Globalization and International Business

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1.The broadening set of interdependent relationships among people from different parts of the world is known as ________. a.globalization
b.Offshoring business

2.The term globalization is sometimes used to mean the ________. a.movement of jobs to low-wage countries being undertaken outside the confines of any nation c.Uneven distribution of resources and their influence on different products and services in different parts of the world d.Integration of world economies through the reduction of barriers to the movement of trade, capital, technology, and people

3.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, whether the transactions are conducted by private or governmental organizations. d.It includes all business transactions in countries other than your home country

4.Which of the following is the most accurate comparison of how private organizations and governments conduct international business? a.The objectives for private organizations and governments are the same. b.The private organization’s objective is profit, whereas a government may or may not seek profit as an objective. c.Governments operate strictly for nonprofit motives, but private organizations seek profits. d.Governments undertake international business for more long-term objectives than private companies do. 5.The televising of sports competitions to viewers in multiple countries is an example of international business conducted to achieve the objective of ________. a.Acquiring resources

b.Minimizing risk
d.Sales expansion

6. An example of a U.S. merchandise import is an automobile made in ________ and sold ________. a.The United States by a Japanese company; in the United States b.The United States by a Japanese company; outside the United States c.Japan by a Japanese company: in the United States

d.Japan by a U.S. company; outside the United States

7.. An example of a Japanese service export is a visit by a ________. a.Japanese citizen to Disneyland in the United States
b.Japanese citizen to the Japan Pavilion at Epcot Center in the United States c.U.S. citizen to the Japan Pavilion at Epcot Center in the United States d.U.S. citizen to Tokyo Disneyland in Japan

8. A foreign direct investment occurs ________.
a.Only when a company owns more than 50 percent of a foreign firm b.When a company controls a company abroad
c.When foreign ownership is in private rather than government securities d.With the purchase of a foreign firm rather than the establishment of a new company abroad

9. Which of the following is an example of an international portfolio investment? a.Foreign ownership of bonds
b.Ownership of patents used by a foreign company
c.A jointly owned foreign company
d. One of a group of several foreign companies wholly owned by the same investor

10. A multinational enterprise (MNE) is one that is ________. a.among the world’s 500 largest companies
b.owned and managed by companies whose headquarters are split among different countries c.licensed to operate by the United Nations Transnational Center d. willing to consider market and production locations anywhere in the world

11.A company starting out with a global focus, usually because of the international experience of its founders, is called a ________. a.multinational enterprise
b.transnational company
c.strategically allied company
d.born-global company

12.The fact that flower producers from Ecuador, Israel, and New Zealand all compete for sales in the same markets is due primarily to ________. a.the development of new strains of flowers that last longer b.advancements in communications

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