The Nature of International Business and Cooperation among N

Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page
break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. Decision making in the international environment is _______ in a purely domestic environment.
A. about the same as
B. less complex than
C. more complex than
D. less demanding than
2. In 2010, only 23 nations had GNIs greater than
A. the sum of the GNIs of Japan, Germany, and France.
B. Walmart’s total annual sales.
C. the total sales of Exxon Mobil and Citigroup.
D. the sum of the combined sales of Ford and General Electric.
3. The United Nations organ involved in trade development, education, and health issues is the
A. Secretariat.
B. General Assembly.
C. Security Council.
D. Economic and Social Council.
4. The main drivers of globalization depend on
A. the foreign environment.
B. domestic growth.
C. change.
D. cultural differences.
5. An international business manager who bases decisions solely on his or her own experience or preference
is using
A. the self-reference criterion.
B. internalization theory.
C. controllable forces.
D. domestic standards.
6. The increased internationalization of business requires _______ to have a basic knowledge of
international business.
A. managers of multinationals
B. all managers
C. managers of transnationals
D. managers of purely domestic operations
7. A/An _______ is all forces influencing the life and development of the firm.
A. local population
B. group pool
C. environment
D. foreign exchange
8. When market demand and supply regulate the exchange rate with intervention designed to moderate the
rate of change, it’s called a/an
A. crawling peg.
B. independent float.
C. market method.
D. fixed peg.
9. What is an economy of scale?
A. The price of scales exceeds the cost of producing them.
B. The price of scales is lower than the cost of producing them.
C. As a plant gets larger, the average cost of producing a unit of output increases.
D. As a plant gets larger, the average cost of producing a unit of output decreases.
10. The idea that market forces, not government controls, should determine direction, volume, and the
composition of international trade came from
A. the Ottoman Empire.
B. Milton Friedman.
C. Adam Smith.
D. Salvador Allende.
11. The _______, a collaboration of nations pooling money to lend to countries in debt, is associated with
the United Nations.
A. IMF
B. IBRD
C. GATT
D. OECD
12. The Association of Southeast Asian Nations was formed to provide members with a
A. plan for mutual protection and peaceful relations.
B. common market.
C. way to join with China as a political force.
D. free trade area.
13. The organization established along with the IMF at the Bretton Woods meeting is the
A. United Nations.
B. Bank for International Settlements.
C. World Bank.
D. International Monetary Fund.
14. The _______ has had a central role as a main central reserve asset of many countries, as a vehicle
currency, and as an intervention currency.
A. U.S. dollar
B. yen
C. British pound
D. Euro
15. An import duty that’s a fixed percentage of the invoice value of an imported product is called a/an
_______ duty.
A. ad valorem
B. specific
C. invoice
D. compound
16. _______ can be divided into portfolio and direct investment.
A. Production
B. Exchange rate investment
C. Foreign investment
D. Domestic investment
17. Defining a standard unit of currency by its equivalent in gold is called
A. coinage.
B. the price specie flow.
C. the gold standard.
D. par value.
18. The exchange rate for a currency trade for delivery within two days is called the _______ rate.
A. cross
B. priority
C. spot
D. forward
19. Treasury and Central Bank representatives met in _______ at the end of World War II and established
the IMF, the World Bank, and the gold exchange standard.
A. Jamaica
End of exam
B. Berlin
C. Diekirch
D. Bretton Woods
20. Inflation is generally measured by calculating the changes in
A. the balance of payments of 10 nations.
B. interest rates.
C. exchange prices.

D. the prices of a variety of goods and services.