Reference no: EM132157355

International Business

1. ) In terms of international business, it is most accurate to say that ________.
A) there is a universal "best way" to conduct business
B) global competition affects large companies but not small ones
C) most firms depend either on foreign markets and supplies or compete against companies that do
D) government regulation of international business has little effect on a company's profits

2) Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities. However, Devon would most likely benefit from studying international business issues so that he can ________.
A) conduct better job interviews
B) better understand how foreign operations affect the company's competitive position
C) supervise and evaluate subordinates who have global assignments
D) understand the legalities of importing and exporting products overseas

3) Which of the following has NOT been a major force increasing globalization in recent decades?
A) liberalization of cross-border trade
B) increase in and expansion of technology
C) growing pressure from consumers
D) decreasing prices of natural resources.

4) A company starting out with a global focus, usually because of the international experience of its founders, is called a ________.
A) multinational enterprise
B) transnational company
C) strategically allied company
D) born-global company

5) What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations?
A) to gain an advantageous division of labor
B) to be in compliance with United Nations' requirements
C) to attack problems jointly that one country acting alone cannot solve
D) to assure that all countries get an equitable share of taxes from multinational enterprises

6) Which of the following best describes a result of cultural collision in international business?
A) A company implements practices that are less effective than intended.
B) Local employees are overlooked for promotions by home country managers.
C) Expatriate managers rely too heavily on local employees for negotiating business deals.
D) Foreign and domestic companies make adjustments for the local culture and legal environment.

7) Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following?
A) observing the behavior of people who have gained respect within that cultural environment
B) relying on stereotypes, which are based on averages, to gain an understanding of the culture
C) avoiding cultural research studies because they perpetuate unjustified stereotypes and behaviors
D) memorizing the cultural variations that are typically encountered in a specific cultural environment

8) Although English is referred to as the "international language of business,"________.
A) it is less frequently used than French in international business
B) there is a growing disagreement over which version of English to use, e.g. British, American, or Australian
C) companies headquartered outside English-speaking countries all use their official language as their operating language
D) monolingual English speakers may experience more difficulty in the future in communicating on a worldwide basis

9) ) Raj, an engineer, works long hours and takes full responsibility for both his good and bad work performance. Raj most likely believes in ________.
A) self-determination
B) low power distance
C) collectivism
D) fatalism

10) Assume a U.S. firm plans to expand into either Mexico, Germany, or Japan. Its executives are traveling to each country to meet with local businesspeople in the decision-making process. Which of the following would be LEAST beneficial when the executives make a presentation?
A) requesting a translator with technical vocabulary knowledge
B) simplifying vocabulary and terminology for the audience
C) conducting back translations for written work
D) avoiding repetition to prevent boredom

11) In societies where trust is high, there tends to be a lower cost of doing business.
Answer: TRUE/FALSE

12) In a practical sense, the term political system is meant to signify the ________.
A) organization of military power in a country
B) working government in a country
C) philosophical orientations in a country
D) cultural values in a country

13) The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it.
A) capitalism
B) socialism
C) freedom
D) liberalism

14) Which of the following statements about approaches to political risk management is NOT true?
A) Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.
B) Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk.
C) Active political risk management assumes that positive and negative political events in any country are neither independent nor random events.
D) Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect

15) Ian, a financial manager, is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office. With which type of legal system will Ian most likely have to deal with in Germany?
A) mixed
B) common
C) civil
D) theocratic

16)Which of the following is most likely a true statement about the global economy since the 1980s?
A) Socialist governments are intervening more in global exchanges.
B) Wealthy countries are exercising total control over emerging markets.
C) Developing countries are losing growing shares of their foreign-exchange reserves.
D) Emerging economies are adopting the principles and practices of free markets.

17) An economic system is the set of structures and processes that ________ in a country.
A) guides the allocation of resources and shapes the conduct of business activities
B) directs the movement of specific products to specific consumers
C) sets the standards of competitive success for companies in the economy
D) stipulates the roles and responsibilities of consumers

18) Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering?
A) Indonesia
B) Chile
C) Russia
D) Bangladesh

19) Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.
A) minimal government intervention
B) standardized minimum wages
C) laws favoring sustainability
D) state-run corporations

20) Describe the three ways economies can be categorized.
Answer: