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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

Physical and Environmental Forces


1	One way to overcome lack of local sources of raw materials high transportation costs is to import small amounts of raw materials, add high value to them, and export a lightweight finished product. A country that has done this is:
		A)	Colombia.
		B)	Japan.
		C)	Switzerland.
		D)	Mexico.


2	Elements of geography that are significant for business people include:
		A)	location.
		B)	topography.
		C)	natural resources.
		D)	all of the above.


3	Austrian producers send textiles, furniture, and machinery components to Eastern countries for further processing and assembly, and then bring them back into Austria. This is known as:
		A)	passive processing.
		B)	export/import processing.
		C)	active processing.
		D)	import/export processing.


4	_______________ is often the major reason for trade between nations.
		A)	Geographical proximity
		B)	Supply of natural resources
		C)	Economic similarities.
		D)	Social similarities.


5	Differences in topography are important to business people because:
		A)	countries that are mostly mountainous are generally poor trading partners.
		B)	products may need to be altered.
		C)	countries that are mostly flat simplify product transportation.
		D)	none of the above.


6	Nations that are divided by mountain ranges into smaller regional markets oftentimes have distinctive ___________ within those smaller regional markets.
		A)	industries
		B)	climate
		C)	culture
		D)	all of the above.


7	Switzerland is a country separated into distinctive cultural regions by mountains. In Switzerland ________ different languages are spoken.
		A)	three
		B)	four
		C)	five
		D)	six.


8	Mountains create concentrations of population because:
		A)	the climate is more pleasant at higher altitudes.
		B)	the climate is harsher at higher altitudes.
		C)	they are barriers to population movement.
		D)	both "a" and "c"


9	Because of its geography, Australia's population has tended to concentrate:
		A)	in the southern regions where the climate is more temperate.
		B)	along the coastal areas in and around the state capitals.
		C)	in the northern regions where the climate tends to be mild.
		D)	in the interior because of the available living space.


10	In Australia, the preferred method of transportation is:
		A)	shipping.
		B)	air.
		C)	over land.
		D)	rail.


11	The Brazilian Amazon occupies one-half of Brazil, but is inhabited by only ___ percent of the country's population.
		A)	3
		B)	4
		C)	5
		D)	6


12	The Canadian Shield is:
		A)	a mountainous region.
		B)	a desert.
		C)	an area of bedrock.
		D)	a region covered with snow for the entire year.


13	The ________ waterway is the main transportation artery of Europe.
		A)	Thames
		B)	Rhine
		C)	Danube
		D)	Elbe


14	Every continent except __________ has inland waterways.
		A)	Antarctica
		B)	Africa
		C)	Australia
		D)	Europe


15	Historically, navigable waterways with connections to the ocean:
		A)	were unimportant to a nation's economic development.
		B)	have permitted low cost-transportation of goods and people from a country's coast to its interior.
		C)	needed to be supported by an extensive inland railway system.
		D)	needed to be supported by an extensive inland road system.


16	Bolivia and Chile have been engaged in a century long struggle over:
		A)	Bolivia's need for an outlet to the sea.
		B)	Chile's need for an outlet to the sea.
		C)	Bolivia's desire to be the dominant exporter of raw materials in the region.
		D)	Chile's desire to be the dominant exporter of raw materials in the region.


17	____________ is probably the most important element of the physical forces.
		A)	Geography
		B)	Topography
		C)	Location
		D)	Climate


18	The differences in climatic conditions among a firm's markets can have a significant impact on its:
		A)	profit potential.
		B)	labor supply.
		C)	product mix.
		D)	managerial style.


19	Natural resources can be defined as:
		A)	anything supplied by nature on which people depend.
		B)	anything supplied by nature that produces energy.
		C)	minerals removed from the earth.
		D)	energy and non-fuel minerals.


20	Among the unconventional sources of petroleum are:
		A)	oil sands
		B)	oil shale
		C)	coal
		D)	all of the above.

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