Chapter 3: Global Business
Multiple Choice


1.  

Which of the following is the same in every country?

Business law
Ethical standards
Consumer preferences
None of the above


2.  

Which of the following is NOT a cultural difference that international businesses must consider?

Attitudes about time
Body language
Use of Space
Pricing regulations


3.  

Which of the following forms of international business is among the fastest growing business activities?

Strategic alliances and joint ventures
Importing and exporting
International licensing
International franchising


4.  

An agreement to produce and market another company's product in exchange for a fee is known as:

licensing.
a strategic alliance.
a joint venture.
a franchise.


5.  

PepsiCo discovered that its slogan "Come alive with Pepsi" was translated as follows in Asia:

"Come out of the grave with Pepsi."
"Go out of your life with Pepsi."
"Bring your ancestors back from the dead."
None of the above.


6.  

Which of the following allow/s companies to engage in international business without investing in foreign factories or facilities?

Importing
Licensing
Strategic alliances
Both "b" and "c"


7.  

The notion that a country should produce and sell to other countries those things it produces more efficiently is known as:

balance of trade.
intrafirm trade.
comparative advantage.
none of the above.


8.  

Which of the following is the broadest indicator of international trade?

Balance of trade
Balance of payments
Trade equity
Quotas


9.  

Which of the following is an agency that provides short-term loans to countries unable to meet their budgetary expenses?

APEC
GATT
IMF
The World Bank


10.  

Which of the following is NOT a trade bloc?

Association of Asian Nations
European Union
Mercosur
North American Free Trade Agreement


11.  

The fluctuation of a currency's value in response to global supply and demand is known as:

foreign exchange.
exchange rate.
devaluation.
none of the above.


12.  

The economic recovery in Southeast Asia is attributed to all of the following except:

Increased imports.
Increased oil prices.
Japanese aid.
Bank and corporate reforms.


13.  

What is the percentage of Europeans currently using the Internet?

10%
30%
57%
65%


14.  

E-business in Asia is hampered by:

a lack of credit services.
ground delivery problems.
cultural preference for shopping as a family outing.
all of the above.


15.  

For what reason/s do nations impose embargoes?

Embargoes are imposed to protect domestic industry.
Embargoes are imposed to protect consumers' health.
Embargoes can be imposed to exert political pressure for humanitarian reasons or to protect national interests.
All of the above.


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