MSB 430 FINAL EXAM QUESTIONS AND CORRECT ANSWERS
What is the most likely reason that governments cooperate with each other through
treaties, agreements, and consultations?
-to assure that all countries get an equitable share of taxes from multinational
enterprises
-to attack problems jointly that one country acting alone cannot solve
-to gain an advantageous division of labor
-to be in compliance with United Nations' requirements - answer to attack problems
jointly that one country acting alone cannot solve
Which of the following best defines international business?
It includes all business transactions involving two or more countries.
It includes all economic flows between two or more countries.
It includes all business transactions in countries other than your home country.
It includes all private economic flows between two or more countries - answer It
includes all business transactions involving two or more countries
Which of the following has NOT been a major force increasing globalization in recent
decades?
decreasing prices of natural resources
growing pressure from consumers
increase in and expansion of technology
liberalization of cross-border trade - answer decreasing prices of natural resources
Which of the following is the LEAST likely reason that small countries worry about
overdependence caused by globalization?
A large country may substantially increase its demand for the small country's
production.
A large country on which they depend may pressure them on political matters.
A large company may exploit legal loopholes to avoid tax payments.
A large international firm may dictate its terms of operations in a small country - answer
a large country may substantially increase its demand for the small country's production
,An example of a U.S. merchandise import is an automobile made in ________ and sold
________.
Japan by a Japanese company; in the United States
Japan by a U.S. company; outside the United States
the United States by a Japanese company; in the United States
the United States by a Japanese company; outside the United States - answer Japan by
a Japanese company; in the United States
Some key ________ factors in a company's international business external environment
are its product strategy and access to resources.
geographic
behavioral
political
competitive - answer competitive
Reebok pays a royalty to the German Soccer League to use the team's logo on t-shirts
that it sells. Reebok and the German Soccer League most likely have a ________.
licensing agreement
portfolio investment
turnkey operation contract
joint venture - answer licensing agreement
Which of the following statements would most likely be made by a SUPPORTER of
globalization?
Globalization encourages the adoption of uniform and superior standards for combating
environmental problems.
Economic growth created by globalization is largely in services, which involves the use
of few nonrenewable resources.
Air pollution and toxic runoff problems increase with global economic growth.
Global competition discourages resource-saving technologies, which are costly. -
answer globalization encourages the adoption of uniform and superior standards for
combating environmental problems
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 ________.
conduct better job interviews
understand the legalities of importing and exporting products overseas
better understand how foreign operations affect the company's competitive position
supervise and evaluate subordinates who have global assignments - answer better
understand how foreign operations affect the company's competitive position
Governments have signed treaties to protect foreign-owned property rights, such as
investments and patents. A primary reason for doing so is to ________.
reduce national conflicts leading to violent political demonstrations
reduce the domestic effects of other countries' economic policies
gain reciprocal advantages
deal with areas of concern outside the territory of any one country - answer gain
reciprocal advantages
An example of a Japanese service export is a visit by a ________.
Japanese citizen to Disneyland in the United States
U.S. citizen to Tokyo Disneyland in Japan
U.S. citizen to the Japan Pavilion at Epcot Center in the United States
Japanese citizen to the Japan Pavilion at Epcot Center in the United States - answer
U.S. citizen to Tokyo Disneyland in Japan
Assume an enterprise is considering establishment of a foreign production facility.
Which of the following best supports this decision?
Its suppliers follow an agglomeration strategy.
Its foreign competitors have higher production costs than it has.
None of its competitors have foreign production facilities.
Its main competitor successfully opened a foreign plant. - answer its main competitor
successfully opened a foreign plant
The view that globalization is inevitable is most likely based on the belief that ________.
technical advances in transportation and communications are highly persistent
protesters against globalization will be persuaded to change their views
, people want more global homogeneity of cultures
international organizations will replace nation-states - answer technical advances in
transportation and communications are highly persistent
Kevin, marketing manager of the North American Bowling League, has decided to
televise major bowling competitions to viewers in multiple countries rather than only in
Canada and the U.S. Which of the following goals would this most likely help Kevin
accomplish?
minimizing corporate risks
increasing sales and profits
acquiring new resources
obtaining competitive advantages - answer increasing sales and profits
Which of the following is NOT a common argument for the slowing of future
globalization?
Major countries have either ignored certain international treaties or have refused to sign
them.
Antiglobalization interests have been successful in electing parties that oppose freer
movement of trade or people.
The growing split between those who succeed in a global environment and those who do
not will foster greater antiglobalization sentiments.
Technological, transportation, and communication advances will decline in the near
future. - answer technological, transportation, and communication advances will
decline in the near future
Which of the following languages has the most NATIVE speakers?
Spanish
Hindi
English
Mandarin - answer Mandarin
U.S. companies monopolize much of the international entertainment media, which
largely portrays U.S. products and lifestyles as glamorous and appealing. This situation
would most likely be used as an example of ________.
the spread of high-context cultures
What is the most likely reason that governments cooperate with each other through
treaties, agreements, and consultations?
-to assure that all countries get an equitable share of taxes from multinational
enterprises
-to attack problems jointly that one country acting alone cannot solve
-to gain an advantageous division of labor
-to be in compliance with United Nations' requirements - answer to attack problems
jointly that one country acting alone cannot solve
Which of the following best defines international business?
It includes all business transactions involving two or more countries.
It includes all economic flows between two or more countries.
It includes all business transactions in countries other than your home country.
It includes all private economic flows between two or more countries - answer It
includes all business transactions involving two or more countries
Which of the following has NOT been a major force increasing globalization in recent
decades?
decreasing prices of natural resources
growing pressure from consumers
increase in and expansion of technology
liberalization of cross-border trade - answer decreasing prices of natural resources
Which of the following is the LEAST likely reason that small countries worry about
overdependence caused by globalization?
A large country may substantially increase its demand for the small country's
production.
A large country on which they depend may pressure them on political matters.
A large company may exploit legal loopholes to avoid tax payments.
A large international firm may dictate its terms of operations in a small country - answer
a large country may substantially increase its demand for the small country's production
,An example of a U.S. merchandise import is an automobile made in ________ and sold
________.
Japan by a Japanese company; in the United States
Japan by a U.S. company; outside the United States
the United States by a Japanese company; in the United States
the United States by a Japanese company; outside the United States - answer Japan by
a Japanese company; in the United States
Some key ________ factors in a company's international business external environment
are its product strategy and access to resources.
geographic
behavioral
political
competitive - answer competitive
Reebok pays a royalty to the German Soccer League to use the team's logo on t-shirts
that it sells. Reebok and the German Soccer League most likely have a ________.
licensing agreement
portfolio investment
turnkey operation contract
joint venture - answer licensing agreement
Which of the following statements would most likely be made by a SUPPORTER of
globalization?
Globalization encourages the adoption of uniform and superior standards for combating
environmental problems.
Economic growth created by globalization is largely in services, which involves the use
of few nonrenewable resources.
Air pollution and toxic runoff problems increase with global economic growth.
Global competition discourages resource-saving technologies, which are costly. -
answer globalization encourages the adoption of uniform and superior standards for
combating environmental problems
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 ________.
conduct better job interviews
understand the legalities of importing and exporting products overseas
better understand how foreign operations affect the company's competitive position
supervise and evaluate subordinates who have global assignments - answer better
understand how foreign operations affect the company's competitive position
Governments have signed treaties to protect foreign-owned property rights, such as
investments and patents. A primary reason for doing so is to ________.
reduce national conflicts leading to violent political demonstrations
reduce the domestic effects of other countries' economic policies
gain reciprocal advantages
deal with areas of concern outside the territory of any one country - answer gain
reciprocal advantages
An example of a Japanese service export is a visit by a ________.
Japanese citizen to Disneyland in the United States
U.S. citizen to Tokyo Disneyland in Japan
U.S. citizen to the Japan Pavilion at Epcot Center in the United States
Japanese citizen to the Japan Pavilion at Epcot Center in the United States - answer
U.S. citizen to Tokyo Disneyland in Japan
Assume an enterprise is considering establishment of a foreign production facility.
Which of the following best supports this decision?
Its suppliers follow an agglomeration strategy.
Its foreign competitors have higher production costs than it has.
None of its competitors have foreign production facilities.
Its main competitor successfully opened a foreign plant. - answer its main competitor
successfully opened a foreign plant
The view that globalization is inevitable is most likely based on the belief that ________.
technical advances in transportation and communications are highly persistent
protesters against globalization will be persuaded to change their views
, people want more global homogeneity of cultures
international organizations will replace nation-states - answer technical advances in
transportation and communications are highly persistent
Kevin, marketing manager of the North American Bowling League, has decided to
televise major bowling competitions to viewers in multiple countries rather than only in
Canada and the U.S. Which of the following goals would this most likely help Kevin
accomplish?
minimizing corporate risks
increasing sales and profits
acquiring new resources
obtaining competitive advantages - answer increasing sales and profits
Which of the following is NOT a common argument for the slowing of future
globalization?
Major countries have either ignored certain international treaties or have refused to sign
them.
Antiglobalization interests have been successful in electing parties that oppose freer
movement of trade or people.
The growing split between those who succeed in a global environment and those who do
not will foster greater antiglobalization sentiments.
Technological, transportation, and communication advances will decline in the near
future. - answer technological, transportation, and communication advances will
decline in the near future
Which of the following languages has the most NATIVE speakers?
Spanish
Hindi
English
Mandarin - answer Mandarin
U.S. companies monopolize much of the international entertainment media, which
largely portrays U.S. products and lifestyles as glamorous and appealing. This situation
would most likely be used as an example of ________.
the spread of high-context cultures
