Assignment: International Business
Q1. Which of the following refers to the exporting of goods or services to consumers inanother country?
A. situationalcommerce
B. worldexchange
C. internationaltrade
D. cross-nationalbarter
Q2. When a firm invests resources in business activities outside its home country, giving itcontrol over those activities, it is referred toas:
A. internationaltrade.
B. domestic directinvestment.
C. transnationalbarter.
D. foreign directinvestment.
Q3. Theglobalisationof refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and qualityof factors of production (such as labour, energy, land andcapital).
A. information technology
B. processdesign
C. markets
D. production
Q4. Theglobalisationof refers to the shift towards a more integratedand interdependent worldeconomy.
A. corporations
B. production
C. markets
D. culture
Q5. Although Boeing is incorporated in the United States, eight Japanese suppliers make parts for the fuselage, doors and wings; a supplier in Singapore makes the doors for the nose landinggear; and three suppliers in Italy manufacture wing flaps. Boeing is taking partin:
A. exporting.
B. licensing.
C. outsourcing.
D. franchising.
Q6. In establishing their credentials, companies such as McDonald's hamburgers, Samsung phones and Apple iPads apply the same basic formula worldwide, which isto:
A. standardise its product offerings, and then adapt to localconditions.
B. adapt its product offerings, and then standardise to localconditions.
C. outsource manufacturing to keysuppliers.
D. open large warehouses under franchise agreement.
Q7. An international treaty that committed signatories to lowering barriers to the free flowof goods across national borders iscalled:
A. the International Agreement on Trade.
B. the Global ExpansionAgreement.
C. the WarsawPact.
D. the General Agreement on Tariffs andTrade.
Q8. The term'offshoring':
A. is synonymous withoutsourcing.
B. means that the tasks previously performed in one country are now being undertakenabroad.
C. means shoring-up intellectualcapital.
D. means that the tasks that were previously performed in-house are now purchased from anothercountry.
Q9. Globalisation results in a greaterdegreeof across markets and
in the world economy than would be presentotherwise.
A. diversification;homogeneity
B. diversity;complexity
C. integration;interdependency
D. isolation;independence
Q10. is seen as the lender of last resort to nation-states whose economies are in economic turmoil and whose currencies are losing value against those of othernations.
A. The International MonetaryFund
B. The InternationalBank
C. The UnitedNations
D. The UnitedStates
Q11. Promoting economic development, primarily by offering low-interest loans to governments of poorer nations, is the purposeof:
A. the UnitedNations.
B. the International MonetaryFund.
C. the World TradeOrganization.
D. the WorldBank.
Q12. are the two macro factors that seem to underlie the trend towards greater globalisation.
A. The increase in global economic stability; and the slowdown in technologicalchange
B. The increase in barriers to the free flow of goods, services and capital that has occurred since the end of World War Two; and global economicstability
C. The decline in barriers to the free flow of goods, services and capital that has occurred inthe past 10 years; and the slowdown in technological change
D. The decline in barriers to the free flow of goods, services and capital that has occurredsince the end of World War Two; and increased technologicalchange
Q13. The flow of foreign direct investment experienced a major temporary setback duringwhich years?
A.1990-99
B.2000-07
C.2008-09
D.2010-11
Q14. One concern of globalisation critics is that a global economy shifts economic poweraway from andtowards .
A. the proletariat; thebourgeoisie
B. national governments; supranationalorganisations
C. the West; theEast
D. the East; theWest
Q15. Any firm that engages in international trade or investment is referred toas:
A. amultinational.
B. afranchise.
C. aconglomerate.
D. an internationalbusiness.
Q16. Managing an international business is different from managing a purely domesticbusiness for all of the following reasons,except:
A. countries aredifferent.
B. international transactions involve converting money into differentcurrencies.
C. the range of problems confronted by a manager in an international business is narrowerthan those confronted by a manager in a domesticbusiness.
D. an international business must find ways to work within the limits imposed bygovernment intervention in the international trade and investmentsystem.
Q17. Managing an international business is different from managing a domestic business andis more challenging due to a variety of reasons including country differences; a wider range of more complex problems; the greater intensity of competition; increased likelihood of intervention by governments, home and host;and:
A. barriers to cross-border trade and investment are said to be flat ordormant.
B. outsourcing is increasing due to worldwideproductivity.
C. added complexity of conducting transactions in differentcountries.
D. national economies are becoming increasingly interdependent on eachother.
Q18. One of the best known examples of economic integration (regional trade agreements) isthat of the European Union. The text describes this exampleas:
A. a customsunion.
B. a commonmarket.
C. an economicunion.
D. a politicalunion.
Q19. Two main threats to regional economic integrationare:
A. the within-group business environment will become more competitive; firms outsidethe trading bloc are effectively locked-out of the singlemarket.
B. the costs of doing business outweigh benefits; concerns over sabotageexist.
C. the growth of mergers within the single market; concerns over nationalsovereignty.
D. MNEs are exerting huge power; concerns over the Eurocurrency.
Q20. The least integrated or shallowest form of economic integration is knownas:
A. a Free TradeArea.
B. a CustomsUnion.
C. a CommonMarket.
D. an EconomicUnion.
Q21. The economic case for integrationis:
A. bilateral and multilateral countryagreements.
B. linking neighbouring economies and dependency on eachother.
C. free trade andinvestment.
D. to eliminate 'winners' and'losers'.
Q22. Host governments use a wide range of controls to restrict FDI in all but one of thefollowing:
A. establishment andentry.
B. ownership and control.
C. performance and proceduralrestrictions.
D. profiteering anddumping.
Q23. Host governments worry that FDI is accompanied by some loss of economicindependence. Their fear is attributedto:
A. protectionism, tariffs andsubsidies.
B. quotas, dumping and government capture.
C. export processing zones, rules of origin and quotarent.
D. transfer pricing, repatriation of funds and nationalsovereignty.
Q24. The industry argument for government intervention contends that governments should temporarily support newindustries.
A. mature
B. declining
C. infant
D. established
Q25. The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) weresuccessfulin tariff barriers on manufactured goods and commodities, but therehasbeen progress on agricultural trade and FDIliberalisation.
A. raising;no
B. stopping;significant
C. enabling;disappointing
D. lowering;little
Q26. There are seven instruments in trade policy, namely, tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies andantidumping. Of the seven listed, which one is regarded as the oldest and simplest instrument in tradepolicy?
A. tariffs
B. voluntary exportrestraints
C. subsidies
D. import quotas
Q27. If , a charge of 'dumping' can be levied against a foreignfirm.
A. goods are being sold that do not meet local content requirements, or goods are being soldthat do not meet local qualitystandards
B. goods are being sold at predatory prices, or goods are being sold that do not meetlocal product safetystandards
C. goods are being sold without the consent of the host government, or goods are being soldthat do not meet local qualitystandards
D. goods are being sold at below their cost of production, or goods are being sold at belowtheir 'fair' marketvalue
Q28. In general, what are two paths of arguments for government intervention into the free flow of trade?
A. patriotic andsociocultural
B. sociocultural andlegal
C. political andeconomic
D. legal andpatriotic
Q29. The argument is one of the oldest economic arguments for government intervention into the free flow oftrade.
A. matureindustry
B. infant industry
C. decliningindustry
D. institutional industry
Q30. A country's export and import of goods and services is referred to asthe:
A. currentaccount.
B. foreignaccount.
C. internalaccount.
D. tariffaccount.
Q31. Since national governments and the general public dislike increasing foreign debt, thisis known as runninga:
A. current accountsurplus.
B. current accountdeficit.
C. paymentsurplus.
D. paymentdeficit.
Q32. It is increasingly common for governmentsto:
A. offer incentives to firms that invest in theircountries.
B. penalise firms that invest in theircountries.
C. offer incentives to firms from developed countries to invest in their countries, but not to firms from developingcountries.
D. offer incentives to firms from developing countries to invest in their countries, but notto firms from developed countries.
Q33. Which of the following has the highest level ofintegration?
A. economicunion
B. customsunion
C. commonmarket
D. politicalunion
Q34. Which type of agreement is the most popular form of regional economic integration, accounting for almost 90 per cent of regionalagreements?
A. customs unionagreement
B. free tradeagreement
C. common marketagreement
D. political unionagreement
Q35. The case for regional economic integration is that thereare:
A. no concerns over the safety of travel from one nation to another and concerns overdissimilar politicalideologies.
B. no concerns over costs and concerns over nationalsovereignty.
C. the possibilities free trade will allow countries to specialise in the production of goodsand services and produce them mostefficiently.
D. the possibilities that free trade will allow countries to standardise and adapt the productionof goods andservices.
Q36. Formed in 1967, ASEAN was an attempt to establish a free trade areabetween:
A. Indonesia, Hong Kong, Singapore, Taiwan, Thailand andJapan.
B. Brunei, Indonesia, Malaysia, Philippines, Singapore andThailand
C. Japan, Taiwan, Hong Kong, Singapore, China andMalaysia.
D. Brunei, Indonesia, Hong Kong, Thailand, Cambodia andJapan
Q37. The determinants of culture are identified with all but one of thefollowing:
A. religion
B. class
C. education
D. language
Q38. Cross-cultural literacymeans:
A. an understanding of how cultural differences across and within nations can affect the wayin which business ispracticed.
B. abstract ideas about what a group believes to be good, right anddesirable.
C. the social rules and guidelines that prescribe appropriate behaviourin particularsituations.
D. reference to a group of people who share a common set of values andnorms.
39. With individualism and individual achievement one of the most common elements ofsocial structure in Western societies, one unintended consequence of this philosophyis:
A. that it focuses on becoming a leader more than amanager.
B. that it promotes the opportunity to 'get richquick'.
C. the lack of company loyalty and failure to gain company-specificknowledge.
D. that it fosters working alone more than ingroups.
Q40. In the United States and Japan, the gesture of making a circle with the thumb and the forefinger isassociatedwith and .
A. joy; festiveoccasions
B. friendliness; money
C. virtue; truth
D. youth;humour
Q41. Hofstede's pioneer work on cultures wasobtainedfrom .
A. telephoneconversations
B. focusgroups
C. questionnaires
D. Internet
Q42. A is a system of values and norms that are shared among a group of people and that when taken together constitute a design forliving.
A. society
B. clique
C. fraternity
D. culture
Q43. are the two central components ofculture.
A. Ethics andlaws
B. Values andnorms
C. Religious beliefs and familytradition
D. Class consciousness and socialmobility
Q44. Most Western countries tendtohave cultures where explicit communication ispreferred.
A. individualistic;low-context
B. individualistic;high-context
C. high-context;low-context
D. low-context;high-context
Q45. Individuals bornintoa at the bottom of the hierarchy can work their way up, while individuals at the top can work their waydown.
A. classsystem
B. castesystem
C. valuesystem
D. normsystem
Q46. In society, the high degree of social mobility and the extreme emphasis on individualism limit the impact of class background on businessoperations.
A. Russian
B. American
C. Indian
D. Norwegian
Q47. Which of the following lists correctly identifies the world's major religions by sizefrom highest tolowest?
A. Hinduism, Islam, Christianity,Buddhism
B. Christianity, Islam, Hinduism,Buddhism
C. Christianity, Hinduism, Islam,Buddhism
D. Buddhism, Islam, Christianity,Hinduism
Q48. Which of the following religions prohibits the payment or receipt ofinterest?
A. Christianity
B. Islam
C. Confucianism
D. Hinduism
Q49. Because language shapes the way people perceive the world, it also helpsdefine.
A. religion
B. culture
C. guanxi
D. ethics
Q50. The recent trends in international business strongly indicate that when Japanese andGerman businesspeople conduct business together, the language in which they will communicate is almost certaintobe .
A. French
B. German
C. Japanese
D. English
Q51. Which one of the following dimensions focused on how a society deals with the factthat people are unequal in physical and intellectualcapabilities?
A. collectivism
B. individualism
C. uncertaintyavoidance
D. powerdistance
Q52. Which one of the following best identifies Hofstede's five dimensions that heclaimed summarised differentcultures?
A. individualism versus collectivism, power distance, tolerant versus intolerant and aggressive versespassive
B. uncertainty avoidance, masculinity versus femininity, individual versus group-oriented and forward versusreserved
C. aggressive verses passive, tolerant versus intolerant, power distance, individual versus group- oriented and high-context verseslow-context
D. power distance, individualism versus collectivism, uncertainty avoidance, masculinityversus femininity and long-term verses short-termorientation
Q53. In a representative democracy, citizensperiodically individuals to represent them.
A. appoint
B. promote
C. elect
D. nominate
Q54. A more liberal 'right-leaning' ideology would see the government's role as one offacilitating within:
A. a market system and privateenterprise.
B. a command system and publicenterprise.
C. a laissez-faire system with noenterprise.
D. anautocracy.
Q55. China today is regarded as a form of government in which one person or politicalparty exercisecontrolin form.
A. Communist
B. theocratic
C. tribal
D. right-wing
Q56. The bundle of legal rights over the use to which a resource is put, and over the use madeof any income that may be derived from that resource,arecalled rights.
A. statutory
B. asset
C. taxable
D. property
Q57. Economic evidence suggests that highlevelsof significantly reduce the foreign direct investment, level of international trade and economic growth rate in acountry.
A. policing
B. corruption
C. transparency
D. capitalism
Q58. A composer is able to protect an original musical score from being copied and sold by someoneelsethrough protection.
A. patent
B. warrant
C. trademark
D. copyright
Q59. As aresultof protection, authors, playwrights, artists and publishersare afforded exclusive rights to disperse their work as they seefit.
A. trademark
B. copyright
C. patent
D. warrant
Q60. Patents, copyrights and trademarks areexamplesof propertylaws.
A. intellectual
B. administrative
C. official
D. central
Q61. An expression of liberalism that supports private ownership and individual enterpriseand advocates the free flow of foreign capital in order tomaximise national and global economic wellbeing is an example of which type of attitude towardsFDI?
A. radical view
B. free marketview
C. pragmaticnationalism
D. capitalist-imperialist
Q62. The of a country refers to the rules that regulate behaviour, along with the processes by which the laws of a country are enforced and through which redress forgrievances is obtained.
A. politicalsystem
B. administrativesystem
C. economicstructure
D. legalsystem
Q63. risk has been defined as the likelihood that political forces will causedrastic changes in a country's business environment that adversely affect profit and other goals of a businessenterprise.
A. Legal
B. Operational
C. Political
D. Transfer
Q64. The bargaining power of the firm and host government when considering the benefitsof FDI, the restrictions on access and concessions the firm must make depends on all of the following factorsexcept:
A. the value each side places on what the other has tooffer.
B. political risk on behalf of the government and economic risk on behalf of thefirm.
C. the number of comparable alternatives available to eachside.
D. each party's timehorizon.
Q65. Political systems can be assessed according to two relateddimensions:
A. the degree to which they emphasise individualism opposed to totalitarianism, and thedegree to which they are individualistic versesdemocratic.
B. the degree to which they are market-orientated opposed to production-orientated, and the degree to which they are democratic versesindividualistic.
C. the degree to which they emphasise social democracy opposed to Communism, and thedegree to which they emphasise collectivism opposed toindividualism.
D. the degree to which they emphasise collectivism opposed to individualism, and the degreeto which they are democratic ortotalitarian.
Q66. A political system in which citizens periodically elect individuals to represent themis referred toasa .
A. participatorycollective
B. totalitarian democracy
C. representativedemocracy
D. socialisticdemocracy
Q67. When behaviour and processes are regulated by a system of laws that are consistentlyand transparently applied and enforced, this iscalled:
A. an establishment ofcodes
B. a dispute resolutionprocedure
C. an instigatedtrust
D. a rule oflaw
Q68. The economic environment of a country clearly influences the attractiveness of that country as a market and/or investment site. The overall attractiveness of a country depends on balancing:
A. strategy andstructure.
B. finance andmarketing.
C. costs andbenefits.
D. profit andloss.
Q69. The benefits of doing business in a country are a functionof:
A. the size of themarket.
B. its presentwealth.
C. its resourceendowments.
D. pride andprejudice.
Q70. By investing early in countries that are currently poor but are nevertheless growing rapidly, firms can gaina:
A. first-mover advantage.
B. late-moveradvantage.
C. significantadvantage.
D. strategicadvantage.
Q71. The costs of doing business in a country tendtobe where macroeconomic instability exists and where supportinginfrastructureis .
A. lesser;overdeveloped
B. greater;underdeveloped
C. unimportant;proposed
D. nil;planned
Q72. The rate of economic progress in a country seems to depend on the extent to whichthat country hasa:
A. stable and resilientleadership.
B. low inflationenvironment.
C. well-functioningeconomy.
D. large exportmarket.
Q73. High inflation, increasing current account deficits and foreign debt are elements ofwhich type of macrosituation?
A. businesscycle
B. politicalmanoeuvre
C. legalfracture
D. economicinstability
Q74. When a firm is considering going global, it needs to assess not only current(economic) conditions, but also whether or not those conditionsare:
A. favourable.
B. competitive.
C. sustainable.
D. practical.
Q75. A widespread downturn in activity, usually indicated by successive periods of negative economic growth, is referred to asa:
A. milddepression
B. contraction leading to arecession
C. consequence ofdisinvestment
D. source of realGDP
Q76. A decrease in the general (average) price level of goods and services in the economyis knownas:
A. inflation.
B. deflation.
C. stagflation.
D. reflation.
Q77. In any balance of payments summary, the current account recordsshow:
A. financial accountstatements.
B. net errors andomissions.
C. capital accountstatements.
D. goods andservices.
Q78. The is influenced by the prevailing politicalsystem.
A. corporatesystem
B. economicsystem
C. technologicalsystem
D. marketsystem
Q79. Production is determined by the interaction of supply and demand, and signalledto producers through the price system, in what kind of economy?
A. mixed economy
B. command economy
C. market economy
D. tradeeconomy
Q80. Of the four main obstacles to economic performance, the listing comprises all ofthe following principlesexcept:
A. policyuncertainty.
B. macroeconomicinstability.
C. tax rate.
D. consumer priceindex.
Q81. Compared to the process of economic development, which is a long-term phenomenon, macroeconomic focuses more on the state of the current economic conditionsof aneconomy.
A. uncertainty
B. instability
C. stability
D. forces
Q82. PPP is an acronym that standsfor:
A. power purchasingprocedures.
B. procurement priorityprocedures.
C. priority patentprocedures.
D. purchasing powerparity.
Q83. All of the following measures or indices give a static picture of development,except:
A. the Human Development Index(HDI).
B. Gross National Income(GNI).
C. Economic Growth Rates(EGR).
D. Purchasing Power Parity(PPP).
Q84. It has been argued that the economic freedom associatedwitha economy creates greater incentives for innovation than either a planned or mixedeconomy.
A. production
B. market
C. commercial
D. manufacturing
Q85. Since the late 1980s, two major trends have emerged in the political economies of manyof the world's national states. Theseare:
A. a wave of Communist revolutions has swept the world, and there has been a strong move away from free market economies towards more centrally plannedeconomies.
B. a wave of socialistic revolutions has swept the world, and there has been a strong move away from free market economies towards more centrally planned and mixedeconomies.
C. a wave of democratic revolutions has swept the world, and there has been a strongmove away from centrally planned and mixed economies towards more free marketeconomies.
D. a wave of totalitarian revolutions has swept the world, and there has been a strong move away from centrally planned and mixed economies towards more free marketeconomies.
Q86. Which of the following is NOT one of the key main reasons for the spread of democracy worldwide?
A. The spread of democracy has been unchallengedworldwide.
B. In many countries, the economic advances of the past 25 years have led to the emergence of increasingly prosperous middle and working classes, which have pushed for democraticreforms.
C. The spread of new information and communicationstechnologies.
D. Many totalitarian regimes failed to deliver economic progress to most of theirpopulations.
Q87. Which of the following involves removing legal restrictions to the free play of markets,the establishment of private enterprises, and the manner in which private enterprisesoperate?
A. privatisation
B. simplification
C. deregulation
D. socialism
Q88. transfers the ownership of state property into the hands of private individuals.
A. Privatisation
B. Simplification
C. Deregulation
D. Socialism
Q89. Monetary policy is aform of policy.
A. microeconomic
B. national ormacroeconomic
C. international
D. national, state andlocal
Q90. Economic stabilisation goals can be conflicting inthat:
A. reducing national debt levels may not induce overseas investment to thenation.
B. economic prosperity may not be balanced in thenation.
C. increasing deficits nearly always results in higher interestpayments.
D. an increase in the rate of economic growth can lead to higher rates ofinflation.
Q91. A recession isawidespread in activity, usually indicated by successive periodsof _ economicgrowth.
A. upturn;high
B. downturn;neutral
C. downturn;negative
D. disappointment; low
Q92. Given that Japanisexperiencing and , many firms have set their sights on markets outside of Japan as a way to sustaingrowth.
A. a young population; long-termstagflation
B. an ageing population; short-termdepression
C. a young population; short-termdeflation
D. an ageing population; long-termrecession
Q93. The attractiveness of a country as a potential market depends on balancing the benefits,costs and risks associated with doing business in that country, andalso:
A. the objectives of thefirm.
B. listening to what customerswant.
C. undertaking marketresearch.
D. taking large and smallorders.
Q94. When making basic entry decisions, the cost-risk trade-off is likely to be most favourable in what type ofcountry?
A. one that islarge
B. one with a free marketsystem
C. one that is politicallyinstable
D. a Communistcountry
Q95. The first stage of any analysis when deciding to enter a foreign market is examining the broader economic indicators to obtain an impression of the type of economy the firm isseeking to undertake business in, its economic potentialand its .
A. managerialskills
B. financialstanding
C. degree ofrisk
D. competitors
Q96. The greatpromiseof is that large revenue and profit opportunities are to be found in foreign markets for most firms in manyindustries.
A. financing
B. countertrade
C. importing
D. exporting
Q97. Which of the following is NOT a dispute resolution channel in internationalbusiness?
A. litigation
B. negotiation
C. mediation
D. arbitration
Q98. Which of the following is NOT a conceptual framework to describe culturaldifferences?
A. Hofstede culturalframework
B. The hierarchy of needsframework
C. Monochronic-polychronicscale
D. High-low context culturescale
Q99. Which of the following best describes world view2.0?
A. the world isflat
B. the countries are independent from eachother
C. cross-border differencespersist
D. the world isregionalized
Q100. Which of the following does not indicate a group of emergingmarkets?
A. BRIC
B. MIST
C. ASEAN
D. VISTA.