57) Which of the following is a key disadvantage to doing business with Russia?
A) weak rule of law
B) poorly educated population
C) expensive labor
D) little technical expertise
58) India’s economy is primarily focused on ________.
A) services
B) technology
C) manufacturing
D) agriculture
59) Which of the following is a key difficulty people have doing business in India?
A) taxes
B) legal restrictions
C) language barriers
D) social prejudices
60) In the coming decade, wages for Chinese workers are expected to ________.
A) rise above wage levels in the United States
B) rise, but still be far below wage levels in the United States
C) be determined by the World Economic Forum
D) comply with the Fair Minimum Wage Act of 2007
61) Which of the following is NOT a disadvantage of doing business in China?
A) human rights violations
B) piracy and counterfeiting
C) high health care costs
D) pollution problems
62) Which of the following is a primary function of the World Trade Organization?
A) to keep wages low in developing countries
B) to settle trade disputes
C) to raise wages in developing countries
D) to protect against global warming
63) Which EU member does not use the euro as its currency?
A) Great Britain
B) Greece
C) Germany
D) Spain
64) Which of the following is NOT considered a key competency for working in another
country?
A) adaptability
B) communication
C) organizational awareness
D) global finance
65) Seth is CEO of U.S.-based Fun Tyme Toys. For the past ten years the company has
manufactured its products in Southeast Asia. Following the 2008 global recession, Seth began
shifting production to the Midwest in the U.S. What practice is Fun Tyme Toys implementing?
A) globalization
B) hybridization
C) localization
D) McDonaldization
66) Tricia recently began a new job in a formerly isolated socialist country that is transitioning
into a market-based economy. Walking around the fast-growing city, she is surprised to see
billboards glorifying the country’s leaders and policies. What is Tricia experiencing?
A) offshoring
B) propaganda
C) McDonaldization
D) supranationalism
67) Estella has always wanted to help make a positive impact on the world in her career. So she
is excited to start her new job with a nonprofit organization that combines the talents of business,
political, social, and intellectual leaders around the world. Where does Estella work?
A) World Economic Forum
B) United Nations Economic and Social Council
C) International Coach Federation
D) World Trade Organization
68) Jamal is chief economic advisor in the government of one of the world’s top-level
economies. One of his responsibilities is to travel with the country’s leader to attend the meetings
of the ________.
A) World Trade Organization
B) World Economic Forum
C) Group of Eight
D) United Nations Economic and Social Council
69) Manuel is an economic analyst in Argentina. One of his projects is running models to
determine the most effective approach to creating a single market system with neighboring
countries. Which of the following is the focus of Manuel’s work?
A) NAFTA
B) APEC
C) UNASUR
D) CAFTA
70) Tam is working on a research project for school; assessing the impacts of a particular trade
alliance on its members’ countries. Compared to his classmates, Tam feels lucky because he only
needs to examine three countries. What is the focus of Tam’s project?
A) NAFTA
B) CAFTA
C) ASEAN
D) APEC
71) Tamara is planning to establish a company, and wants to secure resources and marketing
channels in multiple countries at the same time. What is the best strategy for Tamara to achieve
the company’s goals?
A) establish licensing agreements
B) emphasize hybridization of operations
C) use a global new venture start-up model
D) focus on ramping up exports
72) Tony’s pizza chain experienced amazing growth throughout the United States. When he
expanded into foreign markets, he retained the same menu that drove the company’s initial
success. In three years, all the foreign restaurants failed. What was Tony’s strategic error?
A) supranationalism
B) standardization
C) hybridization
D) McDonaldization
73) You are thinking of launching an Internet campaign to promote your new band, Global
Warning. In which country would your campaign have the lowest penetration based on Internet
access?
A) China
B) India
C) Brazil
D) Russia
74) Poorvi’s company produces organic snack foods. To meet growing demand, she can expand
the existing production, packing and shipping facility. Instead, Poorvi will expand production in-
house and subcontract packing and shipping to companies in an adjacent industrial park. Which
process is Poorvi implementing?
A) outsourcing
B) offshoring
C) job migration
D) diversification
75) Ahmed is CEO of Cook-Rite, a company that manufactures kitchen appliances. Recently he
decided to add a third shift to help lower the company’s per-unit production costs. What business
strategy is Ahmed implementing?
A) outsourcing
B) economy of scale
C) mechanization
D) hybridization
76) Bianca is president of a premium home furnishings manufacturer in the United States. After
visiting Rio on vacation, she is interested in doing business with Brazil. Which of the following
is NOT a potential risk that could give Bianca second thoughts?
A) economic instability
B) high tariffs
C) potential political strife
D) protectionism
77) Laurent is CEO of a software firm in central France. After monitoring the Russian economy
since the end of the Cold War, Laurent feels it is time to explore business opportunities in the
country. Which of the following issues would present a challenge to Laurent’s mission?
A) Russian wages
B) geographic proximity
C) Russian law
D) Russian education
78) Troy’s small startup software company, Zapp App, has experienced tremendous growth and
is ready to go international. However, he has concerns about losing revenue to pirating and
counterfeiting. Which country poses the greatest risk for Zapp App?
A) China
B) India
C) Brazil
D) Russia
79) Donell is researching the benefits and challenges of doing business in China for his
economics class. Which of the following is NOT considered a potential disadvantage to doing
business with China?
A) safety standards
B) human rights violations
C) environmental sustainability
D) health care costs
80) Supporters of globalization claim that it will end poverty by ________.
A) bringing inexpensive products to people in poor countries
B) allowing people in poor countries to see how people in industrialized countries live
C) having organizations invest in underdeveloped regions
D) bringing cheap labor into poor countries
81) When working in a global environment, it is important to keep in mind that ________.
A) values inform us what not to do
B) ethics propel us toward achievements
C) ethics function as an informal legal code
D) ethics are not connected to consequences
82) Which of the following statements is TRUE?
A) McDonaldization allows individual countries to be affected by globalization, but not to give
up their cultural identities.
B) Hybridization allows a single world culture to be created — one that replaces the cultures of
local countries.
C) Hybridization allows individual countries to be affected by globalization, but not to give up
their cultural identities.
D) McDonaldization is better than hybridization because it does not establish a single world
culture based on standardization.
83) Why is China likely to be a country of “lonely men” in the near future?
A) Chinese women often become Buddhist nuns and are not eligible for marriage.
B) Chinese men are forbidden from getting married unless they have a considerable amount of
money for a dowry.
C) Only upper class Chinese men are allowed to marry.
D) Chinese families are limited to only one child, and there is a shortage of women in the
country for men to marry.
84) Which of the following would be an example of Samuel Huntington’s view of conflict in the
21st century?
A) a battle for supremacy between American movies and foreign movies
B) a proxy war between two nations that are allied with China and the U.S.
C) a hotly contested election between socialist and non-socialist candidates
D) a battle for supremacy between two computer technology systems
85) If Vodafone’s Vittorio Colao is correct, you would expect to see this in a world-wide hotel
chain.
A) identical service and accommodations from Jakarta to Johannesburg to Jacksonville
B) different service and accommodations from Jakarta to Johannesburg to Jacksonville
C) standardized room pricing from Jakarta to Johannesburg to Jacksonville
D) similar labor costs in hotels from Jakarta to Johannesburg to Jacksonville
86) Which country has the lowest amount of public debt as a percentage of the GDP?
A) China
B) India
C) Brazil
D) Russia
87) You have been invited to give a presentation that addresses the question: is globalization a
good thing or a bad thing? Explain your view.
88) What did economist Amartya Sen mean when he said that the Berlin Wall prevented our
view of a global future?
89) In this new world of globalization, the United States has seen a shift toward grassroots
localization as demonstrated by the growth of farmer’s markets and Shop Main Street initiatives.
Do you think this is a rebuke of globalization?
90) How did the expansion of information and communication technologies (ICTs) spur recent
acceleration of globalization? Give an example to support your answer.
91) You are the CEO of a successful U.S. restaurant chain looking to expand into international
markets. What can you learn from the initial problems with EuroDisney?
92) A colleague is thinking of putting together a project that will expand the company to India.
What can you tell her about typical management practices there?
93) Access to information often changes the world. One critical factor affecting the progress of
globalization is social and political circumstances. How can social media — the newest
information technology — impact social and political conditions in a country? Give an example
to explain your answer.
94) Why did many people object to allowing China to join the World Trade Organization in
2001? Were they right to object? Explain.
95) How have globalization and the resulting shift in the balance of trade impacted the U.S.
economy? What might be a strategy to help the United States successfully respond to these
changes?
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96) You are employed at a leading U.S. pharmaceutical company. The CEO emphasizes social
responsibility and has asked your team to propose a project for the World Economic Forum.
What kind of project should you propose?
97) Your company branch is located in a foreign country. You are having difficulty getting
operating permits and licenses. A native coworker suggests that you pay bribes to local officials;
a practice that is not legal in the country but is common custom in the culture. Should you take
this advice? Explain.