TEST BANK
International Business
SHAD MORRIS, JAMES OLDROYD
1st Edition
,Morris_International Business, 1st Edition
Test Bank
Chapter 01: Globalization
Multiple Choice
1. Borivia is a country in Eastern Europe that was ruled by Auleria, a country in
Western Europe, for over a century. It gained independence from Auleria in 1923.
Now, Borivia has its own government. Given this information, it can be said that
Borivia is a(n) .
A. monopoly
B. monarchy
C. sovereign nation
D. emerging market
Answer: C
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
2. Dasom Inc., a South Korean smartphone manufacturer, sells its smartphones in
64 countries around the world and has offices in 36 counties. Dasom’s business
expansion best exemplifies .
A. globalization
B. nationalization
C. subsidization
D. commodification
Answer: A
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
3. In 1995, the government of Duyat, a country in Asia, began major economic reforms
that allowed free trade relations with other countries. Duyat started exporting iron
ore and limestone to other countries around the world. Its domestic market
strengthened, and it experienced an economic boost. This scenario best exemplifies
.
A. nationalization
B. subsidization
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,Morris_International Business, 1st Edition
Test Bank
C. commodification
D. globalization
Answer: D
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
4. The Commerce Coalition (CC) is an intergovernmental organization operating in
South Asia that consists of seven member nations. The CC was established to
enable free trade across these seven countries of South Asia. A citizen of any of the
member nations can easily purchase goods produced in another member nation
without paying additional taxes. Given this information, it can be said that the large
market created by the CC is an example of a(n) .
A. monopolistic market
B. globalized market
C. oligopolistic market
D. gray market
Answer: B
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
5. Spain and Italy are both members of the European Union. Nayeli, a Spaniard, is
able to purchase Italian-made bags from a handbag store in Spain without paying
additional taxes. The market created by the European Union is a(n) .
A. monopolistic market
B. oligopolistic market
C. gray market
D. globalized market
Answer: D
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
2|Page
, Morris_International Business, 1st Edition
Test Bank
6. Which of the following is true of globalization?
A. It makes it difficult to buy and sell internationally.
B. It increases socioeconomic equality in emerging markets.
C. It makes it difficult for employers to move jobs to cheaper locations.
D. It builds on the principle of sovereignty to strengthen the relationships that
connect us.
Answer: D
Learning Objective: 1.1
Difficulty: Easy
AACSB: Reflective Thinking Bloom’s
Taxonomy: Comprehension
7. Which of the following best illustrates global convergence?
A. Sylvester Inc., an American car-manufacturing company, uses the Japanese
business philosophy of kaizen.
B. Hexagon Corp., a steel company in the United States, has many plants in
different parts of the country.
C. Hawke Inc., an American computer manufacturer, imports raw materials
from Nigeria, and in return it invests in Nigeria’s infrastructure
development.
D. Micra Inc., an Indian mining company, engages in corporate social responsibility
by providing training services to local schools.
Answer: C
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
8. When the demand for smartphones increased in Preteresia, a country in Eastern
Europe, the smartphone manufacturers started importing silicon, a raw material
used in the manufacture of smartphones, from Abresia, a country in Africa. In
return, Preteresia helped build Abresia’s infrastructure to facilitate the efficient
extraction of silicon. This scenario best illustrates .
A. monopolization
B. centralization
C. market segmentation
D. global convergence
Answer: D
Learning Objective: 1.1
Difficulty: Medium
3|Page
International Business
SHAD MORRIS, JAMES OLDROYD
1st Edition
,Morris_International Business, 1st Edition
Test Bank
Chapter 01: Globalization
Multiple Choice
1. Borivia is a country in Eastern Europe that was ruled by Auleria, a country in
Western Europe, for over a century. It gained independence from Auleria in 1923.
Now, Borivia has its own government. Given this information, it can be said that
Borivia is a(n) .
A. monopoly
B. monarchy
C. sovereign nation
D. emerging market
Answer: C
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
2. Dasom Inc., a South Korean smartphone manufacturer, sells its smartphones in
64 countries around the world and has offices in 36 counties. Dasom’s business
expansion best exemplifies .
A. globalization
B. nationalization
C. subsidization
D. commodification
Answer: A
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
3. In 1995, the government of Duyat, a country in Asia, began major economic reforms
that allowed free trade relations with other countries. Duyat started exporting iron
ore and limestone to other countries around the world. Its domestic market
strengthened, and it experienced an economic boost. This scenario best exemplifies
.
A. nationalization
B. subsidization
1|Page
,Morris_International Business, 1st Edition
Test Bank
C. commodification
D. globalization
Answer: D
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
4. The Commerce Coalition (CC) is an intergovernmental organization operating in
South Asia that consists of seven member nations. The CC was established to
enable free trade across these seven countries of South Asia. A citizen of any of the
member nations can easily purchase goods produced in another member nation
without paying additional taxes. Given this information, it can be said that the large
market created by the CC is an example of a(n) .
A. monopolistic market
B. globalized market
C. oligopolistic market
D. gray market
Answer: B
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
5. Spain and Italy are both members of the European Union. Nayeli, a Spaniard, is
able to purchase Italian-made bags from a handbag store in Spain without paying
additional taxes. The market created by the European Union is a(n) .
A. monopolistic market
B. oligopolistic market
C. gray market
D. globalized market
Answer: D
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
2|Page
, Morris_International Business, 1st Edition
Test Bank
6. Which of the following is true of globalization?
A. It makes it difficult to buy and sell internationally.
B. It increases socioeconomic equality in emerging markets.
C. It makes it difficult for employers to move jobs to cheaper locations.
D. It builds on the principle of sovereignty to strengthen the relationships that
connect us.
Answer: D
Learning Objective: 1.1
Difficulty: Easy
AACSB: Reflective Thinking Bloom’s
Taxonomy: Comprehension
7. Which of the following best illustrates global convergence?
A. Sylvester Inc., an American car-manufacturing company, uses the Japanese
business philosophy of kaizen.
B. Hexagon Corp., a steel company in the United States, has many plants in
different parts of the country.
C. Hawke Inc., an American computer manufacturer, imports raw materials
from Nigeria, and in return it invests in Nigeria’s infrastructure
development.
D. Micra Inc., an Indian mining company, engages in corporate social responsibility
by providing training services to local schools.
Answer: C
Learning Objective: 1.1
Difficulty: Medium
AACSB: Analytic
Bloom’s Taxonomy: Application
8. When the demand for smartphones increased in Preteresia, a country in Eastern
Europe, the smartphone manufacturers started importing silicon, a raw material
used in the manufacture of smartphones, from Abresia, a country in Africa. In
return, Preteresia helped build Abresia’s infrastructure to facilitate the efficient
extraction of silicon. This scenario best illustrates .
A. monopolization
B. centralization
C. market segmentation
D. global convergence
Answer: D
Learning Objective: 1.1
Difficulty: Medium
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