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?
A) communism
B) nationalization
C) socialism
D) 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.
A) Economic integration
B) Nationalization
C) Protectionism
D) 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?
A) Middle East, China, and India
B) North America, Africa, and Canada
C) Western Europe, Asia, and the Americas
D) 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
,4) The European Union currently consists of how many nations?
A) 12
B) 27
C) 34
D) 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?
A) The Chinese government's shift from communism to capitalism has led to an increase
in FDI.
B) China attracts FDI because the government has eliminated elaborate bureaucracies.
C) The Chinese government manipulates market activities for political purposes.
D) 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?
A) China
B) Brazil
C) Mexico
D) 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
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?
A) communism
B) nationalization
C) socialism
D) 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.
A) Economic integration
B) Nationalization
C) Protectionism
D) 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?
A) Middle East, China, and India
B) North America, Africa, and Canada
C) Western Europe, Asia, and the Americas
D) 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
,4) The European Union currently consists of how many nations?
A) 12
B) 27
C) 34
D) 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?
A) The Chinese government's shift from communism to capitalism has led to an increase
in FDI.
B) China attracts FDI because the government has eliminated elaborate bureaucracies.
C) The Chinese government manipulates market activities for political purposes.
D) 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?
A) China
B) Brazil
C) Mexico
D) 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
