1) Which of the following is a statement that summarizes all economic transactions
between a country and the rest of the world during a given period of time?
A) trade deficit
B) Gini coefficient
C) balance of payments
D) purchasing power parity
2) Jordan Jewelry is a U.S. firm that designs, manufactures, and sells inexpensive
jewelry and accessories. Executives at the firm believe that Jordan Jewelry could
significantly increase its profitability by exporting products to foreign markets. Before
engaging in international trade, Jordan executives need to develop an export plan.
Which of the following questions is LEAST relevant to this activity?
A) Would Jordan’s resources be better utilized developing business in the United States?
B) How much will it cost to get Jordan’s products to the targeted markets?
C) What marketing campaign would be best for Jordan’s foreign markets?
D) Is exporting consistent with Jordan’s long-term goals?
3) How do U.S. companies recognize transaction gains and losses in the financial
statements?
A) They are recognized as gains and losses in the income statement
B) They are recognized as gains and losses in owners’ equity
C) Gains are recognized in the income statement, but losses are not
D) Losses are recognized in the income statement, but gains are recognized in owners’
equity
4) Capital budgeting is best described as the ________.
A) process that determines which countries will receive capital investment funds
B) procedure for determining the proper mix of debt and equity for a country
C) proper management of a country’s current assets and liabilities
D) simplification of corporate tax procedures
5) The relationship between the value of the Brazilian and Chinese currencies is known
as the ________.
A) stock price
B) exchange rate
C) foreign-exchange market
D) purchasing power parity
6) Which of the following is the primary focus of the African Union (AU)?
A) FDI influx
B) democracy
C) economic integration
D) intrazonal trade relations
7) Which of the following is a current trend with regards to transportation networks?
A) increased simplicity of transporting goods internationally
B) decreased use of third-party intermediaries to store and transport goods
C) increased use of third-party intermediaries to store and transport goods
D) decreased risks of managing longer global supply chains
8) The trade theory that says countries should concentrate production on those products
using their most abundant production factors is the ________.
A) factor proportions theory
B) theory of comparative advantage
C) theory of absolute advantage
D) theory of nontradable goods
9) Dawson Manufacturing produces and sells DVD players and is planning to expand
sales internationally. Dawson has narrowed down the list of potential countries to India
and Guatemala. A Dawson manager has the task of obtaining data regarding the number
of DVD players sold annually in India and Guatemala. If unable to locate this
information, she might most likely estimate the sales potential of these two countries by
________.
A) determining average wages
B) calculating future inflation rates
C) reviewing the countries’ dependence on steel imports
D) examining the sales history of flat-screen televisions
10) Coca-Cola has collaborative arrangements whereby it produces concentrate that it
sells to other companies to bottle its drinks. Which of the following terms best describes
this type of arrangement?
A) vertical alliance
B) horizontal alliance
C) link alliance
D) scale alliance
11) Developing countries have sometimes adopted policies to shift people out of
agriculture and into industry by protecting manufactured production. One of the
problems they have encountered is that ________.
A) people have been too reluctant to leave rural areas to go to the cities
B) food shortages have increased in rural areas because of worker shortages
C) demand for social and political services has increased excessively in the cities
D) developed countries have retaliated with protection of products from the developing
countries
12) Alta Designs is considering the idea of global sourcing. What would be the most
likely result for Alta Designs?
A) gain access to more domestic markets
B) gain access to more domestic products
C) lower costs and improve quality
D) shorten lengthy supply lines
13) Evaluating the importance of potential clients or partners by the way they dress is
an example of using ________.
A) pragmatism
B) silent language
C) polychronism
D) fatalism
14) Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can
most likely expect the Hong Kong government to ________.
A) monitor market prices
B) control natural resources
C) ensure fair competition
D) provide innovation incentives
15) Which of the following ideas holds that a government should NOT interfere in
business affairs?
A) collectivism
B) laissez-faire
C) the rule of man
D) pluralism
16) The idea of ________ involves how a company specifies organizational tasks;
divides those tasks into jobs, departments, subsidiaries, and divisions; and then assigns
authority and authority relationships.
A) systemic differentiation
B) horizontal differentiation
C) vertical differentiation
D) schematic differentiation
17) Which EU country has NOT adopted the euro?
A) Germany
B) France
C) Sweden
D) Greece
18) Which of the following is one of the four phases of purchasing globalization?
A) foreign buying as a part of procurement strategy
B) complete rejection of domestic purchasing
C) foreign buying based on want
D) global purchasing only
19) ADRs that are created at the request of a foreign firm wanting its shares traded in
the United States are ________.
A) facilitated
B) unfacilitated
C) sponsored
D) unsponsored