Copyright 2016 Pearson Education, Inc.

1 Copyright © 2016 Pearson Education, Inc.International Business, 8e (Wild/Wild) Chapter 1 Globalization 1) Any commercial transaction that crosses the borders of two or more nations is known as

________.

• domestic marketing
• market segmentation
• international business
• global manufacturing

Answer: C

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.2) Goods and services purchased abroad and brought into a country are called ________.

• gross domestic products
• exports
• gross national products
• imports

Answer: D

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.3) ________ are all goods and services sold abroad and sent out of a country.

• Net national products
• Exports
• Gross domestic products
• Imports

Answer: B

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.International Business The Challenges of Globalization 8e John Wild Kenneth Wild (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

2 Copyright © 2016 Pearson Education, Inc.4) Olive oil prepared in a small Italian oil press factory and sold by large supermarkets in the United States is an example of a ________.

• net national product
• U.S. export
• U.S. import
• gross domestic product

Answer: C

AACSB: Application of knowledge

Skill: Application

Difficulty: Hard

LO: 1.1: Identify the types of companies active in international business.5) Which of the following terms applies to the sale of a particular brand of jeans manufactured in the U.S. and sold in Canadian stores?

• exporting
• outsourcing
• insourcing
• importing

Answer: A

AACSB: Analytical thinking

Skill: Application

Difficulty: Hard

LO: 1.1: Identify the types of companies active in international business.

6) A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a ________.

• dummy corporation
• shell corporation
• multinational corporation
• domestic corporation

Answer: C

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.

7) The rise of a new international entity called the ________ suggests that any company, regardless of age, experience, and resources, can engage in international business.

• transnational corporation
• multinational corporation
• born global firm
• global firm

Answer: C

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business. 2 / 4

3 Copyright © 2016 Pearson Education, Inc.

8) Small companies selling traditional products benefit from ________.

• the barriers to trade that restrict their products from crossing domestic boundaries
• increased investment by foreign competitors in domestic markets
• government policies that seek to regulate the flow of capital across national borders
• technology that lowers the costs and difficulties of global communication

Answer: D

AACSB: Information technology

Skill: Concept

Difficulty: Moderate

LO: 1.1: Identify the types of companies active in international business.9) ________ is an effective alternative to traditional distribution channels for firms that sell digitized products.

• Dual licensing
• Electronic distribution
• Visual merchandising
• Digital switchover

Answer: B

AACSB: Information technology

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.

10) ________ is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

• Privatization
• Heterogenization
• Globalization
• Decentralization

Answer: C

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.

11) Globalization is characterized by ________.

• the demise of democracy within a nation
• national boundaries becoming less relevant
• the fortification of trade barriers
• rigid foreign relations policies

Answer: B

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.

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4 Copyright © 2016 Pearson Education, Inc.12) As a result of globalization, Argonia finds that its national borders are becoming less relevant. This indicates that Argonia is undergoing ________.

• denationalization
• standardization
• reorganization
• internationalization

Answer: A

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.13) The term ________ refers to entities cooperating across national boundaries.

• internationalization
• supranationalism
• denationalization
• multiculturalism

Answer: A

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.

14) Most companies today operate in an environment of increased transparency and scrutiny regarding their business activities. This is due to ________.

• the rise of the social media
• the prosperity of developing nations
• the heterogeneity in markets
• labor market flexibility in developing nations

Answer: A

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

LO: 1.1: Identify the types of companies active in international business.

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