Question 1

What are three factors that have led to the increased growth in international business in recent decades? Which do you think has been most important and why?

Accepted Answer

a.Rapid increase in an expansion of tech...

Question 2

Which of the following BEST explains how a firm reduces risk by operating internationally?

Accepted Answer

A)   taking advantage of business-cycle differences among countries
B)   buying competitive risk insurance unavailable domestically
C)   preventing competitors from operating in the countries it has entered
D)   operating in less competitive environments than those at homeE) A) and D)
F) None of the above

Question 3

The process of shifting production from a domestic to a foreign location is best known as ________.

Accepted Answer

A)   offshoring
B)   outsourcing
C)   licensing
D)   joint venturingE) All of the above
F) None of the above

Question 4

By operating internationally,a company may take advantage of business-cycle differences among countries and thereby reduce its financial risks.

Accepted Answer

A) True 
 B)False

Question 5

In a short essay,identify and explain three competitive factors that influence international businesses.

Accepted Answer

a.Product strategy-A company's choice of...

Question 6

Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that ________.

Accepted Answer

A)   regionalization is a transition stage toward globalization
B)   neighboring countries are more apt to disagree politically than distant countries
C)   neighboring countries are too geographically similar to benefit from trade
D)   business in non-territorial areas is not regionalE) B) and C)
F) A) and D)

Question 7

A company starting out with a global focus,usually because of the international experience of its founders,is called a ________.

Accepted Answer

A)   multinational enterprise
B)   transnational company
C)   strategically allied company
D)   born-global companyE) C) and D)
F) B) and D)

Question 8

What is international business? What are the primary reasons that companies engage in international business?

Accepted Answer

International business is all commercial...

Question 9

Which of the following statements would most likely NOT be supported by an advocate of offshoring?

Accepted Answer

A)   Offshoring increases the number of high-value jobs in the home countries of offshoring companies.
B)   Offshoring is fundamentally better for workers than the introduction of labor-saving technologies.
C)   Workers displaced due to offshoring are able to find new jobs as easily as those displaced by technology.
D)   There are upper limits to offshoring because of the lack of skilled workers willing to work permanently for low wages.E) C) and D)
F) B) and D)

Question 10

Kevin,marketing manager of the North American Bowling League,has decided to televise major bowling competitions to viewers in multiple countries rather than only in Canada and the U.S. Which of the following goals would this most likely help Kevin accomplish?

Accepted Answer

A)   acquiring new resources
B)   minimizing corporate risks
C)   increasing sales and profits
D)   obtaining competitive advantagesE) All of the above
F) B) and C)

Question 11

Most countries' imports account for more than half of their citizens' consumption.

Accepted Answer

A) True 
 B)False

Question 12

Many professional basketball teams recruit tall youngsters in foreign countries into basketball camps where they can develop basketball skills and perhaps become candidates for professional play. This is an example of engaging in international business to acquire resources.

Accepted Answer

A) True 
 B)False

Question 13

The same automobile company produces Fiats and Ferraris. The company builds an engine plant in China with low production costs for Fiats but not Ferraris. The probable reason is that ________.

Accepted Answer

A)   Fiat competes mainly on a focus strategy, whereas Ferrari competes mainly on a mass-market strategy
B)   Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy
C)   Ferrari faces global competitors in China, whereas Fiat competes in China mainly against Chinese competitors
D)   although Ferrari did not build an engine plant, it will use the same Fiat engines in its modelsE) A) and C)
F) All of the above

Question 14

Which of the following best defines international business?

Accepted Answer

A)   It includes all economic flows between two or more countries.
B)   It includes all private economic flows between two or more countries.
C)   It includes all business transactions involving two or more countries.
D)   It includes all business transactions in countries other than your home country.E) All of the above
F) B) and C)

Question 15

The owner of a U.S. football team and the owner of a Canadian hockey team purchase a British soccer team. This is an example of a ________.

Accepted Answer

A)   royalty
B)   portfolio investment
C)   turnkey operation
D)   joint ventureE) B) and C)
F) A) and D)

Question 16

Globalization of business has been stimulated by institutional developments that aid foreign trade and investment.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization?

Accepted Answer

A)   A large country on whom they depend may pressure them on political matters.
B)   A large international firm may dictate its terms of operations in a small country.
C)   A large company may exploit legal loopholes to avoid tax payments.
D)   A large country may substantially increase its demand for the small country's production.E) A) and B)
F) A) and C)

Question 18

What is the most likely reason that governments cooperate with each other through treaties,agreements,and consultations?

Accepted Answer

A)   to gain an advantageous division of labor
B)   to be in compliance with United Nations' requirements
C)   to attack problems jointly that one country acting alone cannot solve
D)   to assure that all countries get an equitable share of taxes from multinational enterprisesE) A) and B)
F) A) and C)

Question 19

Assume that company executives at the firm would like to increase sales by expanding into an international market. Which of the following factors,if true,best supports a decision to expand sales globally?

Accepted Answer

A)   It can offshore most of its production.
B)   It can obtain all of its resources for the same price overseas.
C)   Its costs of making additional sales would not increase disproportionately.
D)   The foreign market has higher real interest rates.E) All of the above
F) None of the above

Question 20

The terms multinational corporation and multinational company are frequently used synonyms for strategic alliances.

Accepted Answer

A) True 
 B)False

Exam 1: Globalization and International Business

Assume that company executives at the firm would like to increase sales by expanding into an international market. Which of the following factors,if true,best supports a decision to expand sales globally?

Correct AnswerverifiedShow Answer

Which of the following BEST explains how a firm reduces risk by operating internationally?

Correct AnswerverifiedShow Answer

What are three factors that have led to the increased growth in international business in recent decades? Which do you think has been most important and why?

Correct Answerverifieda.Rapid increase in an expansion of tech...View AnswerShow Answer

Most countries' imports account for more than half of their citizens' consumption.

Correct AnswerverifiedShow Answer

Which of the following statements would most likely NOT be supported by an advocate of offshoring?

Correct AnswerverifiedShow Answer

What is the most likely reason that governments cooperate with each other through treaties,agreements,and consultations?

Correct AnswerverifiedShow Answer

The owner of a U.S. football team and the owner of a Canadian hockey team purchase a British soccer team. This is an example of a ________.

Correct AnswerverifiedShow Answer

Many professional basketball teams recruit tall youngsters in foreign countries into basketball camps where they can develop basketball skills and perhaps become candidates for professional play. This is an example of engaging in international business to acquire resources.

Correct AnswerverifiedShow Answer

The same automobile company produces Fiats and Ferraris. The company builds an engine plant in China with low production costs for Fiats but not Ferraris. The probable reason is that ________.

Correct AnswerverifiedShow Answer

Which of the following is the LEAST likely reason that small countries worry about overdependence caused by globalization?

Correct AnswerverifiedShow Answer

A company starting out with a global focus,usually because of the international experience of its founders,is called a ________.

Correct AnswerverifiedShow Answer

Kevin,marketing manager of the North American Bowling League,has decided to televise major bowling competitions to viewers in multiple countries rather than only in Canada and the U.S. Which of the following goals would this most likely help Kevin accomplish?

Correct AnswerverifiedShow Answer

The terms multinational corporation and multinational company are frequently used synonyms for strategic alliances.

Correct AnswerverifiedShow Answer

What is international business? What are the primary reasons that companies engage in international business?

Correct AnswerverifiedInternational business is all commercial...View AnswerShow Answer

In a short essay,identify and explain three competitive factors that influence international businesses.

Correct Answerverifieda.Product strategy-A company's choice of...View AnswerShow Answer

The process of shifting production from a domestic to a foreign location is best known as ________.

Correct AnswerverifiedShow Answer

Which of the following best defines international business?

Correct AnswerverifiedShow Answer

Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that ________.

Correct AnswerverifiedShow Answer

Globalization of business has been stimulated by institutional developments that aid foreign trade and investment.

Correct AnswerverifiedShow Answer

By operating internationally,a company may take advantage of business-cycle differences among countries and thereby reduce its financial risks.

Correct AnswerverifiedShow Answer

Correct Answer
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a.Rapid increase in an expansion of tech...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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International business is all commercial...
View Answer

Correct Answer
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a.Product strategy-A company's choice of...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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