Question 1

What types of business activities are undertaken by MNCs?

Accepted Answer

MNCs buy resources in a variety of countries, create goods and services in a variety of countries, and sell those goods and services in a variety of countries.

Question 2

Why has there been significant growth in international trade in the service sector? What role have emerging economies, such as India, played in this growth?

Accepted Answer

Some of the rapid growth in international trade in services is due to the development of the Internet and associated technologies, which makes international trade in such diverse industries as banking, consulting, education, retailing, and gambling more feasible. For example, many Canadian and U.S. companies have shifted their customer service and data entry operations to areas with lower labor costs in and outside North America. As long as the transaction can be performed electronically, the physical location of the facility is of little importance. India, for example, has a growing call-center business, providing customer care and troubleshooting services for customers of numerous MNCs throughout the world.

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

Emerging markets include countries such as the United States and Britain that are leading the globalization charge.

Accepted Answer

A) True 
 B)False

Question 7

Explain the difference among the terms multinational corporation, multinational enterprise, and multinational organization.

Accepted Answer

The difference is in the type of organiz

Question 8

International business is more complex than domestic business.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

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 
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 12

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

Accepted Answer

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

Question 13

What are some of the advantages and disadvantages of globalization in regards to its effects on emerging economies?

Accepted Answer

Globalization into emerging markets dimi

Question 14

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

Accepted Answer

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 
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 15

During the 2008 Olympics, China's state-owned TV network offered low-cost commercial spots to Chinese firms.

Accepted Answer

A) True 
 B)False

Question 16

Licensing, franchising, and management contracts are all forms of international business activity. Using examples, briefly define each form. What are the advantages and disadvantages of using these forms of activity?

Accepted Answer

Licensing is a contractual arrangement i

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

What types of business activities are undertaken by MNCs?

Why has there been significant growth in international trade in the service sector? What role have emerging economies, such as India, played in this growth?

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

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

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

Emerging markets include countries such as the United States and Britain that are leading the globalization charge.

Explain the difference among the terms multinational corporation, multinational enterprise, and multinational organization.

International business is more complex than domestic business.

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

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

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

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

What are some of the advantages and disadvantages of globalization in regards to its effects on emerging economies?

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

During the 2008 Olympics, China's state-owned TV network offered low-cost commercial spots to Chinese firms.

Licensing, franchising, and management contracts are all forms of international business activity. Using examples, briefly define each form. What are the advantages and disadvantages of using these forms of activity?

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

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

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

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

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 1: An Overview of International Business

What types of business activities are undertaken by MNCs?

Why has there been significant growth in international trade in the service sector? What role have emerging economies, such as India, played in this growth?

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

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

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

Emerging markets include countries such as the United States and Britain that are leading the globalization charge.

Explain the difference among the terms multinational corporation, multinational enterprise, and multinational organization.

International business is more complex than domestic business.

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

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

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

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

What are some of the advantages and disadvantages of globalization in regards to its effects on emerging economies?

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

During the 2008 Olympics, China's state-owned TV network offered low-cost commercial spots to Chinese firms.

Licensing, franchising, and management contracts are all forms of international business activity. Using examples, briefly define each form. What are the advantages and disadvantages of using these forms of activity?

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

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

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

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

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters