Copyright 2019 Pearson Education, Inc.

1 Copyright © 2019 Pearson Education, Inc.

International Business: The Challenges of Globalization, 9e (Wild)

Chapter 1 Globalization 1) Which of the following best defines international business?

• It includes all economic flows between two or more countries.
• It includes all private economic flows between two or more countries.
• It includes all business transactions involving two or more countries.
• It includes all business transactions in countries other than your home country.

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 B) exports C) gross national products D) 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 B) Exports C) Gross domestic products D) Imports Answer: B AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 1.1: Identify the types of companies active in international business.

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 ________. A) net national product B) U.S. export C) U.S. import D) 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.International Business The Challenges of Globalization, 9e (Global Edition) By John Wild, Kenneth Wild (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

2 Copyright © 2019 Pearson Education, Inc.5) Christopher, an accounts manager at a mid-sized health care firm, does not have any direct international responsibilities; however, Christopher would most likely benefit from studying international business issues so that he can ________.

• conduct better job interviews
• better understand how foreign operations affect the company's competitive position
• supervise and evaluate subordinates who have global assignments
• understand the legalities of importing and exporting products overseas

Answer: B

AACSB: Analytical thinking

Skill: Application

Difficulty: Moderate

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 ________. A) dummy corporation B) shell corporation C) multinational corporation D) 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. A) transnational corporation B) multinational corporation C) born global firm D) 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 © 2019 Pearson Education, Inc.8) Which of the following is NOT a likely reason to study international business?

• Global events affect almost all companies.
• Differences among countries in physical, social, and competitive conditions may cause

companies to alter their operating methods from country to country.

• Business conducted outside the limits of any one country is inexplicably on the decline.
• Firms may be better able to obtain better or less expensive resources by operating

internationally.

Answer: C

AACSB: Application of knowledge

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) The widening set of interdependent relationships among people from different parts of the world is known as ________.

• globalization
• offshoring
• franchising
• outsourcing

Answer: A

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. 3 / 4

4 Copyright © 2019 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.

15) The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________.

• gross domestic product (GDP)
• gross world product (GWP)
• gross national product (GNP)
• gross state product (GSP)

Answer: C

AACSB: Application of knowledge

Skill: Concept

Difficulty: Easy

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

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