Deck 5: International Business and Globalization

Question 1

Which of the following countries returned to the democracy over the last two decades?

A)Peru
B)Chile
C)Nicaragua
D)Both Chile and Nicaragua

Answer 1

Both Chile and Nicaragua

Question 2

Since the late 1980's, many countries have:

A) embraced market-driven economies
B) become more populist.
C) closed their borders to foreigners.
D) filed complaints with the GATT.

Answer 2

embraced market-driven economies

Question 3

Which of the following is a form of economic integration in which all tariffs between members are eliminated and a common trade policy toward non-member countries is established?

A) NAFTA
B)EU
C)ASEAN
D)None of the above

Answer 3

None of the above

Question 4

Which of the following is an example of an economic union?

A) NAFTA
B)EU
C)ASEAN
D)None of the above

Question 5

Which of the following is a characteristic of multinational enterprises?

A) At least half its directors are foreign nationals
B) The company does at least 30 percent of its business in foreign markets.
C) The overseas market is larger than the domestic market.
D) The affiliates are responsive to a number of important environmental forces.

Question 6

Which of the following is a definition of multinational enterprises?

A) A company operating in emerging economies.
B) A company headquartered in one country but having operations in other countries.
C) A company employing foreign nationals.
D) None of the above.

Question 7

An outsourcer:

A) Is always located in a foreign country
B) only produces standardized parts
C) Generates its revenue by producing for another company.
D) Provides recycling capabilities to the organization.

Question 8

Which of the following is an EU MNE?

A) Canon
B) Macintosh
C) Levi-Strauss
D) Zara.

Question 9

The United Nations has identified _________ MNEs.

A) 500
B) 100,000
C) 85,000
D) 60,000

Question 10

Which of the following firms saw an increase in the number of its foreign affiliates between 1970 and 2000?

A) Unilever
B) Marubeni
C) Ford
D) All of the above.

Question 11

Typically, the last step in the internationalization process is:

A) the sales subsidiary
B) portfolio investment
C) licensing
D) FDI.

Question 12

Which of the following is the best example of a multinational enterprise?

A) A large pharmaceutical company
B) A local health company
C) The US post office
D) A British rail company.

Question 13

Which of the following is not a characteristic of an MNE?

A) It always draws on a common pool of resources
B) It is responsive to a number of environmental forces in its home and host country
C) It links together affiliates and business partners under a common strategic vision
D) It always starts its internationalization process through licensing.

Question 14

Over _____ of the world's largest 500 MNEs are headquartered in North America, the EU, and Japan/Asia.

A) 100
B) 200
C) 300
D) 400

Question 15

Which of the following countries has the largest number of MNEs in the list of the world's largest firms?

A) US
B) EU
C) Britain
D)Japan

Question 16

_______ is the first step in the typical internationalization process.

A) Sales subsidiary
B) Export through distributor
C) License
D) FDI

Question 17

Which of the following is a reason why MNEs become multinationals?

A) Coordination.
B) Diversification.
C) Capitalization.
D) None of the above.

Question 18

For which of the following reasons might MNEs enter the Indian market?

A) The country is a rapidly growing market which offers lucrative possibilities.
B) There is a quality workforce that can be tapped and used throughout the organization.
C) Their major competitor has already moved operations there.
D) All of the above.

Question 19

Wal-Mart is in essence:

A) global company spanning the world.
B) a regional company spanning North America.
C) more dependent on its foreign operations than its domestic operations.
D) both the first and third answers.

Question 20

In 2005, the number of members of _______ increased from 15 to 25.

A) The EU
B) ASEAN
C) NAFTA
D) APEC

Question 21

Which of the following statements is true about FDI?

A) It entails the purchase of financial securities.
B) It is mainly intra-regional.
C) It is mainly used to access markets in other continents, where exports cannot be easily transport

Question 22

Which of the following are sources of political risk?

A) Newly created international alliances.
B) Rising nationalization.
C) Competing religious groups.
D) All of the above.

Question 23

Which of the following is a Berlin-based organization that produces reports on corruption each year?

A) Corruption Monitor.
B) Corruption Watchdog.
C) Transparency International.
D) The Business Ethics Bureau.