Deck 1: An Overview of International Business

Question 1

As an experienced accounts manager for a U.S. firm, Tyrone has worked exclusively with other U.S. firms. However, his employer is expanding overseas, and Tyrone will now be an international manager. Tyrone will most likely need to develop his knowledge in all of the following areas EXCEPT ________.

A) cultural differences
B) audience analysis
C) social customs
D) foreign laws

Answer 1

B

Question 2

Which of the following is the LEAST likely benefit to Olympic host cities?

A) enhanced media sponsorship
B) greater economic growth
C) improved infrastructure
D) increased tourism

Answer 2

A

Question 3

Sony's suppliers deliver necessary inputs as they are needed by Sony. Sony is most likely using a(n) ________ system.

A) cross-functional
B) just-in-time
C) inventory management
D) on-demand delivery

Answer 3

B

Question 4

The British term for the trading of tangible goods is ________.

A) visible trade
B) invisible trade
C) merchandising
D) service franchising

Question 5

Sam's Club purchases kalamata olives from Greece for sale in its stores. Which international business activity does this represent?

A) exporting
B) importing
C) merchandising
D) franchising

Question 6

A manager who has cultural literacy can most likely ________.

A) speak and read in more than one language
B) recognize the similarities and differences of cultures
C) develop accurate cultural assessments of foreign colleagues
D) function as an expatriate manager in multiple foreign locations

Question 7

Black and Decker produces tools at a plant in North Carolina and ships the tools to retailers in England. This is an example of which type of international business activity?

A) merchandising
B) importing
C) exporting
D) trading

Question 8

Individuals should most likely study international business to ________.

A) comply with graduate school certification requirements
B) ensure that an employer has a global online presence
C) remain current on the latest business methods
D) obtain bilingual business experience

Question 9

Just-in-time systems were created in ________.

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

Question 10

________ consist(s) of business transactions between parties from more than one country.

A) Currency exports
B) International business
C) Domestic business
D) Global ventures

Question 11

Which of the following has most likely triggered the increase of small businesses involved in international business?

A) e-commerce
B) economic recession
C) foreign-made materials
D) increased cultural literacy

Question 12

The number of Americans working for U.S. affiliates of foreign-owned corporations is about ________.

A) 2 million
B) 3 million
C) 4 million
D) 5 million

Question 13

The Internet has helped small businesses compete in global markets because it ________.

A) allows them to establish a physical presence in each country
B) avoids transactions involving foreign exchange
C) eliminates price controls
D) reduces entry costs

Question 14

Olympic sponsorship is best suited for companies that are ________.

A) pursuing a niche market
B) selling technological goods
C) pursuing a worldwide market
D) marketing athletic equipment

Question 15

Which of the following is not an international business transaction?

A) purchasing products in one country and assembling them in another
B) building a plant in a foreign country to capitalize on lower labor costs
C) borrowing money from a major bank to finance capital improvements
D) shipping finished products from one country to another for retail sale

Question 16

Just-in-time systems are used by firms to ________.

A) store important data
B) manage inventory
C) monitor production
D) screen job applicants

Question 17

The British term for the trading of intangible goods is ________.

A) visible trade
B) invisible trade
C) merchandise exports and imports
D) service exports and imports

Question 18

IBM is considering becoming a worldwide partner for the 2012 Olympics. Which of the following would IBM most likely receive as a result?

A) free public relations
B) low-cost marketing
C) top athlete endorsements
D) priority advertising space

Question 19

________ is the buying of products made in other countries for use or resale in one's own country.

A) Exporting
B) Importing
C) Merchandising
D) Transporting

Question 20

Cities wishing to host the Olympic Games must do all of the following except ________.

A) make facilities commitments
B) develop a volunteer workforce
C) generate organizational support
D) build high-speed rail links between event cities

Question 21

________ is a contractual arrangement in which a firm in one country allows the use of its intellectual property by a firm in a second country in return for a royalty payment.

A) Leasing
B) Franchising
C) Licensing
D) Merchandising

Question 22

If a company is headquartered in Taiwan, then Taiwan is the company's ________.

A) host country
B) home country
C) dominant country
D) competitive country

Question 23

Which country was a significant focal point for international business during the Middle Ages?

A) China
B) England
C) Italy
D) Russia

Question 24

Siemens is headquartered in Germany but maintains operations in the United States. The United States is the ________ country.

A) home
B) host
C) parent
D) subsidiary

Question 25

Ford Motor Company is based in Detroit, Michigan. It also has offices in Germany, England, and China. Which of the following is Ford's home country?

A) Germany
B) England
C) China
D) United States

Question 26

Ford Motor Company purchased all of the common stock of Sweden's Volvo Corporation. This is an example of ________.

A) foreign portfolio investment
B) foreign direct investment
C) international expansion
D) global licensing

Question 27

Which term refers to the location of a parent company's headquarters?

A) host country
B) home country
C) third country
D) local country

Question 28

McDonald's has licensed its brand name, operational systems, and trademarks to individual restaurant owners in Europe. This is called international ________.

A) leasing
B) marketing
C) franchising
D) diversifying

Question 29

________ are purchases of foreign financial assets for a purpose other than control.

A) Foreign direct investments
B) Global business investments
C) Foreign portfolio investments
D) Indirect investments

Question 30

A(n) ________ involves a firm in one country agreeing to operate facilities for a firm in another country for an agreed-upon fee.

A) franchising agreement
B) licensing agreement
C) management contract
D) indirect investment

Question 31

Trade between nations can be traced back as far as ________.

A) 2000 BC
B) 500 BC
C) 1200
D) 1600

Question 32

Exports account for about ________ of Netherland's gross domestic product?

A) 20%
B) 35%
C) 50%
D) 75 %

Question 33

The international business activity called ________ occurs when capital is supplied by residents of one country to residents of another country.

A) international investment
B) global direct investment
C) portfolio financing
D) state capitalism

Question 34

Walt Disney permits a German clothing manufacturer to market children's pajamas embroidered with Mickey Mouse in return for a percentage of company sales. This is an example of ________.

A) franchising
B) licensing
C) leasing
D) piracy

Question 35

________ are investments made for the purpose of actively controlling property, assets, or companies located in host countries.

A) Licensing investments
B) Portfolio investments
C) Foreign direct investments
D) Indirect global investments

Question 36

If a Dutch pension fund purchases 1,000 shares of Nissan's stock, the Dutch company has most likely ________.

A) made a foreign direct investment
B) made a foreign portfolio investment
C) earned a higher return on assets
D) earned a lower rate of return

Question 37

The ________ is where a company operates but is not headquartered.

A) host country
B) home country
C) parental country
D) third party country

Question 38

Licensing usually involves permission to use all of the following EXCEPT ________.

A) patents
B) trademarks
C) brand names
D) production facilities

Question 39

Compared to Thailand, the United States has a ________ level of exports of goods and services as a percentage of GDP.

A) slightly lower
B) slightly higher
C) significantly lower
D) significantly higher

Question 40

Boeing, an American firm, sells commercial aircraft to Lufthansa in Germany. This is an example of ________.

A) exporting
B) importing
C) licensing
D) franchising

Question 41

The term ________ is used to identify firms that have extensive involvement in international business.

A) global operation
B) multinational corporation
C) international conglomerate
D) multidomestic organization

Question 42

Any organization that engages in cross-border commercial transactions with individuals, private firms, and/or public sector organizations is a(n) ________.

A) multinational corporation
B) multinational enterprise
C) international business
D) international franchise

Question 43

Pepsi's reason for following Coca-Cola to new markets was most likely to ________.

A) acquire resources and supplies
B) leverage core competencies
C) compete more effectively
D) gain economies of scale

Question 44

Which of the following is not a common activity of MNCs?

A) owning and controlling foreign assets
B) buying resources in various countries
C) creating goods in a variety of countries
D) establishing foreign exchange rates

Question 45

The integration of markets, nation-states, and technologies in a way that is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before is referred to as ________.

A) international business organization
B) market internationalization
C) economic integration
D) globalization

Question 46

The importance of foreign direct investment in the world's economy has ________ over time.

A) fallen slightly
B) fallen significantly
C) risen significantly
D) risen slightly

Question 47

Singapore Airlines' ________ is its award-winning standards of customer satisfaction.

A) core competency
B) distinctive advantage
C) differential advantage
D) strategic imperative

Question 48

After World War I, international business was primarily restricted by ________.

A) import barriers
B) export restrictions
C) government contracts
D) high transportation costs

Question 49

Which of the following is a primary reason that firms acquire resources and supplies from other countries?

A) comply with trade regulations
B) minimize resource competition
C) decrease shipping and handling costs
D) obtain items unavailable in home country

Question 50

International nonprofit organizations are called ________.

A) multinational corporations
B) multinational organizations
C) multinational enterprises
D) multinational nonprofits

Question 51

Which of the following is the likely motive for Procter & Gamble's move into China?

A) leveraging core competencies
B) acquiring new resources
C) accessing new markets
D) improving competition

Question 52

Which of the following is the LEAST likely reason that firms globalize?

A) generate profit growth
B) achieve economies of scale
C) diversify the firm's revenue stream
D) increase dependence on home country sales

Question 53

After World War II, international business was primarily triggered by the ________.

A) loss of high-quality Japanese goods
B) reduction of tariffs and quotas
C) improvement of transportation
D) introduction of the Euro

Question 54

A(n) ________ is a distinctive strength that is central to a firm's operations.

A) core competency
B) unilateral skill
C) comparable advantage
D) strategic imperative

Question 55

The ratio of international trade to economic activity has ________ since 1950.

A) risen slightly
B) risen dramatically
C) fallen slightly
D) remained about the same

Question 56

In 2010, ________ was considered the world's largest corporation.

A) Toyota
B) ExxonMobil
C) Coca-Cola
D) Wal-Mart

Question 57

Nike, ExxonMobil, Mitsubishi, and Volkswagen are all examples of ________.

A) multinational companies
B) management contracts
C) portfolio investments
D) franchised firms

Question 58

Mexico and Poland are examples of ________.

A) Second World economies
B) emerging markets
C) First World economies
D) developed markets

Question 59

The International Red Cross is an example of a(n) ________.

A) international business
B) multinational enterprise
C) multinational organization
D) multinational corporation

Question 60

Which of the following is the LEAST likely reason that firms globalize?

A) expanding into new markets
B) acquiring low-cost resources
C) leveraging core competencies
D) competing for critical workers

Question 61

During the Cold War, which term was used when referring to the United States, Australia, and Western Europe?

A) First World
B) Second World
C) Third World
D) Fourth World

Question 62

The primary benefit of worldwide partnership is the right to use the Olympic logo on all advertising by the sponsor.

Question 63

A boundaryless economy is one in which ________.

A) exported goods are predominant
B) regional borders are significant
C) trade laws are strictly enforced
D) national borders are irrelevant

Question 64

Regional trade and investment has been made easier through all of the following EXCEPT the ________.

A) European Union
B) Kyoto Protocol
C) Mercosur Accord
D) North American Free Trade Agreement

Question 65

Colgate-Palmolive expanded into overseas markets with its toothpaste when the product reached the ________ stage of the product life cycle.

A) growth
B) maturity
C) decline
D) development

Question 66

Which two countries account for more than one-third of the world's population?

A) Mexico and Brazil
B) China and India
C) Brazil and India
D) Mexico and China

Question 67

All of the following are the primary sources of revenue for the IOC during the Olympics EXCEPT ________.

A) television coverage
B) corporate sponsors
C) real estate sales
D) advertising time

Question 68

Which of the following countries has the LEAST dependence on exporting for its overall GDP?

A) Germany
B) Mexico
C) Japan
D) China

Question 69

Business transactions between parties from more than one country are known as international business.

Question 70

International business is more complex than domestic business.

Question 71

Since English is the common language of international business, it is not necessary for Americans and other English speakers to be familiar with cultural, legal, political, and social differences between countries.

Question 72

What is the largest component of international trade in the service industry?

A) tourism
B) accounting
C) consulting
D) higher education

Question 73

During the Cold War, low-income countries in ________ were primarily considered suppliers of raw materials to First World countries.

A) the United States
B) Western Europe
C) the Soviet Union
D) Latin America

Question 74

Which country dominated international trade during the 5th century B.C.?

A) China
B) Italy
C) Spain
D) Greece

Question 75

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

A) Computer production is most active in Shanghai.
B) China's growth has mostly benefited Shanxi.
C) China's largest ethnic group is the Han.
D) Labor costs are lower in coastal China.

Question 76

During the Cold War, which term was used when referring to the Soviet Union and its allied Communist states?

A) First World
B) Second World
C) Third World
D) Fourth World

Question 77

The highest profile level in corporate sponsorship of the Olympics is that of worldwide partner.

Question 78

According to the text, businesses in the ________ industry frequently enter foreign markets to prevent rivals from becoming dominant in any particular country.

A) airline manufacturing
B) semiconductor
C) accounting
D) coffee

Question 79

In which country is AG used to indicate that a business has limited liability?

A) Germany
B) Sweden
C) Mexico
D) Japan

Question 80

What is the primary reason that U.S. advertising agencies frequently film commercials in South Africa?

A) environmental safeguards
B) improved competition
C) low production costs
D) new markets