The Global Business Environment Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Which of the following is NOT an example of the government trying to influence the economy using fiscal policy?

Question 2 2. How can technological innovation help a company become globalized?

Question 3 3. A highly indebted American company is seeking assistance on how to expand its portfolio in Argentina. It is having severe difficulties with paying the right amount of federal income tax and has on several occasions underestimated the risk of the decreasing value of Argentinian currency. Which of the following is an area in which the International Monetary Fund may assist them?

Question 4 4. An American shoe company has recently set up a factory in China. They found out that some of the Chinese managers would like to hire children to work in the factories, a practice common in China. The company refused to hire children, and instead offered an educational program to its employees and their families. The shoe company used _____ in this situation.

Question 5 5. Which of these would qualify as a factor of a U.S. company's domestic environment?

Page 2

Question 6 6. An American company set up a factory in China. They recently found out that some of their employees are children. Which of the following ethical international business issues are they facing?

Question 7 7. Which type of economic system is the most favorable to business?

Question 8 8. What institution was established in 1944 for the purpose of providing business loans?

Question 9 9. A country's economic growth is best reflected by:

Question 10 10. A country's economic development is best reflected by:

Page 3

Question 11 11. Technology present in a market is called the _____ environment.

Question 12 12. What do NAFTA, the WTO, and the Caux Round Table have in common?

Question 13 13. An IT company has lowered its prices due to the fact that it has directly benefited from globalization, making it much easier for customers to buy their products. Which of the following is NOT a likely cause of their decreasing prices?

Question 14 14. What is an exchange rate?

Question 15 15. What is a tariff?

Page 4

Question 16 16. Why must an international manager consider the sociocultural issues present in each foreign country?

Question 17 17. Why is the political environment an important aspect of the international manager's global mindset?

Question 18 18. Why do some businesses tend to avoid expanding their companies to nations operating under central state control?

Question 19 19. What is the name of the regional integration that the US belongs to?

Question 20 20. How does globalization reduce work and environmental standards?

Page 5

Question 21 21. Twain Electronics designs a unique product that nobody else on the market has. Which of the following would be an example of licensing in this case?

Question 22 22. Public policies are put in place by a government in order to:

Question 23 23. Which of the following is FALSE regarding globalization?

Question 24 24.

The most basic form of international business involves:

A. Importing products from another country.

B. Exporting products to another country.

C. Licensing your product to a manufacturer in another country.

D. Buying a license to make a foreign company's product.

E. Importing services from another country.

F. Exporting services to another country.

Question 25 25. For a U.S. based car manufacturer, a change in U.S. fuel efficiency regulations will affect which one of its markets?

Page 6

Question 26 26. Why must an international manager pay close attention to the legal environment of a foreign country?

Question 27 27. When Great Britain voted to leave the common market of European countries, which environment was affected for a company based in the U.S.?

Question 28 28. Why would a lower exchange rate be beneficial for a country?

Question 29 29. Coke and Pepsi have decided to work together in order to produce an entirely new drink which they think will completely take over most of the international market. They have agreed that Coke will be responsible for the R&D, while Pepsi will be in charge of production facilities. Why is this an example of a strategic alliance rather than a joint venture?

Question 30 30. Economic development is often measured using the:

The Global Business Environment Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Business 108: Business Ethics  /  Business Courses
Support