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1 Copyright © 2017 Pearson Education, Inc.International Management, 9e (Deresky) Chapter 1 Assessing the Environment: Political, Economic, Legal, Technological
1) Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent economy?
- communism
- nationalization
- socialism
- globalization
Answer: D
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
2) ________ results from the lessening of trade barriers and the increased flow of goods and services, capital, labor, and technology around the world.
- Economic integration
- Nationalization
- Protectionism
- Mercantilism
Answer: A
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
3) In which of the following groups of trade blocs does most of today's world trade take place?
- Middle East, China, and India
- North America, Africa, and Canada
- Western Europe, Asia, and the Americas
- Saudi Arabia, Western Europe, and the Gulf
Answer: C
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
(International Management Managing Across Borders and Cultures, Text and Cases 9e Helen Deresky) (Test Bank all Chapters) 1 / 4
2 Copyright © 2017 Pearson Education, Inc.4) The European Union currently consists of how many nations?
- 12
- 27
- 34
- 46
Answer: B
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
5) Which of the following is a true statement about China?
- The Chinese government's shift from communism to capitalism has led to an increase in FDI.
- China attracts FDI because the government has eliminated elaborate bureaucracies.
- The Chinese government manipulates market activities for political purposes.
- China lacks an educated pool of employees due to slowly developing industrialization.
Answer: C
Difficulty: 3: Challenging
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
6) Which of the following countries is today known as the world's services supplier, providing highly skilled and educated workers to foreign companies?
- China
- Brazil
- Mexico
- India
Answer: D
Difficulty: 2: Moderate
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
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3 Copyright © 2017 Pearson Education, Inc.7) Which is the fourth largest trading bloc after the EU, NAFTA, and ASEAN and established in 1991?
A) SAARC
B) ASEAN
C) NAFTA
D) MERCOSUR
Answer: D
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
8) Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents. Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build the new facility in China or in the United States. Which of the following, if true, supports the argument to build a new Emerson facility in China?
- The Chinese courts recently ruled in favor of an MNC in an intellectual property rights
- The Chinese Commonwealth network is investing large amounts of capital in China.
- China has increased Internet controls and blocked most international search sites.
- China is revoking its membership from the World Trade Organization.
lawsuit.
Answer: A
Difficulty: 3: Challenging
Chapter: 1
Skill: Critical Thinking
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Ethical understanding and reasoning
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4 Copyright © 2017 Pearson Education, Inc.9) Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents. Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build the new facility in China or in the United States. Which of the following, if true, undermines the argument to build a new Emerson facility in China?
- China has committed over $500 billion to infrastructure projects.
- U.S. firms continue outsourcing service jobs despite the economy.
- Fuel costs in China have risen sharply and are not expected to drop.
- China is the world's largest exporter of manufactured goods.
Answer: C
Difficulty: 3: Challenging
Chapter: 1
Skill: Critical Thinking
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Ethical understanding and reasoning
10) Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents. Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build the new facility in China or in the United States. Which of the following questions is LEAST relevant to Emerson's decision regarding where to build a new facility?
- How will China's underdeveloped infrastructure affect Emerson's ability to manufacture and
- How is China's political and economic agenda likely to affect Emerson's investment?
- What is the likelihood of expropriation occurring to Emerson if it builds in China?
- How will e-commerce affect Emerson's ability to export products from China?
ship products?
Answer: D
Difficulty: 3: Challenging
Chapter: 1
Skill: Critical Thinking
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Ethical understanding and reasoning
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