Question 1.
Exports are:
all goods and services sold abroad and sent out of a country.
all goods and services purchased abroad and brought into a country
Any commercial transaction that crosses the borders of two or more nations.
none of the above.

Question 2.
Olive oil made in Italy and sold in the United States is an example of which of the following?
Global brand
U.S. export
U.S. import
Standardized product

Question 3.
International business is:
all goods and services sold within a country.
use of computer networks to purchase, sell, or exchange products.
any commercial transaction that crosses the borders of two or more nations.
none of the above

Question 4.
Which of the following is an example of the globalization of production?
Canadian consumers buy foods imported from Australia.
A Chinese company sells textiles to European car makers.
A U.S. company builds a manufacturing facility in India.
A Swiss watch manufacturer builds a manufacturing facility in Switzerland.

Question 5.
The ________ promoted free trade by reducing tariffs and other barriers to international trade.
WTO
NAFTA
GATT
None of the Above

Question 6.
The ________ enforces rules of international trade.
WTO
NAFTA
GATT
None of the above

Question 7.
Which of the following describes the value of a nation's good goods and services produced by a domestic economy divided by its population?
Gross domestic product (GDP)
Gross domestic product (GDP) per capita
Gross national product (GNP) per capita
Gross national product (GNP)

Question 8.
The International Monetary Fund serves each of the following purposes except:
promoting international monetary cooperation.
facilitating balanced growth of international trade.
encouraging competitive exchange devaluation.
making financial resources temporarily available to members.

Question 9.
Trade unions claim that by permitting international firms to continually move to nations with relatively lower labor standards, globalization ________ labor's bargaining power and forces overall labor standards ________.
strengthens; to improve
slows down; to be re-evaluated
reduces; lower
increases; higher

Question 10.
Which of the following terms is used to refer to that which a culture considers to be in "good taste" in the arts?
Customs
Social structure
Manners
Aesthetics

Question 11.
The belief that one's own ethnic group or culture is superior to that of others is referred to as:
cultural inheritance.
cultural diffusion.
cultural literacy.
ethnocentricity.

Question 12.
Which of the following statements is true regarding attitudes?
They are quite rigid over time compared to values.
They are learned from role models.
They are similar from one country to the next because they form within a cultural context.
They are developed only toward the most important aspects of life.

Question 13.
Which of the following refers to the process whereby cultural traits spread from one culture to another?
Cultural imperialism
Social mobility
Cultural diffusion
Cultural literacy

Question 14.
Sharing food gifts during the Islamic holy month of Ramadan is an example of a(n) ________.
custom
value
ritual
attitude

Question 15.
Which of the following terms is used to refer to the process of ranking people into social layers or classes?
Social status
Social stratification
Social group
Social mobility

Question 16.
All of the following are dimensions developed by Hofstede for examining cultures except:
individualism versus collectivism.
power distance.
uncertainty avoidance.
caste system versus class system.

Question 17.
The world's second largest religion is ________.
Judaism
Hinduism
Islam
Confucianism

Question 18.
Totalitarian political systems include authoritarian regimes such as:
democracy and theocracy.
anarchism and pluralism.
communism and fascism.
capitalism and secularism.

Question 19.
Scenario: Susan Goes Global with Grape Fizz
Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan finally settles upon Valmira because it has a stable business environment. Which of the following factors, if true, proves her decision to be a good one?
Valmira does not enforce any product liability laws.
Valmira's legal system protects individual property rights satisfactorily.
The business laws of Valmira are flexible and can be interpreted according to the comfort of government officials.
The government of Valmira does not allow the private sector to flourish.

Question 20.
Most democratic nations practice ________, in which citizens elect individuals from their groups to help govern the people and pass laws.
public referendums
secular totalitarianism
representative democracy
socialist pluralism

Question 21.
Which of the following is not a method of employing the risk management strategy of adaptation?
Partnerships
Localization
Development assistance
Lobbying

Question 22.
Which of the following terms refers to the forced transfer of assets from a company to the government without compensation?
Expropriation
Nationalism
Nationalization
Confiscation

Question 23.
Which of the following legal systems is based on a detailed set of written rules and statutes that constitute a legal code?
International law
Civil law
Tribal law
Common law

Question 24.
A ________ is a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention.
patent
trademark
civil right
copyright

Question 25.
Scenario: Susan Goes Global with Grape Fizz
Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan thinks that it would be easiest setting up production facilities in a country whose government leaders are elected directly by the wide participation of the people or by their representatives. Which of the following political systems should the country have?
Anarchist
Democratic
Theocratic
Facist.