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Name CHAPTER 1--WE LIVE IN A GLOBAL ECONOMY Description Instructions
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Question 1
True/False
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Question An example of domestic business is when a person living in Canada buys a product made in Germany. Answer True False Add Question Here
Question 2
True/False
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Question Products sold by companies in the United States to customers in India are exports. Answer True False Add Question Here
Question 3
True/False
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Question International trade usually reduces the product choices available to consumers. Answer True False Add Question Here
Question 4
True/False
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Question When consumers in the United States buy products made in Poland, they are buying imported goods. Answer True False Add Question Here
Question 5
True/False
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Question Religious beliefs are not likely to influence international business activities. Answer True False Add Question Here
Question 6
True/False
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Question Import taxes are a form of trade barrier. Answer True False Add Question Here
Question 7
True/False
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Question Expanded international business activities make different types of jobs available for workers. Answer True False Add Question Here
Question 8
True/False
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Question International business makes it possible for a company to increase sales by selling to customers in other countries. Answer True False Add Question Here
Question 9
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Question Individuals, businesses, and countries all face the basic economic problem of limited resources to satisfy needs and wants. Answer True False
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Question 10
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Question International business can help to improve political relations among countries. Answer True False Add Question Here
Question 11
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Question International business started when many transportation and communication inventions occurred in the 1800s. Answer True False Add Question Here
Question 12
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Question Culture refers to the type of government of a country. Answer True False Add Question Here
Question 13
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Question Family relationships and religious activities influence the culture of a society. Answer True False Add Question Here
Question 14
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Question The availability of natural resources affects the economic conditions of a country. Answer True False Add Question Here
Question 15
True/False
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Question As a country expands its international trade activities, the choice of goods available to consumers in that country usually decreases. Answer True False Add Question Here
Question 16
Multiple Choice
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Question A global dependency exists when Answer massive crop failures require buying food from another country. a country buys tools from another country because it does not have the technology to make the tools. doctors travel to another country to provide healthcare because there is a shortage of medically-trained professionals in that country. all of the above Add Question Here
Question 17
Multiple Choice
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Question Historically, international business Answer is a relatively new concept made possible by communications technology. probably occurred as long as 15,000 years ago. declined when European countries created colonies on other continents. none of the above Add Question Here
Question 18
Multiple Choice Question All of the following are benefits of international business except Answer expanded business opportunities. increased sources of raw materials.
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decreased competition. improved political relationships. Add Question Here
Question 19
Multiple Choice
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Question Free trade among countries can be restricted by Answer import taxes. trade barriers. import quotas. all of the above Add Question Here
Question 20
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Question An example of a cultural factor that can affect international business is Answer the weather is too hot for selling ice cream products without refrigeration units. consumer protection laws require expensive packaging. the major religion prohibits the use of alcohol in any food products. none of the above Add Question Here
Question 21
Multiple Choice
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Question Of the following statements about international business and individual citizens, the one that is not true is Answer individual decisions may affect people in other parts of the world. international business usually decreases career opportunities. individual shopping habits have no effect on international business. international competition usually results in more product choices for individuals. Add Question Here
Question 22
Multiple Choice
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Question Business activities that occur within one country are called Answer foreign trade. domestic business. international business. free trade. Add Question Here
Question 23
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Question A country’s need to purchase food from other countries is an example of Answer exporting. domestic business. global dependency. a trade barrier. Add Question Here
Question 24
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Question An example of exporting would be Answer products made and sold in Japan. a European country’s tax on products made in other countries. products that were made in Poland and bought by Polish consumers. products sold by a company in Mexico for purchase by Italian consumers. Add Question Here
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Question 25
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Question An example of a trade barrier would be Answer efforts by a government to encourage exporting among businesses in its country. consumers who prefer to buy products from domestic companies rather than foreign companies. a limit on the number of foreign automobiles a country allows to be imported. a sales tax on products made and sold within a country. Add Question Here
Question 26
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Question A cultural factor affecting international business activities would be Answer the availability of natural resources. government policies toward business. stability of the money supply. family relationships. Add Question Here
Question 27
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Question A political factor affecting international business activities would be Answer the general education level of a country’s population. religious beliefs. the type of government. a country’s commonly used language. Add Question Here
Question 28
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Question The economic conditions of a country refer to its Answer type of government. decisions regarding the use of resources. social relationships among the country’s people. policies toward regulation of business. Add Question Here
Question 29
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Question International business most commonly affects consumers by creating Answer a greater variety of buying choices. fewer buying choices. a change in taxes. fewer stores to shop in. Add Question Here
Question 30
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Question Voting for public officials who want to expand foreign trade is part of a person’s role as a Answer business owner. consumer. worker. citizen. Add Question Here
Question 31
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Question When a company in one country sells its products in another country, these products are called ____________________. Answer exports
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Question 32
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Question When a company buys products from a company in another country, these products are called ____________________. Answer imports Add Question Here
Question 33
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Question When goods and services are made, bought, and sold within one country, ____________________ business is being conducted. Answer domestic Add Question Here
Question 34
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Question An example of _________________________ is when people in one country need to buy wheat from another country because they cannot produce enough of it themselves. Answer global dependency Add Question Here
Question 35
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Question The accepted behaviors, customs, and values of a society are referred to as that society’s ____________________. Answer culture Add Question Here
Question 36
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Question _________________________ refers to the activities necessary for creating, shipping, and selling goods and services across national borders. Answer International business Add Question Here
Question 37
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Question Often countries enact ____________________ that are restrictions that reduce free trade among countries. Answer trade barriers Add Question Here
Question 38
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Question Regulation of fair advertising, enforcement of contracts, and consumer safety laws are examples of how ____________________ influences business. Answer government Add Question Here
Question 39
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Question Everyone faces the basic economic problem of how to use ____________________ to satisfy wants and needs. Answer limited resources Add Question Here
Question 40
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Question An individual influences international business in three roles, acting as a global citizen, global worker, and global ____________________. Answer consumer Add Question Here
Question 41
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Question Businesses face the problem of limited resources to satisfy needs and wants; how do individuals face the same problem? Answer Individuals continually make decisions about the use of time, money, and energy. Add Question Here
Question 42
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Question Why is world peace important to international trade? Answer War between nations disrupts the exchange of goods and services. Add Question Here
Question 43
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Question How does international business affect individual workers? Answer International business usually expands opportunities for workers because increases in business require additional workers and even new responsibilities for existing workers. Add Question Here
Question 44
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Question Explain how you can purchase an item in a store in your neighborhood and still participate in international business. Answer The neighborhood store may sell items manufactured in other countries and then exported to your country. Add Question Here
Question 45
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Question What are four factors that influence a country’s international business environment? Answer Geographic conditions, cultural and social factors, political and legal factors, and economic conditions. Add Question Here
Question 46
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Question How does the level of technology in a country affect its economic condition? Answer The level of technology affects a country’s ability to both produce and distribute goods and services; lower levels of technology decrease the ability to produce and distribute goods and services. Add Question Here
Question 47
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Question Describe three reasons why international business is important. Answer Answers should include three of the following points: (1) to allow consumers to buy products that are only available from other countries; (2) to expand business opportunities beyond domestic markets; (3) to create new investment opportunities for investors; (4) to improve political relations between countries through mutual understanding, communication, and respect among people in other nations. Add Question Here
Question 48
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Question Describe how geographic conditions—the climate, terrain, seaports, and natural resources—of a country can influence its business decisions. Answer Answers should include the following concepts: (1) climate can affect the types of crops that can be grown and even the types of businesses that can operate in that climate; (2) terrain can affect how goods are shipped to other locations; (3) seaports enable companies to easily ship products for foreign trade; (4) an abundance of natural resources expands the ability of domestic businesses to produce a wide variety of goods, while a scarcity of natural resources make a country more dependent on imports. Add Question Here
Question 49
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Question Describe four subject areas or skills that are important to international business and explain why they are important. Answer Answers should include four of the following subjects/skills: (1) history—awareness of the past helps you better understand today’s international business relations; (2) geography helps you understand how the climate and terrain of a country affects transportation, housing, and other business activities; (3) foreign language knowledge enables you to communicate effectively with people from other societies to conduct efficient business activities; (4) cultural awareness skills allow people to be more sensitive to customs and traditions of other societies in order to make sound business decisions; (5) study skills add the ability to keep up to date on changes in international factors that affect international business. Add Question Here
Question 50
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Question Describe four different historical time periods in which international business activities occurred. Answer Answers should include four of the following periods: (1) trade between China, India, and Japan, and African and South American thousands of years ago; (2) Greek and Middle Eastern merchants in 5th century BCE; (3) Roman Empire for 600 years; (4) Arab Empire, Holy Roman Empire, Viking explores; (5) European sea trade from the 11th century on; (6) colonization from 1500-1900; inventions that expanded interest and opportunities from 1769 to 1915. Add Question Here
