Globalization and Business Test Bank
Course Introduction
This course explores the complex interplay between globalization and business, analyzing how multinational organizations operate across diverse economic, cultural, and regulatory environments. Students examine the drivers and challenges of global integration, including international trade, investment strategies, supply chain management, and the influence of global institutions. The course also investigates the impact of globalization on competition, ethics, sustainability, and local economies, equipping students with the critical skills and knowledge necessary to navigate the ever-evolving global business landscape.
Recommended Textbook
International Business The Challenges of Globalization 9th Edition by John J. Wild
Available Study Resources on Quizplus
16 Chapters
1650 Verified Questions
1650 Flashcards
Source URL: https://quizplus.com/study-set/2033
Page 2
Chapter 1: Globalization
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40400
Sample Questions
Q1) Jeans Unlimited manufactures its clothing at facilities located in two Southeast Asian countries.The dispersal of manufacturing activities by the company indicates
A) customization of products
B) niche marketing
C) globalization of markets
D) globalization of production
Answer: D
Q2) The rules of the international monetary system are enforced by the World Bank.
A)True
B)False
Answer: False
Q3) Extranets give distributors and suppliers access to a company's database to place orders or restock inventories electronically.
A)True
B)False
Answer: True
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/40401
Sample Questions
Q1) Folk customs that spread by cultural diffusion to other regions develop into popular customs.
A)True
B)False
Answer: True
Q2) A nuclear family comprises of one's immediate family,along with grandparents,uncles,aunts,and cousins.
A)True
B)False
Answer: False
Q3) Cultures that score high on uncertainty avoidance tend to be less open to change and new ideas.
A)True
B)False
Answer: True
Q4) Subcultures exist only within a nation's borders.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Political Economy and Ethics
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40402
Sample Questions
Q1) Laws designed to prevent companies from fixing prices,sharing markets,and gaining unfair monopoly advantages are called ________.
A) antitrust laws
B) theocratic laws
C) anarchist laws
D) bilateral laws
Answer: A
Q2) In a market economy,the patterns of resource allocation are most directly influenced by ________.
A) government administrators who monitor the equilibrium of supply and demand
B) industry coalitions that strive to improve the efficiency of production and service
C) consumer group alliances that negotiate with firms to improve product quality
D) consumers who "vote" by their personal decision to buy or not buy products
Answer: D
Q3) Totalitarian governments tend to favor government ownership of economic resources.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Economic Development of Nations
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/40403
Sample Questions
Q1) ________ is the value of goods and services that can be purchased with one unit of a country's currency.
A) Potential output
B) Gross national product
C) Purchasing power
D) Gross domestic product
Q2) Does greater economic freedom guarantee a higher standard of living? Provide examples of two specific countries to support your answer.
Q3) Expropriation is said to have occurred when a foreign national company dispossesses a home-country company through uncompetitive practices.
A)True
B)False
Q4) International companies never have to customize products to comply with local standards if they are to do business in a particular country.
A)True
B)False
Q5) Describe the Foreign Corrupt Practices Act,and explain how it relates to corporate social responsibility.
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 5: International Trade Theory
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40404
Sample Questions
Q1) The danger of trade dependency is that ________.
A) it often leads to the exploitation of developed countries
B) political turmoil in a country might affect all dependent countries
C) the countries involved in trade often get into rivalry over trade tariff issues
D) it is difficult to end trade activities with current trade partners and find new trade partners
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) The term ________ refers to the voluntary exchange of goods,services,assets,or money between one person or organization and another across national borders. A) sales
B) transaction
C) international trade D) strategic management
Q4) Mercantilism views competition for the world's wealth as a positive-sum game. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Political Economy of Trade
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/40405
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) The protection of infant industries by a nation's government can cause more economic harm than good.
A)True
B)False
Q3) Which of the following statements is true of tariffs?
A) They are the major source of government revenue in developed nations.
B) They increase products' appeal to buyers.
C) They lower the effective prices of imports.
D) They protect domestic producers.
Q4) ________ can occur when a firm sells its goods in a foreign market at a price below what it charges in its home market.
A) Predatory pricing
B) Dumping
C) Foreign trade duties
D) Subsidies
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Foreign Direct Investment
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/40406
Sample Questions
Q1) Which type of investment involves the acquisition of foreign assets for the purpose of controlling them?
A) foreign direct investment
B) foreign portfolio investment
C) capital investment
D) controlling ownership
Q2) Exports and imports of computer software,electronic components,and apparel are included in the ________ account of a country's balance of payments.
A) services
B) capital
C) merchandise
D) savings
Q3) Using any two of the four theories that appear in your text,explain why companies engage in foreign direct investment.
Q4) Which of the following systems of production is used by GMI?
A) job
B) craft
C) rationalized
D) customized
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
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/40407
Sample Questions
Q1) Which of the following statements is true of NAFTA?
A) It introduced a common currency for trade between the U.S., Mexico and Canada.
B) It overrode the local content requirements and rules of origin for products manufactured in the member nations.
C) It eliminated all tariffs and nontariff trade barriers on goods originating from within North America.
D) It called for stringent rules regarding government procurement practices and the imposition of countervailing duties.
Q2) Explain the Single European Act and how it helped to integrate Europe.How did the Single European Act help prompt the creation of NAFTA?
Q3) Explain how political cooperation is a benefit of regional integration.How has the Gulf Cooperation Council (GCC)evolved towards political cooperation?
Q4) The Court of Justice is the ________ of the European Union.
A) court of honor
B) court of appeals
C) small-claims court
D) arbitral tribunal
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: International Financial Markets
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/40408
Sample Questions
Q1) ________ is a decentralized exchange encompassing a global computer network of foreign exchange traders and other market participants.
A) Securities exchanges
B) Eurocurrency market
C) Interbank market
D) Over-the-counter market
Q2) Securitization is the unbundling and repackaging of hard-to-trade financial assets into liquid financial instruments.
A)True
B)False
Q3) Which of the following terms refers to a stock market with no central geographic location?
A) cybermarket
B) foreign exchange market
C) capital market
D) international bond market
Q4) Briefly describe the three main institutions of the foreign exchange market.
Q5) Describe the purposes of the international capital market.What factors account for its rapid growth?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: International Monetary System
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/40409
Sample Questions
Q1) Which of the following forecasting techniques employs statistical models based on key economic indicators to forecast exchange rates?
A) financial analysis
B) fundamental analysis
C) probability bounds analysis
D) technical analysis
Q2) What occurred at the Louvre Accord?
A) Central banks allowed the dollar's value to fall.
B) The value of the U.S. dollar was stabilized.
C) EU members adopted a common currency.
D) An exchange rate mechanism was established.
Q3) ________ is an activity under the monetary policy of a nation.
A) Increasing taxes
B) Lowering taxes
C) Increasing government spending
D) Selling government securities
Q4) Discuss the challenges involved in forecasting exchange rates.
Q5) Explain how exchange rates adjust to inflation.
Q6) Compare and contrast the two main techniques for forecasting exchange rates.
Q7) Briefly describe the gold standard,its advantages,and why it collapsed.
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/40410
Sample Questions
Q1) Describe the four key approaches to corporate strategy,providing an example of each.
Q2) Companies often establish largely independent,self-contained units in each of its national markets to implement a ________ strategy.
A) retrenchment
B) global
C) multinational
D) blue ocean
Q3) A team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems is referred to as a ________ team.
A) virtual
B) global team
C) cross-functional team
D) self-managed team
Q4) A low-cost leadership strategy typically requires a company to have a large market share.
A)True
B)False
Q5) Explain how a global strategy complements a corporate growth strategy.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Analyzing International Opportunities
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/40411
Sample Questions
Q1) If Matt wants to estimate an emerging market's spending capacity,he should focus on the ________.
A) population in the middle class
B) need for consumer products
C) demand for consumer and industrial products
D) volume of imports
Q2) During which stage of the market or site screening process do managers normally want to visit locations?
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
Q3) The key element of political risk of greatest concern for global companies is ________.
A) the cost of transporting materials and goods
B) government regulation, government bureaucracy, and political stability
C) currency and liquidity problems
D) letting past political events blind future opportunities
Q4) What types of information are found in a typical industry analysis? How can companies use this information?
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/40412
Sample Questions
Q1) Why would an exporter use a sales representative or a distributor? Why would the exporter be reluctant to offer an open account payment method?
Q2) In some countries,people exchange electronic goods for Techno Toys instead of paying money for them.This practice is known as ________.
A) offset
B) counterpurchase
C) switch trading
D) barter
Q3) Products for which there are fewer substitutes can more easily absorb higher shipping and production costs.
A)True
B)False
Q4) What is countertrade? Explain the concept of buyback as a type of countertrade,and discuss buyback as a joint venture configuration.
Q5) Low tariffs and high quota limits encourage market entry by means of investment. A)True
B)False
Q6) What are the different financing methods available to exporters and importers?
To view all questions and flashcards with answers, click on the resource link above. Page 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/40413
Sample Questions
Q1) Which of the following is a marketplace of underground transactions that typically appear because a product is either illegal or tightly regulated?
A) black market
B) niche market
C) two-sided market
D) vertical market
Q2) Which of the following is true of the value densities of products?
A) The cost of transporting goods with high value-density ratios is high relative to their value.
B) Products with high value-density ratios are integrated into the manufacturing process at points close to their original locations.
C) Most commodities, including cement, iron ore, and crude oil, have high value-density ratios.
D) The lower a product's value density, the more localized the distribution system.
Q3) Counterfeiting is common among highly visible brand-name consumer goods.
A)True
B)False
Q4) How does the dual extension method work as a promotional strategy?
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Managing International Operations
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40414
Sample Questions
Q1) The process by which a company extends its control over additional stages of production is called vertical integration.
A)True
B)False
Q2) Explain the concept of capital structure as it applies to a company with international operations.
Q3) ________ refers to the concentration of production facilities in one location.
A) Lean production
B) Continuous production
C) Centralized production
D) Horizontal integration
Q4) American Depository Receipts (ADRs)are ________.
A) certificates that represent shares of stock in American companies
B) dollar deposits made by foreign firms conducting business in the U.S.
C) certificates that trade in the U.S. and represent shares of stock in a non-U.S. company
D) currency deposits made in the U.S. by firms based in other countries
Q5) Capacity planning applies only to manufacturing companies.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Hiring and Managing Employees
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/40415
Sample Questions
Q1) The approach recommended by Valerie is called ________.
A) polycentric staffing
B) ethnocentric staffing
C) vertical integration
D) horizontal integration
Q2) ________ allows labor representatives in Germany to participate in high-level company meetings by actually voting on proposed actions.
A) Centralization
B) Codetermination
C) Individualism
D) Authoritarianism
Q3) The process of reducing the size of an organization's workforce is called decruitment.
A)True
B)False
Q4) A major drawback of geocentric staffing is that it is expensive.
A)True
B)False
Q5) Briefly explain how companies compensate managers in international markets.
Q6) What factors influence the wages of non-managerial workers?
To view all questions and flashcards with answers, click on the resource link above. Page 18