Globalization and Business Solved Exam Questions
Course Introduction
This course examines the multifaceted relationship between globalization and the contemporary business environment. Students will explore how global economic integration, cultural exchanges, and technological advancements influence business strategies and operations across borders. Key topics include international trade theories, global supply chain management, cross-cultural communication, multinational enterprise strategies, and the impact of global regulations and political dynamics on business practices. Through case studies and real-world examples, the course prepares students to understand and navigate the opportunities and challenges that globalization presents for organizations and economies worldwide.
Recommended Textbook
International Business Competing in the Global Marketplace 10th Edition by Charles
Available Study Resources on Quizplus
20 Chapters
2123 Verified Questions
2123 Flashcards
Source URL: https://quizplus.com/study-set/2819
Page 2
W. L. Hill
Chapter 1: Globalization
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56137
Sample Questions
Q1) Which of the following is NOT an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?
A) Reduced tariffs on imports of manufactured goods
B) Government regulations
C) Issues associated with economic and political risk
D) Barriers to foreign direct investment
Answer: A
Q2) _____ occurs when a firm exports goods or services to consumers in another country.
A) International trade
B) Foreign direct investment
C) Inward investment
D) Outsourcing
Answer: A
Q3) According to supporters of free trade, as countries get richer they commit greater violation of environmental and labor regulations.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: National Differences in Political Economy
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/56136
Sample Questions
Q1) A _____ system is based on a very detailed set of laws organized into codes.
A) traditional law
B) theocratic law
C) civil law
D) common law
Answer: C
Q2) Safety standards to which a product must adhere are set by:
A) safety certifications.
B) contract laws.
C) product safety laws.
D) product liability laws.
Answer: C
Q3) Which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle?
A) Socialism
B) Individualism
C) Collectivism
D) Anarchism
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Political Economy and Economic Development
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56135
Sample Questions
Q1) One of the reasons for the spread of democracy is the emergence of increasingly prosperous middle and working classes who have pushed for democratic reforms.
A)True
B)False
Answer: True
Q2) The influential Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until ____.
A) they have political stability
B) they invest in infrastructural development
C) they have better defined and secure property rights
D) they have adequate market regulation
Answer: C
Q3) Since the late 1980s, there has been a strong move away from a more free market economic model and toward a more centrally planned and mixed economies.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Differences in Culture
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/56134
Sample Questions
Q1) Discuss the spoken language. Which is the most spoken language in the world? What language is used in business? Is it important to learn a foreign language?
Q2) What are the implications of cultural differences for international businesses?
Q3) For international businesses, the connection between culture and competitive advantage is important because:
A) a weak connection is likely to encourage isolationism.
B) a weak connection is likely to encourage competition.
C) a strong connection is likely to produce the most viable competitors.
D) a strong connection is likely to hamper innovation.
Q4) Consider the importance of unspoken language. Why is it important to be familiar with the unspoken language of another culture?
Q5) Which of the following is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime?
A) Caste system
B) Class system
C) Social system
D) Cultural system
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Ethics in International Business
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56133
Sample Questions
Q1) The utilitarian approaches to ethics hold that the moral worth of actions or practices is determined by their consequences.
A)True
B)False
Q2) Which of the following enables managers to walk away from a decision that is profitable, but unethical?
A) Noblesse oblige
B) Moral courage
C) The difference principle
D) The Friedman doctrine
Q3) A firm's organizational culture refers to the values and norms that are shared among employees of an organization.
A)True
B)False
Q4) In a business setting, noblesse oblige is taken to mean benevolent behavior that is the responsibility of successful enterprises.
A)True
B)False
Q5) Why do managers behave in a manner that is unethical?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: International Trade Theory
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56132
Sample Questions
Q1) Ricardo's theory makes fewer simplifying assumptions compared to Heckscher-Ohlin theory.
A)True
B)False
Q2) Explain how the rivalry within an industry affects international competence.
Q3) Which of the following accounts records transactions that involve the purchase or sale of assets?
A) Capital account
B) Current account
C) Principal account
D) Financial account
Q4) A key assumption in the Heckscher-Ohlin theory is that technologies are the same across countries.
A)True
B)False
Q5) A country has an absolute advantage in the production of a product when it ____.
A) has the capability to produce the product within its boundaries
B) is more efficient than any other country in producing it
C) has the largest domestic demand for the product
D) has access to the raw materials needed to produce the product
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Political Economy of International Trade
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56131
Sample Questions
Q1) Local content regulations provide protection for a domestic producer of parts by limiting foreign competition.
A)True
B)False
Q2) According to the _____ argument, governments should temporarily support new industries until they have grown strong enough to meet international competition.
A) retaliatory action
B) human rights
C) infant industry
D) antidumping
Q3) Protecting industries deemed important for national security, and retaliating against unfair foreign competition are economic arguments for intervention.
A)True
B)False
Q4) Discuss the Doha Round of trade talks.
Q5) Discuss the establishment of GATT. What was GATT's objective?
Q6) Why are tariff rates on agricultural products generally higher than tariff rates on manufactured products or services?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Foreign Direct Investment
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56130
Sample Questions
Q1) Countries adopting a pragmatic stance pursue policies designed to maximize the national benefits and minimize the national costs.
A)True
B)False
Q2) A country rejects FDI proposals in certain industries. It does so because the tangible advantages of such investments are lesser than potential costs like loss of employment and reduction of overall well-being. However, it aggressively pursues inviting foreign investments in sectors like infrastructure, education, and healthcare because of the benefits that accrue with them. Which political view of FDI is discussed in this example?
A) The pure market view
B) The free market view
C) The radical view
D) The pragmatic nationalist view
Q3) Why do many economists favor internalization theory as an explanation for FDI compared to Knickerbocker's theory?
Q4) How does the free market view support FDI?
Q5) What is multipoint competition? How do firms respond to multipoint competition?
Q6) Discuss the pragmatic nationalist view toward FDI.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Regional Economic Integration
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56129
Sample Questions
Q1) The Treaty of Rome, signed in 1957, established the European Free Trade Association.
A)True
B)False
Q2) Linking neighboring countries economically and making them interdependent creates incentives to increase political cooperation as well.
A)True
B)False
Q3) _____ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.
A) Trade deficit
B) Trade diversion
C) Trade creation
D) Trade distortion
Q4) There are two main trading blocs in Europe, the European Union and the European Free Trade Association.
A)True
B)False
Q5) What prompted the formation of the European Union?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: The Foreign Exchange Market
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56128
Sample Questions
Q1) Explain the difference between fundamental analysis and technical analysis.
Q2) Why do governments limit currency convertibility?
A) To preserve foreign exchange reserves.
B) To spend foreign exchange reserves.
C) To keep domestic companies from investing abroad.
D) To allow nonresidents to convert money to foreign currencies.
Q3) The value of a currency is determined by the interaction between the demand and supply of that currency relative to the demand and supply of other currencies.
A)True
B)False
Q4) The PPP theory tells us that a country with a high inflation rate will see depreciation in its currency exchange rate.
A)True
B)False
Q5) Compare and contrast the Fisher Effect and the International Fisher Effect.
Q6) What is the difference between a spot exchange rate and a forward exchange rate?
Q7) Consider the role of investor psychology and bandwagon effects on how well PPP and the International Fisher Effect explain short-term movements in exchange rates.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: The International Monetary System
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56127
Sample Questions
Q1) Which of the following is a disadvantage of using a rigid policy of fixed exchange rates?
A) It is likely to create high unemployment in some cases.
B) It will lead to inflationary economies across the world.
C) It is likely to bring about trade wars between nations.
D) It will instigate competitive devaluations and intense competition.
Q2) The quality of investments declined significantly in the Asian countries during the 1990s.
A)True
B)False
Q3) A currency board system limits the ability of the government to print money and, thereby, create inflationary pressures.
A)True
B)False
Q4) World Bank offers low-interest loans to risky customers whose credit rating is often poor.
A)True
B)False
Q5) Discuss the pegged exchange rate regime.
Q6) Discuss the criticism that IMF is exacerbating a problem called moral hazard.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: The Global Capital Market
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56126
Sample Questions
Q1) An equity loan is made when ____.
A) a corporation pledge equities or other assets to borrow money
B) corporations avail cash loans from individuals
C) a corporation sells stock to investors
D) corporations issue bonds to individual investors
Q2) Which of the following is a disadvantage of the integration facilitated by technology?
A) Segregated international capital markets will emerge as a result of technology.
B) Complexity in processing large volumes of data will increase.
C) Shocks that occur in one financial center will spread globally.
D) Systems integration hinders real-time data transfer across different countries.
Q3) Market makers are ____.
A) financial service companies that connect investors and borrowers
B) nonbank financial institutions who want to invest money
C) high net worth individuals with surplus cash to reinvest
D) those who want to borrow money including individuals, companies, and governments
Q4) Write a brief note on foreign exchange risks and the cost of capital.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: The Strategy of International Business
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56125
Sample Questions
Q1) In a multinational enterprise, skills are always generated at the headquarters location and are then dispersed to the rest of the organization.
A)True
B)False
Q2) Responding to pressure for _____ requires that a firm differentiate its product offering and marketing strategy from country to country.
A) cost reductions
B) experience effects
C) lowering the costs of value creation
D) being locally responsive
Q3) Which of the following is NOT associated with firms following the global standardization strategy?
A) Low pressures for local responsiveness
B) Use cost advantage to support aggressive pricing in world markets
C) High pressures for cost reductions
D) Customize product offering and marketing strategy to local conditions
Q4) Discuss efficiency frontier. How does strategic positioning relate to the efficiency frontier?
Q5) How can a firm increase its profitability?
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: The Organization of International Business
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56124
Sample Questions
Q1) Organizational structure refers to the totality of a firm's organization.
A)True
B)False
Q2) A firm that needs greater flexibility should choose _____ for its decision-making.
A) horizontal differentiation
B) decentralization
C) localization strategy
D) control systems
Q3) In practice, the dual-hierarchy in a global matrix structure:
A) lessens all forms of conflict.
B) makes it easy to ascertain accountability.
C) results in extremely quick decision making.
D) can lead to perpetual power struggles.
Q4) In firms pursuing a transnational strategy, some operating decisions are relatively centralized, while others are relatively decentralized.
A)True
B)False
Q5) Discuss the type of firm that uses the worldwide product division structure.
Q6) What are the basic principles for successful organizational change?
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Entry Strategy and Strategic Alliances
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/56123
Sample Questions
Q1) Discuss the advantage of establishing a greenfield venture in a foreign country.
Q2) Discuss some of the disadvantages of establishing greenfield venture in a foreign country.
Q3) The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.
A)True
B)False
Q4) Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad.
A)True
B)False
Q5) A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with ____.
A) scale economies
B) diseconomies of scale
C) pioneering costs
D) diseconomies of scope
Q6) Explain the relationship between first-mover disadvantages and pioneering costs.
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Exporting, Importing, and Countertrade
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56122
Sample Questions
Q1) Which of the following is a common difficulty that traders face when exporting goods or services to other countries?
A) Small firms tend to be more aggressive than larger firms in global trade.
B) Governments do not provide much assistance to exporters.
C) Growth opportunities are often limited in global markets.
D) Exporters often face voluminous paperwork and complex formalities.
Q2) A draft used in international transactions ____.
A) is a document requesting payment
B) explains the conditions of a contract
C) is the same as a letter of credit
D) gives bank guarantee to an exporter
Q3) In theory, the advantage of EMCs is that they are __________________.
A) managed by governments that provide export subsidies
B) not-for-profit organizations that provide free service
C) subsidized by the Department of Commerce
D) experienced specialists who can help the neophyte exporter
Q4) Foreign borrowers can avail loans from Ex-Im Bank to pay U.S. suppliers.
A)True
B)False
Q5) What type of firms is most likely to engage in countertrade? Why?
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Global Production, Outsourcing, and Logistics
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56121
Sample Questions
Q1) Describe global learning with reference to foreign subsidiaries of a firm.
Q2) Which of the following is a hidden cost associated with basing production in a foreign location?
A) Cost of labor within the location
B) High employee turnover
C) Transportation costs
D) Differences in the value of currency
Q3) Strategic alliances build trust between the firm and its suppliers.
A)True
B)False
Q4) Upward migration in the strategic role of foreign production sites arises when they upgrade their own capabilities.
A)True
B)False
Q5) Which of the following makes being dependent on one location particularly risky?
A) Governmental intervention in exchange rates
B) Floating exchange rates
C) Fixed exchange rates
D) Preferential treatment of domestic industries
Q6) Explain how the strategic role of foreign factories evolves over time.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Global Marketing and RD
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/56120
Sample Questions
Q1) Discuss the notion of a product being a bundle of attributes. How can approaching a product in this manner help a firm reach its target market?
Q2) Which of the following statements about the choice of distribution strategy is true?
A) The longer a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.
B) If price is an important competitive weapon and if the firm does not want to see its profit margins squeezed, other things being equal, the firm would prefer to use a longer channel.
C) The shorter a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.
D) An international business must use shorter channels in countries where the retail sector is fragmented and longer channels in countries where the retail sector is concentrated.
Q3) The structure of market segments may differ significantly from country to country.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Global Human Resource Management
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56119
Sample Questions
Q1) An expatriate's base salary normally varies from the base salary for a similar position in the home country.
A)True
B)False
Q2) What is the most important advantage of using a geocentric staffing policy?
A) It enables the firm to build a cadre of international executives who feel at home working in a number of cultures.
B) It may be less expensive to implement than other policies, reducing the costs of value creation.
C) The higher pay managers on an international fast track enjoy is a source of inspiration within a firm.
D) It reduces the need for futile and time consuming documentation.
Q3) Expatriate managers who have perceptual ability tend to treat foreign nationals as if they were home-country nationals.
A)True
B)False
Q4) Discuss why the repatriation process is so difficult for so many expatriates.
Q5) What are the advantages of the geocentric staffing policy?
Q6) What are the three types of training for expatriate managers?
Page 21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Accounting and Finance in the International Business
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/56118
Sample Questions
Q1) Part of the benefit that a parent company receives by receiving payment through royalties can be lost if the subsidiary's _____.
A) combined tax rate is higher than the parent's
B) local government views royalties as an expense
C) local tax rates on profits are extremely high
D) managers are controlled directly by the parent
Q2) A tax treaty between two countries is formed to fix the exchange rates between the two countries.
A)True
B)False
Q3) What are the shortcomings of IASB?
Q4) Which of the following combinations of exchange rates was ruled out by Lessard and Lorange as illogical and unreasonable?
A) Translating budget using ending rate and translating actual performance using initial rate
B) Translating both actual performance and budget using projected rate
C) Translating both actual performance and budget using initial rate
D) Translating budget using projected rate and translating actual performance using ending rate
To view all questions and flashcards with answers, click on the resource link above.