1.

The shift toward a more integrated (hội nhập) and interdependent (phụ thuộc)
world economy is referred to as
a. economic integration
b. economic interdependency
c. globalization
d. internationalization
2. The merging of historically distinct and separate national markets into one huge
global marketplace is known as
a. global market facilitation
b. cross-border trade
c. supranational market integration
d. the globalization of markets
3. Firms that are involved in international business tend to be
a. large
b. small
c. medium-sized
d. large, small, and medium-size
4. Which is NOT a factor of production?
a. Trade
b. Land
c. Capital
d. Energy
5. The sourcing of goods and services from around the world to take advantage of
national differences in the cost and quality of factors of production is called
a. economies of scale
b. the globalization of production
c. global integration
d. global sourcing
6. Which organization is responsible for policing the world trading system?
a. The International Monetary Fund
b. The United Nations
c. The World Trade Organization
d. The World Bank
7. What is the single most important innovation to the globalization of markets and
production?
a. Advances in transportation technology
b. The development of the microprocessor
c. Advances in communication
d. The Internet
8. Which of the following trends is true?
a. The United States is accounting for a greater percentage of world trade than ever before.
b. The United States is accounting for a greater percentage of foreign direct investment than
ever before.
c. The share of world trade accounted for by developing countries is rising
d. The share of foreign direct investment by developing countries is declining
9. Which of these is not a concern of anti-globalization protesters?
a. Globalization raises consumer income.
b. Globalization contributes to environmental degradation.
c. Globalization is causing a loss of manufacturing jobs in developing countries
d. Globalization implies a loss of national sovereignty
10. Abstract ideas about what a group believes to be good, right, and desirable are
called
a. norms
b. values
c. folkways
d. mores
11. The basic social organization of a society is its
a. culture
b. social strata
c. social structure
d. caste system
12. The group is the primary unit of social organization in
a. Japan
b. the United States
c. Switzerland
d. Mexico
13. Which of the following is not characteristic of individualism?
a. Individual achievement
b. Low managerial mobility
c. Low company loyalty
d. Entrepreneurial behavior
14. Which religion promotes the notion that a moral force in society requires the
acceptance of certain responsibilities called dharma?
a. Islam
b. Buddhism
c. Hinduism
d. Confucianism
15. The most widely spoken language in the world is
a. Chinese
b. Spanish
c. Hindi
d. English
16. _____focuses on how society deals with the fact that people are unequal in physical
(thể chất)and intellectual (trí tuệ) capabilities.
a. Power distance
b. Individualism versus collectivism
c. Uncertainty avoidance
d. Masculinity versus femininity
17. All of the following theories advocated free trade except____
a. Mercantilism
b. Comparative Advantage
c. Absolute Advantage
d. Hecksher-Ohlin
18. Which theory suggested that comparative advantage arises from differences in
national factor endowments?
a. Mercantilism
b. Absolute advantage
c. Heckscher-ohlin
d. Comparative advantage
19. Which theory suggests that as products mature the optimal production location will
change?
a. Mercantilism
b. Comparative Advantage
c. Absolute Advantage
d. Product life-cycle
20. Economies of scale (quy mô) and first mover advantages are important to which
trade theory?
a. Mercantilism
b. Product life cycle
c. New trade theory
d. Comparative advantage
21. Porter's diamond of competitive advantage includes all of the following except
a. Factor endowments
b. Demand conditions
c. First-mover advantages – new trade theory
d. Firm strategy, structure, and rivalry
22. ______ refers to the nature of home demand for the industry's product or service.
a. Demand conditions
b. Factor endowments
c. Firm strategy, structure, and rivalry
d. Related and supporting industries
23. All barriers to the free flow of goods and services between member countries are
removed, and a common policy toward nonmembers is established in a_____
a. Free trade area
b. Customs union- liên minh thuế quan
c. Common market
d. Economic union
24. NAFTA is an example of a(n)_____
a. Free trade area
b. Customs union
c. Common market
d. Economic union
25. When higher-cost suppliers within the free trade area replace lower-cost external
suppliers.
a. The bloc as a whole benefits
b. There is trade creation
c. There is trade diversion (chuyển hướng)
d. External suppliers benefit
26. ______ is the ultimate decision-making body of the European Union.
a. Council of the European Union
b. European Parliament
c. Court of Justice
d. European Commission
27. _____ is responsible for proposing EU legislation.
a. Council of the European Union
b. European Parliament
c. Court of Justice
d. European Commission
28. In a______ all barriers to the free flow of goods and services between member
countries are removed, and a common policy toward nonmembers is established
a. Free trade area
b. Customs union
c. Common market
d. Economic union
29. An agreement between countries in a geographic region to reduce tariff and non-
tariff barriers to the free flow of goods, services, and factors of production between
each other is referred to as:
a. Regional economic integration.
b. Cross-cultural economic integration.
c. Geographic economic-political integration.
d. Cross-cultural economic-political integration.
30. Nowhere has the movement toward regional economic integration been more
successful than in:
a. Africa.
b. South America.
c. Asia.
d. Europe
31. Which of the following has illustrated the lowest level of ability to overcome political
borders?
a. Labour
b. Goods
c. Capital
d. Ideas
32. Which of the following is a military alliance?
a. NAFTA
b. NATO
c. EEC
d. ASEAN
33. ______refers to the time and effort spent learning the rules of a new market.
a. First-mover advantages
b. Strategic commitments
c. Pioneering costs
d. Market entry costs
34. How do most firms begin their international expansion?
a. with a joint venture
b. with a wholly owned subsidiary
c. with licensing or franchising
d. with exporting
35. What is the main disadvantage of wholly owned subsidiaries?
a. They make it difficult to realize location and experience curve economies
b. The firm bears the full cost and risk of setting up overseas operations
c. They may inhibit the firm's ability to take profits out of one country to support
competitive attacks in another
d. High transport costs and tariffs can make it uneconomical
36. All of the following are advantages of acquisitions except
a. they are quicker to execute
b. it is easy to realize synergies by integrating the operations of the acquired entities
c. they enable firms to preempt their competitors
d. they may be less risky
37. The time and effort in learning the rules of a new market. failure due to ignorance,
and the liability of being a foreigner are all examples of
a. First-mover advantages
b. Strategic commitments
c. Pioneering costs
d. Market entry costs
38. A firm that wants the ability to engage in global strategic coordination should
choose
a. Franchising
b. Joint ventures
c. Licensing
d. Wholly owned subsidiaries
39. Which of the following is not an advantage of acquisitions as compared to greenfield
investments?
a. They are quicker to execute
b. Attempts to realize synergies by integrating the operations of the acquired entities can be
challenging and take time
c. They enable firms to preempt their competitors
d. They may be less risky
40. Globalization results in a greater degree of_____ across markets than would be
present otherwise
a. homogeneity
b. diversity
c. heterogeneity
d. diversification
41. What is the difference between folkways and mores?
a. Folkways have much greater significance than mores.
b. Folkways are norms that are seen as central to the functioning of a society.
c. Mores include rituals and symbolic behavior.
d. Violating mores can bring serious retribution.
42. Porter's thesis was that four broad attributes of a nation shape the environment in
which local firms compete and that these attributes promote or impede the creation
of competitive advantage. All of the following are attributes EXCEPT:
a. firm strategy, structure, and rivalry.
b. factor endowments
c. first-mover advantages.
d. relating and supporting industries.
43. Which of the following refers to the exporting of goods or services to consumers in
another country?
a. International trade
b. World exchange
c. Situational commerce
d. Cross-national barter
44. According to the Heckscher-Ohlin theory, the pattern of international trade is
determined by differences in:
a. productivity.
b. national priorities.
c. factor endowments.
d. political interests.
45. Firms entering markets where there are no incumbent competitors to be acquired
should choose
a. Greenfield investments
b. Joint ventures
c. Acquisitions
d. Takeovers
46. A common market includes all of the following characteristics, EXCEPT:
a. there are no restrictions on immigration between members
b. factors of production are allowed to move freely between members
c. harmonization of members' tax rates, and a common monetary and fiscal policy.
d. there are no restrictions on the cross-border flow of capital between members.
47. Which of the following selections accurately depicts the levels of economic
integration, from least integrated to most integrated?
a. Free trade area, customs union, common market, economic union, and full political union
b. Full political union, free trade area, common market, customs union, and economic union
c. Economic union, common market, free trade area, full political union, and customs union
d. Common market, economic union, full political union, free trade area, and customs union
48. Patents, inventions, formulas, processes, designs, copyrights and trademarks are all
forms of
a. Franchising agreements
b. Tangible property – tài sản hữu hình
c. Licensing agreements
d. Intangible property
49. A country is noted as having a(n)_____ in the production of a product when it more
efficient than any other country in producing that product.
a. comparative advantage
b. competitive advantage
c. absolute advantage
d. consumer advantage
50. Like the common market, a(n)_____ of production between members and the
adoption of a common external trade policy involves the free flow of products and
factors
a. free trade area
b. economic union
c. global union
d. customs union
51. How does group primacy harm the Japanese society?
a. It provides strong incentive for individual members of the group to work together for the
common good.
b. It lacks dynamism and entrepreneurship.
c. It lacks close cooperation between individuals within a company and between companies.
d. It offers lifetime employment in a particular company.
52. _____ refers to a situation where a government does not attempt to influence
through quotas or duties what its citizens can buy from another country or what
they can produce and sell to another country.
a. Free trade
b. Unencumbered commerce
c. Mercantile trade
d. Clear commerce
53. Switching (chuyển đổi) costs_____
a. Drive early entrants out of the market
b. Make it difficult for later entrants to win business
c. Make it easy for later entrants to win business
d. Give later entrants a cost advantage over early entrants
54. When an exporting firm finds that its local agent is also carrying competitors'
products, the firm may switch to a_____ to handle local marketing, sales and
service.
a. Wholly owned subsidiary
b. Turnkey operation
c. Franchising arrangement
d. Licensing agreement
55. Firms engaging in______ with a local company can benefit from a local partner's
knowledge of the host country's competitive conditions, culture, language, political
systems and business systems.
a. Turnkey projects
b. Greenfield investments
c. Licensing agreements
d. Joint ventures – Liên doanh
56. Managing an international business is different from managing a purely domestic
business for all of the following reasons EXCEPT:
a. the range of problems confronted by a manager in an international business are narrower
(hẹp hơn) than those confronted by a manager in a domestic business
b. international transactions involve converting money into different currencies.
c. an international business must find ways to work within the limits imposed by
government intervention in the international trade and investment system.
d. countries are different.
57. An agreement between countries in a geographic region to reduce tariff and
nontariff barriers to the free flow of goods, services and factors of production
between each other is referred to as
a. Socio-economic integration
b. Regional economic integration
c. Political integration
d. Economic-political integration
58. The United States has an emphasis on individualism. This emphasis may lead to
which of the following problems?
a. Creating pressures for mutual self-help and collective action.
b. An adverse impact on managerial loyalty to the company.
c. New products and new ways of doing business.
d. Creation of a dynamic entrepreneurial economy.
59. Which of the following statements most accurately captures the main tenet of
mercantilism?
a. It is in a country's best interests to not export products to less developed countries.
b. It is in a country's best interests to maintain a trade surplus, to export more than it
imports.
c. It is in a country's best interests to import less specialized goods than to attempt to make
them at home.
d. It is in a country's best interests to import products that are most efficiently produced at
home.
60. The recent trends in international business strongly indicate that when Japanese
and German businesspeople conduct business together, the language in which they
will communicate is almost certain to be:
a. German
b. Japanese
c. French
d. English
61. A situation in which a country specializes in producing the goods it produces most
efficiently and buys the products it produces less efficiently from other countries,
even if it could produce the good more efficiently it self is referred to as:
a. absolute advantage.
b. comparative advantage
c. pertinent advantage.
d. comprehensive advantage.
62. Which one of the following dimensions focuses on how a society deals with the fact
that people are unequal in physical and intellectual capabilities?
a. Individualism
b. Uncertainty avoidance
c. Collectivism
d. Power distance
63. In a _____, theoretically, no discriminatory tariffs, quotas, subsidies, or
administrative impediments are allowed to distort trade between members.
a. free trade area
b. common exchange policy
 c. collective bargaining act
d. customs exchange committee
64. Which of the following arguments do critics use to suggest that globalization is a
contributing factor to an increase in pollution?
a. Globalization results in increased commerce between countries, which results in
an increase in the amount of transportation activity.
b. Firms from advanced nations move their manufacturing facilities to countries that
have less stringent or no pollution controls to avoid the cost of regulation.
c. Globalization results in an increase in the amount of activity that takes place in
companies that do not have adequate pollution controls.
d. Globalization results in increased production, which has the undesirable side-
effect of increased pollution.
65. Vernon's product life-cycle theory was based on the observation that for most of the
20th century, a very large proportion of the world's new products had been
developed by U.S. firms and sold first in the _____market.
a. Canadian
b. U.S.
c. Western European
d. Japanese
66. _____ occurs when high cost domestic producers are replaced by low cost producers
within the free trade area.
a. Trade interpretation
b. Trade diversion
c. Trade creation
d. A free trade zone
67. A ______eliminates trade barriers between member countries and adopts a common
external trade policy.
a. free trade area
b. global union
c. tariff union
d. customs union
68. Pioneering costs are____
a. The fixed costs of developing new products or processes
b. The switching costs involved in moving from one market to another
c. Costs that the firm has to bear that a later entrant can avoid
d. The costs of establishing manufacturing operations in the host country
69. _____ is not a benefit of globalization.
a. Raising the incomes of consumers
b. Lowering prices for goods
c. Slowdown in economic growth
d. Helping to create jobs in all countries that choose to participate
70. High transportation costs, trade barriers and problems with local marketing agents
are all disadvantages of
a. Licensing
b. Exporting
c. Franchising
d. Turnkey projects
71. Gabrielle Green, a manager at Cryptic Corporation, believes in empowerment,
upward mobility, and motivating her employees. This describes her.
a. norms
b. values
c. folkways
d. criterion
72. Which of the following theories argues that due to the presence of substantial scale
demand will support only a few firms in many industries? economies, world
a. Leontief's paradox
b. Heckscher-Ohlin
c. Product life-cycle
d. New trade
73. The trend from distinct national economic units and toward one huge global market
is commonly referred to as:
a. globalization
 b. internationalization
c. cross-border integration
d. market standardization
74. What has made the globalization of markets and production a reality?
a. Increased labor mobility
b. Elastic demand
c. Technological change
d. Corporate greed
75. If a service firm wants to build a global presence quickly and at a relatively low cost
and risk, ______ makes sense
a. A wholly owned subsidiary
b. Exporting
c. A turnkey project
d. Franchising
76. How does the lowering of barriers to international trade help firms?
a. It allows them to view the world as their market.
b. It protects them from international competition.
c. It puts a break on globalization of both markets and production.
d. It drives up costs because they assemble their products in different countries.
77. The system of shared beliefs and rituals (nghi lễ) that are concerned with the realm
of the sacred is referred to as
a. spoken language
b. ethics
c. religion- tôn giáo
d. caste
78. Which of the following has the highest level of integration?
a. A common market
b. A free trade area
c. A customs union
d. An economic union
79. In contrast to the Western emphasis on the_____ in many other societies the_____ is
the primary unit of social organization.
a. coterie; individual
b. group; clan
c. hierarchy; community
d. individual; group