International business and globalisation quiz questions PDF

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These are some international business quiz questions to test your knowledge on the topic. It includes various theories that you may need to understand....

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International business and globalisation Q1. Globalization of markets results in markets becoming _____. A.

less interdependent

B.

less diverse

C.

more protected

D.

less competitive

Q2. The World Trade Organization promotes _____. A.

lowering of barriers to cross-border trade and investment

B.

infrastructural development in poor nations through low-interest loans

C.

state ownership of major enterprises

D.

regulation of national economies

Q3. _____ occurs when a firm exports goods or services to consumers in another country A.

International trade

B.

Foreign direct investment

C.

Inward investment

D.

Outsourcing

Q4. Which of the following is NOT included in world merchandise trade? A.

Manufactured goods

B.

Agricultural goods

C.

Services

D.

Mining products

Q5. In the last two decades, Latin American countries like Brazil, Mexico, and Chile have _____. A.

embraced communist principles

B.

promoted government ownership of enterprises

C.

experienced increasing debt and inflation

D.

welcomed foreign investment

Q6. Which of the following statements is true about an international business? A.

An international business needs to invest directly in operations in other countries.

B.

An international business needs to have homogenous practices across countries.

C. An international business can be managed in the same way that a domestic business is managed. D. An international business must find ways to work within the limits imposed by government intervention.

Q7. Explain what is meant by the globalization of markets. Provide an example. What are the most global markets?

Q8. Consider the global economy of the 21st century. What important changes are taking place? What do these changes mean for international companies?

National Differences in Political Economy Q9. A political system that prioritizes the needs of the society over individual freedoms is called _____.

A.

totalitarianism

B.

collectivism

C.

capitalism

D.

egalitarianism

Q10. Which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle? A.

Socialism

B.

Individualism

C.

Collectivism

D.

Anarchism

Q11. Which of the following statements about individualism is NOT true? A.

Individualism promotes private entrepreneurship.

B.

Individualism promotes free market economics.

C.

Individualism creates an anti-business environment.

D.

Individualism advocates for a democratic political system.

Q12. In a _____ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning

A.

market

B.

private

C.

command

D.

mixed

Q13. Which of the following statements about the legal systems of countries is NOT true? A.

They can affect the attractiveness of a country as an investment site or market.

B.

They are influenced by the prevailing political system of the country.

C.

They are almost the same for all countries.

D.

They are of immense importance to international business

Q14. A nation's legal system is usually of very little interest to international business managers, because international businesses are headquartered in different countries TRUE or FALSE

Q15. Identify the three types of economic systems. How do these three types of economic systems differ from each other? How are they the same?

Differences in Culture

Q16. An act, as simple as shaking hands when meeting new people is an example of:

A.

values.

B.

symbolic behaviour.

C.

mores.

D.

social stratification.

Q17. ____ is/are best defined as shared assumptions about how things ought to be.

A.

norms

B.

values

C.

society

D.

culture

Q18. An upper-middle-class manager tends to have hostile relationship with the working-class employees in the firm because of his tendency to perceive himself as superior to them based on his class background. In this example, the manager exhibits:

A.

class consciousness.

B.

cultural awareness.

C.

social mobility.

D.

group orientation.

Q19. Which of the following is an example of ethnocentrism? A. A manager in India looks down upon his subordinates because they are from a lower caste, compared to him. B. An upper-middle-class woman talks rudely to a sales person, because she looks down upon individuals belonging to the working-class.

C. An American manager criticizes the cultural practices of Saudi Arabia, when he is sent there on business, because it differs from his own cultural norms. D. A French business owner, who plans to expand his market to China, conducts a detailed cultural study of China to customize his marketing campaign.

Q20. Which is the most spoken language in the world? What language is used in business? Is it important to learn a foreign language?

Q21. Why is the role of education in a culture important to international companies?

Q22. What are the implications of cultural differences for international businesses?

Foreign Direct Investment Q23. FDI occurs when a firm: A. ships its products from one country to another. B. invests directly in facilities to produce a product in a foreign country. C. invests in the shares of another company operating in the same country. D. grants permission to another company in a different country to use its brand name.

Q24. Which of the following is an example of a greenfield investment?

A. A Chinese sugar maker setting up a sugar crushing facility in Cuba. B. A Serbian automobile company purchasing a Croatian component manufacturer. C. A Finnish mobile phone manufacturer expanding its production facility in Finland. D. An Indian oil exploration company acquiring an oil refining company.

Q25. A French wind power company gives an Indonesian company the right to produce and sell wind turbines in return for a royalty fee on every unit sold. Which business practice is this an example of? A. Acquisition B. Licensing

C. Exporting D. Greenfield investment

Q26. Which of the following is a way in which governments increase the attractiveness of FDI and licensing relative to exporting? A. By implementing import quotas

B. By imposing FDI limits in industries C. By increasing tax rates D. By limiting free flow of capital Q27. In which of the following situations does the internalization theory recommend FDI as opposed to licensing? A. When the firm has know-how that can be adequately protected by a licensing contract B. When the firm produces products that have a low value-to-weight ratio C. When a firm's skills and know-how are amenable to licensing D. When the firm needs tight control over a foreign entity

Q28. Advantages that arise from using resource endowments or assets that are tied to a particular place and that a firm finds valuable to combine with its own unique assets are known as: A. location-specific advantages B. capital-specific advantages C. absolute advantages D. production factor advantages

Q29. When a company brings capital and/or technology to a host country, the host country benefits from the:

A. political effect of FDI B. resource-transfer effect of FDI C. balance-of-payments effect of FDI D. bandwagon effect of FDI Q30. Discuss the benefits and costs of FDI from the perspective of a host country

Ethics in International Business Q1. Identify the INCORRECT statement about environmental regulations. A. Environmental regulations are often lacking in developing nations B. Environmental regulations are similar across developed and developing nations C. Developed nations have substantial regulations governing the emission of pollutants, the dumping of toxic chemicals, etc. D. Inferior environmental regulations in host nations, as compared to home nation, can lead to ethical issues

Q2. According to _____, the social responsibility of business is to increase profits, so long as the company stays within the rules of law.

A. the naive immoralist B. the righteous moralist C. cultural relativism D. the Friedman doctrine

Q3. The idea that business people should consider the social consequences of economic actions when making business decisions and that there should be a presumption in favour of decisions that have both good economic and social consequences is known as:

A.

moral relativism.

B.

noblesse oblige.

C.

ethical dilemma.

D.

social responsibility.

Q 4. Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because of all of the following reasons EXCEPT: A.

they are away from their ordinary social context and supporting culture.

B.

they are psychologically and geographically closer to the parent company.

C. they may be based in a culture that does not place the same value on ethical norms important in the manager's home country. D.

they may be surrounded by local employees who have less rigorous ethical standards.

Q 5. According to the Friedman doctrine: A.

ethics are nothing more than the reflection of culture.

B. a multinational's home-country standards of ethics are inappropriate to follow in foreign countries. C. businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business. D. if a manager of a multinational sees that firms from other nations are not following environmental legislation in a host nation, that manager should not either.

Q 6. Identify the correct statement about the rights theories. A.

Human beings have fundamental rights and privileges that transcend national boundaries.

B.

The moral worth of actions or practices is determined by their consequences.

C.

People should be treated as ends never purely as means to the ends of others.

D.

The only social responsibility of business is to increase profits, so long as the company stays...