Question 1

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

Accepted Answer

During the Cold War, the term "First World" was used to refer to the capitalist, democratic nations aligned with the United States, including Western Europe and Australia. This was in contrast to the "Second World" of communist, socialist countries aligned with the Soviet Union, and the "Third World" of developing nations that were not aligned with either superpower.

Question 2

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

Accepted Answer

The primary benefit of worldwide partnership with the Olympics is not just the right to use the Olympic logo but also the association with a prestigious global event, the opportunity to engage with audiences worldwide, and the potential for increased brand recognition and credibility.

Question 3

A boundaryless economy is one in which ________.

Accepted Answer

A boundaryless economy is characterized by the free flow of goods, services, and capital across national borders without the restrictions of governmental regulations or barriers. In this economy, national borders are irrelevant, and companies have the ability to operate globally without being constrained by geographical or political barriers.

Question 4

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

Accepted Answer

The Kyoto Protocol is an international agreement related to climate change and does not directly relate to regional trade and investment. The other options, the European Union, Mercosur Accord, and North American Free Trade Agreement, are all regional trade agreements that aim to ease economic cooperation and integration among member countries.

Question 5

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

Accepted Answer

The answer of Colgate-Palmolive expanded into overseas markets with its...

Question 6

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

Accepted Answer

According to the United Nations, as of 2021, China and India are the two most populous countries in the world, with a combined population of over 2.7 billion people, which accounts for more than one-third of the world's population.

Question 7

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

Accepted Answer

Real estate sales are not a primary source of revenue for the IOC during the Olympics. The main sources of revenue include television coverage, corporate sponsors, and advertising time.

Question 8

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

Accepted Answer

Japan has a large domestic market and a diversified economy, making it less dependent on exports compared to the other countries listed.

Question 9

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

Accepted Answer

International business involves conducting business transactions between parties located in different countries.

Question 10

International business is more complex than domestic business.

Accepted Answer

International business involves dealing with different cultures, laws, currencies, and business practices which make it more complex than domestic business. Companies need to consider factors such as foreign exchange rates, global supply chains, and cross-border regulations when conducting business across borders.

Question 11

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.

Accepted Answer

It is necessary for Americans and other English speakers to be familiar with cultural, legal, political, and social differences between countries, even if English is the common language of international business. Failure to understand these differences can lead to misunderstandings, miscommunication, and potential business failures.

Question 12

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

Accepted Answer

Tourism is the largest component of international trade in the service industry. According to the World Tourism Organization, tourism accounted for 7% of global trade in services and generated 10% of the world's GDP in 2019.

Question 13

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

Accepted Answer

The Cold War primarily involved the United States and Western Europe on one side, and the Soviet Union on the other. Low-income countries in Latin America were often seen as suppliers of raw materials, such as oil, minerals, and agricultural products, to the more developed countries in North America and Europe.

Question 14

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

Accepted Answer

During the 5th century BC, Greece dominated international trade due to their strategic location on the Mediterranean Sea and their advanced naval technology. Greek city-states such as Athens and Corinth controlled trade routes and engaged in commerce throughout the Mediterranean world. They traded goods such as olive oil, wine, pottery, and textiles with other civilizations including Egypt, Persia, and Rome.

Question 15

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

Accepted Answer

According to the CIA World Factbook, the Han ethnic group comprises over 91% of China's population, making them the largest ethnic group in China.
 
Answer: D
 While computer production takes place in several regions in China, coastal regions generally have lower labor costs due to more developed infrastructure and higher concentration of manufacturing industries.

Question 16

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

Accepted Answer

The term "Second World" was used to refer to the Soviet Union and its allied Communist states during the Cold War. The term "First World" referred to the United States and its allies, while the term "Third World" referred to countries that were not aligned with either the U.S. or Soviet Union. The term "Fourth World" was not commonly used during the Cold War, but is sometimes used today to refer to marginalized and indigenous communities.

Question 17

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

Accepted Answer

Worldwide partner is the highest level of corporate sponsorship for the Olympics.

Question 18

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

Accepted Answer

The answer of According to the text, businesses in the...

Question 19

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

Accepted Answer

AG is an abbreviation used for "Aktiengesellschaft" which is the German term for a public limited company. This legal form provides protection of limited liability to shareholders.

Question 20

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

Accepted Answer

The primary reason that U.S. advertising agencies frequently film commercials in South Africa is the low production costs.

Quiz 1: An Overview of International Business