Which of the following terms is defined as the process
of social, political, economic, cultural, and technological
integration among countries around the world?
A) Internationalization C) Globalization
B) Ottshoring
C) Globalization
D) Outsourcing
is the process of applying management con-
cepts and techniques in a multinational environment and
adapting management practices to ditterent economic,
political, and cultural environments.
D) International management
A) Strategic management
B) Internationalization
C) Globalization
D) International management
To qualify as a multinational corporation (MNC), a firm
must meet all of the following criteria except:
A) operations in more than one country.
D) sales of at least one million dollars per year.
B) international sales.
C) a mix of nationalities among managers and owners.
D) sales of at least one million dollars per year.
Critics of globalization believe that:
A) the ottshoring of business services jobs to low-
er-wage countries inherently creates greater opportuni-
ties at home.
B) growing trade deficits and slow wage growth are dam-
B) growing trade deficits and slow wage growth are dam-
aging economies.
aging economies.
C) when production moves to countries to take advantage
of less-regulated environments, an upward pressure is
created on wages and working conditions.
, International Management Exam Test with Answers Rated A
D) the main winners of globalization are the low-wage
workers.
The subcontracting or contracting out of activities to ex-
ternal organizations that had previously been performed
by a firm is called .
A) homesourcing D) outsourcing
B) insourcing
C) ottshoring
D) outsourcing
is the process by which companies undertake some
activities at ottshore locations instead of in their countries
of origin.
A) Homesourcing C) Ottshoring
B) Insourcing
C) Ottshoring
D) Globalization
The is the global organization of countries that
oversees rules and regulations for international trade and
investment, including agriculture, intellectual property,
services, competition, and subsidies.
A) WTO
A) WTO
B) NAFTA
C) WIPO
D) ITO
The is a free-trade agreement among the United
States, Canada, and Mexico that has removed most barri-
ers to trade and investment. D) NAFTA
A) AFTA
B) EFTA
, International Management Exam Test with Answers Rated A
C) CAFTA
D) NAFTA
Identify a true statement about the Development Round
in which the members of the World Trade Organization
(WTO) met and launched a round of negotiations at Doha,
Qatar in November 2011.
A) The WTO members agreed upon the opening of gov-
ernment procurement markets to companies in the devel-
B) There was a lack of consensus among WTO members
oped nations.
regarding agricultural subsidies.
B) There was a lack of consensus among WTO members
regarding agricultural subsidies.
C) There was a lack of consensus among WTO members
regarding unbalanced population pyramids.
D) The WTO members agreed upon the issues of compe-
tition.
The United States, Canada, and Mexico make up the
, which in essence has removed all barriers to trade
among these countries and created a huge North Ameri-
can market.
C) North American Free Trade Agreement
A) General Agreement on Taritts and Trade
B) North American Common Market
C) North American Free Trade Agreement
D) North American Trade Union
Agreements like NAFTA and CAFTA:
A) not only reduce barriers to trade but also require addi-
tional domestic legal and business reforms in developing
A) not only reduce barriers to trade but also require addi-
nations to protect property rights.
tional domestic legal and business reforms in developing
B) do not include supplemental commitments like the
nations to protect property rights.
FTAA does on labor and the environment to encourage
countries to upgrade their working conditions and envi-
ronmental protections.