Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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1.
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The abbreviation OECD stands for
a. | Organization for European Cooperation and
Development. | b. | Organization for
Economic Cooperation and Development. | c. | Organization for
Economic Collaboration and Development. | d. | Organization for
European Collaboration and Development. | e. | Organization for
Educational Collaboration and Development. |
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2.
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The gross national product is also
called
a. | gross national income. | b. | gross national turnover. | c. | gross domestic
product. | d. | gross domestic turnover. | e. | gross national production. |
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3.
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One of the criticisms of the effects of trade
liberalization is
a. | the potential exploitation of rich countries by the
poorer ones. | b. | the result of
increasing wages in the poor countries. | c. | the potential
exploitation of poor countries by the richer ones. | d. | the result of increasing cost in the rich
countries. | e. | the result of
increasing cost in the poor countries. |
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4.
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The simplest cooperative agreement is
a. | a bilateral agreement. | b. | a multilateral agreement. | c. | a common market. | d. | a customs
union. | e. | an economic
union. |
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5.
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Which of the following abbreviations does NOT stand
for important international agreements on economic cooperation?
a. | APAC | b. | EEA | c. | ERFA | d. | NAFTA | e. | ASEAN |
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6.
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A common market is formed when member countries, in
addition to removing tariffs between them and harmonizing their tariff policies vis-à-vis
non-members, remove
a. | all border lines among them. | b. | all national currencies. | c. | all language
barriers among them. | d. | all technical
barriers among them. | e. | all barriers to
the free movement of production factors among them. |
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7.
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The most advanced form of economic cooperation is
a
a. | economic union. | b. | customs union. | c. | common
market. | d. | political union. | e. | cultural union. |
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8.
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The high pressure of the US entertainment industry
not only endangers the production of films and TV programs in other countries but also risks
destroying the cultural identity of other nations in favor of a general Americanization. The term for
this is
a. | imperialism. | b. | cultural imperialism. | c. | American
imperialism. | d. | cultural
superiority. | e. | there is no
term. |
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9.
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In simple terms the theory of comparative costs
suggests that each country, owing to its available resources and the efficiency of their use, has or
can develop specific advantages compared with other countries. If each country specializes in
products and services it can produce or perform comparatively better than others and exchanges them
for products and services in which other countries have advantages, all exchange partners will
profit. As a consequence the standard of living will
a. | decrease in all economies. | b. | increase. | c. | increase in all
economies. | d. | increase only in
lowly industrialized economies. | e. | decrease only in
highly industrialized economies. |
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10.
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The volume of exports of an innovation follows
a
a. | progressive curve. | b. | linear curve. | c. | tangent
curve. | d. | lifecycle curve. | e. | cross cycle curve. |
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11.
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Indicate the maximum amount of potential phases of
the international lifecycle of innovation.
a. | One | b. | Two | c. | Three | d. | Four | e. | Several |
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12.
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An internationally operating company can apply
”global sourcing” as result of the following effect discussed in theory:
a. | Low costs of all economies | b. | Low costs of different economies | c. | Comparative costs of different economies | d. | High costs of the home country | e. | High costs of the target country |
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13.
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A stimulus for international business may be
the
a. | low social standards in the domestic
markets. | b. | low saturation in the domestic
markets. | c. | high prices in the domestic
markets. | d. | few competitors in the domestic
markets. | e. | limited growth in the domestic
markets. |
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14.
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One of possible perspectives of international
business is NOT called
a. | ethnocentric. | c. | egocentric. | b. | polycentric. | d. | geocentric. |
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15.
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When the cumulative production volume in units
increases the experience curve shows the
a. | decrease of price per unit. | b. | increase of price per unit. | c. | decrease of cost per unit. | d. | decrease of total cost. | e. | increase of cost
per unit |
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