University of Colorado, Boulder

INBU 3300

Chapter 1

1)Which of the following best defines international business?

1. 1. It includes all economic flows between two or more countries.
   2. It includes all private economic flows between two or more countries.
   3. It includes all business transactions involving two or more countries.
   4. It includes all business transactions in countries other than your home country.

2. Most of the world's goods and services are sold                            .
   1. in international markets
   2. in the countries where they are produced
   3. through exports to small countries
   4. through exports to large countries

3. Which of the following has NOT been a major force increasing globalization in recent decades?
   1. liberalization of cross-­?border trade
   2. increase in and expansion of technology
   3. growing pressure from consumers
   4. decreasing prices of natural resources.

4. Because consumers want a greater variety of goods and services at lower prices, many governments have  .
   1. reduced their restrictions on the international movement of goods and services
   2. acted to tax most imports at a lower rate than domestic products
   3. sought to eliminate reciprocal advantages negotiated through international organizations and treaties
   4. increased their participation in multinational problem-­?solving efforts

5. In a strategy known as                       , many new companies locate themselves near competitors and suppliers.
   1. offshoring
   2. franchising
   3. clustering
   4. exporting

6. What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations?
   1. to gain an advantageous division of labor
   2. to be in compliance with United Nations' requirements
   3. to attack problems jointly that one country acting alone cannot solve