Globalization and Business Test Bank
Course Introduction
This course explores the complex relationship between globalization and business, examining how global economic integration impacts firms, industries, and markets. Students will analyze the opportunities and challenges presented by globalization, including international trade, cross-border investment, cultural diversity, and the evolution of global supply chains. Key topics include the role of multinational corporations, the dynamics of global competition, ethical considerations, and the effects of technological advancements on global business operations. Through case studies and real-world examples, learners will gain a comprehensive understanding of how businesses adapt strategies to thrive in an increasingly interconnected world.
Recommended Textbook
International Business The Challenge of Global Competition 13th Edition by Donald Ball\
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18 Chapters
1778 Verified Questions
1778 Flashcards
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Chapter 1: The Challenging World of International Business
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Sample Questions
Q1) Uncontrollable forces are external forces over which management cannot exert any influence.
A)True
B)False
Answer: False
Q2) There are many outstanding international career opportunities for people with desirable interpersonal and language skills that are not in mainstream business but may require basic business expertise.
A)True
B)False
Answer: True
Q3) The forces over which management does have some command are called:
A) internal.
B) controllable.
C) foreign.
D) external
E) two of the above.
Answer: E
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Page 3
Chapter 2: International Trade and Foreign Direct Investment
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103 Verified Questions
103 Flashcards
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Sample Questions
Q1) The proportion of the outstanding stock of foreign direct investment accounted for by the United States declined by two-thirds between 1980 and 2010.
A)True
B)False
Answer: False
Q2) Which of the following is explained by international trade theory?
A) Differences in production costs
B) Differences in levels of technology
C) Foreign exchange rates
D) Differences in efficiency of factor use
E) All of the above
Answer: E
Q3) Importing and foreign direct investment are two approaches to meeting overseas demand.
A)True
B)False
Answer: False
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Chapter 3: International Institutions From an International Business Perspective
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Sample Questions
Q1) The WTO supports trade with discrimination as a basic right of trading nations.
A)True
B)False
Answer: False
Q2) The results of liberalized trade so far have been:
A) beneficial for developing economies.
B) harmful for developing economies.
C) unconnected to developed economies.
D) uneven for developing and developed economies.
Answer: D
Q3) Regional trade agreements such as NAFTA can be seen to impact the WTO:
A) negatively, because they undercut the nondiscrimination principle of the WTO.
B) positively, because they extend most-favored-nation status to more nations.
C) negatively, because they compete with the WTO for membership, since nations can belong to only one trade group.
D) negatively, because the United States and the EU do not have a regional trade agreement between them.
Answer: A
Page 5
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Chapter 4: Sociocultural Forces
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Sample Questions
Q1) Material culture describes how people make things, who makes what, and why.
A)True
B)False
Q2) According to Trompenaars, a culture's attitude toward the environment can range from:
A) peaceful to warlike.
B) overwhelmed by aesthetics to dominating the environment.
C) control over the environment to harmony with it.
D) submission to atheism.
Q3) Trompenaars' particularist dimension describes a culture in which:
A)people apply the rules equally to everyone.
B)context is considered when rules are applied.
C)relationships rather than rules regulate behaviors.
D) B and C.
Q4) The Trompenaars dimension that describes a society whose rules regulate behaviors for all members and are applied evenly is:
A) particularist.
B) universalist.
C) feminist.
D) specific.
Page 6
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Chapter 5: Natural Resources and Environmental Sustainability
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Sample Questions
Q1) The International Energy Agency 2010 report observes that an energy revolution underway may well lead to:
A) a 27 percent drop in oil usage.
B) North America becoming the center of alternative energy research.
C) Africa and the Middle East increasingly relying on fossil fuels.
D) Europe relying increasingly on nuclear.
Q2) Nonfuel minerals:
A) include chrome, manganese, platinum, and arsenic, all necessary for modern living.
B) are mostly sourced through imports in the United States.
C) frequently originate in China.
D) all of the above.
Q3) Instead of declining, this nonrenewable energy source, because of its lack of pollution and the rising price of oil, has seen significant growth:
A) wind power.
B) nuclear power.
C) geothermal power.
D) petroleum.
Q4) Explain the concept of sustainability as applied to business, using examples.
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Chapter 6: Political and Trade Forces
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Sample Questions
Q1) The only reason firms are nationalized is to spread a socialist-communist ideology.
A)True
B)False
Q2) Nonquantitative nontariff barriers:
A) are seen by many to be the most significant nontariff barrier.
B) often involve government participation in trade, especially in customs and other administrative procedures.
C) often involve standards.
D) all of the above.
E) two of A, B, and C.
Q3) A variable levy confers benefit on the domestic producer, as with the EU variable levy on grain.
A)True
B)False
Q4) Nuisance tariffs require importers to go through the administrative paperwork connected to paying tariffs, even though the payment itself might be quite small.
A)True
B)False
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Chapter 7: Intellectual Property and Other Legal Forces
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Sample Questions
Q1) In the United States, punitive damage rulings have no measureable effect on medicine.
A)True
B)False
Q2) Patent trolls are:
A) a record of all patents, recorded by the UN.
B) the numerical controls issued on patents, standardized by the Paris Convention.
C) the organizing system for patent review that is kept internationally by the OECD.
D) modern highway robbers who exploit loopholes in IP protection.
E) the framework used for filing and referencing patents.
Q3) The Foreign Corrupt Practices Act has:
A) carried the discussion of transparency and corruption out into the open.
B) impaired American competitiveness abroad.
C) jailed legions of corrupt foreign executives in the United States.
D) introduced clear, concise terminology into the discussion of corruption.
E) been based on the United Kingdom Bribery Act.
Q4) One of the first issues the chapter addresses is the rule of law. Explain this concept's importance to an international manager.
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Page 9
Chapter 8: The International Monetary System and Financial Forces
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Sample Questions
Q1) The Fisher effect describes interest rate parity; it's the law of one price applied to interest rates. Interest rates vary to take into account anticipated differences in inflation levels.
A)True
B)False
Q2) Brazil, India, and the United States are among the highest corporate tax locations.
A)True
B)False
Q3) What is appealing about the gold standard is:
A) everyone loves gold.
B) its simplicity.
C) its transportability.
D) its carrying costs.
Q4) A vehicle currency is a currency:
A) used to trade in the transportation sector and is usually the dollar, euro, or yen.
B) whose value lies in its function in transfer pricing.
C) specifically used in arbitrage deals as a trading medium only.
D) used for international trade or investment.
Page 10
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Chapter 9: International Competitive Strategy
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Sample Questions
Q1) Value chain linkages must be examined not merely across activities within the company but also in terms of managing relationships with external entities such as suppliers, alliance partners, distributors, or customers within and across nations.
A)True
B)False
Q2) Although strategic planning is not a widely used management tool among global executives, according to a Bain & Company survey there is a high level of satisfaction among those executives who do utilize strategic planning.
A)True
B)False
Q3) An analysis of the forces controlled by the firm will include a situational analysis and control analysis.
A)True
B)False
Q4) The planning process that begins at the highest level in the organization and continues downward is top-down planning.
A)True
B)False
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11
Chapter 10: Organizational Design and Control
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Sample Questions
Q1) According to the text, every successful company uses controls to put its plans into effect, evaluate, correct, and reward.
A)True
B)False
Q2) Control activities:
A) are the efforts to develop strategic plans for an organization.
B) are needed more by domestic companies than international companies. C) should be linked to evaluation and reward systems.
D) none of the above.
E) two of A, B, and C.
Q3) Hybrid organizations are often the result of a regionally organized company having introduced a new and different product from what the regionally organized form is accustomed to handling.
A)True
B)False
Q4) A form of organization characterized by lateral decision processes, horizontal networks, and a strong corporatewide business philosophy is a horizontal corporation.
A)True
B)False
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Chapter 11: Global Leadership Issues and Practices
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Sample Questions
Q1) With regard to globalization's complexity, the condition of multiplicity means that:
A) many currencies may be used.
B) financial markets may have different rules.
C) there are many more players and many more relationships to maintain.
D) increased ambiguity can work in the global leader's favor.
E) allocate power.
Q2) Some of the culture dimensions that are involved in change are tolerance of ambiguity and power distance.
A)True
B)False
Q3) Because of the context in which the global team leader is acting, he or she:
A) confronts the added complexities created by globalization.
B) needs to speak foreign languages and understand foreign cultures.
C) needs to be able to cope with jet lag and cultural adjustment.
D) is sheltered from most domestic political activity.
E) needs to be aware of the possibility of terrorism, including electronic hacking.
Q4) What advice would you give to a friend who wants to develop global leadership skills and is an English major?
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Page 13
Chapter 12: Assessing International Markets
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Sample Questions
Q1) Trade missions consist of a group of people in search of business opportunities.
A)True
B)False
Q2) Average growth rate in commercial energy use and real growth rate in GDP compose the __________ index.
A) market size
B) market growth rate
C) e-commerce readiness
D) market factor
E) none of the above
Q3) During the second screening, analysts are highly concerned with inflation trends, exchange rates, and interest rates.
A)True
B)False
Q4) Market screening is divided into:
A) environmental screening and country screening.
B) region screening and segment screening.
C) segment screening and environmental screening.
D) region screening and environmental screening.
E) country screening and segment screening.
Page 14
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Chapter 13: Entry Modes
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Sample Questions
Q1) Wholesale importers are independent merchants that buy for their own account.
A)True
B)False
Q2) "Foreign direct investment without investment" is a term sometimes applied to:
A) franchising.
B) exporting.
C) a joint venture.
D) a management contract.
E) contract manufacturing.
Q3) A sales company is part of indirect exporting.
A)True
B)False
Q4) Which of the following are reasons that many firms engage in exporting?
A) Exports can allow the firm to serve markets where it has no or limited production facilities.
B) Exports can offset cyclical sales in the firm's domestic market.
C) Exports can test foreign markets and foreign competition inexpensively.
D) All of the above.
E) Two of A, B, and C.
Q5) What are the drawbacks of indirect exporting?
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Chapter 14: Export and Import Practices
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Sample Questions
Q1) CFR (cost and freight, foreign port) is similar to CIF except that the buyer purchases the insurance because it can obtain it at lower cost or because its government, to save foreign exchange, insists that it use a local insurance company.
A)True
B)False
Q2) Products placed in a bonded warehouse do not pay import duties until they are removed.
A)True
B)False
Q3) Exporters should consider both private and public export financing.
A)True
B)False
Q4) Basic named perils marine insurance covers:
A) perils of the sea, fires, jettisons, hurricanes.
B) theft and larceny.
C) piracy on the seas.
D) accidents and storms other than hurricanes.
E) flooding, tsunamis, earthquakes.
Q5) How do U.S. nonexporting firms often explain their avoidance of foreign markets?
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Chapter 15: Marketing Internationally
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Sample Questions
Q1) Management would prefer global standardization of the marketing mix:
A) because each market demands it.
B) for cost savings.
C) to meet local conditions.
D) two of the above.
E) all of A, B, and C.
Q2) Foreign environmental forces act as deterrents to the international standardization of advertising, and among the most influential of these forces are the sociocultural forces.
A)True
B)False
Q3) Laws on pollution, consumer protection, and operator safety are critical as legal forces.
A)True
B)False
Q4) Dissimilar cultural patterns generally necessitate changes in marketing of food and other consumer goods.
A)True
B)False
Q5) Discuss the programmed-management approach to advertising strategy.
Page 17
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Chapter 16: Global Operations and Supply Chain Management
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Sample Questions
Q1) According to the text, a concurrent engineering approach to design promotes cross-functional participation in the design process and thereby helps to identify and avoid many of the potential sourcing, manufacturing, and other difficulties that can be associated with a particular design.
A)True
B)False
Q2) What is supply chain management, and why is it an important issue for a company's international competitiveness?
Q3) International freight, insurance, and packing can add as much as 8 to 10 percent to the quoted price, depending on the sales term used.
A)True
B)False
Q4) Worldwide uniformity or standardization in manufacturing methods hinders headquarters' effectiveness in keeping production specifications current.
A)True
B)False
Q5) Discuss the problems associated with global sourcing.
Page 18
Q6) What are the benefits of standardization of global operations?
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Chapter 17: Managing Human Resources in an International Context
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Sample Questions
Q1) When a company's primary strategic orientation is multidomestic, an ethnocentric orientation is particularly appropriate.
A)True
B)False
Q2) If a company feels that it probably will send parent-country nationals abroad, it will frequently encourage them to study the language and culture of the country to which they are going.
A)True
B)False
Q3) Family adjustment is not critical in the job performance of expats.
A)True
B)False
Q4) A polycentric staffing policy is appropriate when:
A) there are low levels of pressure for cost reduction and high levels for localization.
B) information technology is of increasing importance.
C) all of A, B, andD.
D) As stated directly in the text.
E)two of A, B, and D.
Page 19
Q5) Discuss the advantages and disadvantages of employing third-country managers.
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Chapter 18: International Accounting and Financial Management
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Sample Questions
Q1) Translation exposure would not occur with firms that:
A) do not have foreign operations.
B) operate in the same currency, their home market currency, everywhere.
C) use their home market language in all foreign operations.
D) A and B.
Q2) The main argument against 3BL is that business is concerned with generating profit, not with social and ecological issues, except where the law requires it to be.
A)True
B)False
Q3) Chief financial officers avoid tapping into international markets because they bring too many unpredictable variables.
A)True
B)False
Q4) Triple-bottom-line accounting is built on the assumption that capitalism can become humanized.
A)True
B)False
Q5) How could an IC benefit from leading and lagging?
Q6) Discuss how culture might impact accounting.
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