Question 1.
Olive oil made in Italy and sold in the United States is an example of which of the following?
Global brand
U.S. export
U.S. import
Standardized product
Question 2.
Tacky Toys, a U.S.-based toy retailer, buys all its merchandise from Mushi Toys, a Japan-based toy manufacturer with production facilities in 12 nations. Mushi Toys markets its toys globally without modification. Mushi Toys selling its products to Tacky Toys is an example of _____.
importing
bartering
exporting
globalization
Question 3.
Which of the following is most likely not an effect of globalization?
Increases in the variety of capital flows across national borders
Increases in the economic isolation of developing countries
Increases in the rate at which products are diffused worldwide
Increases in the volume of cross-border transactions
Question 4.
Which of the following are products marketed in all countries essentially without any changes?
National products
Adapted products
Global products
Locally responsive products
Question 5.
Two major forces that underlie the expansion of globalization are ________ and ________.
deregulation of tourism; the rise of nationalism
economic interdependence; the decline of international organizations
trade barriers; political unrest
falling barriers to trade and investment; technological innovation
Question 6.
Jimmy's Jeans creates denim in the United States. The jeans are sold by British retailers who mark up the price by an additional 10% to reflect the cost of taxes associated with importing the denim. The tax is known as a __________.
Import sanction
Tariff
Embargo
Nontariff barrier
Question 7.
The three main goals of the ________ are to help the free flow of trade, help negotiate the further opening of markets, and settle trade disputes between its members.
General Agreement on Tariffs and Trade (GATT)
World Trade Organization (WTO)
World Bank
International Monetary Fund (IMF)
Question 8.
Last year, Sabrina Shin started a business selling all types of spices and hot sauces. The business is small but this entrepreneur's dreams are big. Given limited demand and sales fluctuations in the domestic market, Sabrina has been considering going international; however, she has little information, many doubts, and no guidance. If you were to advise Sabrina on the myths versus facts of exporting, which of the following would you state is a fact?
Only large companies can export successfully.
Sabrina's products do not need export licensing.
Small businesses have no place to turn for export advice.
There is no export financing available for Sabrina's business.
Question 9.
For 75 years, from the start of the First World War to the end of the Cold War, there was a geographic divide between ________, and an ideological divide between ________.
North and South; protectionism and socialism
North and South; regionalism and globalization
East and West; regionalism and globalization
East and West; communism and capitalism
Question 10.
Which of the following terms is used to refer to widespread job turnover throughout an economy?
Redeployment
Churning
Wage differentials
Attrition spectrum
Question 11.
The "global business environment" consists of four distinct elements: globalization, national business environments, the international business environment, and ________.
falling trade and investment barriers
international firm management
technological innovation
multinational corporations
Question 12.
Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts?
Customs
Attitudes
Manners
Values
Question 13.
Which of the following statements regarding cultural change is NOT true?
Cultural change occurs as new traits are accepted and absorbed into a culture.
Cultural diffusion occurs quickly in almost every culture.
Globalization is increasing the pace of cultural diffusion.
Technological advances are increasing the pace of cultural diffusion.
Question 14.
Which of the following terms is used to refer to behavior that is shared by a heterogeneous group or by several groups?
Manners
Lingua franca
Popular custom
Folk custom
Question 15.
A ________ is a system of social stratification in which people are born into a social ranking, with no opportunity for social mobility.
moksha system
class system
caste system
genealogy system
Question 16.
When translated, the term Shinto means ________.
path of the heart
way of the gods
escape from reincarnation
achieving enlightenment
Question 17.
According to Hofstede's framework, which of the following describes the degree of inequality between people in different occupations?
Power distance
Uncertainty avoidance
Individualism
Collectivism
Question 18.
Sid Maxwell is head of legal affairs for Hudson Inc., a producer of animal figurines that include an embedded software program that makes animal sounds. Hudson is expanding its market to include parts of Asia and Maxwell is concerned about reports of software piracy in the region. The software program embedded in Hudson's figurines is an example of ________.
a copyright
intellectual property
a trademark
local content
Question 19.
Global Trading, LLC, is a distributor of computer software and hardware, steel and copper scrap, and telephone and electric utility equipment. Involved in three very different types of industries, the company faces many types of risks in its global business. Global Trading just learned that the government in one country in which it does business has taken over the entire electric utility industry. The government's actions are an example of ________.
confiscation
globalization
expropriation
nationalization
Question 20.
Which of the following philosophies maintains that a company's sole responsibility is to maximize profits for its owners?
Utilitarian view
Righteous moralist view
Friedman view
Cultural relativist view
Question 21.
Which of the following terms is used to refer to personal behavior in accordance with guidelines for good conduct or morality?
Standardized behavior
Customary behavior
Ethical behavior
Adaptive behavior
Question 22.
A bootleg Prada backpack that costs $500 in New York but sells for $100 in Rome is an example of which of the following?
Patent infringement
Pirated product
Copyright violation
Standardized product
Question 23.
Which of the following was initially a code governing moral and ethical behavior that was later extended to govern commercial transactions?
Civil law
Hindu law
Common law
Islamic law
Question 24.
The value of all goods and services produced by the domestic economy over a one-year period is called ________.
gross domestic product (GDP)
human development index (HDI)
gross national product (GNP)
purchasing power parity (PPP)
Question 25.
Which of the following is an example of a political motive behind government intervention in trade?
Promote a strategic trade policy
Gain influence over other nations
Protect against unwanted cultural influence
Protect young industries from competition
Question 26.
The ________ argument says that a country's emerging industries need protection from international competition during their development.
national security
infant industry
strategic trade policy
GATT treaty
Question 27.
Companies seek cross-border mergers and acquisitions for each of the following reasons EXCEPT to ________.
get a foothold in new geographic markets
increase a firm's global competitiveness
fill in gaps in companies' product lines in a global industry
free up company budgets for increased R & D
Question 28.
Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves and erect a common trade policy against nonmembers is called a(n) ________.
economic union
customs union
common market
political union
Question 29.
Typical buyers of bonds include all of the following except ________.
medium- to large-sized banks
pension funds
mutual funds
governments in need of funds
Question 30.
Sandy Smith, vice president of marketing for a large consumer products company, will soon travel to Colombia to spearhead an effort to increase her company's presence there. Sandy is concerned about her safety and has contacted a risk-assessment service for advice. If Sandy is asked for personal information, she should ________.
respond quickly and give detailed information
be vague but friendly with her response
give out her work or mobile phone number, but never her home phone number
demand to know why she is being asked for personal information
Question 31.
Describe international trade including its potential benefits, and explain why a nation trading with a neomercantilist country would be at a disadvantage.
Question 32.
Explain the concept of balance of payments and describe its two major components.