Question 1: The trend from distinct national economic units toward one huge global market is commonly referred to as what?

a. Market standardization.

b. Cross-border integration.

c. Globalization.

d. Domestication.

Question 2: Globalization results in a greater degree of __________ across markets than would be present otherwise.

a. Diversification.

b. Diversity.

c. Homogeneity.

d. Heterogeneity.

Question 3: In producing its electronics products, Sony Corporation sources goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production. This practice is made possible by the globalization of what?

a. Finance.

b. Production.

c. Markets.

d. Process design.

Question 4: Collectivism is a system that stresses the primacy of collective goals over individual goals.

True

False

Question 5: Totalitarianism is a form of government in which one person or political party exercises absolute control over all spheres of human life and opposing political parties are prohibited.

True

False

Question 6: Social democracy has had its greatest influence in the following countries:

a. Canada, the United States, Mexico, and Spain.

b. India, Pakistan, Burma, Nepal, Sri Lanka, and Bhutan.

c. Brazil, Chile, Uruguay, Ecuador, Columbia, and French Guiana.

d. Australia, Britain, France, Germany, Norway, Spain, and Sweden.

Question 7: Which of the following best describes the most literal meaning of guanxi?

a. Cross-border trading.

b. Tacit knowledge.

c. Relationship.

d. Legal accountability.

Question 8: A __________ is a system of values and norms that are shared among a group of people and that constitute a design for living when taken together.

a. Society.

b. Clique.

c. Fraternity.

d. Culture.

Question 9: In international business settings, one of the most common ethical problems encountered involves employment practices.

True

False

Question 10: Ethical issues arise when environmental regulations in host countries are inferior to those in the home nation.

True

False

Question 11: _______ is a U.S. law regulating behavior regarding the conduct of international business in taking bribes and other unethical actions.

a. The Foreign Corrupt Practices Act.

b. The OECD.

c. The Code of Business Ethics.

d. The Friedman Doctrine.

Question 12: Zero-sum game refers to a situation in which an economic gain by one country results in an economic loss by another.

True

False

Question 13: _________ is the absence of barriers to the free flow of goods and services between countries.

a. Free trade.

b. Mercantilism.

c. Capitalism.

d. Market system.

Question 14: Considered to be the first theory of international trade, ______________ principal assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce.

a. Collectivism's.

b. Mercantilism's.

c. Capitalism's.

d. Economic conservatism's.

Question 15: The Buy America Act specifies that government agencies must give preference to American products when putting contracts for equipment out for bid unless the foreign products have a significant advantage.

True

False

Question 16: Which of the following is a government payment to a domestic producer?

a. Duty.

b. Subsidy.

c. Quota.

d. Tariff.

Question 17: In the context of international trade, __________ is defined as selling goods in a foreign market at a price below their costs of production or as selling goods in a foreign market at below their fair market price.

a. Slicing.

b. Dumping.

c. Slashing.

d. Subsidizing.

Question 18: __________ status allows countries to export goods to the U.S. under favorable terms.

a. Most favored nation.

b. Preferential partner.

c. Fully qualified.

d. Cleared nation.

Question 19: One problem of licensing is that it does not give the firm tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize profitability.

True

False

Question 20: _________ occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity.

a. Cross-boarder international investment.

b. Foreign direct investment.

c. Reciprocal foreign investment.

d. International capital investment.

Question 21: The establishment of a wholly new operation in a foreign country is referred to as what?

a. Outplacement.

b. Green-field investment.

c. New venture.

d. Exporting.

Question 22: __________ involves producing goods at home and then shipping them to the receiving country for sale.

a. Foreign direct investment.

b. Licensing.

c. Franchising.

d. Exporting.

Question 23: The controlling authority within the European Union is the European Council.

True

False

Question 24: Which three countries implemented the North American Free Trade Agreement (NAFTA)?

a. Panama, Mexico, and the United States.

b. Canada, Brazil, and the United States.

c. The United States, Argentina, and Mexico.

Canada, Mexico, and the United States.

Question 25: What four countries are in the free trade area known as MERCOSUR?

a. Chile, Mexico, Columbia, and Paraguay

b. Argentina, Brazil, Paraguay, and Uruguay

c. Chile, Brazil, Uruguay, and Columbia

d. Mexico, Columbia, Paraguay, and Uruguay