International Business, 13e (Daniels/Radebaugh/Sullivan) Chapter 1 Globalization and International Business 1) The broadening set of interdependent relationships among

people from different parts of the world is known as ________. A) globalization B) offshoring C) franchising D) outsourcing Diff 1 !age "ef # $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1 .hat are international business and globalization/ .hat is the relationship between them/ AAC$B 0ulticultural and Di'ersit1 2) The term globalization is sometimes used to mean the ________. A) mo'ement of &obs to high3wage countries B) business being undertaken outside the confines of an1 nation C) une'en distribution of resources and this distribution4s influence on different products and ser'ices in different parts of the world D) integration of world economies through the reduction of barriers to the mo'ement of trade5 capital5 technolog15 and people Diff 1 !age "ef # $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1 .hat are international business and globalization/ .hat is the relationship between them/ AAC$B 0ulticultural and Di'ersit1 6) .hich of the following best defines international business/ A) ,t includes all public economic flows between two or more countries. B) ,t includes all pri'ate economic flows between two or more countries. C) ,t includes all business transactions in'ol'ing two or more countries5 whether the transactions are conducted b1 pri'ate or go'ernmental organizations. D) ,t includes all business transactions in countries other than 1our home countr1. Diff 1 !age "ef # $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1 .hat are international business and globalization/ .hat is the relationship between them/ 7) .hich of the following is the most accurate comparison of how pri'ate businesses and go'ernments conduct international business/ A) The ob&ecti'es for pri'ate businesses and go'ernments are the same. B) The ob&ecti'e of a pri'ate business is profit5 whereas a go'ernment ma1 or ma1 not seek profit as an ob&ecti'e. C) 8o'ernments operate strictl1 for nonprofit moti'es5 but pri'ate businesses seek profits. D) 8o'ernments undertake international business for more long3term ob&ecti'es than pri'ate businesses do. Diff 2 !age "ef # $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1 .hat are international business and globalization/ .hat is the relationship between them/ #) .hich of the following is -%T a reason to stud1 international business/ A) Business conducted outside the confines of an1 one countr1 is on the decline. B) 8lobal e'ents affect almost all companies. C) B1 approaching operating strategies from an international standpoint5 1ou ma1 be able to better obtain the resources 1ou need. D) The ph1sical5 social5 and competiti'e conditions differ from countr1 to countr1. Diff 2 !age "ef #39 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.2 .h1 should 1ou stud1 international business/ 9) %f the following5 it is most essential for a student of business to ________. A) tra'el widel1 in order to understand different business en'ironments B) take an internship with a multinational compan1 1

C) find emplo1ment with a compan1 free from global competition D) gain some understanding of international business Diff 1 !age "ef 9 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.2 .h1 should 1ou stud1 international business/ AAC$B Anal1tic $kills :) ,n terms of international business5 it is most accurate to sa1 that ________. A) there is a uni'ersal ;best wa1; to conduct business B) global competition affects large companies but not small ones C) most companies5 regardless of industr15 depend either on foreign markets and supplies or compete against companies that do D) go'ernment regulation of international business has little effect on a compan14s profits Diff 1 !age "ef 9 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.2 .h1 should 1ou stud1 international business/ <) +'en if 1ou ne'er ha'e direct international responsibilities5 an understanding of some of the comple=ities of international business ma1 be useful to 1ou because ________. A) it is essential for most managerial &ob inter'iews B) it ma1 help 1ou make more informed operational decisions C) 1ou will need to super'ise and e'aluate subordinates who ha'e international responsibilities D) 1ou should understand importing and e=porting in order to be promoted Diff 2 !age "ef : $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.2 .h1 should 1ou stud1 international business/ >) The shifting of national borders has created which of the following situations for international business/ A) ,t has left most people who reside in rural areas with onl1 the barest connection to the rest of the world. B) ,t has complicated the understanding of beha'ioral factors affecting business. C) ,t has made comparisons of historical data on international transactions problematic. D) ,t has slowed communications between a compan14s head?uarters and foreign operations. Diff 2 !age "ef : $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.6 +=plain how globalization has changed o'er time and differs both among countries and within countries. AAC$B 0ulticultural and Di'ersit1 1@) .hich of the following is an indication of the increased globalization of business since the end of .orld .ar ,,/ A) .orld trade has grown more rapidl1 than world production in almost e'er1 1ear. B) 0ost countries now depend on foreign output for more than half their consumption. C) Aoreign ownership of assets has le'eled off. D) Countries ha'e increased their import restrictions to counter the rising tide of imports. Diff 2 !age "ef : $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.6 +=plain how globalization has changed o'er time and differs both among countries and within countries. 11) 0ost of the world4s goods and ser'ices are sold ________. A) in international markets B) in the countries where the1 are produced C) through e=ports to small countries D) through e=ports to large countries Diff 2 !age "ef : $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.6 +=plain how globalization has changed o'er time and differs both among countries and 2

within countries. 12) According to the A.T. Bearn1CAoreign !olic1 8lobalization ,nde=5 which ranked countries on their e=tent of globalization across economic5 technological5 personal contact5 and political dimensions5 countries ________. A) tend to be ranked similarl1 on all four dimensions B) are more globalized on the political dimension than on personal contact C) that are large in land mass and population are less globalized than small countries D) sometimes rank high on one dimension and low on another Diff 2 !age "ef : $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.6 +=plain how globalization has changed o'er time and differs both among countries and within countries. AAC$B 0ulticultural and Di'ersit1 16) .hich of the following has -%T been a ma&or force increasing globalization in recent decades/ A) liberalization of cross3border trade B) increase in and e=pansion of technolog1 C) growing pressure from consumers D) decreasing global competition Diff 1 !age "ef :3< $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.7 ,dentif1 and e=plain the se'en forces that ha'e been causing the growth in globalization. AAC$B 0ulticultural and Di'ersit1 17) ,nstitutional de'elopment of ser'ices b1 business and go'ernment has aided the e=pansion of international business b1 ________. A) pro'iding a uni'ersall1 agreed upon language for conducting international transactions B) remo'ing immigration restrictions so that international firms can mo'e personnel where'er the1 are most needed C) de'eloping means to ease the flow of goods among countries D) spurring competition among domestic producers Diff 1 !age "ef > $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.7 ,dentif1 and e=plain the se'en forces that ha'e been causing the growth in globalization. 1#) .hich of the following has caused consumers to demand access to foreign3made products/ A) Declining global affluence has caused consumers to seek out lower3priced products from abroad. B) Consumers ha'e become more efficient in using media and technologies to compare prices worldwide. C) Aearing that their go'ernments will enact restricti'e policies on imports5 consumers are stocking up on foreign products before restrictions are put in place. D) +=pectations of rising prices of foreign products ha'e caused consumers to seek foreign products before their prices become prohibiti'e. Diff 2 !age "ef > $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.7 ,dentif1 and e=plain the se'en forces that ha'e been causing the growth in globalization. AAC$B (se of ,T 19) .hich of the following is a reason that international business has grown at such a rapid pace in the past few decades/ A) the end of the political schism between the Communist and non3Communist blocs B) stricter go'ernment policies on cross3border mo'ements C) decreasing global competition D) increased concerns about terrorism Diff 1 !age "ef 1@ $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.7 ,dentif1 and e=plain the se'en forces that ha'e been causing the growth in globalization. AAC$B 0ulticultural and Di'ersit1 6

1:) The recent e=pansion of technolog1 has contributed to growth in international business through ________. A) the creation of new products that are important in world trade B) reducing the effects of global competition C) the tabulation of international transactions that pre'iousl1 did not appear in statistics D) the liberalization of regulations of mo'ements of resources across borders Diff 2 !age "ef < $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.# Dow is technolog1 affecting the growth of international business/ AAC$B (se of ,T 1<) Alower producers from +cuador5 ,srael5 and -ew Eealand all compete for sales in the same American markets. This is due primaril1 to ________. A) more effecti'e domestic production techni?ues B) ad'ances in communications C) ad'ances in transportation D) cross3national cooperation in fighting insects that harm plants Diff 2 !age "ef < $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.7 ,dentif1 and e=plain the se'en forces that ha'e been causing the growth in globalization. 1>) All the following statements are true about the increase and e=pansion of technolog1 +FC+!T which one/ A) Technolog1 facilitates a compan14s head?uarters4 interactions with its foreign operations. B) $mall companies can more easil1 access global customers and suppliers. C) Companies from more countries can compete for sales in foreign markets. D) 0ost anal1sts agree that the rate of de'elopment of new products will drop off in the future. Diff 2 !age "ef < $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.# Dow is technolog1 affecting the growth of international business/ AAC$B (se of ,T 2@) Because of economic growth5 a larger portion of the population can shift from ________ to ________. A) rec1cling old productsG disposing of old products B) disposing of old productsG rec1cling old products C) producing new productsG de'eloping new products D) de'eloping new productsG producing new products Diff 2 !age "ef < $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.# Dow is technolog1 affecting the growth of international business/ AAC$B (se of ,T 21) Because their citizens want a greater 'ariet1 of goods and ser'ices at lower prices5 man1 go'ernments ha'e ________. A) reduced their restrictions on the international mo'ement of goods and ser'ices B) acted to reduce the pressures created b1 global competition C) sought to eliminate reciprocal ad'antages negotiated through international organizations and treaties D) increased their participation in multinational problem3sol'ing efforts Diff 2 !age "ef 1@ $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.9 .h1 ha'e most go'ernments lowered restrictions on international trade and resource mo'ements/ 22) .hich of the following is a reason for recent go'ernmental rela=ation in restrictions on cross3border trade or resource mo'ements/ A) 0ost countries face shortages of workers5 so the1 seek foreign workers who can help them produce more. B) 8o'ernments belie'e that this will decrease the need to make their own companies more inno'ati'e. C) Consumers increasingl1 want to bu1 goods and ser'ices produced in their own countries5 making restrictions less necessar1. D) 8o'ernments belie'e that domestic producers will become more efficient as a result of foreign competition. 7

Diff 2 !age "ef < $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.9 .h1 ha'e most go'ernments lowered restrictions on international trade and resource mo'ements/ 26) .hich of the following is a reason for recent go'ernmental rela=ation in restrictions on cross3border trade or resource mo'ements/ A) 8o'ernments t1picall1 welcome the opportunit1 to increase the offshoring of a countr14s domestic producers. B) All countries ha'e signed binding reciprocal trade agreements through international organizations. C) 8o'ernments hope that other countries will lower their barriers in response. D) 0ost countries face surpluses of workers5 so the1 seek foreign markets in need of labor supplies. Diff 2 !age "ef < $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.9 .h1 ha'e most go'ernments lowered restrictions on international trade and resource mo'ements/ 27) A compan1 starting out with a global focus5 usuall1 because of the international e=perience of its founders5 is called a ________. A) multinational enterprise B) transnational compan1 C) strategicall1 allied compan1 D) born3global compan1 Diff 1 !age "ef > $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.: .hat is the relationship between competition and globalization/ 2#) ,n a strateg1 known as ________5 man1 new companies locate themsel'es near competitors and suppliers. A) offshoring B) franchising C) clustering D) e=porting Diff 1 !age "ef > $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.: .hat is the relationship between competition and globalization/ 29) Companies often e=pand their business internationall1 in response to ________. A) increased import restrictions in their domestic markets B) competiti'e international ad'antages gained b1 their competitors C) increased e=port restrictions in their domestic markets D) a decrease in domestic competition Diff 2 !age "ef > $kill Application %b&ecti'e $T(D) *(+$T,%- 1.: .hat is the relationship between competition and globalization/ AAC$B Anal1tic $kills 2:) .hen a compan1 successfull1 responds to foreign production and market opportunities5 ________. A) other companies will likel1 emulate its successful practices B) it likel1 has a long3term ad'antage o'er competitors C) it t1picall1 downsizes its domestic operations D) its home go'ernment likel1 raises ta=es on the compan1 Diff 2 !age "ef > $kill Application %b&ecti'e $T(D) *(+$T,%- 1.: .hat is the relationship between competition and globalization/ AAC$B Anal1tic $kills 2<) According to 1our te=t5 which of the following is -%T one of the three main reasons go'ernments cooperate with each #

other/ A) to attack problems that one countr1 acting alone cannot sol'e B) to deal with areas of concern that lie outside the territor1 of an1 nation C) to gain reciprocal ad'antages D) to encourage cross3border mo'ement of resources in response to interest rate differences Diff 1 !age "ef 1@ $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.< .h1Chow do countries cooperate with other countries/ Dow does this cooperation affect international business/ 2>) 8o'ernments ha'e signed treaties to protect foreign3owned propert1 rights5 such as in'estments and patents. A primar1 reason for doing so is to ________. A) gain reciprocal ad'antages B) reduce the domestic effects of other countries4 economic policies C) deal with areas of concern outside the territor1 of an1 one countr1 D) reduce national conflicts leading to 'iolent encounters Diff 2 !age "ef 1@ $kill Application %b&ecti'e $T(D) *(+$T,%- 1.< .h1Chow do countries cooperate with other countries/ Dow does this cooperation affect international business/ AAC$B Anal1tic $kills 6@) .hich of the following is -%T a source of disagreement about the use of noncoastal areas of the oceans5 outer space5 and Antarctica/ A) There is little short3term business potential in these areas. B) There is disagreement about how commercial benefits should be shared among nations. C) There is disagreement about who should be allowed to de'elop where. D) The commercial 'iabilit1 of some areas has onl1 recentl1 been demonstrated. Diff 2 !age "ef 11 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.< .h1Chow do countries cooperate with other countries/ Dow does this cooperation affect international business/ 61) .hich of the following is a reason that go'ernments cooperate through treaties5 agreements5 and consultation/ A) to gain a di'ision of labor5 such as b1 performing research and de'elopment in one countr1 and production in another B) to be in compliance with (nited -ations4 re?uirements C) to attack problems &ointl1 that one countr1 acting alone cannot sol'e D) to assure that all countries get an e?uitable share of ta=es from multinational enterprises Diff 2 !age "ef 1@ $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.< .h1Chow do countries cooperate with other countries/ Dow does this cooperation affect international business/ 62) $mall countries worr1 about o'erdependence caused b1 globalization. Their concerns include all of the following +FC+!T which of the following/ A) A large countr1 on whom the1 depend ma1 pressure them on political matters. B) A large international compan1 ma1 dictate its terms of operations in a small countr1. C) A large compan1 ma1 e=ploit legal loopholes to a'oid political o'ersight and ta=es. D) A large countr1 ma1 reduce its le'el of cultural homogeneit1. Diff 2 !age "ef 12316 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.> .hat are the main criticisms of globalization/ AAC$B 0ulticultural and Di'ersit1 66) Although critics complain that globalization causes the consumption of too man1 nonrenewable resources while despoiling the en'ironment5 those in fa'or of globalization counter that ________. 9

A) globalization encourages the adoption of uniform and superior standards for combating en'ironmental problems B) economic growth created b1 globalization is largel1 in ser'ices5 which neither use too man1 nonrenewable resources nor despoil the en'ironment C) the biggest problem of en'ironmental despoliation occurs in the countries that are least globalized D) pollution and to=ic runoff problems do not increase with economic growth Diff 2 !age "ef 16 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.> .hat are the main criticisms of globalization/ AAC$B +thical "easoning

67) Curtailment of logging in the Amazon region is generall1 'iewed as en'ironmentall1 beneficial for the planet as a whole. Dowe'er5 unemplo1ed Brazilian workers ha'e felt that &ob creation inside Brazil is more important than climate protection outside Brazil. This e=ample best illustrates which of the following/ A) wh1 smaller countries are concerned that large international countries are powerful enough to dictate operating terms B) wh1 globalization is needed to foster uniform standards for combating en'ironmental problems C) how global interests can conflict with a countr14s local interests D) how cultural homogeneit1 threatens the cultural foundation of smaller nations Diff 2 !age "ef 16 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.> .hat are the main criticisms of globalization/ AAC$B "eflecti'e Thinking 6#) Although globalization ma1 bring economic growth5 critics ne'ertheless contend that ________. A) the growth is not fast enough B) the ine?ualit1 of gains puts some people in a relati'el1 worse economic situation C) this growth is mainl1 for the future5 thus ignoring present economic growth needs D) the cultural foundations of so'ereignt1 are supported b1 globalization Diff 2 !age "ef 16 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.> .hat are the main criticisms of globalization/ 69) The process of shifting production from a domestic to a foreign location is known as ________. A) offshoring B) outsourcing C) licensing D) &oint 'enturing Diff 1 !age "ef 17 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1@ .hat is meant b1 offshoring/ .hat are the ma&or arguments for and against it/ 6:) !roponents of offshoring claim all +FC+!T which of the following/ A) Aggregate emplo1ment figures show that displaced workers find new &obs. B) %ffshoring increases the number of high3'alue &obs in the home countries of offshoring companies. C) %ffshoring is fundamentall1 better for workers than the introduction of labor3sa'ing technologies. D) There are upper limits on offshoring because there are not enough workers abroad with needed skills who will permanentl1 work for low wages. Diff 2 !age "ef 1731# $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1@ .hat is meant b1 offshoring/ .hat are the ma&or arguments for and against it/ 6<) A ma&or criticism of offshoring is that it ________. A) increases production costs B) e=changes good &obs for bad &obs C) threatens the so'ereignt1 of larger countries D) allows companies to a'oid pa1ment of an1 ta=es Diff 2 !age "ef 17 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1@ .hat is meant b1 offshoring/ .hat are the ma&or arguments for and against it/ 6>) Critics of offshoring claim all +FC+!T which of the following/ A) Cost sa'ings are seldom passed on to final consumers. B) .orkers who ha'e been displaced b1 offshoring do not ha'e the skills needed for higher3'alue &obs. C) ,ncomes of workers in offshoring countries ha'e gone down as a percentage of national income. D) %ffshoring reduces the incomes of people in low3wage countries. Diff 2 !age "ef 1731# <

$kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1@ .hat is meant b1 offshoring/ .hat are the ma&or arguments for and against it/ 7@) .hich of the following conditions must be met for a compan1 to increase profits through foreign sales/ A) The compan1 can obtain resources abroad. B) The costs to make the sales do not increase disproportionatel1. C) The compan1 can offshore its production. D) The foreign market can be reached through e=porting rather than direct in'estment. Diff 2 !age "ef 19 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.11 .h1 do companies engage in international business/ H.hat ad'antages do the1 gain/) 71) The tele'ising of sports competitions to 'iewers in multiple countries is an e=ample of international business conducted to achie'e the ob&ecti'e of ________. A) ac?uiring resources B) minimizing risk C) offshoring D) sales e=pansion Diff 2 !age "ef 19 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.11 .h1 do companies engage in international business/ H.hat ad'antages do the1 gain/) AAC$B "eflecti'e Thinking 72) A moti'e for a compan1 to conduct international business is to ac?uire resources abroad. .hich of the following is -%T an e=ample of a resource ac?uisition moti'e/ A) producing with lower labor costs B) gaining knowledge that the compan1 can use elsewhere C) following a customer into a foreign market D) gaining the means to differentiate a product Diff 2 !age "ef 19 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.11 .h1 do companies engage in international business/ H.hat ad'antages do the1 gain/) 76) B1 operating internationall15 a compan1 ma1 reduce its risks because it can ________. A) take ad'antage of business3c1cle differences among countries B) bu1 competiti'e risk insurance not a'ailable in its home countr1 C) pre'ent competitors from operating in the countries it has entered D) operate in less competiti'e en'ironments than those at home Diff 2 !age "ef 1: $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.11 .h1 do companies engage in international business/ H.hat ad'antages do the1 gain/) 77) An e=ample of a (.$. merchandise import is an automobile made in ________ and sold ________. A) the (nited $tates b1 a Iapanese compan1G in the (nited $tates B) the (nited $tates b1 a Iapanese compan1G outside the (nited $tates C) Iapan b1 a Iapanese compan1 in the (nited $tates D) Iapan b1 a (.$. compan1G outside the (nited $tates Diff 2 !age "ef 1: $kill Application %b&ecti'e $T(D) *(+$T,%- 1.12 Define and gi'e e=amples of merchandise and ser'ice imports and e=ports. AAC$B "eflecti'e Thinking 7#) Jisible e=ports and imports are ________. A) merchandise imports and e=ports B) the sum total of goods and ser'ices traded C) international transactions paid for in mone1 rather than barter >

D) t1picall1 a countr14s least common international economic transactions Diff 1 !age "ef 2@ $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.12 Define and gi'e e=amples of merchandise and ser'ice imports and e=ports. 79) An e=ample of a Iapanese ser'ice e=port is a 'isit b1 a ________. A) Iapanese citizen to Disne1land in the (nited $tates B) Iapanese citizen to the Iapan !a'ilion at +pcot Center in the (nited $tates C) (.$. citizen to the Iapan !a'ilion at +pcot Center in the (nited $tates D) (.$. citizen to Tok1o Disne1land in Iapan Diff 2 !age "ef 1: $kill Application %b&ecti'e $T(D) *(+$T,%- 1.12 Define and gi'e e=amples of merchandise and ser'ice imports and e=ports. AAC$B "eflecti'e Thinking 7:) "o1alties from the use of assets abroad5 such as trademarks or patents5 are an e=ample of ________. A) merchandise trade B) ser'ice trade C) 'isible trade D) a &oint 'enture Diff 2 !age "ef 1< $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.12 Define and gi'e e=amples of merchandise and ser'ice imports and e=ports. 7<) A foreign direct in'estment occurs ________. A) onl1 when a compan1 owns more than #@ percent of a foreign firm B) when a compan1 controls a compan1 abroad C) when foreign ownership is in pri'ate rather than go'ernment securities D) with the establishment of a partnership rather than the purchase of a foreign firm Diff 2 !age "ef 1< $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.16 .hat are the t1pes of foreign in'estment/ 7>) Aoreign direct in'estment ________. A) is undertaken onl1 b1 large companies B) includes the ownership of foreign bonds C) includes partiall1 owned foreign operations as long as the owner has controlling interest D) in terms of 'alue5 is mainl1 undertaken b1 small companies Diff 2 !age "ef 1< $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.16 .hat are the t1pes of foreign in'estment/ #@) .hen two or more organizations share ownership of a foreign direct in'estment5 the operation is called a ________. A) portfolio in'estment B) transnational corporation C) turnke1 operation D) &oint 'enture Diff 1 !age "ef 1< $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.16 .hat are the t1pes of foreign in'estment/ #1) .hich of the following is an e=ample of an international portfolio in'estment/ A) foreign ownership of bonds B) ownership of patents used b1 a foreign compan1 C) a &oint 'enture with a foreign compan1 1@

D) one of a group of se'eral foreign companies wholl1 owned b1 the same in'estor Diff 2 !age "ef 1> $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.16 .hat are the t1pes of foreign in'estment/ #2) A multinational enterprise H0-+) is one that is ________. A) among the world4s #@@ largest companies B) owned and managed b1 companies whose head?uarters are split among different countries C) licensed to operate b1 the (nited -ations Transnational Center D) willing to consider market and production locations an1where in the world Diff 1 !age "ef 1> $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.17 .hat is a multinational enterprise H0-+)/ #6) According to the definition used in 1our te=t5 a compan1 with operations in more than one countr1 is aHn) ________. A) multinational enterprise B) &oint 'enture partner C) international operator D) born3global compan1 Diff 1 !age "ef 1> $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.17 .hat is a multinational enterprise H0-+)/ #7) The term sometimes used b1 the (nited -ations as a s1non1m for multinational enterprise is ________. A) multinational corporation B) transnational compan1 C) stateless compan1 D) global enterprise Diff 2 !age "ef 1> $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.17 .hat is a multinational enterprise H0-+)/ ##) .hich of the following must be true about a compan1 in order for it to be considered a multinational enterprise/ A) The compan1 is large with 'ast resources. B) The compan1 holds direct in'estments in at least fi'e countries. C) The compan1 does not limit its e'aluation of markets and production to an1 one countr1. D) The organization must be a born3global compan1. Diff 2 !age "ef 1> $kill Application %b&ecti'e $T(D) *(+$T,%- 1.17 .hat is a multinational enterprise H0-+)/ AAC$B Anal1tic $kills #9) !olitics5 law5 culture5 and econom1 are all e=amples of ________ factors that can affect the wa1s in which companies produce and sell their products in foreign markets. A) social B) ph1sical C) competiti'e D) political Diff 1 !age "ef 2@ $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1# .hat do we mean b1 a compan14s ph1sical and social en'ironments/ .h1 should companies understand them when engaging in international business/ #:) 0anagers who are knowledgeable about ________ are better able to identif1 the location5 ?uantit15 ?ualit15 and a'ailabilit1 of the world4s natural resources. 11

A) political factors B) geographic factors C) competiti'e factors D) cultural factors Diff 1 !age "ef 2@ $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1# .hat do we mean b1 a compan14s ph1sical and social en'ironments/ .h1 should companies understand them when engaging in international business/ #<) Although (.$. films depend hea'il1 on re'enue in foreign countries5 re'enue from international markets is usuall1 low for a sports3themed film. This is due to ________ factors. A) political B) geographic C) beha'ioral D) legal Diff 2 !age "ef 21 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.1# .hat do we mean b1 a compan14s ph1sical and social en'ironments/ .h1 should companies understand them when engaging in international business/ AAC$B "eflecti'e Thinking #>) ,n addition to understanding the laws affecting business in countries where their companies operate5 it is most important for managers to understand which of the following legal factors/ A) the methods for appointing &udges B) the ethical rationale behind the laws C) the histor1 of the countr14s legal s1stem D) the degree of enforcement of laws Diff 2 !age "ef 21 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1# .hat do we mean b1 a compan14s ph1sical and social en'ironments/ .h1 should companies understand them when engaging in international business/ AAC$B +thical "easoning 9@) $ome ke1 ________ factors in the e=ternal en'ironment of an international business are product strateg1 and resource base and e=perience. A) geographic B) political C) competiti'e D) beha'ioral Diff 1 !age "ef 22 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.19 Dow does a compan14s competiti'e en'ironment affect its international operations/ Dow might its competiti'e en'ironment differ from one countr1 to another/ 91) The same automobile compan1 produces Aiats and Aerraris. The compan1 built an engine plant in China with low production costs for Aiats5 but not Aerraris. The probable reason is that ________. A) Aiat competes mainl1 on a focus strateg15 whereas Aerrari competes mainl1 on a mass3market strateg1 B) Aiat competes mainl1 on a mass3market strateg15 whereas Aerrari competes mainl1 on a focus strateg1 C) Aerrari faces global competitors in China5 whereas Aiat competes in China mainl1 against Chinese competitors D) although Aerrari did not build an engine plant5 it will use the same Aiat engines in its models Diff 2 !age "ef 22 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.19 Dow does a compan14s competiti'e en'ironment affect its international operations/ Dow might its competiti'e en'ironment differ from one countr1 to another/ AAC$B Anal1tic $kills 12

92) .hich of the following statements is true concerning the international business competiti'e en'ironment/ A) Although countries4 market sizes differ5 companies usuall1 face about the same number of competitors in each national market. B) ,n most industries5 companies face the same competitors in each countr1 where the1 operate. C) ,t takes about the same amount of resources to gain national distribution in a large countr1 as in a small one. D) Being a leader in one countr1 doesn4t guarantee 1ou4ll be a leader in an1 other countr1. Diff 2 !age "ef 22 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.19 Dow does a compan14s competiti'e en'ironment affect its international operations/ Dow might its competiti'e en'ironment differ from one countr1 to another/ AAC$B Anal1tic $kills 96) .hen companies face the same competitors in almost all countries where the1 operate5 ________. A) what the1 learn about each other in one countr1 is useful in predicting the other4s strategies and actions elsewhere B) the market leader is the same e'er1where C) there is less need to understand the ph1sical and societal factors of each countr1 D) the1 are less likel1 to enter &oint 'entures with other companies Diff 2 !age "ef 22 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.19 Dow does a compan14s competiti'e en'ironment affect its international operations/ Dow might its competiti'e en'ironment differ from one countr1 to another/ AAC$B Anal1tic $kills 97) The 'iew that globalization is ine'itable is based on the belief that ________. A) international organizations will replace nation states B) protesters against globalization will be persuaded to change their 'iews C) people want more global homogeneit1 of cultures D) technical ad'ances in transportation and communications are too per'asi'e for globalization4s growth to be hindered Diff 2 !age "ef 26 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1: .hat are the three main 'iewpoints about the future of globalization/ AAC$B (se of ,T 9#) Critics of the 'iew that regionalization will pre'ail o'er globalization base their argument on the belief that ________. A) regionalization is a transition stage toward globalization B) neighboring countries are more apt to disagree politicall1 than countries that are distant from each other C) neighboring countries are too geographicall1 similar to ha'e man1 different goods to trade with each other D) business in non3territorial areas is not regional Diff 2 !age "ef 26 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1: .hat are the three main 'iewpoints about the future of globalization/ 99) .hich of the following is -%T cited in 1our te=t as support for the belief that the pace of globalization will slow or re'erse/ A) Antiglobalization interests ha'e been successful in electing parties that oppose freer mo'ement of trade or people. B) Technological ad'ances will slow in the future. C) $ome ma&or countries ha'e either ignored international treaties or ha'e refused to sign them. D) The growing split between parties who succeed in a global en'ironment and those who do not will foster greater antiglobalization sentiments. Diff 2 !age "ef 26 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.1: .hat are the three main 'iewpoints about the future of globalization/ AAC$B Anal1tic $kills 9:) $ome obser'ers feel that international institutions and the people working in them cannot ade?uatel1 handle the comple=ities of an interconnected world. Based on this5 these obser'ers belie'e that ________. A) international business will grow primaril1 on a regional basis 16

B) globalization is ne'ertheless ine'itable C) globalization will slow in the future D) pri'ate companies will replace international organizations in running the world4s econom1 Diff 2 !age "ef 27 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.1: .hat are the three main 'iewpoints about the future of globalization/ AAC$B Anal1tic $kills 9<) ,n Chapter %ne4s opening case on the globalization of sports5 the owner of a (.$. football team and the owner of a Canadian hocke1 team bought a British soccer team. This is an e=ample of ________. A) ro1alties B) portfolio in'estment C) a turnke1 operation D) a &oint 'enture Diff 2 !age "ef 1< $kill Application %b&ecti'e $T(D) *(+$T,%- 1.1< .hat lessons in chapter 1 are illustrated b1 the opening or closing case/ AAC$B "eflecti'e Thinking 9>) ,n Chapter %ne4s opening case on the globalization of sports5 we saw that man1 teams ha'e foreign pla1ers. These pla1ers ha'e mo'ed abroad primaril1 because of ________ factors. A) economic B) geographic C) international legal D) offshoring Diff 2 !age "ef 2 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1< .hat lessons in chapter 1 are illustrated b1 the opening or closing case/ :@) ,n Chapter %ne4s closing case on Carni'al Cruise Kines5 we saw that cruise lines pa1 little or no ta=es because ________. A) of international ta= treaties B) the1 take ad'antage of different ta=ation and emplo1ment laws in foreign countries C) international law does not appl1 in noncoastal areas of the oceans D) the1 use focus strategies Diff 2 !age "ef 29 $kill Application %b&ecti'e $T(D) *(+$T,%- 1.1< .hat lessons in chapter 1 are illustrated b1 the opening or closing case/ AAC$B Anal1tic $kills :1) A flag of con'enience is ________. A) the declaration that a product is made in a countr1 that has easier legal access to a gi'en foreign market B) a designation for products originating within a particular trading group C) the registration of a shipping or cruise compan1 in a countr1 that charges low ta=es D) one representing the pirac1 of ships in international waters Diff 2 !age "ef 29 $kill Concept %b&ecti'e $T(D) *(+$T,%- 1.1< .hat lessons in chapter 1 are illustrated b1 the opening or closing case/

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