Deck 2: Global Marketplaces and Business Centers

Question 1

About what percentage of the world's 500 largest corporations in 2012 were headquartered in the United States?

A) 12 percent
B) 19 percent
C) 26 percent
D) 45 percent

Answer 1

C

Question 2

In the twenty-first century, growth rates in ________ have outpaced those in ________.

A) the United States and China; India and Japan
B) Canada and Japan; Germany and the United States
C) Japan and India; China and Canada
D) China and India; Germany and Japan

Answer 2

D

Question 3

Companies doing international business are more likely to be successful when they ________.

A) conduct frequent performance appraisals
B) understand local market characteristics
C) employ primarily local managers
D) rely on experienced expatriates

Answer 3

B

Question 4

When a firm makes a sale of goods denominated in Japanese yen, the yen is referred to as ________.

A) flight capital
B) export capital
C) the invoicing currency
D) the transaction currency

Question 5

Which country listed below commonly attracts flight capital?

A) Germany
B) Canada
C) the United States
D) Singapore

Question 6

U.S. exports of goods and services in 2016 accounted for about ________ percent of U.S. GDP.

A) 12
B) 23
C) 30
D) 45

Question 7

Which country has the highest per capita income in North America?

A) the United States
B) Central America
C) Canada
D) Mexico

Question 8

Under the United Nations Convention on the Laws of the Sea, countries are given control over navigation within ________ of the coastline.

A) one mile
B) five miles
C) twelve miles
D) twenty miles

Question 9

Which of the following aspects about Canada is a concern to many international investors?

A) legal system instability
B) separatist movement
C) weak infrastructure
D) education system

Question 10

What is London's origin as a world financial center?

A) military power of the British Empire in the nineteenth century
B) influence of royalty on the city's reputation
C) rule over several former American colonies
D) prestige of the London Stock Exchange

Question 11

The prime market for lower-income countries that are trying to raise their living standards through exports is ________.

A) the United States
B) Japan
C) Germany
D) China

Question 12

Approximately ________ of the world's current economic activity is concentrated in North America, the EU, and Japan.

A) 24 percent
B) 46 percent
C) 57 percent
D) 72 percent

Question 13

Which of the following is a member of the Arctic Council?

A) France
B) Singapore
C) Finland
D) Mexico

Question 14

Which of the following is true of Mexico?

A) It is the world's third-largest Spanish-speaking nation.
B) It has increased its protectionist measures in recent years.
C) It has been promoting the privatization of multiple industries.
D) It has refused to sign free trade pacts with El Salvador, Guatemala, and Honduras.

Question 15

________ is the money sent out of a politically or economically unstable country to one perceived as a safe haven.

A) Invoicing currency
B) Flight capital
C) Capital substitution
D) Foreign currency

Question 16

One likely consequence of the diminishing Arctic ice cap is ________.

A) less war
B) more affordable utility rates for lesser-developed nations
C) an increase in regional tourism
D) the creation of the Northwest Passage

Question 17

The countries of North America produce approximately ________ percent of the world's output.

A) 18
B) 29
C) 45
D) 52

Question 18

________ is the currency in which the sale of goods and services is denominated.

A) Flight capital
B) Euro currency
C) Invoicing currency
D) Capital substitution

Question 19

Which of the following markets has the GREATEST impact on the world's current economic activity?

A) United States
B) European Union
C) China
D) Japan

Question 20

________ is the dominant market for Canadian goods.

A) The European Union
B) The United States
C) China
D) Mexico

Question 21

Countries designated "middle income" have per capita incomes of ________.

A) less than $995
B) between $1,025 and $12,476
C) between $12,477 and $23,221
D) between $23,222 and $34,021

Question 22

ITX Enterprises, an electronics firm, plans to open a new manufacturing facility. Managers are considering building the new plant in Canada. Which of the following is a risk associated with a Canadian expansion?

A) unstable federal and state governments
B) inadequate secondary education systems
C) political instability related to language conflicts
D) shrinking supply of natural resources for exporting

Question 23

Like France, the United Kingdom is a strong supporter of protectionist policies.

Question 24

Which country possesses the world's largest economy? Why do you think international trade is such a small component of the U.S. economy?

Question 25

Money sent out of a politically or economically unstable country to one perceived as a safe haven is known as protected capital.

Question 26

What is the Organization for Economic Cooperation and Development?

Question 27

What is flight capital? Why does the United States attract flight capital?

Question 28

Over the last two decades, Mexico has been relatively closed to foreign goods and investors.

Question 29

By evaluating the income level of a nation, a firm can assess the purchasing power of citizens and the status of the public infrastructure.

Question 30

Parker Manufacturing is considering relocating its headquarters from its current location in Vancouver, British Columbia. Executives at Parker want the firm to be located with the majority of other MNCs in the world. Which location would be most appropriate?

A) Zurich
B) Boston
C) Tokyo
D) London

Question 31

The world's most populous Spanish-speaking nation is ________.

A) Spain
B) Brazil
C) Mexico
D) China

Question 32

The single largest bilateral trading relationship in the world is between the United States and Canada.

Question 33

International trade accounts are a major part of the U.S. economy.

Question 34

Where is the majority of the world's current economic activity conducted?

Question 35

China possesses the world's largest economy.

Question 36

Over 30 OECD's members are all classified as high-income countries.

Question 37

Define the term invoicing currency.

Question 38

How important is international trade to the U.S. economy? Which country is the largest trading partner to the United States?

Question 39

Brampton Industries has a facility in a country that has been designated by the World Bank as middle-income. Which of the following is the most likely location of Brampton's plant?

A) Costa Rica
B) Turkey
C) Latvia
D) Rwanda

Question 40

The currency in which the sale of goods and services is denominated is the invoicing currency.

Question 41

The Newly Independent States refers to the ________.

A) Central European countries
B) former Soviet republics
C) largest African nations
D) Four Tigers

Question 42

As of 2018, how many countries participate in the European Union's common currency, the euro?

A) 12
B) 19
C) 22
D) 27

Question 43

The European Union is comprised of ________ countries, after the withdrawal of the United Kingdom.

A) 12
B) 15
C) 22
D) 27

Question 44

The European Union accounted for about ________ in GDP in 2016.

A) 6 trillion dollars
B) 17 trillion dollars
C) 35 trillion dollars
D) 79 trillion dollars

Question 45

All European Union member countries share a common currency-the euro.

Question 46

Who was Russia's first democratically elected president?

A) Mikhail Baryshnikov
B) Mikhail Gorbachev
C) Boris Yeltsin
D) Vladimir Putin

Question 47

The Czech Republic, Hungary, and Poland are classified as high-income countries by the World Bank.

Question 48

Which EU country has drawn criticism for promoting an agenda of economic nationalism, and in particular, for protecting its farmers under the guise of the Common Agricultural Policy?

A) Germany
B) France
C) Italy
D) Spain

Question 49

Who was responsible for introducing glasnost and perestroika to the Soviet Union?

A) Czar Nicholas II
B) Boris Yeltsin
C) Vladimir Putin
D) Mikhail Gorbachev

Question 50

A small to medium, family-owned enterprise, often located in a small German town is known as ________.

A) keiretsu
B) perestroika
C) glasnost
D) mittelstand

Question 51

As a manager, why do you need to understand global marketplaces and business centers? Why should you also have an understanding of international income data?

Question 52

Hawthorne Enterprises, an Australian firm, has plans to open a manufacturing facility in France next year. Some executives at the firm are unhappy with this decision, most likely because France ________.

A) opposes human rights legislation
B) promotes economic nationalism
C) refuses to switch to the euro
D) advocates free trade

Question 53

How have reforms in India and Mexico altered the economies of both countries?

Question 54

Which of the following has achieved high-income status according to the World Bank?

A) the Czech Republic
B) Mexico
C) Chile
D) Turkey

Question 55

Switzerland is a long-standing member of the European Union.

Question 56

What is the most likely reason that Germany is considered the most important member of the EU?

A) Germany has the world's fourth largest economy.
B) Germany's government promotes human rights.
C) Germany initially suggested developing the EU.
D) Germany uses a codetermination system.

Question 57

Which of these countries is not a member of the EU?

A) Austria
B) Monaco
C) Norway
D) Portugal

Question 58

Russia's major natural resources include which of the following?

A) aluminum
B) natural gas
C) vermiculite
D) grain

Question 59

Why would a global firm most likely consider the Middle East a risky marketplace? As a global manager, how would you determine if the benefits in the Middle East outweighed the risks?

Question 60

What country holds the world's largest land mass?

A) the United States
B) Russia
C) China
D) Canada

Question 61

All of the following except ________ are typical exports from New Zealand.

A) dairy products
B) computer technology
C) kitchen appliances
D) petroleum

Question 62

The World Bank classifies the Four Tigers as ________.

A) developing
B) middle-income
C) newly developed
D) high-income

Question 63

What are import and export substitution policies? How have these policies affected Asian and South American markets?

Question 64

Soviet leader Boris Yeltsin's 1986 political reform initiatives of glasnost and perestroika led to significant changes in the region's political, economic, and social environment of Russia.

Question 65

What is the Commonwealth of Independent States? What is its purpose?

Question 66

What do perestroika and glasnost mean? How do these concepts relate to the Russian economy?

Question 67

All of the countries that were aligned with the former Soviet Union are classified as lower-income countries.

Question 68

The Japanese term sogo shosha refers to a(n) ________.

A) major Japanese bank
B) family of interrelated companies
C) export trading company
D) supplier

Question 69

Samsung, Hyundai, Daewoo Group, and LG are all examples of ________.

A) chaebol
B) keiretsu
C) glasnost
D) sogo shosha

Question 70

What caused South Korea's economic growth to suddenly slow in 1997-1998?

A) collapse of the chaebol
B) return to Communist rule
C) Asian currency crisis
D) import substitution policies

Question 71

The Korean term chaebol refers to ________.

A) a family-based conglomerate
B) workplace harmony
C) economic restructuring
D) cooperative banks

Question 72

What is the most likely reason that Taiwanese businesses are increasingly investing in Chinese factories?

A) demand for automated manufacturing
B) need for low-wage workers
C) government requirements
D) need for additional land

Question 73

Which of the following is most likely a true statement about New Zealand?

A) The country prohibits privatization in most industries.
B) Most of the country's population lives on the South Island.
C) The country primarily relies on its gold and coal resources.
D) Merchandise trade is extremely important to the country's GDP.

Question 74

The Japanese term keiretsu refers to a(n) ________.

A) major Japanese bank
B) family of interrelated companies
C) export trading company
D) supplier

Question 75

The Republic of China is most commonly known as ________.

A) Taiwan
B) Vietnam
C) Hong Kong
D) Singapore

Question 76

Which of the countries listed below is considered one of the Four Tigers?

A) North Korea
B) Indonesia
C) Taiwan
D) China

Question 77

The Four Tigers are also called ________.

A) newly industrialized countries
B) newly independent states
C) commonwealth of independent states
D) commonwealth of industrialized countries

Question 78

Which country is an undeveloped nation?

A) Cambodia
B) Costa Rica
C) India
D) Somalia

Question 79

Twelve of the 15 Newly Independent States established a forum called the Commonwealth of Independent States.

Question 80

Immediately following World War II, Japan's Ministry for International Trade and Investment encouraged firms to concentrate on ________.

A) steel and shipbuilding
B) automobiles and electronics
C) financial services
D) apparel and footwear