Deck 2: Global Marketplaces and Business Centers

Question 1

Which of the following is LEAST responsible for driving the floriculture industry?

A) technological changes
B) competitve rivalries
C) trade liberalization
D) state capitalism

Answer 1

D

Question 2

The patterns of trade and investment in international business are LEAST affected by ________.

A) linguistics
B) cultural ties
C) education trends
D) military alliances

Answer 2

C

Question 3

________ is the money sent out of a politically or economically unstable country to one perceived as a safe haven.

A) Invoicing currency
B) Flight capital
C) Capital substitution
D) Foreign currency

Answer 3

B

Question 4

When a firm makes a sale of goods denominated in Japanese yen, the yen is referred to as ________.

A) flight capital
B) export capital
C) the invoicing currency
D) the transaction currency

Question 5

U.S. exports of goods and services in 2010 accounted for about ________ percent of U.S. GDP.

A) 12
B) 23
C) 30
D) 45

Question 6

About what percentage of the world's 500 largest corporations in 2010 were headquartered in the United States?

A) 12%
B) 19%
C) 27%
D) 45%

Question 7

________ is the dominant market for Canadian goods.

A) The European Union
B) The United States
C) China
D) Mexico

Question 8

Which of the following best explains the success of FloraHolland?

A) use of e-commerce
B) availability of cheap labor
C) creation of a futures market
D) acquisition of inexpensive land

Question 9

Which country has the highest per capita income in North America?

A) the United States
B) Central America
C) Canada
D) Mexico

Question 10

Companies doing international business are more likely to be successful when they ________.

A) conduct frequent performance appraisals
B) understand local market characteristics
C) employ primarily local managers
D) rely on experienced expatriates

Question 11

In the twenty-first century, growth rates in ________ have outpaced those in ________.

A) the United States and China; India and Japan
B) Canada and Japan; Germany and the U.S.
C) Japan and India; China and Canada
D) China and India; Germany and Japan

Question 12

The prime market for lower-income countries that are trying to raise their living standards through exports is ________.

A) the United States
B) Japan
C) Germany
D) China

Question 13

Which of the following is not true of Mexico?

A) It is the world's largest Spanish-speaking nation.
B) It has increased its protectionist measures in recent years.
C) It has been promoting the privatization of multiple industries.
D) It has signed free trade pacts with El Salvador, Guatemala, and Honduras.

Question 14

The European Union accounted for about ________ percent of the world's GDP in 2009.

A) 15
B) 28
C) 45
D) 52

Question 15

________ is the currency in which the sale of goods and services is denominated.

A) Flight capital
B) Euro currency
C) Invoicing currency
D) Capital substitution

Question 16

Which of the following markets has the LEAST impact on the world's current economic activity?

A) North America
B) European Union
C) China
D) Japan

Question 17

FloraHolland is best described as a(n) ________.

A) cooperative floral auction organization
B) international floral import corporation
C) small, independent flower grower
D) floral industry stock program

Question 18

The countries of North America produce approximately ________ percent of the world's output.

A) 18
B) 29
C) 45
D) 52

Question 19

What is London's origin as a world financial center?

A) military power of British Empire in the nineteenth century
B) influence of royalty on the city's reputation
C) rule over several former American colonies
D) prestige of the London Stock Exchange

Question 20

Which country listed below commonly attracts flight capital?

A) Germany
B) Canada
C) the United States
D) Singapore

Question 21

China is attracting the attention of multinational companies and investors for all of the following reasons EXCEPT its ________.

A) move to adopt market-oriented economic policies
B) abandonment of many communist principles
C) hard-working, low-cost labor force
D) state ownership of key industries

Question 22

Who was Russia's first democratically elected president?

A) Mikhail Baryshnikov
B) Mikhail Gorbachev
C) Boris Yeltsin
D) Vladimir Putin

Question 23

Exports accounted for about ________ percent of New Zealand's 2009 GDP.

A) 10
B) 20
C) 30
D) 40

Question 24

How many countries currently participate in the European Union's common currency, the euro?

A) 12
B) 17
C) 22
D) 27

Question 25

Russia's natural resources include all of the following except ________.

A) diamonds
B) natural gas
C) gold
D) grain

Question 26

The Japanese term, keiretsu, refers to a(n) ________.

A) major Japanese bank
B) family of interrelated companies
C) export trading company
D) supplier

Question 27

What country holds the world's largest land mass?

A) the United States
B) Russia
C) China
D) Canada

Question 28

The Japanese term sogo sosha refers to a(n) ________.

A) major Japanese bank
B) family of interrelated companies
C) export trading company
D) supplier

Question 29

The Newly Independent States refers to the ________.

A) Central European countries
B) former Soviet republics
C) largest African nations
D) Four Tigers

Question 30

Countries designated "middle income" have per capita incomes of ________.

A) less than $995
B) between $996 and $12,196
C) between $12,196 and $23,221
D) between $23,222 and $34,021

Question 31

The European Union is comprised of ________ countries.

A) 12
B) 15
C) 22
D) 27

Question 32

Which EU country has drawn criticism for promoting an agenda of economic nationalism, and in particular, for protecting its farmers under the guise of the Common Agricultural Policy?

A) Germany
B) France
C) Italy
D) Spain

Question 33

Immediately following World War II, Japan's Ministry for International Trade and Investment encouraged firms to concentrate on ________.

A) steel and shipbuilding
B) automobiles and electronics
C) financial services
D) apparel and footwear

Question 34

Which of these countries is NOT a member of the EU?

A) Austria
B) Monaco
C) Norway
D) Portugal

Question 35

Which of the following aspects about Canada is a concern to many international investors?

A) legal system instability
B) separatist movement
C) weak infrastructure
D) education system

Question 36

Samsung, Hyundai, Daewoo Group, and LG are all examples of ________.

A) chaebol
B) keiretsu
C) glasnost
D) sogo sosha

Question 37

Which of the following has achieved high-income status according to the World Bank?

A) the Czech Republic
B) Russia
C) Slovenia
D) Romania

Question 38

Which country is a low-income nation?

A) Cambodia
B) Costa Rica
C) India
D) Chile

Question 39

What is the most likely reason that Germany is considered the most important member of the EU?

A) Germany has the world's fourth largest economy.
B) Germany's government promotes human rights.
C) Germany initially suggested developing the EU.
D) Germany uses a codetermination system.

Question 40

Who was responsible for introducing glasnost and perestroika to the Soviet Union?

A) Czar Nicholas II
B) Boris Yeltsin
C) Vladimir Putin
D) Mikhail Gorbachev

Question 41

Because of its past colonial relationship, France has a competitive advantage in all of the countries listed below except ________.

A) Niger
B) Chad
C) Kenya
D) Senegal

Question 42

Which two countries make up the Indian subcontinent?

A) India and Egypt
B) India and Pakistan
C) Afghanistan and India
D) India and Iran

Question 43

What caused South Korea's economic growth to suddenly slow in 1997-1998?

A) collapse of the chaebol
B) return to Communist rule
C) Asian currency crisis
D) import substitution policies

Question 44

Which of the following African countries is not a major oil exporter?

A) Algeria
B) Gabon
C) Zambia
D) Libya

Question 45

Thailand, Malaysia, and Indonesia were all recipients of significant FDI during the 1980s and 1990s because they offer ________.

A) strong domestic currencies
B) large domestic markets
C) few trade barriers
D) low labor costs

Question 46

The Four Tigers are also called ________.

A) newly industrialized countries
B) newly independent states
C) commonwealth of independent states
D) commonwealth of industrialized countries

Question 47

The Korean term, chaebol, refers to ________.

A) a family-based conglomerate
B) workplace harmony
C) economic restructuring
D) cooperative banks

Question 48

________ is the world's most populous country.

A) India
B) China
C) Indonesia
D) The United States

Question 49

Alfred Communications, a U.S. firm, is considering opening a facility in India. However, executives at the firm are not certain that India is the best location for investment. What is the most likely reason for management's concerns?

A) weak judiciary system
B) rampant corruption
C) state capitalism
D) religious strife

Question 50

Which of the following is most likely a true statement about New Zealand?

A) The country prohibits privatization in most industries.
B) Most of the country's population lives on the South Island.
C) The country primarily relies on its gold and coal resources.
D) Merchandise trade is extremely important to the country's GDP.

Question 51

What is the most significant problem for Singapore today?

A) Chinese control
B) shipping costs
C) labor shortages
D) low technological expertise

Question 52

All of the following except ________ are typical exports from New Zealand.

A) dairy products
B) meat
C) wool
D) petroleum

Question 53

The World Bank classifies the Four Tigers as ________.

A) developing
B) middle-income
C) newly developed
D) high-income

Question 54

The Republic of China is most commonly known as ________.

A) Taiwan
B) Vietnam
C) Hong Kong
D) Singapore

Question 55

What is the most likely reason that Taiwanese businesses are increasingly investing in Chinese factories?

A) demand for automated manufacturing
B) need for low-wage workers
C) government requirements
D) need for additional land

Question 56

Which of the following is NOT a similarity between India and Great Britain?

A) parliamentary system
B) independent judiciary
C) professional bureaucracy
D) state-owned industry

Question 57

Because of its past colonial relationship, the United Kingdom has a competitive advantage in all of the countries listed below except ________.

A) Kenya
B) Zimbabwe
C) Senegal
D) the Republic of South Africa

Question 58

Because of its excellent port facilities, Singapore thrives on ________.

A) shipping
B) oil refining
C) franchising
D) reexporting

Question 59

India was a colony of which country?

A) China
B) France
C) Pakistan
D) the United Kingdom

Question 60

The Four Tigers refers to the countries listed below except ________.

A) South Korea
B) Indonesia
C) Taiwan
D) Singapore

Question 61

Which of the following best explains why Japan's economic growth has slowed?

A) state industries
B) import restrictions
C) poor quality control
D) fast-growing population

Question 62

Parker Manufacturing is considering relocating its headquarters from its current location in Vancouver, British Columbia. Executives at Parker want the firm to be located with the majority of other MNCs in the world. Which location would be most appropriate?

A) Zurich
B) Boston
C) Tokyo
D) London

Question 63

A policy that encourages economic growth through export expansion is called ________.

A) export expansion
B) export substitution
C) export promotion
D) development stimulation

Question 64

Hawthorne Enterprises, an Australian firm, has plans to open a manufacturing facility in France next year. Some executives at the firm are unhappy with this decision, most likely because France ________.

A) opposes human rights legislation
B) promotes economic nationalism
C) refuses to switch to the euro
D) advocates free trade

Question 65

ITX Enterprises, an electronics firm, plans to open a new manufacturing facility. Managers are considering building the new plant in Canada. Which of the following is a risk associated with a Canadian expansion?

A) unstable federal and state governments
B) inadequate secondary education systems
C) political instability related to language conflicts
D) shrinking supply of natural resources for exporting

Question 66

What region is sometimes called the cradle of civilization?

A) the European Union
B) the Middle East
C) the Far East
D) Africa

Question 67

A policy that attempts to stimulate development of local industry by discouraging imports through tariffs and nontariff barriers is called ________.

A) export substitution
B) import substitution
C) development stimulation
D) protectionism

Question 68

China possesses the world's largest economy.

Question 69

Brampton Industries has a facility in a country that has been designated by the World Bank as middle-income. Which of the following is the most likely location of Brampton's plant?

A) Costa Rica
B) Turkey
C) Latvia
D) Rwanda

Question 70

The currency in which the sale of goods and services is denominated is the invoicing currency.

Question 71

Vandever Enterprises is considering expanding its operations into Asia. Managers at the firm are currently evaluating the income levels of three different Asian countries. Which of the following is LEAST likely to be determined by this analysis?

A) public infrastructure status
B) purchasing power of citizens
C) government's ability to monitor corruption
D) technological sophistication of local production processes

Question 72

Money sent out of a politically or economically unstable country to one perceived as a safe haven is known as protected capital.

Question 73

Which of the following controls the monetary policy for countries that use the euro?

A) World Bank
B) Bank of London
C) German Central Bank
D) European Central Bank

Question 74

The OECD's 30 members are all classified as high-income countries .

Question 75

Executives at Oswego Enterprises, a U.S. textile company, are discussing the idea of expanding into the Asian market by opening a facility in Hong Kong. Which of the following is NOT a characteristic of Hong Kong?

A) complete autonomy from China
B) entry point to mainland China
C) location of many major banks
D) highly educated workforce

Question 76

Executives at Cornwall Industries, a U.S. firm, are considering expanding into Niger. As a manager at the firm you have been given the task of analyzing the advantages and disadvantages of Niger. Which of the following is the most likely problem associated with expanding into Niger?

A) influence of British government
B) insufficient natural resources
C) dominance of French firms
D) risk of civil unrest

Question 77

International trade accounts for a major part of the U.S. economy.

Question 78

Which of the following religions was not born in the Middle East?

A) Buddhism
B) Christianity
C) Judaism
D) Islam

Question 79

Export promotion has been successfully applied by all the countries listed below except ________.

A) Taiwan
B) Hong Kong
C) South Korea
D) Brazil

Question 80

Carter Industries has a garment facility in Guatemala. Which of the following is most likely an issue faced by the firm?

A) severe FDI restrictions
B) poor control of counterfeiting
C) inadequate educational systems
D) government ownership of rivals