International Business: The New Realities 5th edition by S Tamer Cavusgil test bank
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
15) Bethany presents another opportunity that involves the purchase of a manufacturing plant in South Korea. She explains that this type of strategy will involve ________ ownership on the part of the firm.
A) indirect
B) passive
C) short-term
D) active
Answer: D
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
16) Phillip Hardy, one of the potential investors, expresses the desire to purchase only those types of assets in which he can maintain a relatively short-term interest. Which of the following investment opportunities would be most suited for Mr. Hardy?
A) a venture that gives investors ownership of the equipment used by multiple South African mining companies
B) an initiative to purchase the technology assets of an Indian consulting firm
C) the Freehold Eastern Growth Fund, which purchases Eastern European growth stocks
D) the Freehold World Climb Project, which maintains partial ownership of an Australian hiking equipment production plant
Answer: C
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
International Trade Summit (Scenario)
An international trade summit is held in Geneva, Switzerland. The purpose of the summit is to cooperatively develop policies that promote international trade. Representatives from 50 different countries attend the summit.
17) One of the attendees represents a leading nation in the international merchandise trade. This attendee is most likely from which of the following countries?
A) New Zealand
B) Germany
C) Kenya
D) Saudi Arabia
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
18) One of the attendees represents a leading nation in the international services trade. This attendee is most likely from which of the following countries?
A) Brazil
B) Greece
C) Singapore
D) South Africa
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
19) One summit attendee pointed out that the total value of her country's products trade typically accounted for more than 100 percent of her nation's GDP. This attendee most likely represents ________.
A) Japan
B) United Kingdom
C) France
D) Netherlands
Answer: D
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
20) International business is performed not just by individual firms, but also governments and international agencies.
Answer: TRUE
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
21) The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide.
Answer: FALSE
Diff: 1: Easy
Skill: Concept