International Business Quiz

83 Questions | By Yacinelink | Last updated: Jun 19, 2022 | Total Attempts: 3828

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Do you want to study international business, globalization, and more? Then we have brought this international business quiz for you here. The quiz tests your knowledge about international business and global markets. So, there are a lot of questions on the quiz, and we hope you answer most of these questions correctly and score well here. Let's go for this quiz now, and also wish you the best of luck!

Questions and Answers

1.

__________ refers to the shift toward a more integrated and interdependent world economy.
- A.
  
  Cross-border proliferation
- B.
  
  Globalization
- C.
  
  Worldwide consumerism
- D.
  
  Internationalization
2.

The two main components of globalization are:
- A.
  
  The globalization of technology and the globalization of markets
- B.
  
  The globalization of finance and the globalization of accounting
- C.
  
  The globalization of advertising and the globalization of services
- D.
  
  The globalization of markets and the globalization of production
3.

The two main components of globalization are the globalization of markets and the:
- A.
  
  Globalization of production
- B.
  
  Globalization of services
- C.
  
  Globalization of accounting
- D.
  
  The globalization of markets refers to the merging of historically distinct and separate national markets into:
4.

The globalization of markets refers to the merging of historically distinct and separate national markets into:
- A.
  
  Markets defined by a common language
- B.
  
  One huge global marketplace
- C.
  
  Markets defined by a common culture
- D.
  
  Several distinct regional markets
5.

Failing barriers to cross-border trade:
- A.
  
  Have made it easier to sell internationally for manufacturing firms but harder to sell internationally for service firms
- B.
  
  Have made it harder to sell internationally
- C.
  
  Have had no meaningful impact on international trade
- D.
  
  Have made it easier to sell internationally
6.

Which of the following markets has experienced the highest degree of globalization?
- A.
  
  Services
- B.
  
  Industrial goods and materials
- C.
  
  Consumer products
- D.
  
  Intellectual capital
7.

Most global markets currently are not markets for __________, where national differences in tastes and preferences are still often important enough to act as a brake on globalization, but markets for __________ that serve a universal need the world over.
- A.
  
  Services, consumer products
- B.
  
  Industrial goods and materials, intellectual capital
- C.
  
  Intellectual capital, services
- D.
  
  Consumer products, industrial goods, and materials
8.

The globalization of production refers to:
- A.
  
  The tendency among firms to recruit production workers from foreign countries
- B.
  
  The tendency among firms to move production facilities to foreign countries where wage rates are lower
- C.
  
  The tendency among firms to use similar production methods
- D.
  
  The tendency among firms to source goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production
9.

In producing its latest mainframe computer, IBM purchased goods and services from different suppliers around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production. This practice is made possible by the globalization of:
- A.
  
  Production
- B.
  
  Commerce
- C.
  
  Markets
- D.
  
  Finance
10.

An international firm like 3M may design a product in one country, produce component parts for the product in another country, assemble the product in a third country, and export the product to several other countries. This scenario is made possible by:
- A.
  
  The globalization of management
- B.
  
  The globalization of marketing
- C.
  
  The globalization of production
- D.
  
  The globalization of technology
11.

According to former Secretary of Labor Robert Reich, the propensity for firms to outsource many of their productive activities to different suppliers around the world has resulted in the creation of __________ products.
- A.
  
  International
- B.
  
  Cross-national
- C.
  
  Cross-cultural
- D.
  
  Global
12.

Which of the following is not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?
- A.
  
  Transportation costs
- B.
  
  A slowdown in the trend towards globalization worldwide
- C.
  
  Issues associated with economic and political risk
- D.
  
  Barriers to foreign direct investment
13.

The two macro factors that seem to underlie the trend towards greater globalization are:
- A.
  
  The increase in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and the decline in economic pressures around the world
- B.
  
  The decline in political tensions around the world, formal and informal barriers to trade between countries
- C.
  
  The decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and technological change
- D.
  
  A convergence in consumer tastes around the world, an increase in political tensions around the world
14.

Car manufacturers like General Motors, Ford, and Honda export goods and services to consumers in other countries. This practice is referred to as:
- A.
  
  International trade
- B.
  
  Country-to-country exchange
- C.
  
  Global salesmanship
- D.
  
  Cross-national barter
15.

__________ occurs when a firm invests resources in business activities outside its home country.
- A.
  
  International diversification
- B.
  
  Foreign direct investment
- C.
  
  Cross-national investment
- D.
  
  Transnational commerce
16.

The __________ is a treaty designed to remove barriers to the free flow of goods, services, and capital between nations.
- A.
  
  Tariff Buster Trade Agreement
- B.
  
  North Atlantic Agreement on Trade and International Business
- C.
  
  General Agreement on Tariffs and Trade
- D.
  
  United Nations Treaty on Trade
17.

Under the umbrella of GATT, there have been eight rounds of negotiations among member states. The most recent round of negotiations was referred to as the:
- A.
  
  Paris Round
- B.
  
  Pacific-Rim Round
- C.
  
  Central Asian Round
- D.
  
  Uruguay Round
18.

All of the following were accomplishments of the 1993 Uruguay Round, with the exception of:
- A.
  
  Further reduced trade barriers
- B.
  
  Provided enhanced protection for patents, trademarks, and copyrights
- C.
  
  Established a common currency for international trade
- D.
  
  Established the World Trade Organization
19.

The acronym GATT stands for:
- A.
  
  General Agreement on Tariffs and Trade
- B.
  
  Global Agreement on Taxation and Tariffs
- C.
  
  Global Association for Technology and Trade
- D.
  
  Global Agreement on Taxation and Trademarks
20.

Which of the following statements in incorrect in regard to trends in international trade?
- A.
  
  The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market
- B.
  
  The volume of world trade has grown at the same rate as world output since 1950
- C.
  
  The lowering of trade barriers has facilitated the globalization of production
- D.
  
  Foreign direct investment is playing an increasing role in the global economy
21.

According to data from the World Trade Organization, the volume of world trade has grown faster than the volume of world output since the 1950s. This relationship suggests all of the following except:
- A.
  
  Nations are becoming increasingly self-sufficient for important goods and services
- B.
  
  More firms are dispersing different parts of their overall production process to different locations around the globe to increase quality
- C.
  
  The economies of the world's nation states are becoming more intertwined.
- D.
  
  FDI is playing an increasing role in the global economy
22.

According to our textbook, the single most important technological innovation that has impacted international trade has been the:
- A.
  
  Containerized shipping
- B.
  
  Telephone
- C.
  
  Development of optic fiber
- D.
  
  Microprocessor
23.

According to __________, the power of microprocessor technology doubles and the cost its production falls in half every 18 months.
- A.
  
  Timmon's Principle
- B.
  
  Jacob's Theorem
- C.
  
  Moore's Law
- D.
  
  Porter's Statute
24.

According to our textbook, __________ promise to develop into the information backbone of tomorrow's global economy.
- A.
  
  MSNBC and other cable television networks
- B.
  
  The Internet and World Wide Web
- C.
  
  Fiber optics telephone and teletype service
- D.
  
  Videoconferencing and fax technology
25.

Viewed globally, the Web is emerging as:
- A.
  
  An equalizer
- B.
  
  Too expansive of a medium to be effective
- C.
  
  A disruptive influence on international trade
- D.
  
  A predominately Western phenomenon