Global Business Today: Asia-Pacific Perspective 5th edition by Charles W. L. Hill Test bank

A. exporting.
B. licensing.
C. outsourcing.
D. franchising.
21. Significant differences in cultures, politics and economies between countries can sometimes
make it necessary for multinationals to:
A. standardise their product offerings, and then adapt to local conditions.
B. adapt their product offerings, and then standardise to local conditions.
C. outsource manufacturing to key suppliers.
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D. open large warehouses under franchise agreements.
22. One of the key considerations for Indian-based global conglomerate the Tata Group in
bringing to market the Nano was:
A. free delivery to customers who repeat-purchase.
B. subsidised customer parking.
C. low incomes in India that are rapidly rising.
D. car designs for small-space living in high-rise apartments.
23. An international treaty that committed signatories to lowering barriers to the free flow of
goods across national borders is called:
A. the International Agreement on Trade.
B. the Global Expansion Agreement.
C. the Warsaw Pact.
D. the General Agreement on Tariffs and Trade.
24. The most global of markets is in:
A. services.
B. consumer goods.
C. industrial goods and materials.
D. intellectual capital.
25. The term ‘offshoring’:
A. is synonymous with the term ‘outsourcing’.
B. means that tasks previously performed in one country are undertaken abroad.
C. means shoring up intellectual capital.
D. means that tasks previously performed in-house are now purchased from another country.
26. Globalisation of production allows companies to ______________ so that they may
________________.
A. diversify their products; innovate in their home market’s homogeneity
B. leverage their capital investments; complexify their customer base
C. lower their production costs; compete more effectively
D. isolate production risks; minimise market disruptions
27. Although outsourcing has primarily been confined to ___________, companies are
increasingly taking advantage of outsourcing for ______________.
A. services; manufacturing
B. manufacturing; services
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C. mining; manufacturing
D. manufacturing; mining
28. _______ is seen as the lender of last resort to nation-states whose economies are in economic
turmoil and whose currencies are losing value against those of other nations.
A. The International Monetary Fund
B. The International Bank
C. The United Nations
D. The United States
29. With membership of 193 countries, the _________ was established to preserve peace through
international cooperation and collective security.
A. World Monetary Fund
B. International Monetary Fund
C. International Bank
D. United Nations
30. Promoting economic development, primarily by offering financial and technical assistance to
governments of poorer nations, is the purpose of:
A. the United Nations.
B. the International Monetary Fund.
C. the World Trade Organization.
D. the World Bank.
31. __________ and _______ are the two macro factors that seem to underlie the trend towards
greater globalisation.
A. The increase in global economic stability; the slowdown in technological change
B. The increase in barriers to the free flow of goods, services and capital that has occurred since
the end of World War Two; global economic stability
C. The decline in barriers to the free flow of goods, services and capital that has occurred in the
past 10 years; the slowdown in technological change
D. The decline in barriers to the free flow of goods, services and capital that has occurred since
the end of World War Two; increased technological change
32. The investing of resources in business activities outside a firm’s home country is referred to
as:
A. international trade.
B. domestic direct investment.
C. transnational barter.
D. foreign direct investment.
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33. The ___________________ (now subsumed under the World Trade Organization) is a treaty
designed to remove barriers to the free flow of goods, services and capital between nations.
A. Global Agreement on Tariffs and Commerce
B. United Nations Treaty on Trade
C. General Agreement on Tariffs and Trade
D. Multinational Agreement on Tariffs and Commerce
34. Evidence suggests that foreign direct investment is playing:
A. a decreasing role in the world economy.
B. an increasing role in the world economy for services but a decreasing role in the world