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- 1. Multiple Choice
Which of the following would be considered an international business transaction?
recruiting employees internationally
purchasing products in one country and assembling them in the same country
borrowing money from a major bank to finance capital improvements
shipping finished products from one country to another for retail sale
- 2. Multiple Choice
The Internet has helped small businesses compete in global markets because it ________.
reduces entry costs
allows them to establish a physical presence in each country
avoids transactions involving foreign exchange
eliminates price controls
- 3. Multiple Choice
Individuals should most likely study international business to ________.
obtain bilingual business experience
remain current on the latest business methods
comply with graduate school certification requirements
ensure that an employer has a global online presence
- 4. Multiple Choice
Which of the following has most likely triggered the increase of small businesses involved in international business?
e-commerce
economic recession
foreign-made materials
increased cultural literacy
- 5. Multiple Choice
Black and Decker produces tools at a plant in North Carolina and ships the tools to retailers in England. This is an example of which type of international business activity?
merchandising
Importing
exporting
trading
- 6. Multiple Choice
The international business activity called ________ occurs when capital is supplied by residents of one country to residents of another country.
global direct investment
portfolio financing
state capitalism
international investment
- 7. Multiple Choice
________ are investments made for the purpose of actively controlling property, assets, or companies located in host countries.
Licensing investment
Portfolio investment
Foreign direct investment
Indirect global investment
- 8. Multiple Choice
If a company is headquartered in Taiwan, then Taiwan is the company's ________.
host country
home country
dominant country
competitive country
- 9. Multiple Choice
________ are purchases of foreign financial assets for a purpose other than control.
Foreign direct investments
Global business investments
Foreign portfolio investments
Indirect investments
- 10. Multiple Choice
McDonald's has licensed its brand name, operational systems, and trademarks to individual restaurant owners in Europe. This is called international ________.
leasing
marketing
diversifying
franchising
- 11. Multiple Choice
Licensing usually involves permission to use which of the following?
real estate
trademarks
labor leasing
production facilities
- 12. Multiple Choice
Any organization that engages in cross-border commercial transactions with individuals, private firms, and/or public sector organizations is a(n) ________.
multinational corporation
multinational enterprise
international business
international francise
- 13. Multiple Choice
The term ________ is used to identify firms that have extensive involvement in international business.
global operation
multinational corporation
international conglomerate
multidomestic organization
- 14. Multiple Choice
Which of the following is a common activity of MNCs?
buying resources in various countries
training of international managers
inventing goods in a variety of countries
establishing foreign exchange rates
- 15. Multiple Choice
Which of the following is the most likely reason that firms globalize?
boredom with existing markets
the divesting of low-cost resources
competing for public prestige
leveraging core competencies
- 16. Multiple Choice
A(n) ________ eliminates trade barriers among member countries.
free trade area
customs union
common market
economic union
- 17. Multiple Choice
In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.
free trade area
customs union
common market
economic union
- 18. Multiple Choice
Country X and Country Z have established a complete political and economic integration. The countries are most likely engaged in a(n) ________.
customs union
common market
economic union
political union
- 19. Multiple Choice
Which of the following is part of NAFTA?
Cuba
Canada
Peru
Greenland
- 20. Multiple Choice
How many countries are part of the European Union?
16
18
20
28
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