D270 Davis Midterm Exam Questions With
Verified Answers
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 - Answers✔A
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 - Answers✔C
Which of the following is NOT a likely reason to study international business?
A) Global events affect almost all companies.
B) Differences among countries in physical, social, and competitive conditions may cause
companies to alter their operating methods from country to country.
C) Business conducted outside the confines of any one country is inexplicably on the decline.
D) Firms may be better able to obtain better or less expensive resources by operating
internationally. - Answers✔C
) In terms of international business, it is most accurate to say that ________.
A) there is a universal "best way" to conduct business
B) global competition affects large companies but not small ones
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ALL RIGHTS RESERVED.
C) most firms depend either on foreign markets and supplies or compete against companies that
do
D) government regulation of international business has little effect on a company's profits -
Answers✔C
Devon, an accounts manager at a large electronics firm, does not have any direct international
responsibilities. However, Devon would most likely benefit from studying international business
issues so that he can ________.
A) conduct better job interviews
B) better understand how foreign operations affect the company's competitive position
C) supervise and evaluate subordinates who have global assignments
D) understand the legalities of importing and exporting products overseas - Answers✔B
The shifting of national borders has most likely created which of the following situations for
international business?
A) It has left rural residents more isolated from technology.
B) It has complicated the understanding of behavioral factors affecting business.
C) It has increased physical barriers to exporting.
D) It has slowed communications between a company's headquarters and foreign operations. -
Answers✔C
Which of the following is an indication of the increased globalization of business since the end
of World War II?
A) Foreign trade has largely replaced foreign ownership as a means of conducting international
business.
B) World trade has grown more rapidly than world production.
C) Globally, consumers now depend on foreign output for more than half their consumption.
D) Countries have increased their import restrictions to counter the rising tide of imports. -
Answers✔B
Most of the world's goods and services are sold ________.
A) in international markets
B) in the countries where they are produced
C) through exports to small countries
ALL RIGHTS RESERVED.
D) through exports to large countries - Answers✔B
According to the A.T. Kearny/Foreign Policy Globalization Index, countries ________.
A) tend to be ranked similarly 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 - Answers✔D
Which of the following has NOT been a major force increasing globalization in recent decades?
A) liberalization of cross-border trade
B) increase in and expansion of technology
C) growing pressure from consumers
D) decreasing prices of natural resources. - Answers✔D
Institutional development of services by business and government has aided the expansion of
international business by ________.
A) providing a universally agreed upon language for conducting international transactions
B) removing immigration restrictions so that global firms can move personnel easily
C) developing means to ease the flow of goods among countries
D) spurring competition among domestic producers - Answers✔C
Which of the following has MOST influenced consumers to demand access to foreign-made
products?
A) Declining global affluence has caused consumers to seek out lower-priced products from
abroad.
B) Consumers have become more efficient in using media and technologies to compare prices
worldwide.
C) Fearing that their governments will enact restrictive policies on imports, consumers are
stocking up on foreign products before restrictions are put in place.
D) Expectations of rising prices of foreign products have caused consumers to seek foreign
products before their prices become prohibitive. - Answers✔B
Which of the following best explains why international business has grown rapidly in the past
few decades?
ALL RIGHTS RESERVED.
A) the end of the political schism between the Communist and non-Communist blocs
B) greater income equality in most countries
C) growing concern about climate change
D) increased concerns about terrorism - Answers✔A
Advanced communication systems have contributed to growth in international business by
________.
A) enabling better oversight of global operations
B) reducing the effects of global competition
C) decreasing the cost of cargo transportation
D) reducing export regulations - Answers✔A
Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S. market. Which
of the following is likely the MOST important factor for this increase in imports?
A) more effective production techniques
B) advances in communication systems
C) advances in transportation
D) cross-national cooperation - Answers✔C
Because consumers want a greater variety of goods and services at lower prices, many
governments have ________.
A) reduced their restrictions on the international movement of goods and services
B) acted to tax most imports at a lower rate than domestic products
C) sought to eliminate reciprocal advantages negotiated through international organizations and
treaties
D) increased their participation in multinational problem-solving efforts - Answers✔A
Which of the following best explains recent governmental relaxation of restrictions on cross-
border trade or resource movements?
A) Most countries face shortages of workers, so they seek immigrants who can help them
produce more.
B) Governments believe that this will decrease the need to make their own companies more
innovative.
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