Test Item File- Practice Test Bank - International Management Managing Across Borders and Cultures, Text and Cases,Dereskey,8e

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CH. 1 Assessing the _ Environment: Political, Economic, Legal, Technological


1. Which of the _ following is characterized by networks of international linkages that bind countries,
institutions, and people in an interdependent economy?
A. communism
B. nationalization
C. socialism
D. globalization
ANS:: D
Diff: 1
CH. : 1
Skill: Concept
Objective: 1
: Dynamics of the _ global economy


2. ________ results from the _ lessening of trade barriers and the _ increased flow of goods and
services, capital, labor, and technology around the _ world.
A. Economic integration
B. Nationalization
C. Protectionism
D. Mercantilism
ANS:: A
Diff: 1
CH. : 1
Skill: Concept
Objective: 1
: Dynamics of the _ global economy


3. In which of the _ following groups of trade blocs does most of today's world trade takes place?
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,A. Middle East, China, and India
B. North America, Africa, and Canada
C. Western Europe, Asia, and the _ Americas
D. Saudi Arabia, Western Europe, and the _ Gulf
ANS:: C
Diff: 1
CH. : 1
Skill: Concept
Objective: 1
: Dynamics of the _ global economy




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,4. The _ European Union currently consists of how many nations?
A. 12
B. 27
C. 34
D. 46
ANS:: B
Diff: 1
CH. : 1
Skill: Concept
Objective: 1

5. Which of the _ following best explains China's success in exporting?
A. low costs and steady stream of capital
B. geographic location in the _ world
C. high educational standards
D. close ties with Japan
ANS:: A
Diff: 2
CH. : 1
Skill: Concept
Objective: 1
: Dynamics of the _ global economy


6. Which of the _ following countries is today known as the _ world's services supplier, providing
highly skilled and educated workers to foreign companies.
A. China
B. Brazil
C. Mexico
D. India
ANS:: D

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, Diff: 2
CH. : 1
Skill: Concept
Objective: 1
: Dynamics of the _ global economy


7. Which of the _ following agreements is a free trade pact among seven South Asian nations,
signed in order to lower tariffs?
A. SAARC
B. ASEAN
C. NAFTA
D. MERCOSUR
ANS:: A
Diff: 1
CH. : 1
Skill: Concept
Objective: 1
: Dynamics of the _ global economy

8. Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The _ company
employs almost 130,000 workers at its 250 manufacturing facilities located on five different
continents. Emerson manufactures a wide range of products including air-conditioning compressors,
garbage disposers, and automotive parts. Emerson's Asian operations employ over 50,000 people at
manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce
automotive parts for cars manufactured in Detroit. Emerson executives are considering whethe _r to
build the _ new facility in China or in the _ U.S.


Which of the _ following, if true, supports the _ argument to build a new Emerson facility in China?
A. The _ Chinese courts recently ruled in favor of an MNC in an intellectual property rights lawsuit.
B. The _ Chinese Commonwealth network is investing large amounts of capital in China.
C. China has increased Internet controls and blocked most international search sites.
D. China is revoking its membership from the _ World Trade Organization.
ANS:: A
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