BBB4M International Business Midterm Review PDF

BBB4M Name: _____________________ Mr. Chung Date: _____________________ BBB4M – International Business Midterm Review Globalization 1. What is the primary concept of globalization? A) T...

BBB4M Name: _____________________ Mr. Chung Date: _____________________ BBB4M – International Business Midterm Review Globalization 1. What is the primary concept of globalization? A) Trade regulations B) Connecting different parts of the world C) International business transactions D) Local economic activities Correct answer: B 2. How does globalization differ from international business? A) Globalization is solely about trade B) International business focuses only on cultural exchange C) Globalization is a broader concept involving various connections D) There is no difference; they are synonymous Correct answer: C 3. What role does technology play in globalization? A) It hinders communication B) It slows down international trade C) It facilitates the movement of ideas and goods D) It creates cultural barriers Correct answer: C 4. Which of the following describes globalization's impact on consumers? A) Limited product choices B) Easier access to a variety of products C) Increased local market prices D) Reduced quality of goods Correct answer: B 5. Which of the following could be considered a negative impact of globalization? A) Cultural exchange B) Increased job opportunities C) Economic disparities between countries D) Improved technological innovations Correct answer: C 6. How can interdependence be understood in relation to globalization? A) Countries rely less on each other B) It encourages isolationist policies C) Countries depend on each other for resources and goods D) Interdependence is unrelated to globalization Correct answer: C BBB4M Name: _____________________ Mr. Chung Date: _____________________ Trade barriers 7. Which statement reflects a critical perspective on globalization? A) Globalization promotes equitable wealth distribution B) Globalization leads to uniform cultural practices C) Globalization enhances economic growth for all nations D) Globalization supports local businesses Correct answer: B 8. Trade quotas are designed to: A) Increase the price of imported goods B) Limit the quantity of imports C) Eliminate tariffs completely D) Encourage exports Correct answer: B 9. What differentiates a trade embargo from a trade sanction? A)An embargo bans trade for certain goods while sanctions allow all imports B) An embargo bans all goods with a specific country while sanctions restrict certain goods C) An embargo is temporary while sanctions are permanent D) There is no difference; they are the same Correct answer: B 10. Foreign investment restrictions aim to: A) Encourage foreign companies to invest B) Protect local industries and jobs C) Promote unrestricted financial flows D) Ensure equal taxation for all businesses Correct answer: B 11. Currency fluctuations can affect international trade by: A) Making foreign goods cheaper regardless of exchange rates B) Altering the cost of imports and exports C) Having no impact on trade costs D) Stabilizing prices across all currencies Correct answer: B BBB4M Name: _____________________ Mr. Chung Date: _____________________ 12. Which of the following is NOT a trade barrier? A) Tariff B) Trade Quota C) Standardization of products D) Trade Embargo Correct answer: C Economics and Politics: 13. How does globalization influence market competition among international businesses? A) By reducing product diversity B) By increasing access to global markets C) By enforcing local regulations D) By limiting consumer choice Correct answer: B 14. In evaluating the impact of political stability on foreign investment, what should international businesses prioritize? A) The recruitment of local employees only B) An analysis of political risk assessments C) The establishment of local partnerships exclusively D) The development of uniform marketing strategies Correct answer: B 15. When creating a market entry strategy, which factor is crucial in the analysis phase? A) The aesthetics of the product B) Global celebrity endorsements C) Local consumer behavior and preferences D) The technology used in production Correct answer: C 16. What is the impact of protectionist policies on international business relationships? A) They encourage collaboration among nations B) They create barriers that can lead to trade disputes C) They have no measurable effects on trade D) They promote increased imports Correct answer: B BBB4M Name: _____________________ Mr. Chung Date: _____________________ 17. A country experiences a significant increase in GDP while maintaining stable prices. What might be a contributing factor for this economic condition? A) High inflation B) Increased consumer spending C) Rising unemployment D) Decreased exports Correct answer: B 18. If a government is worried about high inflation rates, which economic policy would likely be evaluated to help control inflation? A) Lowering interest rates B) Increasing government spending C) Raising interest rates D) Reducing taxes Correct answer: C 19. If a country shifts from a manufacturing to a service-based economy, which indicator might decrease initially? A) GDP growth B) Unemployment rate C) GDP per capita D) CPI Correct answer: C Ethics in Business: 20. During the analysis of a trade agreement’s impact, which of the following should be considered? A) Only the economic benefits for domestic exporters B) The social, economic, and environmental effects on all stakeholders C) The opinions of government officials only D) Predicted inflation rates solely Correct answer: B 21. A firm is faced with a decision to outsource to a supplier with known labor violations. To ethically assess this choice, the management should primarily consider: A. Cost savings to boost profitability B. The potential impact on the company reputation C. The legal implications of using the supplier D. Short-term financial gains Correct answer: B BBB4M Name: _____________________ Mr. Chung Date: _____________________ 22. In what way can fair trade practices create social change in impoverished communities? A) By increasing competition among local businesses B) By ensuring fair wages and better working conditions C) By promoting international brands D) By reducing product prices for consumers Correct answer: B 23. In what way can fair trade practices create social change in impoverished communities? A) By increasing competition among local businesses B) By ensuring fair wages and better working conditions C) By promoting international brands D) By reducing product prices for consumers Correct answer: B 24. Analyze the long-term effects of environmental damage caused by industrial pollution. Which outcome is the most likely? A) Decrease in biodiversity B) Increase in job opportunities C) Improvement in air quality D) Growth of urban areas Correct answer: A 25. To create a sustainable business model, what should companies prioritize to mitigate their ethical footprint? A) Increasing production volume B) Reducing employee salaries C) Implementing eco-friendly practices D) Expanding into new markets Correct answer: C 26. When evaluating potential business partners in a foreign market, what should a company primarily assess? A) Cultural similarities B) Ethical standards and practices C) Financial instability D) Personal relationships Correct answer: B BBB4M Name: _____________________ Mr. Chung Date: _____________________ 27. How can multinational corporations best apply the principle of fairness in international trade? A) By maximizing their own profits B) By engaging in bilateral agreements C) By respecting labor rights in all countries D) By offering lower wages to unskilled labor Correct answer: C 28. When assessing the ethical implications of bribery in international business, which of the following perspectives is most important? A) Local customs and practices B) The legality of the act C) The impact on global reputation D) The potential for profit Correct answer: C 29. Which factor is essential for businesses to analyze when entering a foreign market to ensure ethical practices? A) Currency exchange rates B) Cultural differences C) Tax benefits D) Competition analysis Correct answer: B 30. What role do trade organizations typically play in the resolution of trade disputes? A) They act as mediators and provide arbitration services B) They impose penalties on member nations C) They create separate court systems for trade disputes D) They encourage trade wars Correct answer: A Short Answer Practice Questions: Question 1: As the Chief Procurement Officer of a Canadian electronics company, you’re responsible for choosing suppliers for a new product line. One supplier offers competitive prices but has faced accusations of poor working conditions. a. What ethical considerations should you consider when choosing a supplier? Answer: Considerations include the supplier’s labor practices, environmental impact, and compliance with local laws. Prioritizing fair wages and safe working conditions is essential for ethical sourcing. BBB4M Name: _____________________ Mr. Chung Date: _____________________ b. How could these decisions affect the company’s brand image and long-term customer loyalty? Answer: Choosing ethical suppliers can improve brand reputation and build customer loyalty, as many consumers prefer companies with responsible practices. Question 2: A Canadian fast-food chain has expanded into multiple countries, leading to criticism that globalization promotes "Western" consumer culture. a. Discuss two ways globalization can lead to cultural homogenization. Answer: Globalization can lead to the spread of Western brands, reducing local business diversity, and encourage global media, which promotes similar lifestyles and consumer preferences across cultures. b. How could this affect local businesses and communities? Answer: Local businesses may lose market share, and communities could experience a loss of cultural traditions and local identity as global brands dominate. Question 3: Non-governmental organizations (NGOs) often play a crucial role in facilitating microcredit programs in undeveloped countries. a. Explain two ways in which NGOs can support the successful implementation of microcredit programs. Answer: NGOs can support microcredit programs by offering financial literacy training to ensure borrowers understand how to manage loans, and by helping with loan distribution in remote areas where banks may be inaccessible. b. What challenges might NGOs face in delivering microcredit programs effectively in underserved communities? Answer: Challenges include limited funding, making it difficult to sustain programs, and cultural barriers that may affect community acceptance and trust in microcredit.