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International Business : The Challenge of Global Competition, 8/e

Donald Ball
Wendell H. McCulloch, California State University Long Beach
Paul L. Frantz, California State University Long Beach
Michael Geringer, California Polytechnic State University
Michael S. Minor, University of Texas Pan American

Economic and Socioeconomic Forces

Multiple Choice Quiz


1	Among the more important economic indicators are:
		A)	income distribution.
		B)	unit labor costs.
		C)	private investment.
		D)	all of the above.


2	The total of all final goods and services produced less net foreign factor income from abroad is:
		A)	gross domestic product.
		B)	gross national product.
		C)	purchasing power parity.
		D)	total purchasing power.


3	When given the choice between investing in a nation with a higher GNP per capita but a low growth rate and a nation in which the conditions are reversed, management will generally:
		A)	choose the nation with a higher GNP per capita but a low growth rate.
		B)	choose the nation with a lower GNP per capita but a high growth rate.
		C)	be indifferent and therefore look for other distinguishing factors.
		D)	choose the nation with the highest population.


4	Data about income distribution:
		A)	confirms the belief that, generally, income is less evenly distributed in the advanced nations.
		B)	illustrates the view that over time, income redistribution proceeds very rapidly in developing nations.
		C)	indicates that income inequality increases in the early stages of development.
		D)	indicates that income inequality increases in the later stages of development.


5	The World Bank has found that people in high income economies use nearly _______ times as much commercial energy as do people in developing economies.
		A)	four
		B)	seven
		C)	ten
		D)	twelve


6	According to the International Telecommunications Union, the best gauge for measuring a country's level of development is:
		A)	per capita income.
		B)	state of the construction industry.
		C)	density of population.
		D)	number of telephones.


7	Generally, the wealthier a country is, the more telephone lines it has. In 1998, the richest countries had:
		A)	one phone line for every one person.
		B)	two phone lines for every one person.
		C)	one phone line for every two people.
		D)	one phone line for every three people.


8	Countries with slower rising unit labor costs attract management's attention because:
		A)	they are investment prospects for companies striving to lower production costs.
		B)	they may become sources of new competition in world markets if other firms in the same industry are located there.
		C)	both "a" and "b".
		D)	none of the above.


9	Which of the following is not a reason for relative changes in labor costs?
		A)	workforce size.
		B)	compensation.
		C)	compensation.
		D)	exchange rates.


10	A firm that produces inputs for its subsequent manufacturing processes is described as:
		A)	horizontally integrated.
		B)	a conglomerate.
		C)	vertically integrated.
		D)	consolidated.


11	A country's socioeconomic dimension measures information about the:
		A)	population's physical attributes.
		B)	population's purchasing power.
		C)	population's GNP per capita.
		D)	population's GDP per capita.


12	The most general indicator of potential market size is:
		A)	GNP.
		B)	GDP.
		C)	purchasing power parity.
		D)	total population


13	An expanding market may be signified by:
		A)	the population expanding faster than GNP.
		B)	GNP increasing faster than the population.
		C)	an accruement of technical and university graduates.
		D)	All of the above.


14	Which of the following is the fastest graying nation in the industrial world?
		A)	The United States.
		B)	The United Kingdom.
		C)	Japan.
		D)	France.


15	Product distribution and communications tend to be simpler and less costly in countries that are:
		A)	densely populated.
		B)	sparsely populated.
		C)	small.
		D)	highly developed.


16	Forecasts made by governments with industry collaboration of the direction they expect the economy to take are referred to as:
		A)	national economic plans.
		B)	indicative plans.
		C)	joint plans.
		D)	collaborative plans.


17	Birthrates are declining in nearly all nations because:
		A)	governments are providing family planning programs.
		B)	women are continuing their education and marrying later.
		C)	a greater degree of urbanization is enabling women to become employed and self-supporting.
		D)	all of the above.


18	Large foreign debts may indicate:
		A)	that the country is insolvent.
		B)	that inflation is on the horizon.
		C)	the government will impose exchange controls on its country's businesses.
		D)	the government will lower interest rates to spur domestic production.


19	Every firm is concerned about the general economic news because of its impact on
		A)	labor costs.
		B)	prices of raw materials.
		C)	imports.
		D)	exports.


20	The term promotional mix refers to a blend of promotional methods:
		A)	that a government uses in carrying out its monetary policies.
		B)	that a government uses in carrying out its fiscal policies.
		C)	that a firm uses to sell its products.
		D)	that a firm uses to decide its product mix.

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