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International Management 10th Edition Deresky Test Bank
International Management, 10e, (Deresky/Miller)
Chapter 1 Assessing the Environment: Political, Economic, Legal, Technological
1) Which of the following is characterized by networks of international linkages comprising economic, financial, political and social markets that bind countries, institutions, and people in an interdependent economy?
- communism
- nationalization
- socialism
- globalization
Answer: D
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
2) The pace of globalization has slowed and, in most instances, declined in part because of .
- protectionism
- fluctuating exchange rates
- free trade agreements
- cultural differences
Answer: A
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
3) results from the lessening of trade barriers and the increased flow of goods and services, capital, labor, and technology around the world.
- Economic integration
- Nationalization
- Protectionism
- Mercantilism
Answer: A
Difficulty: 1: Easy
Chapter: 1
Skill: Concept 1 / 4
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LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
4) In which of the following groups of trade blocs does most of today's world trade take place?
- Middle East, China, and India
- North America, Africa, and Canada
- Western Europe, Asia, and the Americas
- Saudi Arabia, Western Europe, and the Gulf
Answer: C
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
5) The is the simplest and most basic form of regional integration.
- common market
- political union
- customs union
- free trade area
Answer: D
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
6) Which of the following is an example of a customs union?
A) NAFTA
B) ASEAN
C) MERCOSUR
D) EFTA
Answer: C
Difficulty: 2: Moderate
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge 2 / 4
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7) Members of allow free trade between members and agree to adopt common tariffs and non-tariff barriers that are applied to imports from nonmember countries.
- free trade areas
- customs unions
- the USMCA
- the EFTA
Answer: B
Difficulty: 2: Moderate
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
8) A formal arrangement between two or more countries to reduce or eliminate tariffs is known as a .
- quota arrangement
- free trade agreement
- memorandum of association
- memorandum of understanding
Answer: B
Difficulty: 1: Easy
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
9) Regional economic group is defined as .
- an agreement among countries in a geographic region to reduce and ultimately remove tariff
- an agreement among companies in a geographic region to reduce and ultimately remove tariff
- an agreement among countries in a geographic region to increase tariff and nontariff barriers
- an agreement among countries in a geographic region to increase tariff and nontariff barriers
and nontariff barriers to the free flow of goods, services and factors of production between each other
and nontariff barriers to the free flow of goods, services and factors of production between each other
to the free flow of goods, services and factors of production between each other
to the free flow of goods, services and factors of production with nonmember countries
Answer: A
Difficulty: 2: Moderate
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge 3 / 4
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10) A customs union refers to .
- a group of countries committed to (1) removing all barriers to the free flow of goods and
- a group of countries committed to (1) removing all barriers to the free flow of goods, services
- a group of countries committed to (1) removing all barriers to the free flow of goods and
- a group of countries committed to (1) removing all barriers to the free flow of goods, services
services between each other and (2) the pursuit of a common external trade policy
and factors of production between each other and the (2) pursuit of a common external trade policy
services between each other but pursuing independent external trade policies
and factors of production between each other; (2) the adoption of a common currency; (3) the harmonization of tax rates; and the (4) pursuit of a common external trade policy
Answer: A
Difficulty: 2: Moderate
Chapter: 1
Skill: Concept
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
11) A common market refers to .
- a group of countries committed to (1) removing all barriers to the free flow of goods and
- a group of countries committed to (1) removing all barriers to the free flow of goods, services
- a group of countries committed to (1) removing all barriers to the free flow of goods and
- a group of countries committed to (1) removing all barriers to the free flow of goods, services
services between each other and (2) the pursuit of a common external trade policy
and factors of production between each other and the (2) pursuit of a common external trade policy
services between each other but pursuing independent external trade policies
and factors of production between each other; (2) the adoption of a common currency; (3) the harmonization of tax rates; and the (4) pursuit of a common external trade policy
Answer: B
Difficulty: 2: Moderate
Chapter: 1
Skill: Application
LO: 1-1: To understand the global business environment and how it affects the strategic and operational decisions which managers must make
AACSB: Application of knowledge
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