REVIEW QUESTIONS IB TEST BANK
REVIEW QUESTIONS
INTERNATIONAL BUSINESS
CHAPTER 1 - GLOBALIZATION
Review Question 1
The shift toward a more integrated and interdependent world economy is referred to as
a) economic integration
b) economic interdependency
c) globalization
d) internationalization
Review Question 2
The merging of historically distinct and separate national markets into one huge global marketplace is known as
a) global market facilitation
b) cross-border trade
c) supranational market integration
d) the globalization of markets
Review Question 3
Firms that are involved in international business tend to be
a) large
b) small
c) medium-sized
d) large, small, and medium-sized
Review Question 4
Which is not a factor of production?
a) trade
b) land
c) capital
d) energy
Review Question 5
The sourcing of good and services from around the world to take advantage of national differences in the cost and quality of factors of production is called
a) economies of scale
b) the globalization of production
c) global integration
d) global sourcing
Review Question 6
What is the single most important innovation to the globalization of markets and production?
a) advances in transportation technology
b) the development of the microprocessor
c) advances in communication
d) the Internet
Review Question 7
Which of these is not a concern of anti-globalization protesters? a) globalization raises consumer income
b) globalization contributes to environmental degradation c) globalization is causing a loss of manufacturing jobs in developing countries
d) globalization implies a loss of national sovereignty CHAPTER 5&6 – TRADE THEORIES
AND POLICY
Review Question 1
1. Propagated in the 16th and 17th centuries, _____ advocated that countries should simultaneously encourage exports and discourage imports.
A. ethnocentrism
B. capitalism
C. collectivism
D. mercantilism
Review Question 2
2. What is the basic message of the theory of comparative advantage?
A. Countries are similar in their ability to
INTERNATIONAL BUSINESS
CHAPTER 1 - GLOBALIZATION
Review Question 1
The shift toward a more integrated and interdependent world economy is referred to as
a) economic integration
b) economic interdependency
c) globalization
d) internationalization
Review Question 2
The merging of historically distinct and separate national markets into one huge global marketplace is known as
a) global market facilitation
b) cross-border trade
c) supranational market integration
d) the globalization of markets
Review Question 3
Firms that are involved in international business tend to be
a) large
b) small
c) medium-sized
d) large, small, and medium-sized
Review Question 4
Which is not a factor of production?
a) trade
b) land
c) capital
d) energy
Review Question 5
The sourcing of good and services from around the world to take advantage of national differences in the cost and quality of factors of production is called
a) economies of scale
b) the globalization of production
c) global integration
d) global sourcing
Review Question 6
What is the single most important innovation to the globalization of markets and production?
a) advances in transportation technology
b) the development of the microprocessor
c) advances in communication
d) the Internet
Review Question 7
Which of these is not a concern of anti-globalization protesters? a) globalization raises consumer income
b) globalization contributes to environmental degradation c) globalization is causing a loss of manufacturing jobs in developing countries
d) globalization implies a loss of national sovereignty CHAPTER 5&6 – TRADE THEORIES
AND POLICY
Review Question 1
1. Propagated in the 16th and 17th centuries, _____ advocated that countries should simultaneously encourage exports and discourage imports.
A. ethnocentrism
B. capitalism
C. collectivism
D. mercantilism
Review Question 2
2. What is the basic message of the theory of comparative advantage?
A. Countries are similar in their ability to