Test Bank for International Business, 3rd Edition by Shad Morris
International Business, 3e (Morris)
Chapter 1 What Is Globalization?
1) Nations are increasingly connected by trade, technology and economic trends. Which of these
set of developments spurred globalization the most?
A) Tariffs, export taxes, and business incubators
B) Protectionism, subsidies, and industry cluster planning
C) Free trade agreements, express shipping, and broadband
D) Big government, increased income tax, and trade offices
Answer: C
Diff: 1
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Knowledge
2) The agreements that form the foundation of the European Union (EU) mean that a consumer
in France could easily get a German‐made BMW motorcycle, without paying the extra fees or
taxes that are traditionally attached to the purchase of a foreign product. This is an example of
which concept?
A) Global arbitrage
B) Globalized market
C) Global convergence
D) Sovereign globalization
Answer: B
Diff: 2
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Application
3) The American colonies declaring independence from the British Empire in 1776 allowed for
increased trade and business between countries with strong cultural and political differences.
This is an example of which concept?
A) Global arbitrage
B) Globalized market
C) Global convergence
D) Sovereign globalization
Answer: D
Diff: 2
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Application
1
, 4) Corporation DDD likes to manufacture their phones in low-wage countries to save labor costs.
They also look for cheaper commodities made in emerging economies. What is the name of this
corporate phenomenon?
A) Local sourcing
B) Process manufacturing
C) Globalization of production
D) Corporate social responsibility
Answer: C
Diff: 1
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Comprehension
5) HL's Chicken is a multinational restaurant chain which has been in operation for more than
sixty years. Over the decades, HL's has expanded into several continents, and many of their
products have been imitated. Their signature spices have been added to East Asian competitors'
products, especially in Thailand and South Korea where they like spicy food. This example is
following what globalization phenomenon?
A) Global arbitrage
B) Globalized market
C) Global convergence
D) Sovereign globalization
Answer: C
Diff: 2
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Application
6) A consumer goods manufacturer receives advice from an investor to reduce costs through
arbitrage. What is the manufacturer's goal?
A) Global material sourcing
B) Foreign direct investment
C) Industrial product marketing
D) Commercial sales partnership
Answer: A
Diff: 1
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Comprehension
2
International Business, 3e (Morris)
Chapter 1 What Is Globalization?
1) Nations are increasingly connected by trade, technology and economic trends. Which of these
set of developments spurred globalization the most?
A) Tariffs, export taxes, and business incubators
B) Protectionism, subsidies, and industry cluster planning
C) Free trade agreements, express shipping, and broadband
D) Big government, increased income tax, and trade offices
Answer: C
Diff: 1
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Knowledge
2) The agreements that form the foundation of the European Union (EU) mean that a consumer
in France could easily get a German‐made BMW motorcycle, without paying the extra fees or
taxes that are traditionally attached to the purchase of a foreign product. This is an example of
which concept?
A) Global arbitrage
B) Globalized market
C) Global convergence
D) Sovereign globalization
Answer: B
Diff: 2
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Application
3) The American colonies declaring independence from the British Empire in 1776 allowed for
increased trade and business between countries with strong cultural and political differences.
This is an example of which concept?
A) Global arbitrage
B) Globalized market
C) Global convergence
D) Sovereign globalization
Answer: D
Diff: 2
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Application
1
, 4) Corporation DDD likes to manufacture their phones in low-wage countries to save labor costs.
They also look for cheaper commodities made in emerging economies. What is the name of this
corporate phenomenon?
A) Local sourcing
B) Process manufacturing
C) Globalization of production
D) Corporate social responsibility
Answer: C
Diff: 1
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Comprehension
5) HL's Chicken is a multinational restaurant chain which has been in operation for more than
sixty years. Over the decades, HL's has expanded into several continents, and many of their
products have been imitated. Their signature spices have been added to East Asian competitors'
products, especially in Thailand and South Korea where they like spicy food. This example is
following what globalization phenomenon?
A) Global arbitrage
B) Globalized market
C) Global convergence
D) Sovereign globalization
Answer: C
Diff: 2
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Application
6) A consumer goods manufacturer receives advice from an investor to reduce costs through
arbitrage. What is the manufacturer's goal?
A) Global material sourcing
B) Foreign direct investment
C) Industrial product marketing
D) Commercial sales partnership
Answer: A
Diff: 1
Learning Objective: 1.1 Identify the causes and consequences of globalization.
AACSB: Analytic
Bloomcode: Comprehension
2
