International BusinessInternational Business

Chapters One through Three Unit Chapters One through Three Unit ReviewReview

This review is a direct This review is a direct reflection of the test that reflection of the test that

you will see in a few days. you will see in a few days. Please try your best to Please try your best to

answer the questions as answer the questions as correctly as possible. correctly as possible.

Good Luck!Good Luck!Click on the house to begin the

review

Incorrect AnswerIncorrect Answer

WRONGWRONG

Try Question Again

Question #1Question #1

Name two of the five reasons Name two of the five reasons companies are driven to the companies are driven to the international market?international market?

Political

Market

Endowment Factors

Portfolio investment

CorrectCorrect

Go to the next

question

Question #2Question #2

Cost, as a Globalization Cost, as a Globalization Force, allows product Force, allows product lines to achieve … lines to achieve …

Cost Savings

Economies of Scale

CorrectCorrect

Go to the next

question

Question #3Question #3

Endowment factors are the Endowment factors are the pieces that go into a pieces that go into a country’s ability to …country’s ability to …

Produce something

Import Products

CorrectCorrect

Go to the next

question

Question #4Question #4

Name a type of domestic Name a type of domestic operation within a foreign operation within a foreign country …country …

Foreign Business

International Business

CorrectCorrect

Go to the next

question

Question #5Question #5

Which of the following companies Which of the following companies is an example of an international is an example of an international business?business?

Lilly insulin in Belgium

McDonalds

Ford Motor

CorrectCorrect

Go to the next

question

Question #6Question #6

Economic Nationalism Economic Nationalism represents the strategy of …represents the strategy of …

Comparative Advantage

Mercantilism

CorrectCorrect

Go to the next

question

Question #7Question #7The trend toward unification and The trend toward unification and

socialization of the global socialization of the global community is which community is which globalization force?globalization force?

Political Market

Competitive

CorrectCorrect

Go to the next

question

Question #8Question #8Non –Americans owned Non –Americans owned

__________ of stock and bonds __________ of stock and bonds in the United States?in the United States?

1.9 Trillion

2.8 Trillion

CorrectCorrect

Go to the next

question

Question #9Question #9

What country is the largest owner What country is the largest owner of United States government of United States government debt (i.e.: treasury notes)?debt (i.e.: treasury notes)?

ChinaUnited

Kingdom

Japan

CorrectCorrect

Go to the next

question

Question #10Question #10

The book The book Wealth of NationsWealth of Nations was was written to disprove the economic written to disprove the economic trade theory of …trade theory of …

Comparative Advantage

Mercantilism

CorrectCorrect

Go to the next

question

Question #10Question #10

Of the two parts of foreign Of the two parts of foreign investment which part’s sole investment which part’s sole purpose is obtaining a return of purpose is obtaining a return of funds invested?funds invested?

Direct investment

Portfolio investment

CorrectCorrect

Go to the next

question

Question #11Question #11

Which is NOT a benefit of the First Which is NOT a benefit of the First Mover Theory?Mover Theory?

Large market share

Discourage competitors

Reduced costs

Increased Exports

CorrectCorrect

Go to the next

question

Question #12Question #12

What percentage do developed What percentage do developed nations trade with other nations trade with other developed nations _________ ?developed nations _________ ?

63%

72%

84%

CorrectCorrect

Go to the next

question

Question #13Question #13

Which is the easiest of the steps Which is the easiest of the steps to begin foreign trade?to begin foreign trade?

Setting up a foreign sales

companyExporting

Establishing foreign production

facility

CorrectCorrect

Go to the next

question

Question #14Question #14

The invention of what one thing The invention of what one thing has allowed small firms to has allowed small firms to compete globally compete globally

Wireless phone

internet

Palm Pilots

CorrectCorrect

Go to the next

question

Question #15Question #15

What is it called when someone What is it called when someone begins foreign trade and turns begins foreign trade and turns the distribution over to someone the distribution over to someone else else

Retailing Wholesaling

CorrectCorrect

Go to the next

question

Question #16Question #16

True/False: Larger firms begin True/False: Larger firms begin foreign trade by wholesalingforeign trade by wholesaling

TRUE FALSE

CorrectCorrect

Go to the next

question

Question #17Question #17

Competition, as a globalization Competition, as a globalization force, says that to protect your force, says that to protect your home market by _________ a home market by _________ a competitor’s marketcompetitor’s market

Entering into

Importing from

CorrectCorrect

Go to the next

question

Question #18Question #18

Heckscher-Olin Theory states that Heckscher-Olin Theory states that if a country has an abundant if a country has an abundant amount of production factors, amount of production factors, they should …they should …

Export those

products

Manufacture different products

Export different resources

CorrectCorrect

Go to the next

question

Question #19Question #19

Which is NOT a reason why Which is NOT a reason why companies will go abroad?companies will go abroad?

Protection from

competition

Increase Technology

Increase sales

CorrectCorrect

Go to the next

question

Question #20Question #20

Setting up a foreign sales Setting up a foreign sales company is the __________ set company is the __________ set to beginning foreign trade?to beginning foreign trade?

Hardest

ModerateEasiest

CorrectCorrect

Go to the next

question

Question #21Question #21

When investors participate in the When investors participate in the management of a foreign firm management of a foreign firm and receive profits on and receive profits on investments that is called …investments that is called …

Portfolio Investment

Direct Investmen

t

CorrectCorrect

Go to the next

question

Question #22Question #22

The United States is the ______ The United States is the ______ largest investor nation in the largest investor nation in the world?world?

Third

SecondFirst

Last

CorrectCorrect

Go to the next

question

Question #23Question #23

The major economic theory in The major economic theory in Europe between the 16Europe between the 16thth and and 1818thth century was … century was …

Mercantilism

Importing Priority

Nationalism

CorrectCorrect

Go to the next

question

Question #24Question #24

Prices of the factors depend only Prices of the factors depend only on the supply of those factors is on the supply of those factors is an assumption of which theory?an assumption of which theory?

Heckscher — Olin Theory

First mover theory

Comparative advantage

CorrectCorrect

Go to the next

question

Question #25Question #25

In a trade situation where one In a trade situation where one party must lose for another to party must lose for another to gain is called …gain is called …

Win-Lose Theory

Zero Sum Gain

Game Theory

CorrectCorrect

Go to the next

question

Question #26Question #26

When company’s globalize, they When company’s globalize, they also become global customers. also become global customers. Which globalization force is this?Which globalization force is this?

Market

CostPolitical

CorrectCorrect

Go to the next

question

Question #27Question #27

What book was written to dispel What book was written to dispel government intervention and government intervention and control over trade?control over trade?

Principles of Political Economy and

Taxation

Communist Manifesto

Wealth of

Nations

CorrectCorrect

Go to the next

question

Question #28Question #28

Which is NOT a reason developed Which is NOT a reason developed nations trade with other nations trade with other developed nations?developed nations?

Strong cultural

objections

Foreign exchange is available

Business Climate

Satisfactory transportation

CorrectCorrect

Go to the next

question

Question #29Question #29

True/False: It is larger countries True/False: It is larger countries that are huge One Way trade that are huge One Way trade imposters?imposters?

TRUE FALSE

CorrectCorrect

Go to the next

question

Question #30Question #30

True/False: Despite good True/False: Despite good intentions, most developed intentions, most developed nations DO NOT trade with nations DO NOT trade with developing nations?developing nations?

TRUE FALSE

CorrectCorrect

Go to the next

question

Question #31Question #31

A business whose activities are A business whose activities are carried out across national carried out across national borders is a …borders is a …

Foreign Business

International Business

CorrectCorrect

Go to the next

question

Question #32Question #32

Privatization of state owned firms Privatization of state owned firms to increase trading is which to increase trading is which globalization force?globalization force?

Market

Political

Competitive

CorrectCorrect

Go to the next

question

Question #33Question #33

Land, Labor, and Capital are Land, Labor, and Capital are pieces that go into a country’s pieces that go into a country’s ability to produce something. ability to produce something. These are called?These are called?

Supply chain parts

Endowment Factors

Production Components

CorrectCorrect

Go to the next

question

Question #34Question #34

Technology, as a globalization Technology, as a globalization force, DOES NOT allows force, DOES NOT allows companies to do which of the companies to do which of the following better?following better?

Track shipping

Increase sales

Oversee manufacturing

Coordinate production

CorrectCorrect

Go to the next

question

Question #35Question #35

True or false: Larger, developed True or false: Larger, developed nations are huge proponents of nations are huge proponents of one way trade?one way trade?

FalseTrue

CorrectCorrect

Go to the next

question

Question #36Question #36

One assumption about Heckscher One assumption about Heckscher - Olin is that technology is - Olin is that technology is ___________ available.___________ available.

Universally

Selectedly

Not

CorrectCorrect

Go to the next

question

Question #37Question #37

Trade between countries is due to Trade between countries is due to _______ in the endowment _______ in the endowment factors of productionfactors of production

Similarities

Availability

Differences

CorrectCorrect

Go to the next

question

Question #38Question #38

The G8 countries are also called The G8 countries are also called ____________ countries?____________ countries?

Industrialized

New Industrialized

Developing

CorrectCorrect

Go to the next

question

Question #38Question #38

Which of the following is NOT a Which of the following is NOT a developed country?developed country?

Canada

Brazil

Israel

United States

CorrectCorrect

Go to the next

question

Question #39Question #39

Mercantilism believes that the only Mercantilism believes that the only source of true wealth is?source of true wealth is?

Expanding the Empire

Accumulation of precious

metals

Increasing Imports

CorrectCorrect

Go to the next

question

Question #40Question #40

In mercantilism, the driving force In mercantilism, the driving force to increase wealth was?to increase wealth was?

Building bigger ships

Imports from other

countries

Explore the new world

CorrectCorrect

Go to the next

question

Question #41Question #41

The Theory of Comparative The Theory of Comparative Advantage was developed by?Advantage was developed by?

David Ricardo

Eli Heckscher

Adam Smith

Alan Greenspan

CorrectCorrect

Go to the next

question

Question #42Question #42

Which is the hardest step in the Which is the hardest step in the process of beginning foreign process of beginning foreign trade?trade?

Exporting

Foreign production

facility

Foreign sales company

CorrectCorrect

Go to the next

question

Question #43Question #43

Income that is not directly Income that is not directly concerned with the control of a concerned with the control of a firm is called?firm is called?

Active Passive

CorrectCorrect

Go to the next

question

Question #44Question #44

Americans owned _____ in Americans owned _____ in foreign securities in 2002?foreign securities in 2002?

$4.65 billion

$2.9 trillion

$786 million

$1.84 trillion

CorrectCorrect

Go to the next

question

Question #45Question #45

With the first mover theory, first With the first mover theory, first mover companies normally hold mover companies normally hold _____ of the market share?_____ of the market share?

20%

40%

30%

75%

CorrectCorrect

Go to the next

question

Question #46Question #46

Which of the following is an new Which of the following is an new industrialized country?industrialized country?

Australia

China

Ghana

Mexico

CorrectCorrect

Go to the next

question

Question #47Question #47

The largest “investor” country in The largest “investor” country in the United States is?the United States is?

Canada China

JapanUnited

Kingdom

CorrectCorrect

Go to the next

question

Question #48Question #48

Specialized labor is a tenant of Specialized labor is a tenant of which economic theory?which economic theory?

Laffler Curve

Comparative Advantage

Absolute Advantage

CorrectCorrect

Go to the next

question

Question #49Question #49

What are the two main items firms What are the two main items firms want to increase when deciding want to increase when deciding to go abroad?to go abroad?

Profits / Sales

Imports & Market share

Exports & Workforce

CorrectCorrect

Go to the next

question

Question #50Question #50

Infant Industries will have a well Infant Industries will have a well trained _______________?trained _______________?

Export channels

Import process

Labor force

CorrectCorrect

Go to the next

question

Question #51Question #51

A country has an advantage in A country has an advantage in making a product when its making a product when its absolute disadvantage is less is absolute disadvantage is less is called?called?

Comparative Advantage

Absolute Advantage

CorrectCorrect

Go to the next

question

Question #52Question #52

The political global force of The political global force of business leads to the ______ of business leads to the ______ of trade barriers and _____ of the trade barriers and _____ of the global community?global community?

reductions / unification

Increase / socialization

Increase / separation

CorrectCorrect

Go to the next

question

Question #53Question #53

Fast growing, middle income Fast growing, middle income countries are called?countries are called?

Developed

Transition

New Industrialize

d

CorrectCorrect

Go to the next

question

Question #54Question #54

True / False: New Industrialized True / False: New Industrialized Countries import large amounts Countries import large amounts of manufactured goods and of manufactured goods and have a low concentration of have a low concentration of foreign investment?foreign investment?

TRUE FALSE

CorrectCorrect

Go to the next

question

Question #55Question #55

What was a special category of What was a special category of economic development created economic development created just for China?just for China?

Emerging market

economy

Transition country

CorrectCorrect

Go to the next

question

Question #56Question #56

True/False: In developing True/False: In developing countries, government legislated countries, government legislated fringe benefits are higher than fringe benefits are higher than other country types?other country types?

True FALSE

CorrectCorrect

Go to the next

question

Question #57Question #57

National Defense trade National Defense trade restrictions call for the _______ restrictions call for the _______ of important national industries?of important national industries?

De-regulation Exporting

Protection

CorrectCorrect

Go to the next

question

Question #58Question #58

True/False: Protection of infant True/False: Protection of infant industries is always long term industries is always long term and normally have a negative and normally have a negative effect?effect?

TRUE FALSE

CorrectCorrect

Go to the next

question

Question #59Question #59

True/False: Trade sanctions main True/False: Trade sanctions main goal is to hurt workers in the goal is to hurt workers in the offending nation?offending nation?

TRUE FALSE

CorrectCorrect

Go to the next

question

CongratulationsCongratulationsYou have complete the You have complete the

first portion of the first portion of the online review.online review.

Click here for more valuable

information

More Valuable More Valuable InformationInformation

Don’t forget that you need to Don’t forget that you need to know the Arguments for know the Arguments for

trade Restrictions (last page trade Restrictions (last page of chapter three notes)of chapter three notes)

Click on the house

if you want info

on the essay

questions

Essay Question InformationEssay Question Information

1) 1) International Product Life Cycle International Product Life Cycle (at least 12 points)(at least 12 points)

2) 2) Why is an international Why is an international workforce is beneficial to a workforce is beneficial to a global company (i.e. globalized global company (i.e. globalized workforce) workforce) Cirque du Soleil Cirque du Soleil video from classvideo from class

More Essay Info

More Essay InfoMore Essay InfoIf you want to re-watch the

Cirque du Soleil video from class, there will be a showing on Wednesday after school in Room 246 at 3:30.Click here for

more valuable essay

information

More Essay InfoMore Essay Info3) Table 2.2 (p 39) 3) Table 2.2 (p 39) tell me what it all means and tell me what it all means and

give me some numbers (interpret the table)give me some numbers (interpret the table)

4) Tables 2.11 & 2.12 (p54 & 55) 4) Tables 2.11 & 2.12 (p54 & 55) tell me what it tell me what it all means and give me some numbers (interpret all means and give me some numbers (interpret the table)the table)

Click here is you want to re-take the

review

Click here to

complete the

review

Good Work!Good Work!Good luck on the exam! Good luck on the exam!

It will be written part It will be written part on Thursday, essay on Thursday, essay

part on Friday!part on Friday!