International Business 2nd Edition Test Bank –21 Full Chapters by Shad Morris & James Oldroyd

Comprehensive test bank for International Business, 2nd Edition by Shad Morris and James Oldroyd. Includes multiple-choice and essay questions for all chapters, covering globalization, analytical tools, political systems, legal environments, economic systems, currency exchange, trade theories, and cultural aspects. Ideal for instructors and students seeking practice questions and assessment materials aligned with AACSB standards and Bloom’s Taxonomy. Test Bank for International Business, By Shad Morris & James Oldroyd- 2nd Edition (All Chapters) Chapter 01: Globalization Multiple Choice 1. Bolivia is a country in Eastern Europe that was ruled by Aurelia, a country in Western Europe, for over a century. It gained independence from Aurelia in 1923. Now, Bolivia has its own government. Given this information, it can be said that Bolivia 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 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 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 AACSB: Analytic Bloom’s Taxonomy: Application 9. Desktop computers are used by people all around the world. One of the challenges faced by computer manufacturing companies is to overcome the cultural and economic differences across communities that make it difficult for them to sell their products. Given this information, it can be said that desktop computers are . A. industrial products B. consumer products C. natural products D. perishable products Answer: B Learning Objective: 1.1 Difficulty: Medium AACSB: Analytic Bloom’s Taxonomy: Application 10. Nebula Inc. is an American smartphone manufacturer that sells smartphones in 36 countries across the globe. Nebula makes both low-end and high-end smartphones to cater to the needs of different markets across the world. There is a high demand for Nebula’s low-end smartphones chiefly in developing nations. Its high-end smartphones have buyers mostly in developed nations. One of the challenges that Nebula faces is planning its sales strategy to suit different markets. Given this information, it can be said that Nebula’s smartphones are an example of . A. natural products B. perishable products C. consumer products D. industrial products Answer: C Learning Objective: 1.1 Difficulty: Medium AACSB: Analytic Bloom’s Taxonomy: Application 11. Steel manufacturers use limestone as one of the raw materials in the production of steel. It can be said that limestone is a(n) . A. industrial product B. convenience product C. unsought product D. specialty product Answer: A Learning Objective: 1.1 Difficulty: Medium AACSB: Analytic Bloom’s Taxonomy: Application 12. Niall is an assembly-line worker in a car-manufacturing firm in Detroit. Assembly-line workers like Niall constitute the of the car-manufacturing firm. A. visible artifacts B. intangible resources C. factors of production D. economies of scale Answer: C Learning Objective: 1.1 Difficulty: Medium AACSB: Analytic Bloom’s Taxonomy: Application 13. Limestone, shells, and chalk are some of the raw materials used in the manufacture of cement. Raw materials like these constitute the of the cement industry. A. factors of production B. visible artifacts C. intangible resources D. economies of scale Answer: A Learning Objective: 1.1 Difficulty: Medium AACSB: Analytic Bloom’s Taxonomy: Application 14. Which of the following is true of globalization of production? A. It includes obtaining land, labor, and capital locally. B. It includes the component parts, skill sets, or information required to produce a product or service. C. It is limited to manufacturing. D. It b helps b companies b take b advantage b of b national b differences b in b cost b and b quality. Answer: b D Learning b Objective: b 1.1 b Difficulty: b Easy AACSB: b Reflective b Thinking b Bloom’s b Taxonomy: b Comprehension 15. Russet b Inc., b an b American b stainless b steel b manufacturer, b sources b iron b ore b from b Australia b for b the b manufacture b of b steel. b It b saves b on b raw b material b costs b as b iron b ore b is b cheaper b in b Australia. b This b scenario b best b illustrates b b b b . A. the b globalization b of b production B. the b economies b of b scope C. vertical b integration D. market b segmentation Answer: b A Learning b Objective: b 1.1 b Difficulty: b Medium b AACSB: b Analytic Bloom’s b Taxonomy: b Application 16. Which b of b the b following b is b true b of b arbitrage? A. It b is b limited b to b manufacturing. B. It b involves b searching b for b deals b on b production b factors b across b geographic b boundaries. C. It b treats b differences b across b nations b as b constraints. D. It b involves b obtaining b land, b labor, b and b capital b from b domestic b markets. Answer: b B Learning b Objective: b 1.1 b Difficulty: b Easy AACSB: b Reflective b Thinking b Bloom’s b Taxonomy: b Comprehension 17. Imperial b Inc., b an b Irish b semiconductor b manufacturer, b sources b germanium, b a b raw b material b used b in b the b production b of b semiconductors, b from b China. b It b takes b advantage b of b differences b across b countries b by b treating b them b as b business b opportunities. b This b scenario b best b exemplifies b . A. arbitrage B. privatization C. franchising D. licensing Answer: b A Learning b Objective: b 1.1 b Difficulty: b Medium b AACSB: b Analytic Bloom’s b Taxonomy: b Application 18. Which b of b the b following b examples b best b illustrates b the b globalization b of b production? A. Silva b Hotels b & b Resorts, b a b Brazilian b hotel b chain, b provides b hospitality b services b to b tourists b from b all b around b the b world. B. Taupe, b an b Australian b non-profit b organization, b is b funded b by b Australian b multinational b companies. C. Hazel b Inc., b an b Irish b textile b company, b engages b in b corporate b social b responsibility. D. Tanner b Inc., b an b American b publishing b company, b outsources b writing b services b to b India. Answer: b D Learning b Objective: b 1.1 b Difficulty: b Medium b AACSB: b Analytic Bloom’s b Taxonomy: b Application 19. Which b of b the b following b is b an b effect b of b the b Internet b on b globalization? A. It b triggered b billion-dollar b investments b in b fiber-optic b telecommunications b cables. B. It b led b to b the b demise b of b traditionally b local b businesses. C. It b inhibited b free b trade. D. It b increased b the b barriers b to b competition. Answer: b A Learning b Objective: b 1.2 b Difficulty: b Easy AACSB: b Reflective b Thinking b Bloom’s b Taxonomy: b Comprehension 20. According b to b author b Thomas b Friedman, b which b of b the b following b is b true b of b the b flat b world? A. Ten b percent b of b activity b is b conducted b globally, b and b the b remaining b ninety b percent b is b conducted b domestically. B. The b few b cities b that b dominate b international b financial b markets—Frankfurt, b Hong b Kong, b London, b New b York, b Singapore—represent b the b peak b of b global b integration. C. Most b of b the b world’s b cities b are b much b more b connected b at b the b local b level b than b they b are b to b any b other b domestic b city, b and b more b connected b domestically b than b to b any b foreign b city. D. Individuals b in b poor b countries b with b limited b infrastructure b are b able b to b compete b with b people b in b rich, b well-developed b countries. Answer: b D Learning b Objective: b 1.2 b Difficulty: b Easy AACSB: b Reflective b Thinking b Bloom’s b Taxonomy: b Comprehension 21. Dustin b is b a b lecturer b at b a b community b college b in b Memphis. b He b believes b that b the b globalization b of b markets b has b brought b the b world b closer. b He b asserts b that b globalization b has b enabled b free b access b to b markets b with b less b barriers b to b competition b and b uniform b implementation b of b trade b laws. b Dustin’s b beliefs b are b consistent b with b the b theory b of b the b b put b forth b by b the b author b Thomas b Friedman. A. flat b world B. round b world C. spiky b world D. divided b world Answer: b A Learning b Objective: b 1.2 b Difficulty: b Medium b AACSB: b Analytic Bloom’s b Taxonomy: b Application 22. Maya b Inc., b an b Indian b apparel b company, b now b sells b its b apparels b in b the b United b States, b Canada, b Australia b and b New b Zealand. b Derek, b the b CEO b of b Maya b Inc., b believes b that b free b access b to b markets, b few b barriers b to b competition, b and b uniform b trade b regulations b have b enabled b Maya b Inc. b to b expand b its b business b operations b internationally. b Derek’s b beliefs b are b consistent b with b Thomas b Friedman’s b theory b of b the b . A. round b world B. spiky b world C. divided b world D. flat b world Answer: b D Learning b Objective: b 1.2 b Difficulty: b Medium b AACSB: b Analytic Bloom’s b Taxonomy: b Application