Ch17 Globalization And International Business Full Test Bank

Exploring Management, 7e (Schermerhorn)

Chapter 17 Globalization and International Business

1) ________ is the process of growing interdependence among elements of the global economy.

A) Nationalization

B) Industrialism

C) Globalization

D) Internationalism

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

2) The creation of domestic jobs by foreign employers is called ________.

A) insourcing

B) outsourcing

C) international operation

D) strategic alliance

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

3) A(n) ________ economy is one in which resources, markets, and competition are worldwide in scope.

A) foreign

B) domestic

C) outsourced

D) global

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

4) A company that conducts business across national boundaries is called a(n) ________.

A) global industry

B) international business

C) trade association

D) conglomerate

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Businesses Go Global for Many Reasons.

AACSB: Analytic

5) ABC Manufacturers conducts commercial transactions across national boundaries. ABC Manufacturers would be classified as a(n) ________.

A) large business

B) franchise

C) international business

D) foreign licensed company

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Businesses Go Global for Many Reasons.

AACSB: Reflective Thinking

6) The reasons why businesses go global include all of the following EXCEPT ________.

A) expanding profit potential

B) gaining access to more customers

C) specializing products and services

D) lowering the cost of materials and supplies

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Businesses Go Global for Many Reasons.

AACSB: Analytic

7) ________ takes advantage of international wage and pricing gaps by contracting for low-cost goods and services in foreign locations.

A) Insourcing

B) Exporting

C) Global sourcing

D) Reshoring

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

8) A ________ is a network of a firm's outsourcing suppliers and contractors.

A) foreign supply chain

B) global supply chain

C) joint venture

D) partnership

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

9) ________ moves foreign production and jobs back to domestic locations.

A) Outsourcing

B) Insourcing

C) Reshoring

D) Offshoring

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

10) Which of the following terms is used to describe the selling of locally made products in foreign markets?

A) Importing

B) Greenfield venturing

C) Outsourcing

D) Exporting

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

11) ABC Manufacturing, a company based in the United States, buys products from China and sells them in U.S. markets. This practice refers to ________.

A) importing

B) insourcing

C) exporting

D) franchising

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Reflective Thinking

12) Businesses go global for all of the following reasons EXCEPT ________.

A) to reduce the number of domestic customers

B) to increase profits through expanded operations

C) to increase access to low-cost, talented workers

D) to increase access to products, services, and materials

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Businesses Go Global for Many Reasons.

AACSB: Analytic

13) Which of the following is a direct investment strategy?

A) Global sourcing

B) Joint ventures

C) Exporting

D) Licensing

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

14) Rhianna paid a fee for rights to make and sell another company's products in her region. Which of the following market entry approaches to international business has Rhianna used?

A) Exporting

B) Importing

C) Franchising

D) Licensing

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Reflective Thinking

15) Global sourcing primarily involves ________.

A) exporting products for sale

B) purchasing materials, manufacturing, or services from around the world for local use

C) selling a foreign firm the right to make your products

D) building a plant to produce goods for sale in foreign countries

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

16) When a firm grants licenses internationally, it is giving foreign companies access to its ________.

A) technologies, patents, or trademarks

B) facility designs and equipment

C) product ingredients

D) management systems

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

17) One of the business risks of licensing is ________.

A) outsourcing

B) franchising

C) counterfeiting

D) terrorism

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

18) When a firm grants franchising rights to a foreign firm, it is giving the foreign firm access to its ________.

A) unique manufacturing technology

B) domestic markets

C) headquarters and travel bonuses

D) name and operating methods

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

19) The payment of a fee to use another firm's name and operating methods is called ________.

A) licensing

B) franchising

C) importing

D) leasing

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

20) Which of the following operates in a foreign country through co-ownership with local partners?

A) Franchise

B) Wholly owned subsidiary

C) Joint venture

D) Licensed venture

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

21) ABC Co. in China wants to market their products in Brazil. Armed with the design and manufacturing capability, ABC looks for a company with the distribution channels and knowledge of the Brazilian culture necessary to market their products. After conducting research, ABC decides to form a partnership with XYZ Inc. in Brazil. The Chinese and Brazilian companies will co-own and operate the Brazilian operation. In this scenario, ABC Co. forms a(n) ________ with XYZ Inc.

A) franchise

B) joint venture

C) licensing agreement

D) operating subsidiary

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Reflective Thinking

22) A joint venture arrangement usually involves all of the following EXCEPT ________.

A) pooling resources

B) sharing risks

C) jointly operating the venture

D) one firm buying out the other firm

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

23) A ________ establishes a foreign subsidiary by building an entirely new operation in a foreign country.

A) joint venture

B) strategic alliance

C) greenfield venture

D) franchise

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

24) Over time, partners' goals in a ________.

A) foreign subsidiary always match

B) foreign subsidiary do not always match

C) joint venture always match

D) joint venture do not always match

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

25) A ________ is a local operation completely owned by a foreign firm.

A) foreign partnership

B) franchise

C) foreign subsidiary

D) licensee

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

26) The ________ is a global institution established to promote free trade and open markets around the world.

A) International Monetary Fund

B) World Bank

C) World Trade Organization

D) U.S. Chamber of Commerce

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

27) If Japan receives the best treatment for imports and exports with other countries, Japan will be said to have a(n) ________ status.

A) international

B) nontariff barrier

C) greenfield venture

D) most favored nation

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Reflective Thinking

28) When a foreign country unfairly taxes a U.S. business, the U.S. government can help by appealing to the ________.

A) European Union

B) World Trade Organization

C) World Bank

D) United Nations

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

29) If Brazil calls for tariffs and favorable treatment for protecting its domestic firms from foreign competition, this is ________.

A) idealism

B) internationalism

C) globalism

D) protectionism

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

30) Which of the following is a nontariff barrier that discourages imports?

A) Taxes

B) Ad valorem duty

C) Quotas

D) Customs

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

31) ________ created a trade zone that frees the flows of goods and services, workers, and investments among the United States, Canada, and Mexico.

A) APEC

B) NAFTA

C) The EU

D) SADC

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

32) The ________ is both a regional economic and political alliance that comprises ________ countries.

A) EU; 13

B) EU; 27

C) APEC; 13

D) APEC; 27

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

33) The European Union has ________ members.

A) 23

B) 27

C) 31

D) 35

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

34) The ________ links 14 southern African countries in trade and economic development efforts to improve prosperity and living standards for their citizens.

A) African Union

B) Southern African Customs Union

C) Trade Union Council of South Africa

D) Southern Africa Development Community

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

35) A ________ has extensive international business dealings in many foreign countries.

A) conglomerate

B) wholly owned subsidiary

C) partnership

D) multinational corporation

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Global corporations or MNCs do substantial business in many countries.

AACSB: Analytic

36) When large global firms gain disproportionately from the global economy versus smaller firms, it creates a ________.

A) most favored nations status

B) currency risk

C) nontariff barrier

D) globalization gap

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

37) All of the following are MNC complaints about host countries EXCEPT ________.

A) profit limitations

B) overpriced local resources

C) economic domination

D) restrictive government rules

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

38) The Foreign Corrupt Practices Act prevents U.S. firms from ________.

A) paying or offering bribes excess commissions in return for business favors

B) using sweatshops to produce goods for sale in the U.S.

C) employing child labor in plants that make goods for U.S. markets

D) participating in unsustainable development in third world countries

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Analytic

39) ________ are firms that employ workers at very low wages, for long hours, and in poor working conditions.

A) Subsidiaries

B) Joint ventures

C) Multinational corporations

D) Sweatshops

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Analytic

40) ________ is the full-time employment of children for work otherwise done by adults.

A) Protectionism

B) Child labor

C) Global sourcing

D) Greenfield venturing

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Analytic

41) Currency risk is possible profit ________.

A) loss due to assets spread among multiple countries

B) from new laws and economic policies

C) loss due to fluctuations in foreign exchange rates

D) from nationalization of foreign assets

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Analytic

42) ABC Inc., a company based in the United States, operates a subsidiary in Egypt. ABC is dealing with a loss of investment and control over its assets in Egypt due to instability and political changes. Which of the following is ABC Inc. facing?

A) Cultural integration issues

B) Globalization

C) Political risk

D) Competitive threat

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Reflective Thinking

43) When Bolivia's president nationalized the oil and gas industry without consideration for the foreign companies operating there, the loss to the foreign countries was considered a ________ risk.

A) national

B) currency

C) global

D) political

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Analytic

44) ________ forecasts how political events may have an impact on foreign investments.

A) Currency analysis

B) Political risk analysis

C) Analytical forecasting

D) International forecasting

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Analytic

45) Companies use tin, tungsten, gold, and tantalum to make phones, tablets, and other smart devices. When these scarce materials are mined in countries like the Democratic Republic of Congo, the profits help warlords and perpetuate strife. This is an example of a(n) ________ material.

A) smart

B) protected

C) conflict

D) inversion

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Conflict minerals.

AACSB: Analytic

46) The two main ways of organizing multinational corporations for global operations are global ________ structures.

A) economy and risk

B) area and economy

C) product and market

D) area and product

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Organizing can be difficult in global corporations.

AACSB: Analytic

47) Products For You Inc. (PFY) is an international company with five presidents in charge of its American, European, African, Asian, and ROW (rest of the world) operations. PFY uses a global ________ structure to organize its international operations.

A) area

B) matrix

C) product

D) vertical

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Organizing can be difficult in global corporations.

AACSB: Reflective Thinking

48) ________ managers are those who are aware of international developments and competent in working across cultures.

A) Protected

B) National

C) Global

D) Foreign

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Leading is challenging in global corporations.

AACSB: Analytic

49) Which of the following is NOT a universal facilitator of leadership success?

A) Autocratic

B) Communicative

C) Informed

D) Trustworthy

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Leading is challenging in global corporations.

AACSB: Analytic

50) Which of the following is a universal inhibitor of leadership success?

A) Confidence

B) Culturally sensitive

C) Inspiring

D) Irritable

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Leading is challenging in global corporations.

AACSB: Analytic

51) In the global economy, resources, markets, and competition are worldwide in scope.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

52) Importing is the process of buying goods from foreign companies and selling them overseas.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

53) In global sourcing, firms purchase finished products from around the world for selling them in domestic markets.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

54) A foreign subsidiary is a local operation in which a foreign firm owns at least 51 percent.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

55) Franchising involves selling the right to use your name and operating methods to foreign companies.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

56) A foreign subsidiary can be created either by buying out an existing firm or by building a new operation from scratch.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

57) The World Trade Organization has 90 members.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

58) Most multinational corporations retain strong national identities even while operating around the world.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Global corporations or MNCs do substantial business in many countries.

AACSB: Analytic

59) Being a loner, acting uncooperative, and being irritable are universal inhibitors of leadership success.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Leading is challenging in global corporations.

AACSB: Analytic

60) ________ is the creation of domestic jobs by foreign employers.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

61) The process of growing interdependence among elements of the global economy is known as ________.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

62) The form of international business involving the sale of locally made goods in foreign markets is called ________.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

63) A(n) ________ operates in a foreign country through co-ownership with local partners.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

64) A local operation that is completely owned and controlled by a foreign firm is called a(n) ________.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

65) The acronym WTO stands for a global institution called the ________.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

66) MNC is an acronym that stands for ________.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Global corporations or MNCs do substantial business in many countries.

AACSB: Analytic

67) ________ is a call for tariffs and favorable treatments to protect domestic firms from foreign competition.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

68) The term ________ describes places in which employees work at low wages for long hours in poor, and often unsafe, working conditions.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Analytic

69) ________ is the possible loss of profits because of fluctuations in foreign exchange rates.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Analytic

70) ________ forecasts how political events may have an impact on foreign investments.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Analytic

71) What are the pros and cons of conducting business internationally?

Learning Objective: 17.1: Discuss How Globalization Affects International Business.; 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Globalization creates a variety of international business opportunities.; Different legal systems and economic nationalism pose international business challenges.; The actions of global corporations can be controversial.; Planning and controlling are complicated in global corporations.; Leading is challenging in global corporations.

AACSB: Reflective Thinking

72) Distinguish between franchising and licensing.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Reflective Thinking

73) Differentiate between a joint venture and a foreign subsidiary.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Reflective Thinking

74) Define and differentiate between multinational and transnational corporations.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Global corporations or MNCs do substantial business in many countries.

AACSB: Reflective Thinking

75) Do you believe that the Foreign Corrupt Practices Act (FCPA) puts U.S. firms conducting business internationally at a competitive disadvantage? Give reasons.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Reflective Thinking

76) ________ sourcing shifts local jobs abroad as businesses take advantage of lower labor costs and lower prices for products services in foreign countries.

A) Foreign

B) Domestic

C) Out

D) Global

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

77) KingPillows Inc., a company headquartered in the United States, decides to purchase its feathers and have the pillows crafted in China because they provide the cheapest feathers and lowest wages. This is an example of ________.

A) insourcing

B) outsourcing

C) reshoring

D) licensing

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

78) Boeing purchases its wings and center fuselage from Japan, its engines from the U.K. and Canada, and its doors from Sweden. This is an example of ________.

A) global sourcing

B) exporting

C) insourcing

D) reshoring

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

79) ________ are/is a direct investment strategy of international businesses.

A) Exporting and importing

B) Foreign subsidiaries

C) Global sourcing

D) Licensing and franchising

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

80) Social upheavals and political pressures are combining to make cost-benefit economics much more favorable to ________ initiatives; it ________ easy to accomplish this task.

A) global sourcing; is

B) global sourcing; is not

C) reshoring; is

D) reshoring; is not

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

81) ________ is a desire for self-sufficiency and less dependence on foreign suppliers of essential goods and services.

A) Economic nationalism

B) Protectionism

C) Most favored nation status

D) A non-tariff barrier request

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

82) The ________ replaced NAFTA in 2020 to include a 16-year expiration date and formal reviews to be conducted every ________ years.

A) SADC; 6

B) SADC; 10

C) USMCA; 6

D) USMCA; 10

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

83) The ________ links 21 nations to promote free trade and investment in the Pacific region.

A) APEC

B) NAFTA

C) EU

D) SADC

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

84) APEC has ________ members.

A) 21

B) 26

C) 33

D) 42

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

85) A(n) ________ corporation is a multinational corporation that operates worldwide on a borderless basis.

A) ethical

B) limited liability

C) transnational

D) wholly owned

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Global corporations or MNCs do substantial business in many countries.

AACSB: Analytic

86) The globalization gap supports ________.

A) nontariff barriers

B) protectionism

C) tax inversion

D) transnational identification

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

87) Multinational corporations may complain that a host country ________.

A) fails to respect the corporations customs

B) keeps them from hiring the best talent

C) overprices local resources

D) uses unfair practices like below-cost pricing

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

88) A host country may complain that a multinational corporation ________.

A) makes too much profit

B) imposes restrictive rules

C) overprices local resources

D) favors protectionism

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

89) Which of the following is NOT an accusation home countries often make of multinational corporations?

A) Lack of social responsibility in the home country

B) Tax inversion

C) Bribery and corruption in foreign business settings

D) Protectionism

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

90) ________ inversion is when a U.S.-based multinational corporation buys a firm in a low-tax country to shield foreign earnings from U.S. taxes.

A) Accounting

B) Earnings

C) Tax

D) W2

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

91) The Foreign Corrupt Practices Act is an example of ________.

A) cultural imperialism

B) cultural relativism

C) ethical imperialism

D) ethical relativism

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Analytic

92) ________ minerals are ones where wealth gained from their sale helps pay for armed violence.

A) Conflict

B) Protected

C) Global

D) War

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Conflict minerals.

AACSB: Analytic

93) Protectionism is the process of growing interdependence among elements of the global economy.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

94) COVID-19 highlighted the benefits and strengths of global sourcing particularly in the healthcare industry.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Globalization increases interdependence of the world's economies.

AACSB: Analytic

95) IKEA is an example of an international business.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Businesses go global for many reasons.

AACSB: Analytic

96) Global sourcing takes advantage of international wage and pricing gaps by contracting for low-cost goods and services in foreign locations.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

97) A greenfield venture is a network of a firm's outsourcing suppliers and contractors.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

98) If global supply chains had been more diversified, the effects of the COVID-19 pandemic may not have been as severe.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

99) Reshoring will replace global sourcing in the next year or two because of economic nationalism.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

100) In licensing, one firm pays a fee for rights to make or sell another company's products.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Export/Import, licensing, and franchising are market entry approaches to international business.

AACSB: Analytic

101) In a joint venture, each partner hopes to get from the alliance things they could not do or would have a difficult time doing alone; over time, the partners' goals usually become more aligned.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Joint ventures and wholly owned subsidiaries are direct investment approaches to international business.

AACSB: Analytic

102) An international business has its headquarters in the U.S. When it is doing business in Europe or China, it should still follow the rules for the U.S. since it is a U.S. business.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

103) The issue of intellectual property (for example, movie and music downloads) is a particularly sensitive international business issue.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

104) Protectionism is a desire for self-sufficiency and less dependence on foreign suppliers of essential goods and services.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

105) Tariffs are taxes governments levy on imports from abroad.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

106) The USMCA replaced APEC in 2020.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

107) Brexit and the travel restrictions and economic nationalism have stressed the EU alliance and raised questions about its future.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

108) Gazprom, Total, and Caterpillar are multinational corporations.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Global corporations or MNCs do substantial business in many countries.

AACSB: Analytic

109) Tax inversion is when a Chinese-based transnational corporation buys a firm in the U.S. to shield foreign earnings from Chinese taxes.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

110) Global corporations and the host country always benefit from the relationship.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

111) The globalization gap is where large global firms gain proportionately from the global economy versus smaller firms.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

112) Corruption involves illegal practices to further one's business interests.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Analytic

113) Critics of the Foreign Corrupt Practices Act claim it puts U.S. companies at a competitive disadvantage because they cannot offer the same deals as businesses from the host country because those businesses are able to engage in standard business practices like bribery.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Analytic

114) A business that has unclean, overflowing toilets and food on the floor may be a sweatshop.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Managers of global corporations face a variety of ethical challenges.

AACSB: Analytic

115) U.S. companies currently have to certify sourced materials are "conflict free".

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Conflict materials.

AACSB: Analytic

116) Currency risk is possible profit loss because of fluctuating inflation rates.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Analytic

117) Political risk is possible loss because of instability and political changes in foreign countries.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Analytic

118) Global product structure gives worldwide responsibilities to product group managers who are assisted by area specialists on the corporate staff.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Organizing can be difficult in global corporations.

AACSB: Analytic

119) Global area structure and global decentralized structure are the two possible choices for organizing a multinational corporation.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Organizing can be difficult in global corporations.

AACSB: Analytic

120) A global manager is culturally aware and informed on international affairs.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Leading is challenging in global corporations.

AACSB: Analytic

121) A truly internationalized manager is culturally sensitive and aware, inquisitive, and writes about international events and complexity in our ever-changing world.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Leading is challenging in global corporations.

AACSB: Analytic

122) A(n) ________ conducts commercial transactions across national boundaries.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Businesses go global for many reasons.

AACSB: Analytic

123) A(n) ________ is a network of a firm's outsourcing suppliers and contractors.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

124) ________ moves foreign production and jobs back to domestic locations.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Global sourcing is a common international business activity.

AACSB: Analytic

125) Nontariff barriers are ________ policies that governments enact to discourage imports, such as quotas and import restrictions.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

126) ________ is a call for tariffs and favorable treatments to protect domestic firms from foreign competition.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Different legal systems and economic nationalism pose international business challenges.

AACSB: Analytic

127) In ________, the United States, Canada, and Mexico agreed to replace NAFTA with the USMCA.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

128) Brexit is Britain's exit from ________.

Learning Objective: 17.1: Discuss How Globalization Affects International Business.

Section Reference: Regional economic alliances shape the international business context.

AACSB: Analytic

129) ________ is when a U.S.-based multinational corporation buys a firm in a low-tax country to shield foreign earnings from U.S. taxes.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: The actions of global corporations can be controversial.

AACSB: Analytic

130) ________ are ones where wealth gained from their sale helps pay for armed violence.

Learning Objective: 17.2: Explain the Challenges and Controversies Facing Global Corporations.

Section Reference: Planning and controlling are complicated in global corporations.

AACSB: Analytic

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