Chapter One

Multiple choice questions

Try the multiple choice questions below to test your knowledge of this chapter. Once you have completed the test, click on 'Submit Answers for Grading' to get your results.

Which of the following is a case of international exports?

The Velasco Co. of the US ships 20 truckloads of seafood to Canada. BBN Bank of Canada sends $30 million dollars to its subsidiary in the Bahamas. The Lamondo retail firm of France decides to expand to the UK and purchases a large plot of land for its first store. All of the above.

Which of the following is a case of international imports?

Canada receives a shipload of shrimp from Taiwan. BBN Bank of the Bahamas receives $30 million dollars from its parent company in Switzerland. The Lamondo retail firm of France decides to expand to the UK and purchases a large plot of land for its first store. All of the above.

Which of the following is a case of international imports?

A Cuban television station purchases a soap opera from Brazil's Globo Television. The US government buys 50 computers from Legend of China. Michael Johnson of the US purchases an airline ticket from a Canadian based website for a Canadian travel agency. All of the above.

Which of the following is a case of foreign direct investment?

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The Lamondo retail firm of France decides to expand to the UK and purchases a large plot of land for its first store. BBN Bank of Canada sends $30 million dollars to its subsidiary in the Bahamas. The Velasco Co. of the US ships 20 truckloads of seafood to Canada. All of the above.

The OECD stands for:

Organization for Environmental Cooperation and Development. Organization for Environmental Coordination and Discussion. Organization for Economic Cooperation and Development. Organization for Economic Coordination and Discussion.

SMEs are:
Small and Medium-sized Enterprises. Societies for Managing Exports. Systems for Management and Enterprises. None of the above.

Most cars produced in the US are sold in:

Japan. Europe. NAFTA. None of the above.

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Over _____ of the world's largest 500 MNEs are headquartered in North America, the EU, and Japan/Asia.
400 100 200 300

Which of the following countries has the largest number of MNEs in the list of the world's largest firms?
the United States. Britain. the European Union. Japan.

_______ is the first step in the typical internationalization process.

FDI Export through distributor License Sales subsidiary

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Which of the following is a reason why MNEs become multinationals?

Diversification. Capitalization. Coordination. None of the above.

Which of the following is a misconception that people have about the world of international business and multinational enterprises (MNEs)?
MNEs have far-flung operations or earn most of their revenues overseas. MNEs produce homogeneous products for the world market. MNEs are globally monolithic and excessively powerful in political terms. All of the above.

Which of the following is a case of foreign direct investment?

Vera Ltd., a small car repair shop in the border between Spain and Portugal, opens another small car repair shop in Portugal. John Michaels purchases $2,000 worth of shares in a foreign mutual fund. Astalon technologies of Canada purchases $20 million in shares of Acer technologies of Taiwan. All of the above.

Which of the following is true?

The Japan is the world's largest importer and the US is the world's largest exporter.

Chapter One
The United States is the world's largest importer and the largest exporter. The United States is the world's largest importer and China is the world's largest exporter. The United States is the world's largest importer and the Japan is the world's largest exporter.

Which of the following is true about Carrefour?

It is a German company specializing in motor vehicle parts. It has most of its stores in Europe. Wherever it sets up a store, it sells EU made products. It specializes in travel.