IMS Quiz 1

the domestic environment is composed of all the uncontrollable forces originating in the ___________ that surround and influence the life and development of the firm. A) international arena B) host nation C) home country/parent D) foreign country

C) home country/parent

The ability of an individual, firm or country to produce a certain good at a lower opportunity cost than other producers is referred to as: A) Marginal advantage B) Absolute advantage C) Cardinal advantage D) Comparative advantage

D) Comparative advantage

foreign business denotes: A) a business whose activities involve crossing national borders B) the domestic operations within a foreign country C) an organization with multi-county affiliates D) an organization that attempts to standardize operations worldwide E) all of the above

B) the domestic operations within a foreign country

the old Mercantilists and today's neo-mercantilists believe that: A) Merchants should import goods to raise the living standard B) Governments should lower import duties C) A nation should have an export surplus in order to accumulate precious metals or currency reserves D) A nation should produce goods for which there is a comparative advantage E) none of the above

C) A nation should have an export surplus in order to accumulate precious metals or currency reserves

What are concerns with globalization? A) Uneven results across nations and people B) Diminishing results in environmental and health conditions C) Both a and b D) None of the above

C) Both a and b

What is mercantilism? A) Accumulation of gold and silver B) Where colonies trade gold and silver with each other C) Wars that start over money D) Plantation colonies trading slaves for money

A) Accumulation of gold and silver

One measure of the magnitude of international trade and how it has grown is that _____________ of everything grown or made in the world is now exported A) 10 percent B) 25 percent C) 32 percent D) 45 percent E) over two-thirds

B) 25 percent

Hall, the author of high and low context, considers the Scandinavian countries to score high on masculinity, demonstrate high power distance and high context in their communication. A) True B) False

B) False

When considering where to export, pragmatist global marketers would look into the following factors: A) The cultures of the two countries should be relatively similar and compatible B) The climate for foreign direct investment in the importing nation is relatively favorable C) Export and import regulations are not insurmountable D) The infrastructure for exporting is favorable E) All of the above

E) All of the above