Business and Globalization Exam Materials
Course Introduction
This course examines the impact of globalization on contemporary business practices, strategies, and operations. Students will explore how international economic integration, cross-border trade, and cultural diversity influence decision-making in multinational corporations. Key topics include global supply chains, international financial markets, the role of international organizations, and ethical considerations in a global context. By analyzing real-world case studies, students will gain insight into the challenges and opportunities facing businesses in an increasingly interconnected world.
Recommended Textbook
International Business 7th Edition by Ricky W.
Griffin
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19 Chapters
2470 Verified Questions
2470 Flashcards
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2
Chapter 1: An Overview of International Business
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Which two countries account for more than one-third of the world's population?
A) Mexico and Brazil
B) China and India
C) Brazil and India
D) Mexico and China
Answer: B
Q2) Business transactions between parties from more than one country are known as international business.
A)True
B)False
Answer: True
Q3) The growth of FDI and MNCs first started when European capitalists began investing in businesses operating in the American colonies.
A)True
B)False
Answer: True
Q4) International business is more complex than domestic business.
A)True
B)False
Answer: True
Page 3
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Chapter 2: Global Marketplaces and Business Centers
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Sample Questions
Q1) The European Union accounted for about ________ percent of the world's GDP in 2009.
A) 15
B) 28
C) 45
D) 52
Answer: B
Q2) Hawthorne Enterprises, an Australian firm, has plans to open a manufacturing facility in France next year. Some executives at the firm are unhappy with this decision, most likely because France ________.
A) opposes human rights legislation
B) promotes economic nationalism
C) refuses to switch to the euro
D) advocates free trade
Answer: B
Q3) In 2009, Singapore's exports totalled 148% of its GDP. Briefly explain how this is possible.
Answer: Singapore is a major reexporter because of its shipping ports and facilities.
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Chapter 3: Legal, Technological, Accounting, and Political Environments
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Political risk that affects all firms in a country is referred to as ________.
A) micropolitical risk
B) macropolitical risk
C) inclusive political risk
D) exclusive political risk
Answer: B
Q2) Foreign companies doing business in Saudi Arabia must be cautious because of the country's lack of an independent judiciary to protect the foreign company's rights.
A)True
B)False
Answer: True
Q3) ________ is a systematic analysis of the political risks possible in foreign countries.
A) Environmental scanning
B) SWOT analysis
C) Political risk assessment
D) Operating risk analysis
Answer: C
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Page 5
Chapter 4: The Role of Culture
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130 Flashcards
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Sample Questions
Q1) How does religion affect international business practices and marketing programs?
Q2) According to the text, ________ of the world's population claims a religious affiliation.
A) 95%
B) 85%
C) 75%
D) 65%
Q3) The business needs of an Internet start-up firm would most likely be met in a power-tolerant culture such as Austria than in a power-respecting culture such as Spain.
A)True
B)False
Q4) Social mobility tends to be lower in less stratified societies.
A)True
B)False
Q5) How can firms minimize the chances of miscommunication through translation errors?
Q6) What are cultural clusters? How does an international business benefit from understanding cultural clusters?
Page 6
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Chapter 5: Ethics and Social Responsibility in International Business
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Sample Questions
Q1) Behavior that fails to conform to generally accepted social norms is considered
A) ethical
B) unethical
C) illegal
D) unregulated
Q2) The extent to which members of an organization follow basic ethical standards of behavior is ________.
A) guanxi
B) legal compliance
C) ethical compliance
D) whistle-blowing
Q3) What is the mission of the International Labor Organization?
Q4) A company taking a proactive approach to social responsibility will most likely
A) exhibit sincere and significant efforts to contribute to society
B) require employees to participate in local charities
C) conform to regional customs and laws
D) provide online ethics training
Q5) What is the obstructionist approach to social responsibility?
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Chapter 6: International Trade and Investment
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130 Flashcards
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Sample Questions
Q1) Which theory explains why a firm would choose to enter a foreign market via FDI rather than exploit its ownership advantages internationally through other means?
A) eclectic theory
B) internalization theory
C) relative factor endowments
D) national competitive advantage
Q2) Who developed the theory of national competitive advantage?
A) Adam Smith
B) Raymond Vernon
C) Michael Porter
D) Eli Heckscher
Q3) What is opportunity cost? Why is opportunity cost an important consideration when determining what a country should export and import?
Q4) Thanks to the emergence of China as a major exporting nation, Japan, Canada, the EU, and the U.S. countries accounted for just 30 percent of the world's merchandise exports in 2009.
A)True
B)False
Q5) What are the primary forms of international business?
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Chapter 7: The International Monetary System and the Balance of Payments
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Sample Questions
Q1) The international monetary system provides a mechanism for ________.
A) establishing global accounting standards
B) enforcing the payment of importing tariffs and fees
C) correcting imbalances between a country's international payments and receipts
D) increasing a country's paper currency value in comparison to the global gold standard
Q2) Which currency played a central role in the Bretton Woods system?
A) British pound
B) German mark
C) Japanese yen
D) U.S. dollar
Q3) What is the official settlements balance?
Q4) All of the following are typical long-term portfolio investments included in the capital account except ________.
A) government bonds
B) checking account balances
C) government bills
D) corporate stocks and bonds
Q5) What was the Brady Plan?
Page 9
Q6) What are the four types of assets included in the Official Reserves Account?
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Page 10
Chapter 8: Foreign Exchange and International Financial Markets
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) A(n) ________ is a large, liquid financial asset that can be traded anywhere at any time.
A) international stock
B) global bond
C) global equity
D) Eurodollar
Q2) A spot transaction ________.
A) is a foreign exchange transaction that is consummated immediately
B) is a foreign exchange transaction that occurs sometime in the future
C) involves currencies that are not freely tradeable
D) involves a transaction in which the same currency is bought and sold simultaneously
Q3) In a flexible exchange rate system, the price of foreign exchange is established by central banks.
A)True
B)False
Q4) Explain the theory of purchasing power parity. How does it affect arbitrage?
Q5) What is the difference between a Eurocurrency and a Eurobond?
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Q6) As a retail customer, what price do you usually pay for foreign exchange?
Q7) Explain the concept of covered interest arbitrage. Why does it occur?
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Chapter 9: Formulation of National Trade Policies
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Sample Questions
Q1) The Clinton administration sought to introduce industrial policy for five emerging technologies.
A)True
B)False
Q2) For five years, Harley-Davidson received tariff protection from Japanese imports to allow the motorcycle firm the opportunity to improve its operations and gain market share. This is an example of the ________.
A) maintenance of existing jobs argument
B) industrial policy argument
C) infant industry argument
D) strategic trade theory
Q3) Discuss the two principal issues surrounding the debate on appropriate trade policy. What role does domestic politics frequently play in such debates?
Q4) What is the infant industry argument? How did Japan use the infant industry argument to rebuild its economic strength following World War II? What tools did it use?
Q5) How does the United States handle complaints of unfair trade?
Q6) How does a tariff rate quota work?
Q7) Explain how a maquiladora operates.
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Chapter 10: International Cooperation Among Nations
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Sample Questions
Q1) The primary goal of the ________ was to promote a free and competitive international trading environment.
A) Smoot-Hawley Act
B) International Trade Organization
C) World Trade Organization
D) General Agreement on Tariffs and Trade
Q2) What is a customs union? Provide an example of a customs union.
Q3) Why do France and the United Kingdom disagree over the EU's Common Agricultural Policy?
Q4) Which of the following countries is not part of the Mercosur Accord?
A) Argentina
B) Guatemala
C) Paraguay
D) Uruguay
Q5) What is a free trade area? Provide an example of a free trade area.
Q6) What is the purpose of the cohesion fund in the European Union? Do you think the cohesion fund is appropriate and effective? Why or why not?
Q7) What is the most important characteristic of regional trading blocs?
Q8) What functions are performed by the European Commission?
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Chapter 11: International Strategic Management
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130 Flashcards
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Sample Questions
Q1) Disney uses the related diversification strategy.
A)True
B)False
Q2) What strategic management challenges are faced by international businesses that have business units scattered around the world? How can a business strategy help improve a firm's ability to compete?
Q3) Resource deployment answers the question: "How can different elements of our business benefit each other?"
A)True
B)False
Q4) The major objectives the firm wants to accomplish through pursuing a particular course of action are known as tactics.
A)True
B)False
Q5) Firms using a(n) ________ operate in several unrelated industries and markets.
A) corporate strategy
B) single-business strategy
C) related diversification strategy
D) unrelated diversification strategy
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Chapter 12: Strategies for Analyzing and Entering Foreign Markets
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Sample Questions
Q1) Which theory listed below is useful in deciding which mode of entry to use when entering foreign markets?
A) ownership advantage theory
B) internalization theory
C) eclectic theory
D) relative factor endowments
Q2) Tanya is employed by an export management company that provides its services to many exporters in the Chicago area. Tanya would LEAST likely be responsible for
A) shipping goods
B) clearing customs
C) creating strategic marketing plans
D) giving advice about consumer needs
Q3) Webb-Pomerene associations play a major role in international business.
A)True
B)False
Q4) What are the major competitor characteristics that should be analyzed when conducting a competitor analysis?
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Q5) Explain the meaning of internalization advantages.
Q6) Explain the licensing process.
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Page 16
Chapter 13: International Strategic Alliances
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Sample Questions
Q1) Furman Furnishings wants to expand its international operations in cooperation with another firm. Which of the following methods would be most appropriate for Furman?
A) exporting
B) licensing
C) joint venture
D) foreign direct investment
Q2) In a limited partnership, both firms assume full financial responsibility for the venture, regardless of the amount each has invested.
A)True
B)False
Q3) Why did Boeing establish a strategic alliance with several Japanese partners to help develop its 777 jet? What was the scope of the alliance?
Q4) A 50:50 ownership structure is required in a joint venture.
A)True
B)False
Q5) What are the various forms that strategic alliances can take? What are the benefits of strategic alliances?
Q6) What is a public-private venture?
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Chapter 14: International Organization Design and Control
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Sample Questions
Q1) The polycentric approach to management is most likely used by firms that
A) operate internationally the same way they do domestically
B) customize their operations for each foreign market in which they serve
C) analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve
D) adapt their marketing strategies for foreign markets, but not their finance strategies
Q2) Informal management networks are typically powerless when it comes to short-circuiting bureaucracy.
A)True
B)False
Q3) Strategic control focuses on how well the firm defines and maintains its desired strategic alignment with the firm's ________.
A) administration
B) environment
C) subsidiaries
D) employees
Q4) What is the meaning of functional knowledge?
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Chapter 15: Leadership and Employee Behavior in International Business
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Sample Questions
Q1) Which model of motivation deals with how people assess the consequences of their behavioral choices and how that assessment goes into their future choice of behaviors?
A) need-based model
B) process-based model
C) reinforcement model
D) perceptual model
Q2) Psychologists agree that personality is set primarily by nurture.
A)True
B)False
Q3) Herzberg's two-factor theory provides value as a heuristic but has failed to yield consistent results in any culture.
A)True
B)False
Q4) What are the theoretical approaches to motivation?
Q5) After significant testing, researchers have concluded that expectancy theory applies both in the United States and in other countries.
A)True
B)False
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Chapter 16: International Marketing
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Sample Questions
Q1) Specialized marketing efforts such as coupons are a part of ________.
A) advertising
B) public relations
C) sales promotions
D) brand placements
Q2) Which approach to international marketing is the most expensive to adopt?
A) ethnocentric approach
B) polycentric approach
C) geocentric approach
D) multidomestic approach
Q3) Pizza Hut is offering free pizza slices in Beijing. This is an example of ________.
A) advertising
B) sales promotion
C) public relations
D) brand placement
Q4) What is the most common approach to personal selling?
Q5) In a brief essay, discuss how differentiation strategies and cost leadership strategies affect international marketing decisions. Provide examples of firms that use both strategies.
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Chapter 17: International Operations Management
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Sample Questions
Q1) A firm should most likely make a product internally when there is a ________ potential for competitive advantage and a ________ degree of strategic vulnerability.
A) high; high
B) low; high
C) high; low
D) low; low
Q2) What is an information system? How are international operations managers using integrated information systems to more effectively manage their information?
Q3) Which of the following is NOT an essential component of total quality management?
A) employee involvement
B) high-quality materials
C) up-to-date technology
D) control frameworks
Q4) Supply chain management affects all of the following EXCEPT ________.
A) product cost
B) product quality
C) internal capital demands
D) global functional design
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Chapter 18: International Financial Management
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Sample Questions
Q1) Why do companies hold working capital? Why do firms need to minimize their working capital balances?
Q2) Which of the following is a common characteristic of a tax haven?
A) sophisticated banking system
B) stringent judicial oversight
C) flexible transit tariff system
D) moderate income tax rates
Q3) What is the primary risk an exporter faces with documentary collection?
A) bank changing terms
B) importer defaulting
C) issuing bank defaulting
D) importer failing to pay account balance
Q4) You are a financial officer at an MNC. What types of foreign exchange risks do you frequently face? What capital budgeting techniques do you use to manage these risks?
Q5) Discuss the various forms of countertrade.
Q6) What are the three corporate financial goals involved in managing working capital?
Q7) How do MNCs benefit from using tax havens?
Q8) What conditions favor the use of each form of payment?
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Chapter 19: International Human Resource Management and Labor Relations
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Sample Questions
Q1) Companies that view themselves as multidomestic are more likely to ________.
A) provide visas to third country nationals
B) decentralize decision making
C) employ parent country nationals
D) centralize decision making
Q2) What are the three groups from which international firms can hire?
Q3) The compensation package offered a host country national is equivalent to that offered to an expatriate manager for a position of roughly equal responsibility and power.
A)True
B)False
Q4) Why did Mercedes send a team of executives from Germany to oversee the start-up of its U.S. operations?
Q5) What term refers to people working and residing in countries other than their native country?
A) host country national
B) expatriate
C) nonpatriot
D) green card resident
Q6) What is a tax equalization system?
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