Question 1

Emerging markets are defined as those that are:
A)Growing rapidly.
B)Transitioning from a communist-controlled economy to capitalism.
C)Seen to have impact only sporadically.
D)Enjoying a mature economy.

Accepted Answer

Emerging markets are characterized by having rapidly growing economies. They are typically developing countries that are experiencing a period of significant transformation and modernization.

Question 2

Globalization is
A)The trend of businesses expanding beyond their domestic boundaries.
B)Increasing average temperature over the globe.
C)The increased use of global satellite communication systems.
D)A strategy of developing unique products for each nation in the world.

Accepted Answer

Globalization refers to the trend of businesses expanding beyond their domestic boundaries and operating on an international scale. It involves the integration and interdependence of economies, cultures, and societies worldwide. B, C, and D are not accurate definitions of globalization.

Question 3

The World Trade Organization:
A)Is a major trading company.
B)Succeeded the GATT agreements.
C)Collects duties for member countries.
D)Is a consulting group for companies who wish to engage in international trade.

Accepted Answer

The World Trade Organization (WTO) was established in 1995 to succeed the General Agreement on Tariffs and Trade (GATT) agreements. Its purpose is to promote free and fair trade among member countries by negotiating and enforcing trade agreements and providing a forum for resolving trade disputes. The WTO does not engage in trading itself, nor does it collect duties for member countries. It also does not offer consulting services for companies wishing to engage in international trade.

Question 4

The economic agreement that links the US,Canada,and Mexico in an economic bloc that allows freer exchange of goods and services is known as the
A)EU.
B)OPEC.
C)APEC.
D)None of the above

Accepted Answer

The economic agreement that links the US, Canada, and Mexico is the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA). None of the options listed (EU, OPEC, APEC) correctly identify this agreement.

Question 5

Major regional trade agreements include all of the following EXCEPT
A)EU.
B)NAFTA.
C)APEC.
D)PROTEC.

Accepted Answer

The three options provided (EU, NAFTA, and APEC) are all major regional trade agreements, while PROTEC is a made-up term and does not exist as a real trade agreement.

Question 6

Transition economies are
A)Mature economies with substantial per capita GDP and international trade.
B)Led by Hong Kong, Singapore, South Korea, and Taiwan.
C)Countries changing from government-controlled or communistic economies to a more free market capitalism.
D)None of the above

Accepted Answer

Transition economies are countries that are shifting from government-controlled or communistic economies to more free market capitalism. This transition can bring significant changes in the economic structure and policies of a country. Some examples of transition economies include Russia, China, and Vietnam. Therefore, option C is the correct answer. Options A and B are not correct as they do not describe transition economies. Option D, "None of the above," is not correct as option C accurately describes transition economies.

Question 7

Anything that a government might do to affect a multinational adversely is known as
A)Exchange rate risk.
B)Business risk.
C)Sales risk.
D)Political risk.

Accepted Answer

Political risk refers to the risks associated with the actions taken by a government that may negatively impact the operations and profitability of the multinational company. This can include changes in regulations, taxes, trade policies, nationalization of assets, civil unrest, and other political instability.

Question 8

Which of the following is not a classification of economic systems noted in the text?
A)Domestic economies
B)Transition economies
C)LDCs
D)Emerging markets

Accepted Answer

Domestic economies are not typically classified as a distinct category of economic systems in the context described. Economic systems are generally categorized based on their structure and the level of government intervention, such as market economies, mixed economies, and command economies. Transition economies refer to countries shifting from a centrally planned economy to a market economy, LDCs (Least Developed Countries) describe a low level of socioeconomic development, and emerging markets denote economies that are in the process of rapid growth and industrialization.

Question 9

Examples of developed economies would include:
A)The U.S.and Japan.
B)Hungary and Poland.
C)Argentina and Brazil.
D)Hong Kong and Singapore.

Accepted Answer

Developed economies are typically characterized by high gross domestic product (GDP) per capita, high standard of living, advanced infrastructure, and a stable financial system. The U.S. and Japan are both examples of developed economies based on these factors.

Question 10

The two forms of risk discussed in the text include
A)Exchange rate risk and corruption risk.
B)Business risk and social risk.
C)Sales risk and employment risk.
D)Economic and political risk.

Accepted Answer

The text discusses economic and political risk as two forms of risk. Economic risk refers to the risk of a negative impact on a company's finances due to changes in economic conditions or external factors such as inflation, interest rates, or market instability. Political risk, on the other hand, refers to the risk of a negative impact on a company's operations due to changes in government policies or instability in a country's political environment.

Question 11

Developing economies are
A)Mature economies with substantial per capita GDP and international trade.
B)Hong Kong, Singapore, and Taiwan.
C)Countries in the process of changing their economies from government-controlled to a more free market capitalism.
D)None of the above

Accepted Answer

The answer of Developing economies are
A)Mature economies with substantial per...

Question 12

. A global product or service is
A)Adapted for each country's unique needs.
B)A similar product or service for all customers throughout the world.
C)A product or service that requires bilingual customers.
D)Products developed for use outside the country.

Accepted Answer

A global product or service is one that is standardized and consistent across all countries and regions where it is offered. It is designed to meet the needs of customers throughout the world without significant customization for any specific country or region.

Question 13

Which of the following would not be considered a basic source of globalization?
A)Similar customer needs
B)Falling of trade barriers
C)Advances in communication technology
D)Differentiation among countries

Accepted Answer

Differentiation among countries does not contribute to the basic sources of globalization. Globalization refers to the interconnection and interdependence of nations, cultures, and economies around the world. Similar customer needs, falling trade barriers, and advances in communication technology all promote the integration of global markets, making it easier for businesses to operate across national borders. However, differentiation among countries can create barriers to trade and cultural exchange, hindering globalization.

Question 14

Businesses of all sizes are increasingly looking for global opportunities because
A)Trade barriers are falling.
B)Money is flowing more freely across countries.
C)The world is becoming one interconnected economy.
D)All of the above.

Accepted Answer

All of the above reasons are contributing to businesses of all sizes seeking global opportunities. Trade barriers are falling due to agreements like NAFTA and the EU. Money is indeed flowing more freely across countries, and the world is becoming one interconnected economy due to advanced communication and transportation technology.

Question 15

Economic risks discussed in the text include
A)Anything a government might do or not do that might adversely affect a company.
B)The likelihood of losing money if one invests in stocks.
C)Exchange and interest rates.
D)Expropriating of foreign firms by the local government without any compensation.

Accepted Answer

The answer of Economic risks discussed in the text include
A)Anything...

Question 16

According to the text,the multinational company
A)Is required to be a public corporation.
B)Is any company that engages in any business function across borders.
C)Must sell overseas to be a true multinational.
D)Must be large.

Accepted Answer

The text states that "A multinational company is any company that engages in any business function across borders" which means it does not have to be a public corporation or necessarily sell overseas, but it does need to operate across borders in some form. The text also does not specify that the company must be large.

Question 17

According to your text,FDI means
A)Foreign development initiatives.
B)Various investment policies of the U.S.government.
C)A foreign company has an ownership position in a company in another country.
D)A type of international negotiation strategy.

Accepted Answer

FDI means a foreign company has an ownership position in a company in another country. It refers to the investment made by a company of one country in the business activities of another country.

Question 18

Multinational management is
A)A strategy of developing similar strategies for different countries.
B)The trend of business expanding beyond local boundaries.
C)The formulation and design of management systems to successfully take advantage of international opportunities and respond to international threats.
D)None of the above

Accepted Answer

Multinational management involves the formulation and design of management systems to successfully take advantage of international opportunities and respond to international threats. It goes beyond simply developing similar strategies for different countries or expanding beyond local boundaries.

Question 19

Emerging markets include
A)OECD countries.
B)Brazil, China, Russia, India.
C)Korea, Japan and USA.
D)Hungary, Poland, Slovakia.

Accepted Answer

Emerging markets typically refer to developing countries that are experiencing rapid economic growth, such as Brazil, China, Russia, and India. The other options listed do not fit this definition. A, C, and D include mostly developed countries.

Question 20

Which of the following statements about the Internet and Information Technology is true?
A)The Internet is benefiting companies worldwide.
B)Electronic communications does not allow companies to communicate with locations around the world.
C)Information technology is not encouraging a borderless financial market.
D)Information technology does not allow the sharing of information around the world.

Accepted Answer

The statement "The Internet is benefiting companies worldwide" is true. The Internet has made it easier for companies to reach a global audience, conduct e-commerce, and share information quickly and efficiently.

Quiz 1: Multinational Management in a Changing World

Emerging markets are defined as those that are:

Globalization is

The World Trade Organization:

The economic agreement that links the US,Canada,and Mexico in an economic bloc that allows freer exchange of goods and services is known as the

Major regional trade agreements include all of the following EXCEPT

Transition economies are

Anything that a government might do to affect a multinational adversely is known as

Which of the following is not a classification of economic systems noted in the text?

Examples of developed economies would include:

The two forms of risk discussed in the text include

Developing economies are

. A global product or service is

Which of the following would not be considered a basic source of globalization?

Businesses of all sizes are increasingly looking for global opportunities because

Economic risks discussed in the text include

According to the text,the multinational company

According to your text,FDI means

Multinational management is

Emerging markets include

Which of the following statements about the Internet and Information Technology is true?