D270 Davis Midterm Recent exam
Questions and Answers 2026 UPDATE!!
The broadening set of interdependent relationships among people from different parts of
the world is known as ________.
A) globalization
B) offshoring
C) franchising
D) outsourcing - correct answerA
The broadening set of interdependent relationships among people from different parts of
the world is known as ________.
A) globalization
B) offshoring
C) franchising
D) outsourcing - correct answerC
Which of the following is NOT a likely reason to study international business?
A) Global events affect almost all companies.
B) Differences among countries in physical, social, and competitive conditions may
cause companies to alter their operating methods from country to country.
C) Business conducted outside the confines of any one country is inexplicably on the
decline.
D) Firms may be better able to obtain better or less expensive resources by operating
internationally. - correct answerC
) In terms of international business, it is most accurate to say that ________.
A) there is a universal "best way" to conduct business
B) global competition affects large companies but not small ones
C) most firms depend either on foreign markets and supplies or compete against
companies that do
D) government regulation of international business has little effect on a company's
profits - correct answerC
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) conduct better job interviews
B) better understand how foreign operations affect the company's competitive position
C) supervise and evaluate subordinates who have global assignments
D) understand the legalities of importing and exporting products overseas - correct
answerB
,The shifting of national borders has most likely created which of the following situations
for international business?
A) It has left rural residents more isolated from technology.
B) It has complicated the understanding of behavioral factors affecting business.
C) It has increased physical barriers to exporting.
D) It has slowed communications between a company's headquarters and foreign
operations. - correct answerC
Which of the following is an indication of the increased globalization of business since
the end of World War II?
A) Foreign trade has largely replaced foreign ownership as a means of conducting
international business.
B) World trade has grown more rapidly than world production.
C) Globally, consumers now depend on foreign output for more than half their
consumption.
D) Countries have increased their import restrictions to counter the rising tide of imports.
- correct answerB
Most of the world's goods and services are sold ________.
A) in international markets
B) in the countries where they are produced
C) through exports to small countries
D) through exports to large countries - correct answerB
According to the A.T. Kearny/Foreign Policy Globalization Index, countries ________.
A) tend to be ranked similarly on all four dimensions
B) are more globalized on the political dimension than on personal contact
C) that are large in land mass and population are less globalized than small countries
D) sometimes rank high on one dimension and low on another - correct answerD
Which of the following has NOT been a major force increasing globalization in recent
decades?
A) liberalization of cross-border trade
B) increase in and expansion of technology
C) growing pressure from consumers
D) decreasing prices of natural resources. - correct answerD
Institutional development of services by business and government has aided the
expansion of international business by ________.
A) providing a universally agreed upon language for conducting international
transactions
B) removing immigration restrictions so that global firms can move personnel easily
C) developing means to ease the flow of goods among countries
D) spurring competition among domestic producers - correct answerC
,Which of the following has MOST influenced consumers to demand access to foreign-
made products?
A) Declining global affluence has caused consumers to seek out lower-priced products
from abroad.
B) Consumers have become more efficient in using media and technologies to compare
prices worldwide.
C) Fearing that their governments will enact restrictive policies on imports, consumers
are stocking up on foreign products before restrictions are put in place.
D) Expectations of rising prices of foreign products have caused consumers to seek
foreign products before their prices become prohibitive. - correct answerB
Which of the following best explains why international business has grown rapidly in the
past few decades?
A) the end of the political schism between the Communist and non-Communist blocs
B) greater income equality in most countries
C) growing concern about climate change
D) increased concerns about terrorism - correct answerA
Advanced communication systems have contributed to growth in international business
by ________.
A) enabling better oversight of global operations
B) reducing the effects of global competition
C) decreasing the cost of cargo transportation
D) reducing export regulations - correct answerA
Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S.
market. Which of the following is likely the MOST important factor for this increase in
imports?
A) more effective production techniques
B) advances in communication systems
C) advances in transportation
D) cross-national cooperation - correct answerC
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) sought to eliminate reciprocal advantages negotiated through international
organizations and treaties
D) increased their participation in multinational problem-solving efforts - correct
answerA
Which of the following best explains recent governmental relaxation of restrictions on
cross-border trade or resource movements?
, A) Most countries face shortages of workers, so they seek immigrants who can help
them produce more.
B) Governments believe that this will decrease the need to make their own companies
more innovative.
C) Consumers increasingly want to buy goods and services produced in their own
countries, making restrictions less necessary.
D) Governments believe that domestic producers will become more efficient as a result
of foreign competition. - correct answerD
A company starting out with a global focus, usually because of the international
experience of its founders, is called a ________.
A) multinational enterprise
B) transnational company
C) strategically allied company
D) born-global company - correct answerD
In a strategy known as ________, many new companies locate themselves near
competitors and suppliers.
A) offshoring
B) franchising
C) clustering
D) exporting - correct answerC
Assume an enterprise is considering establishment of a foreign production facility.
Which of the following best supports this decision?
A) Its foreign competitors have higher production costs than it has.
B) Its main competitor successfully opened a foreign plant.
C) Its suppliers follow an agglomeration strategy.
D) None of its competitors have foreign production facilities. - correct answerB
When a company successfully responds to foreign production and market opportunities,
________.
A) other companies will likely emulate its successful practices
B) it likely has a long-term advantage over competitors
C) it will downsize its domestic operations
D) its home government likely raises taxes on the company - correct answerA
Which of the following is NOT one of the three main reasons affecting international
business for governments to cooperate with each other?
A) to attack problems jointly that one country acting alone cannot solve
B) to deal with issues that lie outside the territory of any nation
C) to gain reciprocal advantages
D) to establish a common language - correct answerD
Questions and Answers 2026 UPDATE!!
The broadening set of interdependent relationships among people from different parts of
the world is known as ________.
A) globalization
B) offshoring
C) franchising
D) outsourcing - correct answerA
The broadening set of interdependent relationships among people from different parts of
the world is known as ________.
A) globalization
B) offshoring
C) franchising
D) outsourcing - correct answerC
Which of the following is NOT a likely reason to study international business?
A) Global events affect almost all companies.
B) Differences among countries in physical, social, and competitive conditions may
cause companies to alter their operating methods from country to country.
C) Business conducted outside the confines of any one country is inexplicably on the
decline.
D) Firms may be better able to obtain better or less expensive resources by operating
internationally. - correct answerC
) In terms of international business, it is most accurate to say that ________.
A) there is a universal "best way" to conduct business
B) global competition affects large companies but not small ones
C) most firms depend either on foreign markets and supplies or compete against
companies that do
D) government regulation of international business has little effect on a company's
profits - correct answerC
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) conduct better job interviews
B) better understand how foreign operations affect the company's competitive position
C) supervise and evaluate subordinates who have global assignments
D) understand the legalities of importing and exporting products overseas - correct
answerB
,The shifting of national borders has most likely created which of the following situations
for international business?
A) It has left rural residents more isolated from technology.
B) It has complicated the understanding of behavioral factors affecting business.
C) It has increased physical barriers to exporting.
D) It has slowed communications between a company's headquarters and foreign
operations. - correct answerC
Which of the following is an indication of the increased globalization of business since
the end of World War II?
A) Foreign trade has largely replaced foreign ownership as a means of conducting
international business.
B) World trade has grown more rapidly than world production.
C) Globally, consumers now depend on foreign output for more than half their
consumption.
D) Countries have increased their import restrictions to counter the rising tide of imports.
- correct answerB
Most of the world's goods and services are sold ________.
A) in international markets
B) in the countries where they are produced
C) through exports to small countries
D) through exports to large countries - correct answerB
According to the A.T. Kearny/Foreign Policy Globalization Index, countries ________.
A) tend to be ranked similarly on all four dimensions
B) are more globalized on the political dimension than on personal contact
C) that are large in land mass and population are less globalized than small countries
D) sometimes rank high on one dimension and low on another - correct answerD
Which of the following has NOT been a major force increasing globalization in recent
decades?
A) liberalization of cross-border trade
B) increase in and expansion of technology
C) growing pressure from consumers
D) decreasing prices of natural resources. - correct answerD
Institutional development of services by business and government has aided the
expansion of international business by ________.
A) providing a universally agreed upon language for conducting international
transactions
B) removing immigration restrictions so that global firms can move personnel easily
C) developing means to ease the flow of goods among countries
D) spurring competition among domestic producers - correct answerC
,Which of the following has MOST influenced consumers to demand access to foreign-
made products?
A) Declining global affluence has caused consumers to seek out lower-priced products
from abroad.
B) Consumers have become more efficient in using media and technologies to compare
prices worldwide.
C) Fearing that their governments will enact restrictive policies on imports, consumers
are stocking up on foreign products before restrictions are put in place.
D) Expectations of rising prices of foreign products have caused consumers to seek
foreign products before their prices become prohibitive. - correct answerB
Which of the following best explains why international business has grown rapidly in the
past few decades?
A) the end of the political schism between the Communist and non-Communist blocs
B) greater income equality in most countries
C) growing concern about climate change
D) increased concerns about terrorism - correct answerA
Advanced communication systems have contributed to growth in international business
by ________.
A) enabling better oversight of global operations
B) reducing the effects of global competition
C) decreasing the cost of cargo transportation
D) reducing export regulations - correct answerA
Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S.
market. Which of the following is likely the MOST important factor for this increase in
imports?
A) more effective production techniques
B) advances in communication systems
C) advances in transportation
D) cross-national cooperation - correct answerC
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) sought to eliminate reciprocal advantages negotiated through international
organizations and treaties
D) increased their participation in multinational problem-solving efforts - correct
answerA
Which of the following best explains recent governmental relaxation of restrictions on
cross-border trade or resource movements?
, A) Most countries face shortages of workers, so they seek immigrants who can help
them produce more.
B) Governments believe that this will decrease the need to make their own companies
more innovative.
C) Consumers increasingly want to buy goods and services produced in their own
countries, making restrictions less necessary.
D) Governments believe that domestic producers will become more efficient as a result
of foreign competition. - correct answerD
A company starting out with a global focus, usually because of the international
experience of its founders, is called a ________.
A) multinational enterprise
B) transnational company
C) strategically allied company
D) born-global company - correct answerD
In a strategy known as ________, many new companies locate themselves near
competitors and suppliers.
A) offshoring
B) franchising
C) clustering
D) exporting - correct answerC
Assume an enterprise is considering establishment of a foreign production facility.
Which of the following best supports this decision?
A) Its foreign competitors have higher production costs than it has.
B) Its main competitor successfully opened a foreign plant.
C) Its suppliers follow an agglomeration strategy.
D) None of its competitors have foreign production facilities. - correct answerB
When a company successfully responds to foreign production and market opportunities,
________.
A) other companies will likely emulate its successful practices
B) it likely has a long-term advantage over competitors
C) it will downsize its domestic operations
D) its home government likely raises taxes on the company - correct answerA
Which of the following is NOT one of the three main reasons affecting international
business for governments to cooperate with each other?
A) to attack problems jointly that one country acting alone cannot solve
B) to deal with issues that lie outside the territory of any nation
C) to gain reciprocal advantages
D) to establish a common language - correct answerD
