TEST BANK
INTERNATIONAL BUSINESS: THE CHALLENGES OF GLOBALIZATION
10TH EDITION
CHAPTER NO. 01: GLOBALIZATION TODAY
1) International business is best defined as ________.
A) economic flows between two or more countries
B) private economic flows between two or more countries
C) business transactions involving two or more countries
D) 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
________.
A) foreign direct investment
B) forces of globalization
C) factors of production
D) 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 ________.
A) gross domestic products
B) exports
C) gross national products
D) 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?
A) Purchasing products in one country and assembling them in the same country
B) Recruiting employees internationally
C) Borrowing money from a major bank to finance capital improvements
D) 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.
5) ________ are all goods and services sold abroad and sent out of a country.
A) Net national products
B) Exports
C) Gross domestic products
D) 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 ________.
A) net national product
B) US export
C) US import
,D) 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 ________.
A) conduct better job interviews
B) better understand how foreign operations affect the company's competitive position
C) recruit subordinates who have global assignments
D) 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.
8) A business that has direct investments (in the form of marketing or manufacturing
subsidiaries) abroad in several countries is called a ________.
A) domestic corporation
B) shell corporation
C) multinational corporation
D) 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 ________.
A) transnational corporation
B) multinational corporation
C) born global firm
D) 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?
A) Merchandising
B) Importing
C) Exporting
D) 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?
A) Exporting
B) Importing
C) Merchandising
D) Franchising
Answer: B
AACSB: Application of knowledge
Skill: Concept
Difficulty: Easy
INTERNATIONAL BUSINESS: THE CHALLENGES OF GLOBALIZATION
10TH EDITION
CHAPTER NO. 01: GLOBALIZATION TODAY
1) International business is best defined as ________.
A) economic flows between two or more countries
B) private economic flows between two or more countries
C) business transactions involving two or more countries
D) 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
________.
A) foreign direct investment
B) forces of globalization
C) factors of production
D) 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 ________.
A) gross domestic products
B) exports
C) gross national products
D) 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?
A) Purchasing products in one country and assembling them in the same country
B) Recruiting employees internationally
C) Borrowing money from a major bank to finance capital improvements
D) 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.
5) ________ are all goods and services sold abroad and sent out of a country.
A) Net national products
B) Exports
C) Gross domestic products
D) 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 ________.
A) net national product
B) US export
C) US import
,D) 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 ________.
A) conduct better job interviews
B) better understand how foreign operations affect the company's competitive position
C) recruit subordinates who have global assignments
D) 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.
8) A business that has direct investments (in the form of marketing or manufacturing
subsidiaries) abroad in several countries is called a ________.
A) domestic corporation
B) shell corporation
C) multinational corporation
D) 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 ________.
A) transnational corporation
B) multinational corporation
C) born global firm
D) 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?
A) Merchandising
B) Importing
C) Exporting
D) 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?
A) Exporting
B) Importing
C) Merchandising
D) Franchising
Answer: B
AACSB: Application of knowledge
Skill: Concept
Difficulty: Easy
