Globalization and Business Test Preparation
Course Introduction
This course explores the dynamic relationship between globalization and business, examining how international economic integration shapes corporate strategies, operations, and decision-making. Students will analyze the driving forces of globalization, including advancements in technology, trade liberalization, and cultural exchange, and assess their impact on markets, competition, and organizational structures. The course also discusses the challenges and opportunities businesses face in a global context, such as managing cross-cultural teams, navigating international regulations, and responding to ethical issues. Through case studies and contemporary examples, students will gain a comprehensive understanding of how businesses adapt and thrive in an increasingly interconnected world.
Recommended Textbook
International Business The Challenges of Globalization 9th Edition by John J. Wild
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16 Chapters
1650 Verified Questions
1650 Flashcards
Source URL: https://quizplus.com/study-set/2033 Page 2
Chapter 1: Globalization
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40400
Sample Questions
Q1) The rise of a new international entity called the ________ suggests that any company,regardless of age,experience,and resources,can engage in international business.
A) transnational corporation
B) multinational corporation
C) born global firm
D) global firm
Answer: C
Q2) The term "globalization of production" refers to convergence in buyer preferences in markets around the world.
A)True
B)False
Answer: False
Q3) Multinational corporations (MNCs)have direct investments abroad in multiple countries.
A)True
B)False
Answer: True
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Chapter 2: Cross-Cultural Business
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40401
Sample Questions
Q1) A nation's cultural boundaries do not always correspond with its political boundaries.
A)True
B)False
Answer: True
Q2) Subcultures exist in democratic countries with large populations.
A)True
B)False
Answer: True
Q3) Their argument is vulnerable to criticism because ________.
A) most restaurants still display their menu cards in French
B) they fail to take other social and cultural factors into account
C) they do not distinguish between movies made by studios in England and movies made in Hollywood
D) no other country screens French movies or star French actors
Answer: B
Q4) Subcultures exist only within a nation's borders.
A)True
B)False Answer: False
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Chapter 3: Political Economy and Ethics
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40402
Sample Questions
Q1) Expropriation is best defined as the ________.
A) transference of ownership of resources from private to public sector with no compensation
B) transference of ownership from private to public sector with compensation to private owners for their losses
C) conversion of state-owned property to privately owned property
D) conversion of state-owned property to privately owned property with no compensation
Answer: B
Q2) Communists are socialists,but socialists are not necessarily communist.
A)True
B)False
Answer: True
Q3) Anarchism is the belief that every aspect of people's lives must not be controlled in order for a nation's political system to be effective.
A)True
B)False
Answer: True
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Chapter 4: Economic Development of Nations
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86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/40403
Sample Questions
Q1) How does economic development in countries affect international business?
Q2) Which of the following is a disadvantage of local requirement laws to foreign companies?
A) They do not foster local business activity and increase regional and national unemployment.
B) They make it necessary for the government to resort to expropriation and confiscation.
C) The companies are forced to bring in raw material and workers from their own countries.
D) Companies required to hire local personnel might be forced to take on inadequately trained workers.
Q3) Which of the following terms refers to the broadest measure of economic development of a country?
A) gross domestic product (GDP)
B) purchasing power parity (PPP)
C) gross national product (GNP)
D) human development index (HDI)
Q4) Explain each of the four means of incorporating risk into business strategies when companies employ an adaptation strategy.
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Chapter 5: International Trade Theory
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40404
Sample Questions
Q1) According to mercantilism,the accumulation of national wealth depended on the
A) increase in a nation's trade surplus
B) increase in a nation's trade deficit
C) expansion of a nation's total value of trade
D) expansion of a nation's total volume of trade
Q2) Mercantilism states that nations should only concern themselves with accumulating financial wealth.
A)True
B)False
Q3) The theories of comparative advantage and absolute advantage assume that countries are driven only by the maximization of production and consumption.
A)True
B)False
Q4) Most of the world merchandise trade is composed of trade in ________.
A) minerals
B) services
C) manufactured goods
D) agricultural products
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Chapter 6: Political Economy of Trade
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108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/40405
Sample Questions
Q1) A(n)________ is calculated to offset the advantage an exporter receives from a subsidy.
A) compound tariff
B) export promotion
C) countervailing duty
D) substitution tariff
Q2) Which of the following is an example of a dual use product?
A) a blowdryer
B) a GPS navigation device
C) a food processor
D) a vacuum cleaner
Q3) A(n)________ is an absolute ban on the exporting and importing of goods to a particular destination.
A) voluntary export restraint
B) embargo
C) ad valorem tariff
D) tariff rate quota
Q4) What are voluntary export restraints and how are they used?
Q5) Define subsidies.What are their disadvantages? In what ways do the protection of infant industries produce similar drawbacks?
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Chapter 7: Foreign Direct Investment
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104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/40406
Sample Questions
Q1) A company can achieve market power through ________.
A) ownership advantages
B) internalization advantages
C) horizontal integration
D) vertical integration
Q2) Performance demands made by host countries to restrict incoming FDI apply exclusively to businesses in cultural industries.
A)True
B)False
Q3) If Happyland is successful in attracting foreign direct investment,transactions involving those investments would appear in the country's ________ account.
A) capital
B) services
C) income payments
D) merchandise
Q4) Describe any three management issues involved in foreign direct investment decisions.
Q5) Explain the theory of market imperfections and describe the two major market imperfections.
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Chapter 8: Regional Economic Integration
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111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/40407
Sample Questions
Q1) The European Free Trade Association was formed in 1960 to focus on trade in
A) consumer goods
B) agricultural goods
C) industrial goods
D) services
Q2) A common market requires that member nations create a common currency.
A)True
B)False
Q3) The goal of the Single European Act was to remove remaining barriers,increase harmonization,and thereby enhance the competitiveness of European companies.
A)True
B)False
Q4) Which of the following countries has been facing difficulties in negotiations regarding its application for European Union membership?
A) Bulgaria
B) Czech Republic
C) Romania
D) Turkey
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Chapter 9: International Financial Markets
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/40408
Sample Questions
Q1) The exchange rate at which a bank will purchase a currency is called a ________ rate.
A) prime
B) buy
C) ask
D) forward
Q2) ________ is the instantaneous purchase and sale of a currency in different markets for profit.
A) Currency hedging
B) Currency arbitrage
C) Currency speculation
D) Currency conversion
Q3) A bond issue floated by a U.S.company in dollars in London,Luxembourg,and Switzerland by a syndication of bonds is an example of a ________.
A) global bond
B) domestic bond
C) Eurobond
D) foreign bond
Q4) Explain the function of spot rates and the spot market.
Q5) Differentiate between currency speculation and currency arbitrage.
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Chapter 10: International Monetary System
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107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/40409
Sample Questions
Q1) Investor confidence in the value of a currency plays an has no role in determining its exchange rate.
A)True
B)False
Q2) Sam's mentor at the firm told him that the ________ stipulates that an identical product must have an identical price in all countries when the price is expressed in a common currency.
A) exchange price
B) law of one price
C) fixed exchange-rate system
D) floating exchange-rate system
Q3) Sam already knows that the ________ tells us the value of one country's currency we must pay to receive a certain amount of another.
A) exchange rate
B) par value
C) law of one price
D) purchasing power parity theory
Q4) Explain how a pegged exchange-rate system works.Why would a country choose to follow this system?
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Chapter 11: International Strategy and Organization
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112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/40410
Sample Questions
Q1) Discuss the major points of differences between centralization and decentralization,and explain the differences between an international area structure and a global product structure.
Q2) Decentralized decision making concentrates decision making at a high organizational level in one location,such as at headquarters.
A)True
B)False
Q3) Which of the following is an advantage of a company with an international area structure?
A) Country managers have very little authority.
B) The subsidiaries fail to develop organizational cultures suited to their locations.
C) Individual responsibility and accountability is foggy.
D) When general managers become experts on the unique needs of their buyers.
Q4) Core competencies are developed by organizations over long periods of time.
A)True B)False
Q5) Describe the four key approaches to corporate strategy,providing an example of each.
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Chapter 12: Analyzing International Opportunities
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/40411
Sample Questions
Q1) What are the factors managers consider when analyzing industrialized markets? Discuss why the comparability of data is a major challenge while conducting international research.
Q2) The single greatest advantage of ________ is the ability to collect vast amounts of data in a single sweep.
A) survey research
B) focus groups
C) consumer panels
D) interviews
Q3) In countries with high illiteracy rates,a(n)________ should not be used to collect information.
A) personal interview
B) written survey
C) focus group
D) field research
Q4) A typical industry analysis does not include the ________.
A) names, production volumes, and market shares of the largest competitors
B) structure of the wholesale and retail distribution networks
C) background on the market, including population figures and key social trends
D) history of currency fluctuations
Page 14
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Chapter 13: Selecting and Managing Entry Modes
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106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/40412
Sample Questions
Q1) What document serves as a title to the goods in question under the document collection payment method?
A) sight draft
B) bill of lading
C) bill of exchange
D) trade acceptance
Q2) The open account method of export/import financing is used when the two parties are unfamiliar with each other.
A)True
B)False
Q3) A company proposes that in exchange for a hard-currency sale,it will make a hard-currency purchase of an unspecified product from the buyer nation in the future.Which of the following is the company proposing?
A) a counterpurchase
B) an offset
C) a buyback
D) a barter
Q4) What are the differences between a turnkey project and a strategic alliance?
Q5) What are the different financing methods available to exporters and importers?
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Chapter 14: Developing and Marketing Products
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103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/40413
Sample Questions
Q1) Companies along a distribution channel that work together in delivering products to customers are called ________.
A) subsidiaries
B) intermediaries
C) value chains
D) value networks
Q2) Which of the following is implied by a product with a low value density?
A) the distribution system is more localized
B) the product is more valuable
C) the cost of shipping the product is negligible
D) the product is processed in areas away from their original locations
Q3) A(n)________ channel creates a barrier that makes it difficult or impossible for outsiders to penetrate.
A) exclusive
B) intensive
C) selective
D) two-level
Q4) Explain the primary concerns of managers when establishing distribution policies.
Q5) Using examples,explain the circular process of marketing communication.
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Chapter 15: Managing International Operations
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40414
Sample Questions
Q1) Venture capital is a source of debt financing for successful multinational companies.
A)True
B)False
Q2) A major disadvantage of American Depository Receipts (ADRs)is that investors who buy them must pay currency-conversion fees.
A)True
B)False
Q3) Hot money is the cash that can be quickly withdrawn from a market in times of crisis.
A)True
B)False
Q4) ________ will enable a company to reduce the degree to which it is vertically integrated and the overall amount of specialized skills and knowledge that it would have to possess.
A) Outsourcing
B) Skimming
C) Lean production
D) Centralized production
Q5) What role does flexibility play in the make-or-buy decision?
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Chapter 16: Hiring and Managing Employees
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/40415
Sample Questions
Q1) Companies typically recruit locally for non-managerial positions.
A)True
B)False
Q2) The compensation of non-managerial workers is strongly influenced by increased cross-border business investment.
A)True
B)False
Q3) Discuss the disadvantages of an ethnocentric staffing policy.How do bonuses,tax incentives,and employee expectations contribute to high personnel costs?
Q4) The process of forecasting both a company's human resource needs and its supply is called ________.
A) human resource planning
B) human resource accounting
C) recruitment
D) selection
Q5) Differentiate between culture shock and reverse culture shock.How can companies help employees deal with such issues?
Q6) Briefly explain how companies compensate managers in international markets.
Q7) What factors influence the wages of non-managerial workers?
Page 18
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