Global Business Environment
Review Questions
Course Introduction
The Global Business Environment course provides an in-depth exploration of the dynamic and complex factors that shape international business operations. Students will examine the economic, political, legal, cultural, and technological forces influencing global markets, with an emphasis on how companies adapt strategies to manage risks and seize opportunities across borders. Through case studies and current events, the course encourages critical analysis of globalization, trade policies, cross-cultural management, and ethical considerations, preparing students to effectively navigate the challenges and opportunities of conducting business in a globally interconnected world.
Recommended Textbook
International Business The Challenges of Globalization 7th Global Edition by John Wild
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16 Chapters
1669 Verified Questions
1669 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/41907
Sample Questions
Q1) Products marketed in all countries essentially without any changes are known as continental products.
A)True
B)False
Answer: False
Q2) 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
Answer: C
Q3) The General Agreement on Tariffs and Trade (GATT)was designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.
A)True
B)False
Answer: True
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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) Which of the following is a cultural component that implies gauging the beauty and appeal of artwork?
A)customs
B)mores
C)folkways
D)aesthetics
Answer: D
Q2) Businesspeople measure material culture to determine whether a market can support production activities.
A)True
B)False
Answer: True
Q3) Cultural change occurs when people integrate into their culture the gestures,material objects,traditions,or concepts of another culture through ________.
A)ethnocentricism
B)cultural diffusion
C)social stratification
D)xenocentrism
Answer: B
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Page 4
Chapter 3: Politics, Law, and Business Ethics
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Which of the following does the secondary footprint measure?
A)the burning of fossil fuels
B)direct energy consumption
C)indirect carbon dioxide emissions
D)emissions caused by natural forces
Answer: C
Q2) A legal tradition based on religious teachings is called ________ law.
A)democratic
B)common
C)civil
D)theocratic
Answer: D
Q3) Global Trading just learned that the government of one country in which it does business has taken over the entire electric utility industry.The government's actions are an example of ________.
A)confiscation
B)globalization
C)expropriation
D)nationalization
Answer: D
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Chapter 4: Economics and Emerging Markets
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Businesspeople who accept the risks and opportunities involved in creating and operating new business ventures are called ________.
A)managers
B)supervisors
C)entrepreneurs
D)angel investors
Q2) Does greater economic freedom guarantee a higher standard of living? Provide examples of two specific countries to support your answer.
Q3) Which of the following is a major obstacle to economic transition?
A)lack of government support
B)environmental degradation
C)privatization
D)black markets
Q4) Discuss the challenges China faces as it continues its experiment on "socialism with Chinese characteristics."
Q5) Compare and contrast the business environments in China and Russia.
Q6) Both GDP and GNP measure a nation's income per person.
A)True
B)False
Page 6
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Chapter 5: International Trade
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) The theory of comparative advantage was proposed by ________.
A)David Ricardo
B)Adam Smith
C)Bertil Ohlin
D)Raymond Vernon
Q2) How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.
Q3) A third country,Funland,also produces food and drinks.In Funland,one resource unit produces 8 tons of food and 6 tons of drinks.Which of the following is true about Funland,Foodland,and Drinkland?
A)Funland has a comparative advantage in producing drinks.
B)Funland has a comparative advantage in producing food.
C)Funland has an absolute advantage in producing food.
D)Funland has an absolute advantage in producing drinks.
Q4) The theory of absolute advantage measures a nation's wealth by the standard of living of its people.
A)True
B)False
Q5) Explain mercantilism.What were its major flaws?
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Chapter 6: Business-Government Trade Relations
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) Which of the following is a method of restricting trade?
A)export financing
B)local content requirements
C)subsidy
D)foreign trade zones
Q2) A tariff levied by the government of a country that a product is passing through on its way to a final destination is called a ________ tariff.
A)transit
B)compound
C)export
D)specific
Q3) A country that believes an imported product is being sold in its market for a price lower than the cost of production for the product may impose a(n)________ in retaliation.
A)countervailing duty
B)ad valorem tariff
C)antidumping duty
D)compound tariff
Q4) Describe the main political motives behind government intervention in trade.
Q5) Describe the purpose of a foreign trade zone.How is it used to promote trade?
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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) Increasing globalization is causing a growing number of international companies from emerging markets to undertake FDI.
A)True
B)False
Q2) If Blickinstock's home government tries to stop the company from investing in Latin America,the government is most likely trying to ________.
A)protect its balance of payments
B)prevent a monopoly situation from occurring
C)discourage the entry of a "sunset" company
D)protect the "sunset" companies in Latin America
Q3) GMI's subsidiary for component B in Thailand is best described as a(n)________.
A)greenfield investment
B)portfolio investment
C)acquisition
D)merger
Q4) Describe any three management issues involved in foreign direct investment decisions.
Q5) Explain the theory of market imperfections and describe the two major market imperfections.
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Chapter 8: Regional Economic Integration
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The regional trade agreement between Canada,Mexico,and the United States to eliminate tariffs and non-tariff barriers between themselves is known as the ________.
A)Central American Free Trade Agreement
B)Andean Community
C)Caribbean Community and Common Market
D)North American Free Trade Agreement
Q2) The European Commission is the ________ body of the European Union.
A)legislative
B)executive
C)financial
D)monitoring
Q3) Describe the structure of the European Union.
Q4) Regional economic integration is also referred to as ________.
A)mercantilism
B)nationalism
C)protectionism
D)regionalism
Q5) Briefly describe regional integration efforts in Central America and the Caribbean.
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Chapter 9: International Financial Markets
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Interest arbitrage is the profit-motivated purchase and sale of interest-paying securities denominated in different currencies.
A)True
B)False
Q2) If ABC Software holds a currency option to purchase Swiss francs at SF 1.67/$ in 30 days,at the end of which the exchange rate is SF1.70/$,then ABC Software ________.
A)is required to follow through on a currency exchange
B)has succeeded in hedging against exchange rate risk
C)would exercise its currency option
D)would not exercise its currency option
Q3) Banks in the interbank market ________.
A)provide long-term loans to small-sized and medium-sized companies
B)provide long-term loans to large companies
C)offer advice on trading strategies
D)exchange currencies exclusively at spot rates
Q4) The spread of privatization encourages the growth of the international equity market.
A)True B)False
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Chapter 10: International Money System
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Under the gold standard,if the U.S.dollar was fixed at $30/oz of gold and Japan was fixed at ¥75/oz of gold,what would be the Yen/dollar exchange rate?
A)¥2.50/$
B)$2.50/¥
C)¥0.40/$
D)¥2250/$
Q2) The inefficient market view holds that prices of financial instruments ________.
A)are dependent on political efficiency
B)are not dependent on political efficiency
C)do not reflect all publicly available information
D)reflect all publicly available information at any given time
Q3) Which of the following lowers the price of a country's exports on world markets and increases the price of its imports?
A)revaluation
B)devaluation
C)currency hedging
D)currency arbitrage
Q4) Explain how a pegged exchange-rate system works. Why would a country choose to follow this system?
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Chapter 11: International Strategy and Organization
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112 Flashcards
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Sample Questions
Q1) Which of the following strategies should TeleToys follow if it wants buyers to perceive its products as unique?
A)retrenchment strategy
B)global strategy
C)differentiation strategy
D)low-cost leadership strategy
Q2) Free-market economies tend to levy high taxes on business profits whereas socialist economic systems normally levy lighter taxes.
A)True
B)False
Q3) The main benefit of a global strategy is that it allows companies to monitor buyer preferences closely in each local market.
A)True
B)False
Q4) A growth strategy is designed to increase the scale or scope of a corporation's operations.
A)True
B)False
Q5) Explain how a global strategy complements a corporate growth strategy.
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Chapter 12: Analyzing International Opportunities
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106 Flashcards
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Sample Questions
Q1) When screening a potential market,which of the following would you advise John to do first?
A)assess the national business environment
B)select the market
C)identify basic appeal for markets
D)measure market potential
Q2) A(n)________ is an international trip by government officials and businesspeople that is organized by agencies of national or provincial governments for the purpose of exploring international business opportunities.
A)focus group
B)field research
C)expo
D)trade mission
Q3) Research in which people record information in personal diaries on their attitudes,behaviors,or purchasing habits is called a ________.
A)survey
B)focus group
C)consumer panel
D)literature review
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Page 14
Chapter 13: Selecting and Managing Entry Modes
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106 Verified Questions
106 Flashcards
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Sample Questions
Q1) If Owen's HomeCare Products decides to sell their products to intermediaries who then resell them to buyers in target markets,the company would be engaging in
A)indirect exporting
B)counterpurchase
C)an acquisition
D)a joint venture
Q2) Which of the following statements is true of the strategic factors that influence a company's international entry mode selection?
A)Low tariffs and high quota limits encourage market entry by means of investment.
B)Companies that produce goods with high shipping costs prefer exporting.
C)Companies set up production units in a host market if the total cost of production is lower in the home market.
D)Markets that are likely to remain relatively small consider exporting as a viable option.
Q3) Using a distributor increases an exporter's risk.
A)True
B)False
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Chapter 14: Developing and Marketing Products
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103 Verified Questions
103 Flashcards
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Sample Questions
Q1) The value customers obtain from a product is heavily influenced by the image of the country in which the product is manufactured.
A)True
B)False
Q2) Developed nations normally have the most active counterfeiting markets.
A)True
B)False
Q3) Which of the following refers to the price charged for products sold between a company's divisions or subsidiaries?
A)dual pricing
B)transfer price
C)price skimming
D)arm's length price
Q4) Which of the following reflects the correct sequence of the marketing communication process?
A)promotional message;encoding;decoding;feedback
B)encoding;promotional message;decoding;feedback
C)promotional message;decoding;feedback;encoding
D)encoding;decoding;promotional message;feedback
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Chapter 15: Managing International Operations
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99 Flashcards
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Sample Questions
Q1) Companies usually decide to reinvest when a market is experiencing rapid growth.
A)True
B)False
Q2) ________ is the financing obtained from investors who believe the borrower will experience rapid growth and who receive equity in return for their investment.
A)Internal funding
B)Venture capital
C)Credit derivative
D)Mortgage loan
Q3) Which of the following is most likely a potential benefit for Echo if it outsources some of its manufacturing activities?
A)heightened communications awareness
B)increased activity in e-commerce sales
C)strong intellectual property protection
D)eliminating the exposure of assets to political risk
Q4) Availability and cost of labor in the local market is crucial to process planning.
A)True
B)False
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Chapter 16: Hiring and Managing Employees
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101 Flashcards
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Sample Questions
Q1) Codetermination allows labor representatives to participate in high-level company meetings.
A)True
B)False
Q2) Citizens who are working and living in their home country are called expatriates.
A)True
B)False
Q3) Companies typically recruit locally for nonmanagerial positions.
A)True
B)False
Q4) The major drawback of polycentric staffing is the potential for losing control of the host-country operation.
A)True
B)False
Q5) An ethnocentric policy toward staffing is typically reserved for top-level managers.
A)True
B)False
Q6) Briefly explain how companies compensate managers in international markets.
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