Global Business Environment Practice Exam
Course Introduction
The Global Business Environment course examines the dynamic and interconnected landscape in which businesses operate across borders. Students will explore topics such as international trade, global financial systems, cross-cultural management, foreign direct investment, and the impact of political, economic, technological, and legal factors on global business strategies. Through case studies and real-world examples, the course emphasizes the challenges and opportunities that globalization presents to organizations, equipping students with the analytical tools and strategic perspectives required to succeed in a rapidly evolving international market.
Recommended Textbook
International Business The Challenges of Globalization 9th Edition by John J. Wild
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16 Chapters
1650 Verified Questions
1650 Flashcards
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Page 2
Chapter 1: Globalization
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40400
Sample Questions
Q1) Under the WTO agreement,________.
A) a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures
B) there is no dispute resolution mechanism except for trade involving environmental products
C) countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement mechanism
D) tariffs are permitted to be levied by developed countries against developing countries but not against each other
Answer: A
Q2) ________ involves the idea that a nation-state is autonomous,cannot intervene in the affairs of other nations,and can enter into binding international agreements.
A) National sovereignty
B) Authoritarianism
C) Cultural liberalism
D) Communalism
Answer: A
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Page 3
Chapter 2: Cross-Cultural Business
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Detailed knowledge about a culture that enables people to work happily and effectively within it is called ________.
A) cultural literacy
B) cultural imperialism
C) cultural diffusion
D) cultural divergence
Answer: A
Q2) Which of the following terms is used to refer to the departure of highly educated people from one profession,geographic region,or nation to another?
A) social mobility
B) repatriation
C) stratification
D) brain drain
Answer: D
Q3) Social mobility tends to be higher in less stratified societies.
A)True
B)False
Answer: True
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Chapter 3: Political Economy and Ethics
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100 Flashcards
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Sample Questions
Q1) The U.S.legal system is largely based on ________.
A) common law
B) social law
C) civil law
D) theocratic law
Answer: A
Q2) In a totalitarian political system,________.
A) political power resides with the citizens of the country
B) governments direct most economic activity but few social ones
C) an individualistic outlook shapes political debate and policy formation
D) one agent monopolizes political power
Answer: D
Q3) The ________ view says that a company should maintain its home-country ethics wherever it operates because the home-country's view of ethics and responsibility is superior to others' views.
A) Friedman
B) righteous moralist
C) cultural relativist
D) utilitarian
Answer: B
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Chapter 4: Economic Development of Nations
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Sample Questions
Q1) Both GDP and GNP measure a nation's income per person.
A)True
B)False
Q2) The relative ability of two countries' currencies to buy the same basket of goods in those two countries is called ________.
A) gross national product
B) gross domestic product
C) purchasing power
D) purchasing power parity
Q3) Which of the following statements is true about the political risks in a global marketing environment?
A) The political risk of low-income countries is lesser than high-income countries.
B) The more a country is developed, the greater is the political risk.
C) Political risk is a major deterrent for companies that want to invest abroad.
D) A country with high political risks attracts more investors.
Q4) Volunteer work and unpaid household work are not included in GNP.
A)True
B)False
Q5) How are countries classified? Explain with examples.
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Chapter 5: International Trade Theory
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Sample Questions
Q1) When a country's currency is stronger relative to other nations,domestic products are more expensive than imports.
A)True
B)False
Q2) Wallace's executive team reviews the stages of the international product life cycle to understand better what to expect when the product is sold overseas.Since there is virtually no export market for the product at present,the product is most likely in which of the following stages of the international product life cycle?
A) maturing product stage
B) new product stage
C) product decline stage
D) standardized product stage
Q3) According to mercantilism,what should a country's primary goal be?
A) protecting citizens from unfair labor practices
B) encouraging imports to prevent resource depletion
C) promoting exports to enlarge gold and silver holdings
D) ensuring sufficient labor for low-wage jobs in the textile industry
Q4) Explain how the theory of absolute advantage conflicts with the theory of mercantilism.
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Chapter 6: Political Economy of Trade
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) One of the main goals of the World Trade Organization is to ________.
A) encourage dumping among trading nations
B) restrict the free flow of trade
C) provide favorable terms of trade to a few selected countries
D) settle trade disputes among its members
Q2) The World Trade Organization can punish a company that exports a product at a price that is either lower than the price normally charged in its domestic market or lower than the cost of production.
A)True
B)False
Q3) A compound tariff on an imported product is calculated partly as a percentage of its stated price and partly as a specific fee for each unit.
A)True
B)False
Q4) What is meant by dumping? Describe the various roles of the World Trade Organization,including when a country is accused of dumping.
Q5) The automobile industry is typically protected for national security reasons. A)True
B)False
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Chapter 7: Foreign Direct Investment
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) Making investments in distribution in order to leapfrog channels of distribution that are tightly controlled by competitors is an example of ________.
A) an internalization advantage
B) an ownership advantage
C) forward integration
D) backward integration
Q2) What two factors propel growth in foreign direct investment?
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) Which of the following is used by home-country governments to promote outbound foreign direct investment?
A) political pressure
B) performance demands
C) ownership restrictions
D) sanctions
Q5) Discuss why a host country might promote or restrict foreign direct investment.
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Chapter 8: Regional Economic Integration
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111 Flashcards
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Sample Questions
Q1) The European Commission is the ________ body of the European Union.
A) legislative
B) executive
C) financial
D) monitoring
Q2) Like the European Union commissioners,EU justices are required to act in the interest of their native countries.
A)True
B)False
Q3) Canada and the United States are early examples of political unions.
A)True
B)False
Q4) A benefit of regional economic integration is that it always expands employment opportunities in all nations.
A)True
B)False
Q5) The Court of Justice is the court of appeals of the European Union.
A)True
B)False
Q6) Describe the structure of the European Union.
Page 10
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Chapter 9: International Financial Markets
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109 Flashcards
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Sample Questions
Q1) A currency used as an intermediary to convert funds between two other currencies in the foreign exchange market is called a ________.
A) local currency
B) vehicle currency
C) community currency
D) private currency
Q2) 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
Q3) A(n)________ is a system that allocates financial resources in the form of debt and equity according to their most efficient uses.
A) international equity market
B) forward market
C) capital market
D) eurocurrency market
Q4) Identify and explain the types of currency instruments used in the forward market.
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11
Chapter 10: International Monetary System
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Sample Questions
Q1) Which of the following states that the country with the higher interest rate should have the higher inflation?
A) the Fisher Effect
B) the International Fisher Effect
C) the Interest Rate Inflation Theory
D) the Forward rate theory
Q2) The International Fisher Effect implies that ________.
A) the country with the higher interest rate should have lower inflation
B) the currency of the country with the lower interest rate will strengthen in the future
C) the currency of the country with the higher interest rate will strengthen in the future
D) interest rates and inflation are not linked at all
Q3) 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.
Q4) Explain the differences between a monetary policy and a fiscal policy,and discuss why the IMF was established.
Q5) Compare and contrast the two main techniques for forecasting exchange rates.
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Chapter 11: International Strategy and Organization
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Sample Questions
Q1) A global strategy entails having a separate strategy for each nation in which a company markets its products.
A)True
B)False
Q2) The main benefit of a multinational strategy is that it allows companies 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
E) A and D
Q3) ________ decision making disperses decisions to lower organizational levels,such as to international subsidiaries.
A) Decentralized
B) Top-down
C) Authoritative
D) Top management
Q4) A joint venture is an example of a growth strategy of an organization.
A)True
B)False
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Chapter 12: Analyzing International Opportunities
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Sample Questions
Q1) When creating a market-potential indicator for an emerging market,an estimate of the wealth or buying power of a market can be formed by examining the ________.
A) market intensity
B) market growth rate
C) market size
D) market receptivity
Q2) Which of the following is not one of the three steps in increasing market share,revenue,and profits?
A) assess alternative markets
B) evaluate respective costs, benefits, and risks
C) perform a situation analysis
D) select market with most potential for entry or expansion
Q3) The potential to conduct written surveys is independent of the literacy rates among the local population.
A)True
B)False
Q4) What is country image? Explain how it affects the screening process using examples.
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Chapter 13: Selecting and Managing Entry Modes
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Sample Questions
Q1) Products for which there are fewer substitutes can more easily absorb higher shipping and production costs.
A)True
B)False
Q2) Countertrade is not an option for smaller companies because of the cash outlays involved.
A)True
B)False
Q3) A ________ joint venture is formed when each partner requires the same component in its production process.
A) backward
B) multistage
C) forward
D) buyback
Q4) The most important disadvantage of a strategic alliance is that it can create a future local or even global competitor.
A)True
B)False
Q5) What are the differences between a turnkey project and a strategic alliance?
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Chapter 14: Developing and Marketing Products
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Sample Questions
Q1) A(n)________ channel gives producers a good deal of control over the sale of their product by channel members such as wholesalers and retailers.
A) exclusive
B) intensive
C) two-level
D) selective
Q2) Which of the following products has a low value-density ratio?
A) semiconductors
B) emerald
C) crude oil
D) premium perfumes
Q3) The lower a product's value density,the more localized is the distribution system for that product.
A)True
B)False
Q4) Effective communication is when the message received is understood in the same way that the sender transmitted.
A)True
B)False
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Chapter 15: Managing International Operations
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Sample Questions
Q1) Today,due to improved technology,it is fairly easy to persuade an outside supplier to make significant modifications to a component.
A)True
B)False
Q2) How is process planning affected by a company's business-level strategy? How can outsourcing lower risk for firms?
Q3) ________ refers to a situation in which facilities are spread over several locations,with one facility for each national business environment in which the company markets its products.
A) Continuous production
B) Decentralized production
C) Vertical integration
D) Lean production
Q4) ________ refers to the concentration of production facilities in one location.
A) Lean production
B) Continuous production
C) Centralized production
D) Horizontal integration
Q5) What role does flexibility play in the make-or-buy decision?
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Chapter 16: Hiring and Managing Employees
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Sample Questions
Q1) The process of recruitment involves screening and hiring the best-qualified applicants with the greatest performance potential.
A)True
B)False
Q2) Culture shock affects an expatriate's job satisfaction level but does not tend to affect his or her effectiveness and productivity at work.
A)True
B)False
Q3) 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
Q4) Explain the advantages and disadvantages of a geocentric staffing policy,and discuss the effects of culture shock when assigning an employee to work in another country.
Q5) Briefly explain how companies compensate managers in international markets.
Q6) What factors influence the wages of non-managerial workers?
Page 18
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