1.A country's inflation and level of business and government debt are indicators of a nation's______?

1.    A country's inflation and level of business and government debt are indicators of a nation's______?

a)    Legal risk

b)    Political risk

c)    Economic risk

d)    Market risk

e)    Investment risk

2.    Companies such as Citicorp, Coca-Cola and McDonald's are examples of companies that have facilitated the:

a)    Globalization of production

b)    Globalization of markets

c)    Globalization of companies

d)    Globalization of investments

e)    Globalization of culture

3.    _______ occurs when a firm exports goods or services to consumers in another country.

a)    Globalization of markets

b)    International trade

c)    Foreign direct investment

d)    Development of global products

e)    Globalization of production

4.    Which of the following correspond to the macroforces?

a)    Cultural, sociological, geographic and economic.

b)    Cultural, administrative & political, geographic and economic

c)    Cultural, administrative & political, psychological and economic

d)    Cultural, administrative & political, geographic and Legal

e)    No of above

5.    In a ____ , all barriers to the trade of goods and services among member countries are removed.

a)    Free trade area

b)    Customs union

c)    Common market

d)    Economic union

e)    Political union

6.    The trend toward globalization is a factor of: 

a)    Technological change and the decline in barriers to the free flow of goods, services and capital.

b)    Changes in consumers demand

c)    The efforts of firms to continuously seek new markets

d)    Changes in political systems around the globe

e)    The power of the capital markets to integrate market economies.

7.    Culture is an evolutionary product of a number of factors including all of the following except

a)    Religion

b)    Physical geography

c)    Language

d)    Education

e)    Legal system

8.    When the India passed its laws in the 1970s requiring all foreign investor to enter joint ventures with Indian partners, firms such as Coca-Cola and IBM that had investments in the country faced:

a)    Political risk

b)    Economic risk

c)    Market risk

d)    Legal risk

e)    Investment risk

9.    Which of the following is not a true statement about tariffs?

a)    A specific tariff is a tariff levied as a fixed charge for each unit of good imported

b)    Tariffs hurt consumers

c)    Tariffs are beneficial to producers

d)    Tariffs increase the overall efficiency of the world economy

e)    Prices typically rise as a result to tariffs

10.  Which of the following is a reason for recent governmental liberalization on cross-border movements?

a)    Citizens want less variety of goods and services as long as they can get them at acceptable prices.

b)    It is believed that foreign producers will become more efficient as a result of competing with domestic producers.

c)    Governments hope to induce other nations to reduce their barriers in return

d)    Consumers increasingly want to buy goods and services produced in their own countries, so restrictions are no longer needed as much

e)    None of above

11.   Culture shock occurs when

a)    Foreign workers approach managers for excessive raises

b)    Extensive negotiation fails to resolve emotional international differences

c)    People are traumatized by differences in customs

d)    People are introduced into more violent societies

e)    People are indifferent to differences in culture.

12.  International operations may enable a company to gain economies of scale by

a)    Sourcing capital from lower-cost countries

b)    Serving larger market from its production unit

c)    Gaining operating concessions from foreign countries

d)    Reducing taxes on its earning

e)    Lobbying local governments favoring lower import tariff on their products

13.  Human happiness, life expectancy, educational standards, etc. are known as:

a)    Quality of life

b)    Qualitative per capita income measures

c)    Purchasing power parity

d)    The capability poverty measure

e)    Inflation 

14.  A tariff / duty is

a)    A quantitative restriction on goods shipped internationally

b)    A requirement that goods shipped internationally conform to safety and health requirements

c)    A governmental tax (by value or per unit) on goods shipped internationally

d)    A percentage tax on the total value of goods shipped internationally, which is argued impose an even higher percentage on the goods manufactured portion of value

e)    The overpricing of imports

15.  When a tariff is levied as a proportion of the value of an imported good, the tariff is ___ tariff

a)    an ad valorem. 

b)    a specific

c)    a value-based

d)    typically a very low

e)    Levied by the exporting nation

16.  Japan's policy of checking every tulip bulb imported into the country by cutting it in half is an example of

a)    Local content regulations

b)    An administrative trade policy

c)    An antidumping policy

d)    A voluntary exports restraint

e)    An import quota

17.  The motivation to engage in international business in order to expand sales often assumes that higher sales will

a)    Reduce taxes

b)    Improve quality

c)    Avoid the full impact of shortages

d)    Increase profits per unit of sales

e)    Increase consumer willingness to buy more products

18.  Two vectors shape the world: ___ and ___. The first helps determine human preferences and the second, economic realities

a)    Technology and economy

b)    Innovation and economy

c)    Markets and technology

d)    Technology and globalization

e)    Markets and globalization

19.  All of the following are types of subsidies except

a)    Cash grants

b)    Low-interest loans

c)    Tax breaks

d)    Government equity participation in domestic firms

e)    Taxes levied on imports

20.  When two or more organizations share ownership in a direct investment, the operation is called a

a)    Portfolio investment

b)    Multidomestic company

c)    Joint venture

d)    Transnational corporation

e)    Agent-distributor agreement

21.  The ability to either large or small plants to produce great varieties of relatively customized products at remarkably low cost. This refers to:

a)    Economies of scale

b)    Competitive advantage

c)    Economies of scope

d)    Differentiation strategy

e)    None of above

22.  As a result of high tariffs and subsidies on agricultural products all of the following are true, except.

a)    Consumers pay higher prices for agricultural products

b)    The volume of agricultural trade is increased

c)    The government buys surplus production

d)    There is overproduction of goods that are subsidized

e)    Removing tariffs and subsidies could significantly increase global economic growth

23.  An example of a French service export would be a visit by a

a)    French citizen to Disneyland in the united states.

b)    U.S. citizen to EuroDisney in France

c)    French serviceman to U.S. military base in Germany.

d)    U.S. citizen to the French exhibit at Epcot Center in the United States.

e)    None of the above.

24.  The phenomenon in which distinct national economic units are disappearing in favor of one huge global market is known as:

a)    Transnationalism

b)    Economic unity

c)    Globalization

d)    The new world order.

e)    Cross-border markets

25.  A voluntary export restriction (VER) refers to

a)    An agreement between two countries to reciprocally restrict exports to one another.

b)    "voluntary" limits placed on exports by a government of an exporting country at the request of the government of an importing country.

c)    Restrictions a government places on exports of military useful technology to unfriendly countries.

d)    Limits a government places on exports to a country with which it has a temporary trade surplus.

e)    The granting of the same trade concessions (normal trade relations) to almost all other countries.