Reference no: EM132839802

Q1: Which of the following has NOT B. increase in and expansion of technology been a major force increasing globalization in recent decades?

A. decreasing prices of natural resources

C. improvement in transportation and communication

D. liberalization of cross-border trade

Q2: According to Factor Proportion theory, a country that is relatively Capital abundant should specialize in the production and export of that product which is relatively

A. Capital abundant

B. Labor abundant

C. Land abundant

D. Population abundant

Q3: Because consumers want a greater variety of goods and services at lower prices, many governments have ________.

A. reduced their restrictions on the international movement of goods and services

B. acted to tax most imports at a lower rate than domestic products

C. increased their participation in multinational problem-solving efforts

D. started retail shops

Q4: Porter's diamond model of competitive advantage does not include

A. Organization politics

B. government

C. Chance

D. Factor conditions

Q5: An automobile manufacturing company moves its spare parts manufacturing unit to a country where manufacturing is economically more achievable. The driver which facilitated this trend towards relocation of activities is:

A. Cost

B. Political

C. Technological

D. Market

Q6: Companies line Nestle and Unilever are in which stage

A. Global

B. Multinational

C. Domestic

D. Exit stage

Q7: Which of the following best defines international business?

A. It includes all business transactions involving two or more countries.

B. It includes all economic flows between two or more countries.

C. It includes all private economic flow between two or more countries.

D. It includes all business transactions in countries other than your home country.

Q8: Assume the following conditions: In the United States it takes 5 units of resources to produce a ton of potatoes and 10 to produce a ton of coal. In Canada it takes 6 units of resources to produce a ton of potatoes and 9 to produce a ton of coal. According to the theory of absolute advantage, ________.

A. the United States should export potatoes to Canada and import coal from Canada

B. the United States should export coal to Canada and import potatoes from Canada

C. the United States should import both potatoes and coal from Canada, while concentrating on production of more valuable goods

D. Canada should focus on doing business with Mexico

Q9: Exporting below cost or below the home country price is called ________.

A. Dumping

B. Dunking

C. Dumbling

D. Counter trade

Q10: 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. better understand how foreign operations affect the company's competitive position

B. supervise and evaluate subordinates who have global assignments

C. understand the legalities of importing and exporting products overseas

D. conduct better job interviews for his home country operations