1. The newly identified second tier of emerging economies (called MIST) includes:
a. Malaysia, Thailand, Singapore, and Indonesia
b. Bolivia, Zimbabwe, Ghana, and Pakistan
c. Indonesia, South Korea, Mexico, and Turkey
d. Sri Lanka, Turkey, Indonesia, and Myanmar
e. Malaysia, Indonesia, Turkey and South Korea
2. Developing countries are attractive to foreign firms because they offer access to:
a. highly skilled labor and tax breaks.
b. large markets and well-developed infrastructure.
c. cheap labor and new markets.
d. well-developed infrastructure and cheap labor.
e. highly skilled labor and new markets.
3. Pankaj Ghemawat argues that distance still matters and the world is not yet globalized. In his view, the world is:
a. Multidomestic
b. Flat
c. Nationalistic
d. Cross-sectional
e. Multi-national globalized
4. Even though Country A is very efficient at producing rice and electronics, it chooses to focus on producing electronics only. Meanwhile, Country B focuses on producing rice. Then, both countries gain by trading with each other. In the end, each country's total cost of owning rice and electronics is cheaper than if either country tried to produce both products on their own. This is known as the theory of
a. Absolute advantage
b. Comparative advantage
c. Porter's advantage
d. National advantage
e. Relative advantage
5. Foreign direct investment (FDI) is considered important to a nation's economy. Which of the following is not a way that governments tend to attract FDI?
a. Provide tax breaks to foreign firms seeking to invest in the country
b. Build infrastructure that is attractive to foreign firms
c. Limit the number of Visas issued to foreigners so that local managers must be hired
d. Reduce the hassles of administrative and regulatory burdens for foreign firms
e. Educate the local workforce giving them skills that foreign firms require
6. The state of GA actively seeks foreign direct investment (FDI). To attract foreign firms, it engages in all the following except:
a. Provides training to local Georgia workers so that the foreign firm has the necessary workforce.
b. Helping a foreign firm's managers obtain social security numbers (note to foreign students: this is a person's U.S. tax identification number).
c. Builds houses for foreign executives that look like houses in their home country.
d. Helping a foreign firm's managers set up bank accounts and establish credit.
7. Ghemawat's CAGE analysis is used to identify:
a. the total trading capacity between any three nations.
b. the barriers to international trade.
c. how close two nations are in terms of geography.
d. the benefits of international trade.
8. Protectionism in this class refers to:
a. the practice of imposing restrictions on imports and protecting domestic industries
b. the practice of building up walls at a country's border to prevent immigration
c. the act of severing all relations with foreign countries
d. an act of war
9. There are how many member nations in the European Union (counting Great Britain which is technically still in the union)?
a. 12
b. 16
c. 19
d. 28
e. 33
10. The key goals of the WTO include:
a. help developing countries grow by promoting coffee production.
b. increase world GDP by 40% by 2018.
c. promote the expansion of the more effective regional trade blocs.
d. reduce trade barriers and stimulate trade around the world.
e. all of these.
11. Based on the slides, video, and our discussion, which of the following is not true about the World Trade Organization?
a. The WTO was formed to enforce the rules of GATT.
b. Dispute resolution through the WTO is very complex.
c. The WTO has been highly effective in creating rules and efficiencies to assist global trade.
d. There are over 150 nations in the WTO.
12. Which of the following applies to Germany?
a. High score on the Multidimensional Poverty Index
b. Low score on the Human Development Index
c. Considered a 'Developed' nation
d. Considered an 'Emerging nation
13. In the late 80s and early 90s, when governments moved from state controlled economies to free markets, they generally privatized all the following except:
a. Telecommunications
b. Public utilities
c. Transportation
d. National defense
14. The 'four freedoms of movement' within the European Union include all except:
a. Goods
b. Services
c. People
d. Capital
e. Arms
15. In the PESTEL analysis, the recent popularity of healthy burritos (i.e. Moe's and Chipotle).) in the United States would be considered a(n) _____________ factor of the business environment.
a. Political
b. Economic
c. Socio-cultural
d. Environmental
e. Technological
16. All of the following encourage globalization except:
a. Governments are reducing trade barriers
b. Accounting practices are becoming standardized throughout the world
c. Nations are adopting free-market economies
d. Nations are building walls to define their national borders
e. Technology is increasing our ability to communicate
17. In the CAGE analysis, factors that increase Cultural distance between two countries include all the following except:
a. Different languages
b. Different ethnicities
c. Different religions
d. Different social norms
e. Different pay scales
18. From Tom Friedman's globalized view, there are certain qualities that can ensure your employability in today's economy. Which one of the following is not one of those qualities?
a. You possess a specialized skill
b. Your job requires local presence
c. You are extremely flexible (in terms of your being able to accommodate different job roles and environments)
d. You come from a prestigious family
19. In terms of U.S. international trade, the country has _____________.
a. a trade deficit
b. a trade surplus
c. no international trade
d. trade of imports only but does not export
20. The country with the most Global 2000 firms is:
a. China
b. U.S.
c. Japan
d. Dubai
21. Which type of firm/industry is not likely to receive intervention from the government to protect from foreign competition?
a. Firms/industries that are considered national champions
b. Industries that supply goods essential to everyday life
c. Industries/firms that employ large numbers of the citizens
d. Industries that provide the country's transportation infrastructure
22. When Target entered into the Canadian market to compete against other big box retailers, it began operations in major cities with the expectation of expanding out from those cities over the next several years. This example refers to the ______________ component of the strategy diamond.
a. Vehicles
b. Differentiators
c. Staging
d. Demand conditions
e. Economic logic
23. Kraft Foods, a food manufacturing and processing company, allows its foreign subsidiaries a high degree of independence and allows them to provide tailored food products to each local market the firm serves. Kraft Foods has a _____ international strategy.
a. regional
b. transnational
c. global
d. multidomestic
e. local
24. Dr. Velez wants to export high quality Florida beach furniture to Colombia. She has relationships with several retail chains and will ship the product directly to the stores and receive payment directly from the stores. This is an example of which type of international development?
a. Licensing
b. Direct exporting
c. Indirect exporting
d. Sales office
e. Turn key
25. Which foreign market entry method is typically the least costly?
a. Exporting
b. Greenfield
c. Greenfield with a joint venture
d. Franchising
26. InnovTech is a domestic Georgia firm that creates machinery for the aviation industry. JuongTech, a Chinese business, asks InnovTech to make its products available in China. InnovTech knows the following:
- JuongTech is willing to pay the current price of InnovTech's products.
- JuongTech is willing to use the aviation machinery in its current form.
- Dissemination risk is high in China.
What would be InnovTech's preferred method of entry into China?
a. Licensing
b. Exporting
c. Acquisition
d. Franchise
27. Fit & Trim Health Club wants to expand abroad rapidly. The firm has a well-known brand but lacks financial capital and the ability to identify motivated European managers. Fit & Trim should expand abroad by:
a. acquiring a foreign fitness firm.
b. Greenfield expansion.
c. exporting.
d. franchising.
e. any of these.
28. Which of the following foreign market entry options offers the highest amount of control?
a. Licensing
b. Exporting
c. Concentration
d. Greenfield
e. Franchising
29. ALD wants to enter South Africa very quickly for business. The firm also wants to take advantage of South Africa's knowledge of oil and natural gas and maintain a high degree of control over the business. What would be ALD's best method of entry into South Africa?
a. Licensing
b. Exporting
c. Greenfield
d. Acquisition
30. Challenges of joint ventures include
a. protection of key technologies or know-how.
b. cultural and managerial conflicts.
c. developing an effective performance appraisal system.
d. all of these.
e. none of these.