Quiz-2.

1

Q1. The interpersonal norms of a country may necessitate a companys alteration of __?
A. Child Labor
B. Operations
C. Accounting
D. None of the above
E. All of the above
Answer: B

Q2. Which of the following terms are not synonymous with the others?
A. MNE
B. MNC
C. MNM
D. TNC
Answer: C

Q3. Foreign sources may give companies?
A. Higher costs
B. New and/or better products
C. Conflicting operating knowledge
D. Legal problems
Answer: B

Q4. A major operating objective that may induce companies to engage in international
business is _____?
A. To expand sales
B. To maximize risk
C. To acquire competitors
D. None of the above
Answer: A

Q5. Critics of globalization claim _______?
A. Countries lose sovereignty
B. The resultant growth hurts the environment
C. Some people lose in both aspects
D. All of the above
Answer: D

Q6.All of the following are objectives of international business operations except for:
a) sales expansion
b) resource acquisition
c) locally expanding
d) risk minimization

Correct Answer: C

Q7.Globalization consists of the following processes except:
a) political process
b) environmental process
c) social process
d) economic process

Correct Answer: B

Q8.Which of the following is a criticism of globalization?
a) going into someones country uninvited
b) different climates in other countries get in the way
c) terrorist opportunities
d) threat to national sovereignty

Correct Answer: D

Q9 To minimize your risk you can:
a) diversify suppliers across countries
b) take advantage of business cycle differences amongst countries
c) a & b
d) none of the above

Correct Answer: C






















Quiz-1.1

1) Globalization is:
a) It is a new stage of capitalism.

b) Brings interdependence among people from different countries.

c) It is a process chosen by each company whether or not they want to enter.

d) It is a physical and sociological movement that happens all over the world.

2) Globalization is process that happens all over the world. Choose the most
globalized:
a) South Africa, Lithuania, and Costa Rica
b) Argentina, Kenya, and Italy
c) Ireland, Singapore, and Netherlands
d) Switzerland, Egypt, and India
3) When did globalization start and when did it get stronger?
a) It started after the WWII and it got stronger when it was built the Berlin Wall in
Germany.
b) It started with the discovery of internet and it spreaded out after UNs birth.
c) It started during American independence and it strengthens after the industrial
revolution.
d) It started during XVI century and it gained strength after bilateral and multilateral
agreements and treaties.
4) What are the criticisms made to globalization?
a) Environmental despoliation through toxic and pesticides runoffs into rivers and
oceans.
b) Air pollution from factory and vehicle emissions
c) Growing income inequality and threats to national sovereignty
d) All the above
5) Offshoring is:
a) Good because it reduces costs.
b) Bad because people exchange good jobs for bad ones.
c) Few people have benefited from the offshoring that accompanies globalization,
considering all of Africa, central Asia, and much of Latin America.
d) Enables poor country to produces for exporting, promoting economic growth on
those places.
e) All the above
6)Globalization is:
a) It is a new stage of capitalism.

b) Brings interdependence among people from different countries.

c) It is a process chosen by each company whether or not they want to enter.

d) It is a physical and sociological movement that happens all over the world.

7)Globalization is process that happens all over the world. Choose the most
globalized:
e) South Africa, Lithuania, and Costa Rica
f) Argentina, Kenya, and Italy
g) Ireland, Singapore, and Netherlands
h) Switzerland, Egypt, and India

8)When did globalization start and when did it get stronger?
e) It started after the WWII and it got stronger when it was built the Berlin Wall in
Germany.
f) It started with the discovery of internet and it spreaded out after UNs birth.
g) It started during American independence and it strengthens after the industrial
revolution.
h) It started during XVI century and it gained strength after bilateral and multilateral
agreements and treaties.







9)) What are the criticisms made to globalization?
a) Environmental despoliation through toxic and pesticides runoffs into rivers and
oceans.
b) Air pollution from factory and vehicle emissions
c) Growing income inequality and threats to national sovereignty
d) All the above















Quiz-3.1

1)Question IKEA uses a unique standard formula which brings it global success
throughout the markets this company now occupies.
Answer
True

False

2)Question Hill describes "globalization" as a shift from individual local markets more
toward an integrated and interdependent world economy.
Answer

True
False

3)Question Large multinational companies, because of their available resources,
constitute the majority of U.S, exporting firms over midsize or small companies.
Answer
True

False

4)Question Today's global markets are largely industrial and material goods that really
meet world demand; consumer products play a secondary role.
Answer

True
False

5)Question According to Hill, "Drivers of Globalization" refer to financial and
innovative multinational firms seeking new markets for investment or market growth in
today's world market system.
Answer
True

False


6)Question Containerization is a term enveloping the process and packaging of goods
because of a revolution in transportation technologies, which results in greater
efficiencies and scales of economy?
Answer

True
False


7)Question There are four major factors that the help U.S. continue to hold competitive
advantages over other national players for global market share: 1) U.S. dominance in the
world economy and trade; 2) U.S. dominance in direct foreign investment; 3) the
dominance of U.S. multinational corporations on the international business scene; and 4)
the U.S. dominance in trade and commercial diplomacy which few nations can compete.
Answer
True

False

8)Question Lenovo, a Chinese personal computer manufacturer, could be called a "mini-
multinational firm"; a relatively new designation for global-oriented companies similar to
the larger MNCs in all aspects but possessing growth capacities and capabilities like their
size-dominant counterparts.
Answer

True
False


9)Question With global business opportunities come risks; terrorism since 9/11, which
clearly crippled the U.S. domestic and world economy, is proof that political violence is
now the leading risk factor to be taken into account rather than traditional risk factors.
Answer
True

False
































Quiz-3.2


1)Question Antiglobalization is a local force of resistance on the part of many activists
and national leaders who see "globalization" as a cultural, ecological, economic and
social disaster spearheaded by aggressive multinationals and powerful foreign
governments with agendas of their own.
Answer

True
False

2)Question A number of economic studies predict that as income levels rise, so do
pollution levels; this is known as a ___________________________ because of growth
to resource waste ratios until greater environmental protections take hold and reverse the
pollution side of the equation.
Answer

hump-shaped relationship
upward sloping projection
cost-push demand curve
evolutionary "J" curve


3)Question The interdependent global economy today literally is an outgrowth
of______________, the integration of markets and production across national borders
and local barriers.
Answer
diversification

globalization
diffusion
consumerism



4)Question When a firm invests resources in business activities outside its
home country, the term referred to is ____________________.
Answer
capital intensive investment
overseas selective borrowing
venture capital development

foreign direct investment

5)Question A recent trend in international business is the growth of mid-sized and small
MNCs known as ___________________; a few leading examples are Cardiac Science
and Bridgewater Pottery.
Answer
small transnationals
virtual companies

mini multinationals
foreign enterprises


6)Question The term _________________ has some 38 variables to measure its impact
on per capita growth, life expectancy on a scale of 1 to 10; Hong Kong has the highest
rating (8.7 of 10) over other countries like Singapore (8.5), New Zealand, Switzerland
and the US (tied with a rating of 8.2). It refers to the latitude businesses have in their
own nations promoting trade, commerce, and investments globally and reciprocally
regarding home markets.
Answer
political liberty

economic freedom
business independence
social equality


7)Question Globalization poses a high degree of___________; especially providing
cultures like China and Japan distinct comparative advantages because of their long
histories, modernizing economies, and technological adaptiveness, which incline the
Chinese and Japanese to compete well in this demanding environment of change.
Answer

complexity
adroitness
imitativeness
ingenuity

8)Question The existence of the World Trade Organization, the European Union, the
United Nations, the World Bank are all functioning and important players in international
business; these non-sovereign agencies are called ___________________________.
Answer
international organizations
global institutions

supranational organizations
regional associations


9)Question Some 40 countries, home to about 700 million people, produce a collective
economic drag on the global economy to the point where rich nations must intervene at
increasingly larger rates of economic assistance. These________________________
share government debt equivalent to 85% of their economy's total value.
Answer
deeply impoverished countries

highly indebted poorer countries
marginalized economic developing nations
emerging struggling poorer nations

























Quiz-1..2


1. Globalization is the process of:

a.) the growing interdependence among countries
b.) destroying the world
c.) China and India's plan for world domination
d.) taking jobs in one country and placing in them in another country

2. Critics of globalization claim:

a.) countries lose sovereignty.
b.) The resultant growth hurts the environment
c.) Some people lose, both relatively and absolutely
d.) all of the above

3. Why do companies engage in International Business:

a.) To expand sales
b.) To acquire resources
c.) To minimize risk
d.) All of the above

4. Foreign sources may give companies:

a.) Lower costs
b.) New or better products
c.) Additional opperating knowlegde
d. All of the above

5. A form of service import/export is/are:

a.) Toursim and transportation
b.) Performance of services
c.) Use of assests
d.) all of the above

6.Hill defines the process of ______________________ as the sourcing of goods and
services from locations world-wide in seeking advantage of national differences; a form
of competitive advantage a national economy has over its rivals.
Answer
factors of production
distribution of production

globalization of production
dominance of production

7 This body supervises the trade rules of almost 180 countries; yet the richest nations can
ignore it with relative impunity or invoke authority under its aegis. Hill is referring to the
______________.
Answer
International Monetary Fund
World Bank Organization

World Trade Organization
International Trade Commission



















Quiz2.2




International Monetary Fund (IMF) Quotas refer to



The amount of foreign exchange reserves that each member country is
obligated to hold at its central bank.

The fixed amount of borrowing that each country is allowed to
undertake from the IMF.

Country quantity restrictions on imported products.

The IMF membership fee paid by countries.










IMF Conditionality refers to the idea that countries that seek to
borrow funds from the IMF may only be able to do so if


There are reforms in the way the borrowing government interacts with
the market.

If the borrowing nation agrees to offer government assets as collateral
for the loan.

All IMF member countries vote to support the loan to the borrowing
nation.

The government of the borrowing country is democratic.










Which list places regional trade agreements in an order moving
from the least provisions to the most?



Common market, Free-trade Area, Customs Union.

Common market, Free-trade Area, Economic Union.

Common market, customs Union, Economic Union.

Free-trade Area, Common market, Economic Union.











A Customs Union allows for the free movement of


Goods.

Inputs (Capital and Labor).

A common external tariff on non-members.

All of the above.

Only A and C.









Suppose the U.S. imports wool from New Zealand. If the U.S.
signed a regional trade agreement with Britain, it is possible
that the U.S. might switch to importing wool from Britain. Such
an outcome illustrates the potential for regional trade
agreements to



Bring about Trade Creation which is harmful to the U.S.

Bring about Trade Diversion which is beneficial to the U.S.

Bring about Trade Diversion and Trade Creation at the same time.

Bring about Trade Diversion which is harmful to the U.S.










Critics of regional trade agreements argue that the formation of
regional trade agreements


Undercuts country efforts directed to multilateral trade liberalization.
(as through the WTO)

Often discriminate against lower income countries.

Are bad, since free trade is not a worthy goal in any context.

Answers A and B.










Which of the following are true statements regarding Public
Goods?



Private markets in public goods often fail due to free riding.

They are non-rival.

They are non-excludable

All of the above.









In periods of economic crisis, international institutions help
mitigate problems of free riding


By changing countries expectations about the actions of other
countries, through commitments and coordination.

By forcing countries to adopt common interventional policies.

By collecting tariff revenues globally to be distributed to countries in
distress.

By helping countries who joined the institutions, though the help is at
the expense of non-member countries.










The goals of the Bretton Woods included the formation of
organizations and institutions that would


Facilitate agreements to reduce trade barriers.

Create an international organization to help nations that are unable to
pay their international debts.

Create an international organization to help stabilize exchange rates.

All of the above.

Only A and B are correct.












ANSWERS



International Monetary Fund
(IMF) Quotas refer to
Your Answer: Country quantity
restrictions on
imported products.

Correct Answer: The IMF membership
fee paid by countries.

2.
IMF Conditionality refers to the
idea that countries that seek to
borrow funds from the IMF may
only be able to do so if
Your Answer: All IMF
member
countries
vote to
support the
loan to the
borrowing
nation.

Correct Answer: There are
reforms in
the way the
borrowing
government
interacts
with the
market.



3.
Which list places regional trade
agreements in an order moving
from the least provisions to the
most?
Your Answer: Common
market,
Free-trade
Area,
Economic
Union.

Correct Answer: Free-trade
Area,
Common

market,
Economic
Union.

4.
A Customs Union allows for the
free movement of
Your Answer: Inputs
(Capital and
Labor).

Correct Answer: Only A and
C.

5.
Suppose the U.S. imports wool
from New Zealand. If the U.S.
signed a regional trade
agreement with Britain, it is
possible that the U.S. might
switch to importing wool from
Britain. Such an outcome
illustrates the potential for
regional trade agreements to
Your Answer: (blank)

6.
Critics of regional trade
agreements argue that the
formation of regional trade
agreements
Your Answer: Often
discriminate
against
lower
income
countries.

Correct Answer: Answers A
and B.

7.
Which of the following are true
statements regarding Public
Goods?
Your Answer: (blank)

8.
In periods of economic crisis,
international institutions help
mitigate problems of free riding
Your Answer: By changing
countries
expectations
about the
actions of other
countries,
through
commitments
and
coordination.

9.
The goals of the Bretton Woods
included the formation of
organizations and institutions
that would
Your Answer: Create an
international
organization
to help
nations that
are unable
to pay their
international
debts.

Correct Answer: All of the
above.

10.
It is often costly for developing
countries to adjust to trade
agreements because
Your Answer: Developing
countries often
have limited
social safety
nets to provide
support to
workers in
transition.