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1 | |
The shrinking of time and space thanks to air travel and electronic media is referred to as the global village. |
| | A) | True |
| | B) | False |
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2 | |
The _______ refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets. |
| | A) | global market |
| | B) | global economy |
| | C) | global village |
| | D) | world pact |
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3 | |
Which of the following is an example of a multinational corporation? |
| | A) | International Red Cross |
| | B) | Church of Latter Day Saints |
| | C) | Citigroup |
| | D) | World Health Organization |
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4 | |
_______ managers believe that their native country, culture, language, and behavior are superior to all others. |
| | A) | Trancentric |
| | B) | Geocentric |
| | C) | Polycentric |
| | D) | Ethnocentric |
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5 | |
A manager living or working in a foreign country is called an expatriate. |
| | A) | True |
| | B) | False |
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6 | |
Which of the following is NOT a typical reason why companies expand internationally? |
| | A) | Higher quality |
| | B) | New markets |
| | C) | Lower labor costs |
| | D) | Avoidance of tariffs and quotas |
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7 | |
_______ refers to using suppliers outside the company to provide goods and services. |
| | A) | Licensing |
| | B) | Exporting |
| | C) | Bartering |
| | D) | Outsourcing |
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8 | |
When importing, a company produces goods domestically and sells them outside the country. |
| | A) | True |
| | B) | False |
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9 | |
Exchanging goods for other goods is called |
| | A) | countertrade. |
| | B) | arbitrage. |
| | C) | outsourcing. |
| | D) | importing. |
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10 | |
Under a(n) _______ agreement, one company allows a foreign company to pay a fee and a share of profit in return for using that company's brand name, products, or services. |
| | A) | export-import |
| | B) | franchising |
| | C) | greenfield |
| | D) | joint venture |
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11 | |
A greenfield venture is a foreign subsidiary that is totally owned and controlled by an organization. |
| | A) | True |
| | B) | False |
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12 | |
Under a _______ economy, the government owns most businesses and regulates the amounts, types, and prices of goods and services. |
| | A) | developed |
| | B) | free-market |
| | C) | command |
| | D) | diverse |
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13 | |
Privatization refers to a process in which |
| | A) | state-owned businesses were sold off to private enterprise. |
| | B) | private businesses were sold of to the government. |
| | C) | communist countries took control of businesses in neighboring countries. |
| | D) | individuals' rights to privacy were expanded. |
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14 | |
Totalitarian governments are ruled by a dictator, a single political party, or a special-membership group. |
| | A) | True |
| | B) | False |
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15 | |
_______ refers to a government's seizure of a foreign company's assets. |
| | A) | Privatization |
| | B) | Expropriation |
| | C) | Arbitrage |
| | D) | Countertrade |
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16 | |
Countries often use trade protectionism to expand imports of foreign goods and services. |
| | A) | True |
| | B) | False |
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17 | |
A(n) _______ is a complete ban on the import or export of certain products. |
| | A) | trade deficit |
| | B) | tariff |
| | C) | embargo |
| | D) | quota |
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18 | |
Which of the following countries is NOT a member of the trade bloc MERCOSUR? |
| | A) | Argentina |
| | B) | Brazil |
| | C) | Paraguay |
| | D) | Mexico |
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