Globalization and Business Solved Exam Questions
Course Introduction
This course examines the dynamic interplay between globalization and the business environment, exploring how international economic, political, social, and technological forces impact companies worldwide. Students will analyze the strategies that firms employ to operate across borders, including the challenges and opportunities presented by different cultural, regulatory, and market contexts. Through case studies and current events, the course addresses global trade theories, foreign direct investment, international marketing, supply chains, and the ethical considerations facing businesses in a rapidly globalizing world.
Recommended Textbook
Global Business Today 3rd Canadian Edition by Charles Hill Thomas McKaig
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16 Chapters
2010 Verified Questions
2010 Flashcards
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Page 2
Chapter 1: Globalization
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128 Verified Questions
128 Flashcards
Source URL: https://quizplus.com/quiz/51210
Sample Questions
Q1) The average yearly outflow of FDI increased from about $14 billion in 1970 to a record of _______________ in 2007, though it has fallen more recently.
A)$550 billion
B)$73 billion
C)$1.73 trillion
D)$2.75 trillion
E)$11.8 trillion
Answer: C
Q2) According to your textbook, between 1930 and 1990, the cost of a three-minute phone call between New York and London fell from $244.65 to $3.32.This decrease can be mainly contributed to
A)open communication between governments.
B)the advent of the microprocessor.
C)continuing efforts to globalize.
D)high corporate ethical standards.
E)the deregulation of the telecommunications industry
Answer: B
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Page 3
Chapter 2: Country Differences in Political Economy
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) Designs and names, often officially registered, by which merchants or manufacturers designate and differentiate their products (e.g., Christian Dior clothes) are called patents.
A)True
B)False
Answer: False
Q2) PPP is an acronym that stands for:
A)power purchasing procedures
B)procurement priority procedures
C)priority patent procedures
D)purchasing power parity
E)parallel parametric purchasing
Answer: D
Q3) The Human Development Index is based on three measures: per capita income, life expectancy, and poverty rate.
A)True
B)False
Answer: False
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4
Chapter 3: The Cultural Environment
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) Canadians tend to arrive a few minutes early for appointments.This is an example of a __________.
A)norm
B)politeness
C)value
D)folkway
E)more
Answer: D
Q2) The largest faith based group in Canada is ____________.
A)Protestantism
B)Islam
C)Judaism
D)Hinduism
E)Roman Catholicism
Answer: E
Q3) A class system is a more rigid form of social stratification in which social mobility is less possible.
A)True
B)False
Answer: False
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Chapter 4: Ethics in International Business
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123 Verified Questions
123 Flashcards
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Sample Questions
Q1) Who is noted for making the following statement, "There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say that it engages in open and free competition without deception of fraud."?
A)Leon Sullivan
B)Milton Friedman
C)David Hume
D)Jon Stuart Mill
E)Immanuel Kant
Q2) The ethical obligations of a multinational corporation toward employment conditions, human rights, and corruption are not always clear-cut.
A)True
B)False
Q3) Differentiate and describe business ethics and ethical business strategy.Discuss how the two interrelate.Describe what impact having an ethical organizational strategy can have on international business transactions.
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Chapter 5: International Trade Theories
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Contrary to what the Heckscher-Ohlin theory would predict, the United States has been a primary importer rather than an exporter of capital goods.This phenomenon is referred to as the __________ paradox.
A)Theler
B)Leontief
C)Cormier
D)Ricardo
E)Porter
Q2) The __________ theory argues that due to the presence of substantial scale economies, world demand will support only a few firms in many industries.
A)Heckscher-Ohlin
B)Leontief's paradox
C)product life-cycle
D)new trade
E)Porter
Q3) The Heckscher-Ohlin theory has been one of the least influential in international economics.
A)True
B)False
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Page 7
Chapter 6: The Political Economy of International Trade
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) According to official national figures, during the late 1980s government subsidies to industry in most industrialized countries amounted to between
A)40% and 50% of the value of industrial output.
B)15% and 20% of the value of industrial output.
C)2% and 3.5% of the value of industrial output.
D)10% and 15% of the value of industrial output.
E)3.5% and 4% of the value of industrial output.
Q2) An administrative policy is an informal instrument or bureaucratic rule that can be used to restrict imports and boost exports.Such policies benefit __________ but hurt
A)trade associations; producers
B)consumers; producers
C)consumers; trade associations
D)producers; consumers
E)consumer lobbyists; farmers
Q3) The World Trade Organization (WTO) was created by the recently completed Uruguay Round of the GATT negotiations.According to the textbook, has the WTO gotten off to a good start or a poor start? Do you believe that the WTO will be effective in the long run? Why or why not?
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Page 8
Chapter 7: Foreign Direct Investment
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) The three main benefits of inward FDI for a host country are the resource-transfer effect, the government effect, and the balance-of-payment effect.
A)True
B)False
Q2) Eliminating double taxation of foreign income is one incentive many counties have created to encourage domestic firms to undertake FDI.
A)True
B)False
Q3) When ________________, a firm will favor FDI over exporting as an entry strategy, according to the textbook.
A)interest rates or government policy make exporting unattractive
B)transportation costs or trade barriers make exporting unattractive
C)cultural barriers or trade barriers make exporting unattractive
D)cultural barriers or government policy make exporting unattractive
E)internalization theory is not applicable
Q4) What are the benefits of inward FDI (i.e.FDI coming into a country from foreign sources) for the host country? Are these benefits compelling?
Q5) How do transportation costs affect the attractiveness of exporting?
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Chapter 8: Regional Economic Integration
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) Formed in 1967, ASEAN currently includes
A)Indonesia, Hong Kong, Singapore, Taiwan, Thailand, Malaysia, and Japan.
B)Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
C)Japan, Taiwan, Hong Kong, Singapore, China, Thailand, and Malaysia.
D)Brunei, Indonesia, Hong Kong, Thailand, Cambodia, Malaysia, and Japan.
E)Japan, Indonesia, Malaysia, Hong Kong, Taiwan and Philippines
Q2) According to the textbook, one likely short-term effect of NAFTA will be that many U.S.and Canadian firms will move some production to Mexico to take advantage of A)cheaper transportation costs.
B)lower interest rates.
C)lower labour costs.
D)a higher skilled labour force.
E)the Mexican market
Q3) Although the European Union is the best known, a number of successful common markets exist throughout the world.
A)True
B)False
Q4) Describe the difference between a free trade area and a common market?
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Page 10
Chapter 9: The Foreign Exchange Market
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) The majority of the countries in the world have currency that is freely convertible.
A)True
B)False
Q2) An exchange rate is simply the rate at which one currency is converted into another.
A)True
B)False
Q3) One feature of the London exchange market is _____________
A)Lower exchange fees
B)Higher margins
C)New investment products
D)The ability to short the market
E)Its geography between the Tokyo and New York Markets
Q4) The Canadian dollar has risen against the U.S.dollar.Many manufacturers are complaining that this rise may affect their U.S.export market.Explain.
Q5) Where is the foreign exchange market located? What is the nature of the market? Is the market growing or shrinking on a global basis?
Q6) Why do companies prefer not to use counter trade if it can be avoided?
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Page 11
Chapter 10: The Global Monetary System
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) How do exchange rates affect individual international businesses? Do international businesses like stable rates or volatile rates? Explain your answer.
Q2) As stipulated by the Bretton Woods conference, the goal of the International Monetary Fund was to:
A)maintain order in the international monetary system
B)establish a world currency
C)promote development
D)set interest rates in members nations
E)establish economic guidelines for countries
Q3) It is argued that a _______________ exchange rate regime gives countries monetary policy autonomy.
A)restricted
B)forward
C)fixed
D)floating
E)managed float
Q4) Describe the difference between fixed and floating exchange rates.Which is better? Explain your answer.
Q5) Explain what is a moral hazard when it is used as a criticism of IMF policies.
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Chapter 11: Global Strategy
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) A weakness of the ________________ strategy is that many of the firms that pursue this strategy have developed into decentralized federations in which each national subsidiary functions in a largely autonomous manner.
A)multinational
B)global
C)international
D)transnational
E)multi-domestic
Q2) A Canadian company that manufactures sophisticated weather monitoring devices has seen demand for its product grow in SE Asia and South America.This growth is primarily the result of concerns about the impact of global warming on climate.This increase in demand has meant that the current production facility cannot produce any more.What Global strategy would you recommend they base their decision on?
Q3) The actions that managers take to attain the goals of the firm are referred to as a firm's strategy.
A)True
B)False
Q4) What are strategic alliances? Are strategic alliances on the rise or decline?
Q5) What is the difference between learning effects and economies of scale?
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Chapter 12: Entering Foreign Markets
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116 Verified Questions
116 Flashcards
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Sample Questions
Q1) Entering a large market such as China before other similar industries will be associated with what?
A)exporting
B)licensing
C)franchising
D)late mover advantages
E)a high level of risk
Q2) All of the following are pioneering costs except the costs of:
A)business failure.
B)educating consumers.
C)promoting and establishing a product offering.
D)regulatory change
E)learning costs from the mistakes of early entrants.
Q3) The Mercer Study concluded that _______ percent of the 150 acquisitions studied ended up eroded or substantially shareholder value.
A)90
B)70
C)50 D)30
E)25
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Chapter 13: Exporting, Importing, and Countertrade
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86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/51198
Sample Questions
Q1) A draft is the instrument normally used in international commerce to effect payment.
A)True
B)False
Q2) Access International, a British based greeting card company, is interested in importing paper from Canada.Which of these should Access arrange first for the Canadian company to ship the merchandise?
A)Letter of credit
B)Bill of Lading
C)Time draft
D)Sight draft
E)Way bill
Q3) 3M has built its export success on all of these principles except:
A)adding additional product lines once export operation is successful.
B)cultivating personal relationships with customers.
C)hiring local to promote the firm's products.
D)entering on a small scale to reduce risks.
E)using a first mover strategy
Q4) What is the difference between a sight draft and a time draft?
Q5) What is countertrade? Give an example of when it can be used.
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Chapter 14: Global Marketing and RD
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Segments that transcend national borders are more common in consumer markets than industrial markets.
A)True
B)False
Q2) In the last decade the global retail industry has become more ____________________.
A)fragmented because of diverse consumer tastes
B)multi-level because of the growth of the Internet
C)similar because of the influence of western cultural programming
D)diverse because of moves towards cultural autonomy
E)concentrated because of the growth of retailers like Carrefours
Q3) What mistake did RCA make when distributing its U.S.made televisions in Asia?
A)included too many product attributes and did not invest enough in product reliability
B)did not adapt its promotional mix to Asian preferences
C)used the same segmentation strategy as in the U.S.
D)priced their product too high to effectively compete with local manufacturers
E)did not take into account different technical standards
Q4) Describe the concept of channel length? How does a firm determine its channel length?
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Chapter 15: Global Production, Outsourcing, and Logistics
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Concentrating a firm's manufacturing facilities in an optimal location and serving the world market from that single location makes sense when trade barriers are low.
A)True
B)False
Q2) In general, when substantial investments in specialized assets are required to manufacture a component, a firm will:
A)re-engineer the component to reduce costs
B)find a alternative method of manufacturing the component.
C)contract out the production of the component rather than make it internally.
D)discontinue making the product that the component goes into.
E)prefer to make the component internally rather than contract it out to a supplier.
Q3) What system has a drawback that leaves a firm without a buffer stock of inventory?
A)total-quality management
B)just-in-time
C)management by objectives
D)reengineering system
E)CAD/CAM
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17
Chapter 16: Global Human Resource Management
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) Which of the following describes the most important reason why American expatriates fail?
A)Other family problems
B)Manager's personal or emotional maturity
C)Inability of spouse to adjust
D)Lack of technical competence
E)Inability to cope with larger overseas responsibilities
Q2) Relationship development and willingness to communicate are the two factors that are particularly important in developing a health degree of
A)cultural toughness.
B)perceptual ability.
C)others-orientation.
D)self-orientation.
E)socialization
Q3) What is the purpose of cultural training for an expatriate? How can "culture shock" be avoided?
Q4) Compensation does not vary widely around the globe.
A)True
B)False
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