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International Business 15th Edition by Daniels - Test Bank
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,International Business: Environments and Operations, 15e (Daniels et al.)Chapter 1 Globalization and International Business
1) The widening set of interdependent relationships among people from different parts of the
world is known as ________.
A) globalization
B) offshoring
C) franchising
D) outsourcing
Answer: A
Diff: 1
Learning Outcome: Discuss trends in and the debate over globalization
Skill: Concept
Objective: 2
AACSB: Diverse and multicultural work environments
2) Which of the following best defines international business?
A) It includes all economic flows between two or more countries.
B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries.
D) It includes all business transactions in countries other than your home country.
Answer: C
Diff: 2
Learning Outcome: Define the fundamental concepts of international business
Skill: Concept
Objective: 1
AACSB: Diverse and multicultural work environments
3) 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 limits 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.
Answer: C
Diff: 3
Learning Outcome: Define the fundamental concepts of international business
Skill: Concept
Objective: 1
AACSB: Diverse and multicultural work environments
1
Copyright © 2015 Pearson Education, Inc.
,4) 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
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
Answer: C
Diff: 2
Learning Outcome: Discuss trends in and the debate over globalization
Skill: Concept
Objective: 1
AACSB: Diverse and multicultural work environments
5) 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
Answer: B
Diff: 2
Skill: Application
Objective: 1
AACSB: Diverse and multicultural work environments
6) 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.
Answer: C
Diff: 3
Learning Outcome: Discuss trends in and the debate over globalization
Skill: Concept
Objective: 2
AACSB: Diverse and multicultural work environments
2
Copyright © 2015 Pearson Education, Inc.
, 7) 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.
Answer: B
Diff: 3
Learning Outcome: Discuss trends in and the debate over globalization
Skill: Concept
Objective: 1
AACSB: Diverse and multicultural work environments
8) 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
D) through exports to large countries
Answer: B
Diff: 2
Learning Outcome: Discuss trends in and the debate over globalization
Skill: Concept
Objective: 1
AACSB: Diverse and multicultural work environments
9) 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
Answer: D
Diff: 2
Learning Outcome: Discuss trends in and the debate over globalization
Skill: Concept
Objective: 1
AACSB: Diverse and multicultural work environments
3
Copyright © 2015 Pearson Education, Inc.
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