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International Business:
The Challenges of Globalization Tenth Edition John J. Wild Kenneth L. Wild Test Bank For 1 / 4
1 Copyright © 2023 Pearson Education, Inc.
International Business: The Challenges of Globalization, 10e (Wild)
Chapter 1 Globalization
1) International business is best defined as ________.
- economic flows between two or more countries
- private economic flows between two or more countries
- business transactions involving two or more countries
- 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) Apple's product assembly facilities abroad that produce its iPhone are best described as
________.
- foreign direct investment
- forces of globalization
- factors of production
- international trade
Answer: A
AACSB: Application of knowledge
Skill: Concept
Difficulty: Easy
LO: 1.1: Identify the types of companies active in international business.
3) 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.
4) Which of the following would be considered an international business transaction?
- Purchasing products in one country and assembling them in the same country
- Recruiting employees internationally
- Borrowing money from a major bank to finance capital improvements
- Shipping finished products from one country to another for retail sale
Answer: D
AACSB: Application of knowledge
Skill: Concept
Difficulty: Moderate
LO: 1.1: Identify the types of companies active in international business. 2 / 4
2 Copyright © 2023 Pearson Education, Inc.
5) ________ 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.
6) 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
- US export
- US import
- gross domestic product
Answer: C
AACSB: Application of knowledge
Skill: Application
Difficulty: Moderate
LO: 1.1: Identify the types of companies active in international business.
7) 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
- recruit 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.
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3 Copyright © 2023 Pearson Education, Inc.8) A business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in several countries is called a ________.
- domestic corporation
- shell corporation
- multinational corporation
- global corporation
Answer: C
AACSB: Application of knowledge
Skill: Concept
Difficulty: Easy
LO: 1.1: Identify the types of companies active in international business.
9) A company with a global perspective that engages in international business from inception and quickly achieves a competitive advantage is called a ________.
- 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.
10) Black and Decker produces tools at a plant in North Carolina and ships the tools to retailers in England. This is an example of which type of international business activity?
- Merchandising
- Importing
- Exporting
- Trading
Answer: C
AACSB: Application of knowledge
Skill: Concept
Difficulty: Easy
LO: 1.1: Identify the types of companies active in international business.
11) Costco purchases kalamata olives from Greece for sale in its stores. Which international business activity does this represent for Costco?
- Exporting
- Importing
- Merchandising
- Franchising
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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