D270 Midterm Garcia Questions With
Outlined Answers
\Q\.Supporters of globalization assert that the process helps countries strengthen their
sovereignty.
A) True
B) False - ANSWER-✔B) False
\Q\.Governments primarily cooperate through treaties to create a global division of labor.
A) True
B) False - ANSWER-✔B) False
\Q\.It is rare for a new company to locate its operations near competitors and suppliers.
A) True
B) False - ANSWER-✔B) False
\Q\.The broadening set of interdependent relationships among people from different parts of
the world is known as
A) globalization B) offshoring C) franchisingD) outsourcing - ANSWER-✔A) globalization
,\Q\.2) Which of the following best defines international business?
A) It includes all economic flows between two or more countries.
B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries.
D) It includes all business transactions in countries other than your home country. - ANSWER-
✔C) It includes all business transactions involving two or more countries.
\Q\.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. - ANSWER-✔C) Business conducted outside the confines of any one country is
inexplicably on the decline.
\Q\.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 -
ANSWER-✔C) most firms depend either on foreign markets and supplies or compete against
companies that do
, \Q\.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 - ANSWER-✔B) better
understand how foreign operations affect the company's competitive position
\Q\.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. -
ANSWER-✔C) It has increased physical barriers to exporting.
\Q\.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. -
ANSWER-✔B) World trade has grown more rapidly than world production.
Outlined Answers
\Q\.Supporters of globalization assert that the process helps countries strengthen their
sovereignty.
A) True
B) False - ANSWER-✔B) False
\Q\.Governments primarily cooperate through treaties to create a global division of labor.
A) True
B) False - ANSWER-✔B) False
\Q\.It is rare for a new company to locate its operations near competitors and suppliers.
A) True
B) False - ANSWER-✔B) False
\Q\.The broadening set of interdependent relationships among people from different parts of
the world is known as
A) globalization B) offshoring C) franchisingD) outsourcing - ANSWER-✔A) globalization
,\Q\.2) Which of the following best defines international business?
A) It includes all economic flows between two or more countries.
B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries.
D) It includes all business transactions in countries other than your home country. - ANSWER-
✔C) It includes all business transactions involving two or more countries.
\Q\.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. - ANSWER-✔C) Business conducted outside the confines of any one country is
inexplicably on the decline.
\Q\.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 -
ANSWER-✔C) most firms depend either on foreign markets and supplies or compete against
companies that do
, \Q\.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 - ANSWER-✔B) better
understand how foreign operations affect the company's competitive position
\Q\.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. -
ANSWER-✔C) It has increased physical barriers to exporting.
\Q\.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. -
ANSWER-✔B) World trade has grown more rapidly than world production.
