Global Business Environment Exam Review
Course Introduction
The Global Business Environment course explores the dynamic and interconnected world economy in which modern organizations operate. Students will examine the economic, political, legal, technological, and socio-cultural factors that influence international business decisions and strategies. The course delves into topics such as globalization, trade policies, market entry strategies, global supply chains, and risk management, while also considering contemporary challenges such as sustainability and ethical issues. Through case studies and real-world examples, students will develop a comprehensive understanding of how businesses adapt and thrive in diverse economic and regulatory environments across the globe.
Recommended Textbook
International Business The Challenges of Globalization 7th Edition by John J. Wild
Available Study Resources on Quizplus
16 Chapters
1669 Verified Questions
1669 Flashcards
Source URL: https://quizplus.com/study-set/2725 Page 2
Chapter 1: Globalization
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/54332
Sample Questions
Q1) Which of the following terms is used to refer to widespread job turnover throughout an economy?
A)redeployment
B)restructuring
C)onboarding
D)churning
Answer: D
Q2) 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
Answer: D
Q3) 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
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Cross-Cultural Business
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/54324
Sample Questions
Q1) 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
Answer: A
Q2) Mika finds that he has very little control over several aspects of his life.Whether his education or occupation,the few options available to him are determined by his birth.Which of the following is a characteristic of Mika's society?
A)There is no distinction between the people of high and low birth in Mika's culture.
B)Mika belongs to a society in which there is little scope for mobility.
C)Mika belongs to a society in which economic wealth determines social status.
D)Mika belongs to a society in which caste system and social status is a myth.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Politics,Law,and Business Ethics
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/54323
Sample Questions
Q1) Product liability laws hold only manufacturers responsible for damage,injury,or death caused by defective products.
A)True
B)False
Answer: False
Q2) Which of the following terms refers to an economic system in which the government owns and controls all types of economic activity?
A)socialism
B)sovereign nationalism
C)political bureaucracy
D)pluralism
Answer: A
Q3) ________ is a legal system which is based on a detailed set of written rules and statutes that constitute a legal code.
A)International law
B)Civil law
C)Tribal law
D)Common law
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Economics and Emerging Markets
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/54322
Sample Questions
Q1) What is privatization? What role does it play in economic transition?
Q2) Central planning is rooted in the ideology that ________.
A)the welfare of a group is more important than individual well-being
B)individual concerns should be placed above group consensus
C)individual and group concerns are just as important as government concerns
D)privatization will enhance a country's economic well-being
Q3) In most centrally planned economies that failed,________.
A)market conditions had determined who would produce goods
B)prices of products were seen as a function of supply and demand
C)central planning agencies had specified the production goals
D)central planners had paid attention to efficiency improvement
Q4) One of the reasons for the decline of central planning was its failure to create economic value for customers.
A)True
B)False
Q5) Why are many mixed economies converting to market-based systems? How does the role of government change when a mixed economy transitions to a market economy?
Q6) Describe the three main types of economic systems.
Q7) How are countries classified? Explain with examples.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: International Trade
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/54321
Sample Questions
Q1) Trade in services tends to be relatively more important for the world's richest countries.
A)True
B)False
Q2) Which of the following is an argument offered by the new trade theory?
A)It is in line with the factor proportions theory.
B)There are gains to be made from specialization and increasing economies of scale.
C)The companies first to market forgo the opportunities to create barriers to entry.
D)Market forces alone play a role in assisting the home companies in a country.
Q3) One of the major pillars upon which the practice of mercantilism rested was ________.
A)economies of scale
B)pricing mechanism
C)excessive imports
D)trade surpluses
Q4) Discuss the volume of international trade,and explain the role government and chance play in the growth of international trade.
Q5) Discuss the factor proportions theory and describe the evidence on this theory.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Business-Government Trade Relations
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/54320
Sample Questions
Q1) A common purpose of many companies' facilities in foreign trade zones is
A)final product assembly
B)acquisition of raw materials
C)product design
D)product manufacturing
Q2) Describe the different types of tariffs and provide an example of each.
Q3) Consumers are benefitted when a government imposes import quotas on products.
A)True
B)False
Q4) Which of the following countries is seen as a threat to national cultures around the world?
A)United States
B)India
C)Russia
D)France
Q5) Customs duties decrease the total amount of a good's production cost.
A)True
B)False
Q6) Describe the main political motives behind government intervention in trade.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Foreign Direct Investment
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/54319
Sample Questions
Q1) Which of the following is a reason behind intervention by a host country on matters related to FDI?
A)to keep their balance of payments under control
B)to protect their outdated technology and management skills
C)to strictly encourage the establishment of sunset industries
D)to decrease the country's competitiveness in the global market
Q2) Which of the following methods will Happyland use to encourage foreign direct investment inflows?
A)tax incentives
B)sanctions
C)ownership restrictions
D)performance demands
Q3) Portfolio investment is the purchase of physical assets of a company in another country to gain a degree of management control.
A)True
B)False
Q4) Discuss why a host country might promote or restrict foreign direct investment.
Q5) What two factors propel growth in foreign direct investment?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Regional Economic Integration
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/54318
Sample Questions
Q1) Higher levels of trade between nations result in ________.
A)higher product prices
B)lesser specialization
C)greater purchasing power
D)trade diversion
Q2) Differentiate among the five levels of economic and political integration.
Q3) The European Commission is the ________ body of the European Union.
A)legislative
B)executive
C)financial
D)monitoring
Q4) The increase in the level of trade between nations that results from regional economic integration is called trade creation.
A)True
B)False
Q5) The primary purpose of the Gulf Cooperation Council (GCC)at its formation was to create a political union between Iraq and Iran.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: International Financial Markets
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/54317
Sample Questions
Q1) Which of the following is a major purpose of the international capital market?
A)to reduce entrepreneurial initiatives
B)to increase the cost of borrowing
C)to reduce risk for lenders
D)to reduce the money supply for borrowers
Q2) One of the major forces responsible for the rapid growth rate of the international capital market is ________.
A)economic nationalism
B)information technology
C)currency control
D)extensive regulation
Q3) An exchange rate of ¥117.87/$ indicates ________.
A)that 117.87 yen buys one dollar
B)that 117.87 dollars buys one yen
C)a direct quote on the dollar
D)an indirect quote on the yen
Q4) Securitization is the unbundling and repackaging of hard-to-trade financial assets into liquid financial instruments.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: International Money System
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/54331
Sample Questions
Q1) The principle that nominal interest rate is the sum of the real interest rate and the expected rate of inflation over a specific period of time is called ________.
A)the law of one price
B)purchasing power parity
C)the comparative advantage theory
D)the Fisher effect
Q2) ________ is an activity under the monetary policy of a nation.
A)Increasing taxes
B)Lowering taxes
C)Increasing government spending
D)Selling government securities
Q3) Which of the following represents the Fisher effect?
A) Cross Rate = Real Interest Rate + Nominal Interest Rate
B)Real Interest Rate = Nominal Interest Rate + Spot Rate
C)Nominal Interest Rate = Real Interest Rate + Inflation Rate
D)Real Interest Rate = Nominal Interest Rate + Unemployment Rate
Q4) Explain how movement in a currency's exchange rate affects the activities of both domestic and international companies.Discuss how companies can export successfully despite having a strong currency.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: International Strategy and Organization
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/54330
Sample Questions
Q1) Decreasing levels of customer loyalty to an organization's products is a major disadvantage of the ________ strategy.
A)blue ocean
B)stability
C)low-cost leadership
D)growth
Q2) The main benefit of a global strategy is that it allows a company to ________.
A)closely monitor buyer preferences in each local market
B)save costs due to product and marketing standardization
C)customize its products and services
D)respond effectively to emerging buyer preferences
Q3) A global matrix structure is an organizational structure that divides worldwide operations according to a company's product areas.
A)True
B)False
Q4) Explain the different ways in which products can be differentiated,providing an example of each.
Q5) Briefly describe the strategy formulation process of international organizations.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Analyzing International Opportunities
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/54329
Sample Questions
Q1) An ongoing process of gathering,analyzing,and dispensing information for tactical or strategic purposes is called ________.
A)data harvesting
B)peer production
C)survey research
D)environmental scanning
Q2) The sensitivity of demand for a product relative to changes in income is called ________.
A)income elasticity
B)demand shaping
C)income distribution
D)market intensity
Q3) Which of the following stages of the market or site screening process involves an assessment of potential threat from substitute products?
A)identification of basic appeal of a product
B)measurement of market or site potential
C)assessment of the national business environment
D)selection of the market or site
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Selecting and Managing Entry Modes
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/54328
Sample Questions
Q1) Which of the following is a disadvantage of strategic alliances?
A)They are the most expensive among the investment entry modes.
B)They increase the likelihood that one partner will try to take advantage of the other.
C)They create future competitors.
D)They fail to tap into their competitors' specific strengths.
Q2) Which of the following is a method of export/import financing in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document?
A)sight draft
B)bill of lading
C)letter of credit
D)bill of exchange
Q3) ________ is a countertrade whereby one company sells to another its obligation to make a purchase in a given country.
A)Franchising
B)Joint venture
C)Switch trading
D)Barter
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Developing and Marketing Products
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/54327
Sample Questions
Q1) Which of the following is implied by a product with a low value density?
A)the distribution system is more localized
B)the product is more valuable
C)the cost of shipping the product is negligible
D)the product is processed in areas away from their original locations
Q2) Product life cycles are becoming shorter because companies are undertaking new product development at an increasingly rapid pace.
A)True
B)False
Q3) A brand name can function as a legal property.
A)True
B)False
Q4) All company and product brand names are made up of morphemes.
A)True
B)False
Q5) ________ is a major component of a promotion mix.
A)Distribution
B)Market segmentation
C)Pricing
D)Public relations
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Managing International Operations
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/54326
Sample Questions
Q1) A back-to-back loan is one in which a subsidiary acquires a loan from the same bank where its parent secured the first loan.
A)True
B)False
Q2) Explain the process of facilities location planning.What issues must companies consider while selecting the location for their production facilities?
Q3) Transportation costs are one of the driving forces behind the globalization of the ________ industry.
A)health care
B)publishing
C)software
D)steel
Q4) Total quality management reduces the responsibility on each individual in the production process.
A)True
B)False
Q5) Discuss why companies strive toward quality improvement and the two methods of doing so.
Q6) What are the advantages of American Depository Receipts (ADRs)?
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Hiring and Managing Employees
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/54325
Sample Questions
Q1) Guerrilla linguistics is often used in the cultural assimilation stage.
A)True
B)False
Q2) Which of the following trains managers to be considerate and understanding of other people's feelings and emotions?
A)cultural orientation
B)sensitivity training
C)language training
D)cultural narcissism
Q3) Differentiate between the three types of staffing policies used by international companies.What are the advantages of each?
Q4) Polycentric staffing places managerial responsibility in the hands of people intimately familiar with the local business environment.
A)True
B)False
Q5) Briefly explain how companies compensate managers in international markets.
Q6) What challenges do international labor unions face as they try to accomplish their objectives?
Q7) What factors influence the wages of nonmanagerial workers?
To view all questions and flashcards with answers, click on the resource link above. Page 18