping duties

Nontariff barriers

International trade occurs primarily because of: A) Price differences among nations. B) Supply and demand. C) Capitalism. D) None of the above.

Price differences among nations.

________ is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage. A) Situational attribution B) Situational management C) Social mobility D) Social stratification

Situational management

Why do most international firms today support reasonable environmental laws? A. They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services. B. Openness and globalization lessen environmental standards C. They want to choose low-cost resources over environmental concerns. D. They want to introduce a new product line

They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services.

Why do companies typically produce goods and services abroad? A. To internationalize their operation B. To promote economic development C. To avoid local environment laws D. To reduce their overall labor costs

To reduce their overall labor costs

The ________ replaced the institution of GATT while retaining all of the former GATT agreements. A) World Trade Organization B) Federation of International Trade Association C) Commonwealth of Nations D) International Monetary Fund

World Trade Organization

Operating across borders and time zones could complicate the job of coordinating and controlling international business activities especially for smaller firms. To operate more efficiently, international companies tend to ________. A. accelerate the use of technology, email, video conferencing, the Internet, and intranets B. send local staff on a long-term assignment in the field offices to provide immediate solutions for operation problems C. travel to the business destination more often than before to ensure personal communication D. invite the overseas staff to visit the headquarters a lot more often to ensure the smoothness of communication between headquarters and field staff

accelerate the use of technology, email, video conferencing, the Internet, and intranets

Which of the following is a cultural component that implies gauging the beauty and appeal of artwork? A) customs B) manners C) folkways D) aesthetics

aesthetics

Arguments for trade restrictions include: A) National defense. B) Protection of mature industries. C) Unfair competition. D) all of the above.

all of the above.

Frequently, a firm will go abroad to: A) Protect its home market. B) Earn greater profits. C) Test market a product. D) all of the above.

all of the above.

Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts? A) customs B) attitudes C) traditions D) values

attitudes

A folk custom can be defined as ________. A) behavior shared by a heterogeneous group or by several groups of people B) behavior, often dating back several generations, that is practiced by a homogeneous group of people C) positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts D) positive or negative evaluations, feelings, and tendencies that individuals harbor toward themselves

behavior, often dating back several generations, that is practiced by a homogeneous group of people

A company that adopts a global perspective and engages in international business from or near its inception is known as a(n) ____________. A. export management company B. custom broker C. international service representative D. born global firm

born global firm

The rise of a new international entity called the ________ suggests that any company, regardless of age, experience, and resources, can engage in international business. A) transnational corporation B) multinational corporation C) born global firm D) global firm

born global firm

The practice of exchanging rings at weddings, which was initially a pagan ritual, is now followed by most people across the world. Which of the following does this illustrate? A) cultural literacy B) cultural encoding C) cultural diffusion D) cultural lag

cultural diffusion

Which of the following refers to the process by which cultural traits spread from one culture to another? A) cultural heterogeneity B) cultural imperialism C) cultural diffusion D) cultural literacy

cultural diffusion

A(n) ________ is anything that represents a culture's way of life, including gestures, material objects, traditions, and concepts. A) social B) social status C) cultural baggage D) cultural trait

cultural trait

Cultural homogeneity refers to — A. adaptation to the local culture B. cross-cultural movements C. inter-cultural movements D. cultural uniformity

cultural uniformity

Which of the following terms is used to refer to habits or ways of behaving in specific circumstances that are passed down through generations? A) customs B) attitudes C) prejudices D) aesthetics

customs

Which of the following refers to the use of computer networks to purchase, sell, or exchange products; service customers; and collaborate with partners? A) e-commerce B) telecommuting C) data virtualization D) virtual hosting

e-commerce

Opponents argue that globalization ________. A) eliminates manufacturing jobs in developed nations B) generates labor market flexibility in developed nations C) brings an end to practices like outsourcing D) slows down the employment rate in developing nations

eliminates manufacturing jobs in developed nations

A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to ________. A) displace the WTO B) reduce nontariff barriers to international trade C) govern exchange rates D) enforce world trade rules

enforce world trade rules

Globalization consists of the following processes except: a) political process b) environmental process c) social process d) economic process

environmental process

Globalization is criticized because it ________. A) does not generate labor market flexibility in developing nations B) prevents developed countries from outsourcing work to developing nations C) creates fewer manufacturing jobs in developing nations D) exploits workers in low-wage nations

exploits workers in low-wage nations

________ are all goods and services sold abroad and sent out of a country. A) Net national products B) Exports C) Gross domestic products D) Imports

exports

The main purpose for establishing regional trade agreements such as NAFTA and APEC is to ________. A. promote tourism and travel among neighboring countries B. eliminate cultural differences C. foster trade and boost cross-border investment D. reform immigration and labor laws

foster trade and boost cross-border investment

The revision in 1994 of the GATT clearly defined intellectual property rights in order to ________. A. give more protection to copyrights, trademarks, and patents B. further reduce average tariffs on merchandise trade C. lower subsidies for agricultural products D. facilitate the sharing of trade secrets

give more protection to copyrights, trademarks, and patents

________ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies. A) Privatization B) Heterogenization C) Globalization D) Decentralization

globalization

Which of the following refers to convergence in buyer preferences in markets around the world? A) heterogenization of markets B) globalization of markets C) segmentation of markets D) nationalization of markets

globalization of markets

The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________. A) gross domestic product (GDP) B) gross world product (GWP) C) gross national product (GNP) D) gross state product (GSP)

gross national product (GNP)

Multinational corporations are key players in international business and can be described as companies that __________. A. tend to have innovative cultures B. have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries C. are engaged only in exporting products globally D. employ thousands of workers

have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries

Goods and services purchased abroad and brought into a country are called ________ A) gross domestic products B) exports C) gross national products D) imports

imports

Any commercial transaction that crosses the borders of two or more nations is known as ________ A) domestic marketing B) market segmentation C) international business D) global manufacturing

international business

Globalization of markets can benefit companies that sell a global product and creates new market opportunities abroad especially if their home market _________. A. can sustain higher prices B. can offer a consistent increase in demand C. is small or becoming saturated D. is large and growing

is small or becoming saturated

A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a ________ A) dummy corporation B) shell corporation C) multinational corporation D) domestic corporation

multinational corporation

Globalization is characterized by ________. A) the demise of democracy within a nation B) national boundaries becoming less relevant C) the fortification of trade barriers D) rigid foreign relations policies

national boundaries becoming less relevant

The power of the WTO that sets it apart from the GATT is its capability to ______________. A. lower the trade barriers B. help the free flow of trade among its member states C. penalize offending nations and the power to settle trade disputes D. maintain fair trade policies

penalize offending nations and the power to settle trade disputes

The purpose of the General Agreement on Tariffs and Trade (GATT) was to ________. A) create an international currency B) regulate exchange rates C) create regional trade organizations D) promote free trade

promote free trade

Which of the following terms is used to refer to the process of ranking people into social layers or classes? A) social transformation B) social stratification C) social loafing D) social mobility

social stratification

Which of the following terms is used to refer to the ideas, beliefs, and customs to which people are emotionally attached? A) attitudes B) memetics C) aesthetics D) values

values