In a short essay, identify and explain three competitive factors that influence international businesses.

In a short essay, identify and explain three competitive factors that influence international businesses.



Answer:

a. Product strategy—A company's choice of strategy, either cost or differentiation, plays a part in determining how and where the company will operate.

b. Company resources and experience—A company's size, resources, and experience in comparison to competitors' affects how it will operate in international markets. In addition, a company's national market share and brand recognition will affect the operating tactics it employs.

c. Competitors faced in each market—Success for a company in any market will always be influenced by the strategies and operations of competitors within the market.

What is foreign direct investment? What social factors in the external environment might affect FDI?

What is foreign direct investment? What social factors in the external environment might affect FDI?




Answer: In foreign direct investment (FDI), sometimes referred to simply as direct investment, the investor takes a controlling interest in a foreign company. Control need not be a 100 percent or even a 50 percent interest; if a foreign investor holds a minority stake and the remaining ownership is widely dispersed, no other owner may effectively counter the investor's decisions. A nation's political policies of course affect how international business is conducted within its borders. In particular, political disputes can disrupt the flow of international business. Domestic law, which includes both home- and host-country regulations on issues such as taxation and employment, affects how a company can operate internationally. International law—the legal agreements between countries—also obviously affects FDI.

What is a multinational enterprise (MNE)? How do physical and social factors affect how an MNE functions in a foreign country?

What is a multinational enterprise (MNE)? How do physical and social factors affect how an MNE functions in a foreign country?



Answer: The multinational enterprise (MNE) is a company that takes a global approach to foreign markets and production. It is willing to consider market and production locations anywhere in the world. However, most writers use the term to mean any company with operations in more than one country. Physical factors, such as a country's geography or demography, and social factors, such as its politics, law, culture, and economy, influence the functioning of an MNE. Physical and social factors can affect how companies produce and market products, staff operations, and even maintain accounts. Geographic barriers—mountains, deserts, jungles, and so forth—often affect communications and distribution channels. And the chance of natural disasters and adverse climatic conditions (hurricanes, floods, droughts, earthquakes, volcanic eruptions, tsunamis) can make business riskier in some areas than in others, while affecting supplies, prices, and operating conditions in far-off countries.

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method.

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method.



Answer: Globalization refers to the widening set of interdependent relationships among people from different parts of a world that happens to be divided into nations. The term can also refer to the integration of world economies through the elimination of barriers to movements of goods, services, capital, technology, and people. Firms have many options available when they want to globalize their operations including licensing, franchising, turnkey operations, management contracts, and direct/portfolio investment.

a. Licensing and franchising—Licensing agreements are used when companies allow others to use their assets, such as trademarks, patents, copyrights, or expertise under contract. Franchising is a mode of business in which one party allows another party the use of a trademark that is an essential asset for the franchisee's business.

b. Turnkey operations—Refers to business operations, performed under contract, that are transferred to the owner when they are ready to begin operating.

c. Management contract—Refers to arrangements in which one company provides personnel to
perform general or specialized management functions for another company.

d. Direct and portfolio investment—A direct investment is one that gives the investor a controlling interest in a foreign company. A portfolio investment is a noncontrolling interest in a company or ownership of a loan to another party.

What are the differences between merchandise and service imports and exports? Provide examples to illustrate your answer.

What are the differences between merchandise and service imports and exports? Provide examples to illustrate your answer.



Answer:

a. Merchandise exports are tangible products—goods—sent out of a country. Merchandise imports are goods brought into a country. When a Chinese contractor sends toy action figures from China to Hasbro in the United States, the contractor exports and Hasbro imports.

b. Service exports and imports generate non product international earnings. The company or individual receiving payment is making a service export. The company or individual paying is making a service import. When an American tourist stays at a hotel in London, the hotel stay is the service export.

What is international business? What are the primary reasons that companies engage in international business?

What is international business? What are the primary reasons that companies engage in international business?



Answer: International business is all commercial transactions—private and governmental—between two or more countries. Private businesses undertake such transactions for profit; governments may or may not do the same in their transactions. These transactions include sales, investments, and transportation.

Firms engage in international business for three main reasons.

1. To expand sales—The number of people and the amount of their purchasing power are higher for the world as a whole than for a single country, so companies may increase their sales by reaching
international markets.

2. To acquire resources—Manufacturers and distributors seek out products, services, and components produced in foreign countries.

3. To minimize competitive risk—Many companies enter into international business for defensive reasons. They want to counter advantages competitors might gain in foreign markets that, in turn, could hurt them domestically.

In a short essay, discuss why governments have been liberalizing cross-border movements of goods, services, and resources.

In a short essay, discuss why governments have been liberalizing cross-border movements of goods, services, and resources.



Answer: Generally, governments today impose fewer restrictions on cross-border movements than they did a decade or two ago. They have lowered them for the following reasons:

a. Their citizens have expressed the desire for easier access to a greater variety of goods and services at lower prices.

b. They reason that their domestic producers will become more efficient as a result of foreign competition.

c. They hope to induce other countries to reduce their barriers to international movements.

What are three factors that have led to the increased growth in international business in recent decades? Which do you think has been most important and why?

What are three factors that have led to the increased growth in international business in recent decades? Which do you think has been most important and why?



Answer:
a. Rapid increase in an expansion of technology—By increasing the demand for new products and services, technology has tremendous impact on international business. As the demand increases, so do the number of international business transactions. Improved communications and transportation speed up interactions and improve managers' ability to control foreign operations.

b. Liberalization of cross-border movements—Although the past decrease in restrictions has been erratic, governments have lowered barriers because their citizens have expressed the desire for better access to a greater variety of goods and services at lower prices. Governments also reason that their domestic producers will become more efficient as a result of foreign competition, and they hope to induce other countries to reduce their barriers to international movements.

c. Increase in global competition—The pressures of increased foreign competition can persuade a company to expand its business into international markets. Today companies can respond rapidly to many foreign sales opportunities. They can shift production quickly among countries if they're experienced in foreign markets and because they can transport goods efficiently from most places.

d. Growing consumer pressures—Consumers are savvier and have more income. They want to be able to buy the variety and low-cost products available from anywhere in the world.

e. Development of supporting services—Companies and governments have developed services that ease international business. Today, producers can be paid relatively easily for goods and services sold abroad because of bank credit agreements, clearing arrangements that convert one country's currency into another's, and insurance that covers damage en route and nonpayment by the buyer.

f. Changing political situations—The schism between communist and noncommunist countries is basically over, as communist countries have moved toward transitioning their economies; therefore, trade between these countries has increased.

g. Expanded cross-national cooperation—Countries realize they can't go it alone. They cooperate to gain reciprocal advantages, to attack problems jointly, and to deal with areas outside the confines of any country.

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization?

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization?



Answer: International business comprises a large and growing portion of the world's total business. Global events affect almost all companies. A company operating internationally will engage in modes of business, such as exporting and importing, that differ from those it is accustomed to domestically. To operate effectively, managers must understand these different modes.

The three main views of the future of globalization are as follows: further globalization is inevitable, or international business will grow regionally rather than globally, or forces working against globalization will slow both trends. The view that increased growth in international business is inevitable is supported by the power of MNEs who have multiple production and distribution networks and are able to pressure governments to place fewer restrictions on international business. The view that growth will occur regionally rather than globally is based on studies that show that most "global" transactions actually occur between neighboring countries. Finally, the view that globalization will be slowed by pressure from the antiglobalization movement to raise barriers and reject international treaties and organizations stems from the success of such groups in the past.

Many professional basketball teams recruit tall youngsters in foreign countries into basketball camps where they can develop basketball skills and perhaps become candidates for professional play. This is an example of engaging in international business to acquire resources.

Many professional basketball teams recruit tall youngsters in foreign countries into basketball camps where they can develop basketball skills and perhaps become candidates for professional play. This is an example of engaging in international business to acquire resources.




Answer: TRUE

A flag of convenience is ________.

A flag of convenience is ________.



A) the declaration that a product is made in a country that has easier legal access to a given foreign market
B) a designation for products originating within a particular trading group
C) the registration of a ship by a shipping company in a country that charges low taxes
D) the indication that a shipping organization can sail in international waters




Answer: C

Carnival Cruise Lines lowers its taxes by all of the following EXCEPT ________.

Carnival Cruise Lines lowers its taxes by all of the following EXCEPT ________. 



A) hiring host-country nationals who pay no taxes
B) taking advantage of taxation laws in foreign countries
C) sailing in international waters outside countries' tax jurisdiction
D) paying substantial port fees instead of taxes during stopovers




Answer: A

Some observers feel that international institutions and the people working in them cannot adequately handle the complexities of an interconnected world. Based on this, these observers believe that ________.

Some observers feel that international institutions and the people working in them cannot adequately handle the complexities of an interconnected world. Based on this, these observers believe that ________.




A) globalization will slow in the future
B) globalization is nevertheless inevitable
C) international business will grow primarily on a regional basis
D) private companies will replace international organizations in running the world's economy





Answer: A

Which of the following is NOT a common argument for the slowing of future globalization?

Which of the following is NOT a common argument for the slowing of future globalization?




A) Antiglobalization interests have been successful in electing parties that oppose freer movement of trade or people.
B) Technological, transportation, and communication advances will decline in the near future.
C) Major countries have either ignored certain international treaties or have refused to sign them.
D) The growing split between those who succeed in a global environment and those who do not will foster greater antiglobalization sentiments.



Answer: B

Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that ________.

Critics of the view that regionalization will prevail over globalization most likely base their argument on the belief that ________.



A) regionalization is a transition stage toward globalization
B) neighboring countries are more apt to disagree politically than distant countries
C) neighboring countries are too geographically similar to benefit from trade
D) business in non-territorial areas is not regional




Answer: A

The view that globalization is inevitable is most likely based on the belief that ________.

The view that globalization is inevitable is most likely based on the belief that ________.




A) international organizations will replace nation-states
B) protesters against globalization will be persuaded to change their views
C) people want more global homogeneity of cultures
D) technical advances in transportation and communications are highly persistent



Answer: D

When companies face the same competitors in almost all countries where they operate, ________.

When companies face the same competitors in almost all countries where they operate, ________.




A) what they learn about each other in one country is useful in predicting the other's strategies and actions elsewhere
B) the market leader is the same everywhere
C) there is less need to understand the physical and societal factors of each country
D) they are less likely to enter joint ventures with other companies



Answer: A

A computer firm has high foreign sales in Asia and wants to expand sales into Europe. Which of the following statements provides the most appropriate advice for Elway executives?

A computer firm has high foreign sales in Asia and wants to expand sales into Europe. Which of the following statements provides the most appropriate advice for Elway executives?




A) Although countries' market sizes differ, companies usually face about the same number of competitors in each national market.
B) In most industries, companies face the same competitors in each country where they operate.
C) It takes about the same amount of resources to gain national distribution in one country versus another.
D) Being a leader in one country does not guarantee market leadership in another country.



Answer: D

The same automobile company produces Fiats and Ferraris. The company builds an engine plant in China with low production costs for Fiats but not Ferraris. The probable reason is that ________.

The same automobile company produces Fiats and Ferraris. The company builds an engine plant in China with low production costs for Fiats but not Ferraris. The probable reason is that ________.




A) Fiat competes mainly on a focus strategy, whereas Ferrari competes mainly on a mass-market strategy
B) Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy
C) Ferrari faces global competitors in China, whereas Fiat competes in China mainly against Chinese competitors
D) although Ferrari did not build an engine plant, it will use the same Fiat engines in its models





Answer: B

In addition to understanding the laws affecting business in countries where their companies operate, it is most important for managers to understand the ________.

In addition to understanding the laws affecting business in countries where their companies operate, it is most important for managers to understand the ________. 



A) methods for appointing local judges
B) ethical rationale behind the laws
C) history of the local legal system
D) degree of law enforcement



Answer: D

Although the U.S. film industry depends heavily on revenue in foreign countries, revenue from international markets is usually low for a sports-themed film. This is most likely due to ________ factors.

Although the U.S. film industry depends heavily on revenue in foreign countries, revenue from international markets is usually low for a sports-themed film. This is most likely due to ________ factors.



A) political
B) geographic
C) behavioral
D) legal




Answer: C

A foreign direct investment occurs when ________.

A foreign direct investment occurs when ________.




A) a company owns at least 25% of a foreign firm
B) a company has a controlling interest in a foreign company
C) foreign ownership is in private rather than government securities
D) a foreign firm agrees to a licensing agreement with a large conglomerate






Answer: B

An example of a Japanese service export is a visit by a ________.

An example of a Japanese service export is a visit by a ________.





A) Japanese citizen to Disneyland in the United States
B) Japanese citizen to the Japan Pavilion at Epcot Center in the United States
C) U.S. citizen to the Japan Pavilion at Epcot Center in the United States
D) U.S. citizen to Tokyo Disneyland in Japan



Answer: D

Visible exports and imports are ________.

Visible exports and imports are ________.



A) merchandise imports and exports
B) the sum total of goods and services traded
C) international transactions paid for in money rather than barter
D) typically a country's least common international economic transactions





Answer: A

Which of the following BEST explains how a firm reduces risk by operating internationally?

Which of the following BEST explains how a firm reduces risk by operating internationally?




A) taking advantage of business-cycle differences among countries
B) buying competitive risk insurance unavailable domestically
C) preventing competitors from operating in the countries it has entered
D) operating in less competitive environments than those at home



Answer: A

A firm is currently seeking resources from foreign countries. Which of the following is the LEAST likely reason for doing so?

A firm is currently seeking resources from foreign countries. Which of the following is the LEAST likely reason for doing so?




A) manufacturing products at a lower cost
B) gaining knowledge about a specific market
C) following a customer into the global market
D) differentiating its products from the competition




Answer: C

Kevin, marketing manager of the North American Bowling League, has decided to televise major bowling competitions to viewers in multiple countries rather than only in Canada and the U.S. Which of the following goals would this most likely help Kevin accomplish?

Kevin, marketing manager of the North American Bowling League, has decided to televise major bowling competitions to viewers in multiple countries rather than only in Canada and the U.S. Which of the following goals would this most likely help Kevin accomplish?



A) acquiring new resources
B) minimizing corporate risks
C) increasing sales and profits
D) obtaining competitive advantages




Answer: C

Assume that company executives at the firm would like to increase sales by expanding into an international market. Which of the following factors, if true, best supports a decision to expand sales globally?

Assume that company executives at the firm would like to increase sales by expanding into an international market. Which of the following factors, if true, best supports a decision to expand sales globally? 




A) It can offshore most of its production.
B) It can obtain all of its resources for the same price overseas.
C) Its costs of making additional sales would not increase disproportionately.
D) The foreign market has higher real interest rates.





Answer: C

Critics of offshoring claim all EXCEPT which of the following?

Critics of offshoring claim all EXCEPT which of the following?




A) Cost savings are seldom passed on to final consumers.
B) Offshoring reduces the incomes of people in low-wage countries.
C) Incomes of workers in countries whose companies offshored production have gone down as a percentage of national income.
D) Many workers who have been displaced by offshoring do not have the skills needed for higher-value jobs.




Answer: B

A major criticism of offshoring is that it ________.

A major criticism of offshoring is that it ________.




A) increases production costs
B) exchanges good jobs for bad jobs
C) threatens the sovereignty of larger countries
D) allows companies to avoid payment of any taxes



Answer: B

Which of the following statements would most likely NOT be supported by an advocate of offshoring?

Which of the following statements would most likely NOT be supported by an advocate of offshoring?



A) Offshoring increases the number of high-value jobs in the home countries of offshoring companies.
B) Offshoring is fundamentally better for workers than the introduction of labor-saving technologies.
C) Workers displaced due to offshoring are able to find new jobs as easily as those displaced by technology.
D) There are upper limits to offshoring because of the lack of skilled workers willing to work permanently for low wages.




Answer: B

Although globalization may bring economic growth, critics nevertheless contend that ________.

Although globalization may bring economic growth, critics nevertheless contend that ________.




A) the growth is too fast
B) the inequality of gains puts some people in a relatively worse economic situation
C) this growth is mainly for the future, thus ignoring present economic growth needs
D) the cultural foundations of sovereignty are supported by globalization




Answer: B

Limitation of logging in the Amazon region is generally viewed as environmentally beneficial for the planet as a whole; however, unemployed Brazilian workers have felt that job creation inside Brazil is more important than climate protection outside Brazil. This example best illustrates which of the following?

Limitation of logging in the Amazon region is generally viewed as environmentally beneficial for the planet as a whole; however, unemployed Brazilian workers have felt that job creation inside Brazil is more important than climate protection outside Brazil. This example best illustrates which of the following?



A) why smaller countries are concerned that large international companies are powerful enough to dictate operating terms
B) why globalization is needed to foster uniform standards for combating environmental problems
C) how cultural homogeneity threatens the cultural foundation of smaller nations
D) how global interests can conflict with a country's local interests



Answer: D

Which of the following statements would most likely be made by a SUPPORTER of globalization?

Which of the following statements would most likely be made by a SUPPORTER of globalization?



A) Globalization encourages the adoption of uniform and superior standards for combating environmental problems.
B) Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources.
C) Global competition discourages resource-saving technologies, which are costly.
D) Air pollution and toxic runoff problems increase with global economic growth.





Answer: A

Which of the following is the LEAST likely reason that small countries worry about over dependence caused by globalization?

Which of the following is the LEAST likely reason that small countries worry about over dependence caused by globalization? 



A) A large country on which they depend may pressure them on political matters.
B) A large international firm may dictate its terms of operations in a small country.
C) A large company may exploit legal loopholes to avoid tax payments.
D) A large country may substantially increase its demand for the small country's production.




Answer: D

What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations?

What is the most likely reason that governments cooperate with each other through treaties, agreements, and consultations?



A) to gain an advantageous division of labor
B) to be in compliance with United Nations' requirements
C) to attack problems jointly that one country acting alone cannot solve
D) to assure that all countries get an equitable share of taxes from multinational enterprises




Answer: C

Governments have signed treaties to protect foreign-owned property rights, such as investments and patents. A primary reason for doing so is to ________.

Governments have signed treaties to protect foreign-owned property rights, such as investments and patents. A primary reason for doing so is to ________.




A) gain reciprocal advantages
B) reduce the domestic effects of other countries' economic policies
C) deal with areas of concern outside the territory of any one country
D) reduce national conflicts leading to violent political demonstrations





Answer: A

Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other?

Which of the following is NOT one of the three main reasons affecting international business for governments to cooperate with each other?




A) to attack problems jointly that one country acting alone cannot solve
B) to deal with issues that lie outside the territory of any nation
C) to gain reciprocal advantages
D) to establish a common language




Answer: D

Assume an enterprise is considering establishment of a foreign production facility. Which of the following best supports this decision?

Assume an enterprise is considering establishment of a foreign production facility. Which of the following best supports this decision?



A) Its foreign competitors have higher production costs than it has.
B) Its main competitor successfully opened a foreign plant.
C) Its suppliers follow an agglomeration strategy.
D) None of its competitors have foreign production facilities.




Answer: B

Which of the following best explains recent governmental relaxation of restrictions on cross-border trade or resource movements?

Which of the following best explains recent governmental relaxation of restrictions on cross-border trade or resource movements?



A) Most countries face shortages of workers, so they seek immigrants who can help them produce more.
B) Governments believe that this will decrease the need to make their own companies more innovative.
C) Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary.
D) Governments believe that domestic producers will become more efficient as a result of foreign competition.





Answer: D

Because consumers want a greater variety of goods and services at lower prices, many governments have ________.

Because consumers want a greater variety of goods and services at lower prices, many governments have ________.



A) reduced their restrictions on the international movement of goods and services
B) acted to tax most imports at a lower rate than domestic products
C) sought to eliminate reciprocal advantages negotiated through international organizations and treaties
D) increased their participation in multinational problem-solving efforts



Answer: A

Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S. market. Which of the following is likely the MOST important factor for this increase in imports?

Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S. market. Which of the following is likely the MOST important factor for this increase in imports?




A) more effective production techniques
B) advances in communication systems
C) advances in transportation and logistics
D) cross-national cooperation




Answer: C

Which of the following has MOST influenced consumers to demand access to foreign-made products?

Which of the following has MOST influenced consumers to demand access to foreign-made products?




A) Declining global affluence has caused consumers to seek out lower-priced products from abroad.
B) Consumers have become more efficient in using media and technologies to compare prices worldwide.
C) Fearing that their governments will enact restrictive policies on imports, consumers are stocking up on foreign products before restrictions are put in place.
D) Expectations of rising prices of foreign products have caused consumers to seek foreign products before their prices become prohibitive.




Answer: B

Institutional development of services by business and government has aided the expansion of international business by ________.

Institutional development of services by business and government has aided the expansion of international business by ________.



A) providing a universally agreed upon language for conducting international transactions
B) removing immigration restrictions so that global firms can move personnel easily
C) developing means to ease the flow of goods among countries
D) spurring competition among domestic producers




Answer: C

According to the A.T. Kearney/Foreign Policy Globalization Index, countries ________.

According to the A.T. Kearney/Foreign Policy Globalization Index, countries ________.



A) tend to be ranked similarly on all four dimensions
B) are more globalized on the political dimension than on personal contact
C) that are large in land mass and population are less globalized than small countries
D) sometimes rank high on one dimension and low on another





Answer: D

Which of the following is an indication of the increased globalization of business since the end of World War II?

Which of the following is an indication of the increased globalization of business since the end of World War II?




A) Foreign trade has largely replaced foreign ownership as a means of conducting international business.
B) World trade has grown more rapidly than world production.
C) Globally, consumers now depend on foreign output for more than half their consumption.
D) Countries have increased their import restrictions to counter the rising tide of imports.




Answer: B

The shifting of national borders has most likely created which of the following situations for international business?

The shifting of national borders has most likely created which of the following situations for international business?





A) It has left rural residents more isolated from technology.
B) It has complicated the understanding of behavioral factors affecting business.
C) It has increased physical barriers to exporting.
D) It has slowed communications between a company's headquarters and foreign operations




Answer: C

Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities; however, Devon would most likely benefit from studying international business issues so that he can ________.

Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities; however, Devon would most likely benefit from studying international business issues so that he can ________. 




A) conduct better job interviews
B) better understand how foreign operations affect the company's competitive position
C) supervise and evaluate subordinates who have global assignments
D) understand the legalities of importing and exporting products overseas




Answer: B

In terms of international business, it is most accurate to say that ________.

In terms of international business, it is most accurate to say that ________.




A) there is a universal "best way" to conduct business
B) global competition affects large companies but not small ones
C) most firms depend either on foreign markets and supplies or compete against companies that do
D) government regulation of international business has little effect on a company's profits



Answer: C

Which of the following is NOT a likely reason to study international business?

Which of the following is NOT a likely reason to study international business?



A) Global events affect almost all companies.
B) Differences among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to country.
C) Business conducted outside the limits of any one country is inexplicably on the decline.
D) Firms may be better able to obtain better or less expensive resources by operating internationally.






Answer: C

Which of the following best defines international business?

Which of the following best defines international business?



A) It includes all economic flows between two or more countries.
B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries.
D) It includes all business transactions in countries other than your home country.





Answer: C

With IP services, the ________ at the sending site takes the outgoing message (which usually is an Ethernet frame containing an IP packet), strips off the Ethernet frame and uses the IP address in the IP packet to route the packet though the carrier's packet-switched network to its final destination.

With IP services, the ________ at the sending site takes the outgoing message (which usually is an Ethernet frame containing an IP packet), strips off the Ethernet frame and uses the IP address in the IP packet to route the packet though the carrier's packet-switched network to its final destination.



a. PAD
b. gateway
c. switch
d. router
e. WAN




Answer: A

Which of the following is not a way to reduce network demand?

Which of the following is not a way to reduce network demand? 



a. shifting network usage from high cost times to lower cost times
b. using data compression techniques for all data in the network
c. requiring a network impact statement for all application software developed by the organization
d. moving data further from the applications and people who use them
e. shifting network usage from peak to lower demand times




Answer: D

Dynamic routing:

Dynamic routing: 




a. imposes an overhead cost by increasing network traffic
b. decreases performance in networks which have many possible routes
c. decreases performance in networks with "bursty" traffic
d. should be used in 80 to 90 percent of total networks' capacity
e. is another term for static routing in WANs




Answer: A

The performance of WANs can be improved by:

The performance of WANs can be improved by: 



a. upgrading the circuits between the computers
b. increasing the demand placed on the network
c. downgrading the circuits between the computers
d. downgrading the devices that provide access to the circuits
e. increasing network traffic




Answer: A

Which of the following is not a type of VPN?

Which of the following is not a type of VPN?




a. intranet VPN
b. extranet VPN
c. access VPN
d. T-1 VPN
e. a VPN that enables employees to access an organization's network from a remote location




Answer: D

Ethernet/IP packet networks:

Ethernet/IP packet networks:



a. are supported with gigabit fiber optic networks in large cities
b. are offered only by the common carriers
c. use token ring layer 2 media access control
d. use IPX/SPX protocols
e. provide CIR up to a maximum of 1.544 Mbps




Answer: A

In a packet switched network, permanent virtual circuits that look very similar to a _____________ (for hardware-based dedicated circuits) move packets through the network.

In a packet switched network, permanent virtual circuits that look very similar to a _____________ (for hardware-based dedicated circuits) move packets through the network.


a. cloud-based ring design
b. cloak-based mesh design
c. cloud-based mesh design
d. common carrier ring design
e. common carrier bus design






Answer: C

A ______ is a user's connection into a packet switched service.

A ______ is a user's connection into a packet switched service.



a. packet analog/digital device
b. packet asynchronous/discrete device
c. packet asymmetric/data transmission device
d. packet assembly/disassembly device
e. packet analyzer/decoder device





Answer: D

Which of the following is not a benefit of packet switched services?

Which of the following is not a benefit of packet switched services? 





a. The data transmission rates tend to be lower than dial-up or dedicated circuits.
b. You don't have to set up dedicated circuits between each end point from and to which you wish to transmit data and/or voice.
c. You have the flexibility to send data through a temporary circuit between two connections that will be disconnected as soon as the digital transmission is completed.
d. All circuits are less susceptible to a great deal of noise because they are digital.
e. You don't have to specify all the interconnecting services you need for your WAN when you buy the service.



Answer: A

SONET:

SONET: 





a. is a standard for optical transmission that currently operates at Terabit per second speeds
b. is very similar to the ITU-T standard, synchronous digital hierarchy
c. uses inverse multiplexing above the OC-1 level
d. refers to Sprint Overall Network
e. is not currently available, even in large cities



Answer: C

Mesh networks:

Mesh networks: 



a. usually provide relatively long routes through the network (compared to ring networks)
b. require more processing by each computer in the network than in star or ring networks
c. do not use decentralized routing
d. do not have much capacity wasted by network status information
e. do not have many possible routes through the network to prevent one circuit from becoming overloaded




Answer: B

A star topology is:

A star topology is: 



a. difficult to manage because the central computer receives and routes all messages in the network
b. dependent upon the capacity of the central computer for its performance
c. always slower than a ring network
d. less susceptible to traffic problems than other architectures
e. not affected if the central computer fails




Answer: B

A _______ geometric layout for a WAN connects all computers to one central computer that routes messages to the appropriate computer, usually via a series of point-to-point dedicated circuits.

A _______ geometric layout for a WAN connects all computers to one central computer that routes messages to the appropriate computer, usually via a series of point-to-point dedicated circuits.



a. ring design
b. mesh design
c. bus design
d. star design
e. mesh design




Answer: D

A star architecture:

A star architecture:



a. connects all computers in a closed loop
b. connects all computers off a backbone circuit
c. connects all computers to one central computer that routes messages to the appropriate computer
d. all of the above
e. none of the above




Answer: C

In a ring design WAN,

In a ring design WAN, 



a. failure in one circuit means that the network can most likely continue to function
b. failure in one circuit always means that the network will cease to function
c. failure in one computer always means that the network will cease to function
d. failure in one circuit means that there will not be any increased traffic delays in the network
e. failure in one computer always means that messages will stop at that computer since it would be impossible to re-route traffic




Answer: A

In a ring design WAN,

In a ring design WAN, 


a. messages can take a long time to travel from the sender to the receiver
b. a message arrives at all computers on the network simultaneously
c. messages always arrive faster than in other types of layouts
d. messages are delivered directly from sender to receiver because there is a point-to-point connection directly between each sender and each receiver
e. messages always take one second to travel between sender and receiver





Answer: A

Primary rate interface:

Primary rate interface: 


a. is typically offered only to commercial customers
b. provides a communications circuit with two 64 Kbps B channels, plus one D channel
c. is defined exactly the same way in Europe
d. has an upper capacity of 128Kbps
e. is comprised of analog circuits only





Answer: A

Basic rate interface:

Basic rate interface: 



a. is typically offered only to commercial customers
b. provides a communications circuit with two 64 Kbps B channels, plus one D channel
c. is defined exactly the same way in Europe
d. has an upper capacity of 1.544 Mbps
e. is comprised of analog circuits only




Answer: B

Appropriate dress for a man to wear to an interview includes

Appropriate dress for a man to wear to an interview includes 



a. a conservative sweater with white shirt, tie, and dark pants.
b. a long-sleeved white shirt with tie, dark trousers, and a leather jacket.
c. a sport jacket and turtleneck sweater.
d. a two-piece conservative suit in a solid color such as navy blue or gray and a long-sleeved white or subdued-colored shirt with a plain or conservative tie.





Answer: D

Following up after an interview

Following up after an interview



a. is inappropriate.
b. should be done in person.
c. should be done with a letter.
d. should be done with a telephone call




Answer: C

What would be the best response to an unacceptable interview question about your religion?

What would be the best response to an unacceptable interview question about your religion?




a. Lie and say what you think the interviewer wants to hear.
b. Say, "That question offends me; can we move to the next one."
c. Show irritation and say, "I would rather not say."
d. Smile and say, "Two topics I learned to keep out of a conversation are politics and religion. My religion won't interfere with my job."





Answer: D

Which of the following is the best opening to gain favorable attention for an application letter?

Which of the following is the best opening to gain favorable attention for an application letter?




a. I am the person for your management job.
b. Please compare my qualifications with the job requirements for the management position you have open.
c. This is to apply for the management position you have open.
d. When the going gets tough, the tough get going. That is why I am sending you my application for the management position you have open




Answer: B

Which of the following is the best closing for an application letter?

Which of the following is the best closing for an application letter?





a. I am sure I will do an excellent job for you.
b. May I have an interview to discuss this opportunity with you?
c. Thanks for considering my application. I will expect to hear from you soon.
d. Your interest in my candidacy is greatly appreciated



Answer: B

The primary purpose of a résumé is to

The primary purpose of a résumé is to



a. communicate clearly your strengths and weaknesses.
b. obtain a job interview.
c. prepare you for completing an application form.
d. summarize information about you





Answer: B

Include high school data on your résumé

Include high school data on your résumé



a. if it is recent and shows considerable accomplishments.
b. if you are a recent college graduate.
c. to account for all the time on a chronological résumé.
d. to show this important part of your educational history.




Answer: C

Which of the following statements about the Experience section of the résumé is most accurate?

Which of the following statements about the Experience section of the résumé is most accurate?




a. Employer, employer location, and dates of employment should be listed for each job on your résumé.
b. Employers prefer the chronological format; in this format your experience is listed in chronological order.
c. Most decisions to interview or not to interview are based on the content in this section of the résumé.
d. Responsibilities of the job are the most important factors to list in this section of your résumé.



Answer: C

The primary purpose of keywords is to

The primary purpose of keywords is to 




a. enable managers to determine if you match their openings.
b. to describe your qualifications.
c. to impress the human resources manager.
d. to mark an electronic trail that improves your chances to be selected for an interview.




Answer: D

Employers are most interested in

Employers are most interested in 



a. your accomplishments on the job.
b. your college education.
c. your job responsibilities and duties.
d. your outside activities




Answer: A

You have been asked to speak to members of the Longmont Business Club at Longmont Community College about the skills employers in your area are seeking in prospective employees. Which organizational pattern would be most effective for this presentation?

You have been asked to speak to members of the Longmont Business Club at Longmont Community College about the skills employers in your area are seeking in prospective employees. Which organizational pattern would be most effective for this presentation?



a. Causal
b. Chronological
c. Spatial
d. Topical




Answer: D

An impromptu presentation

An impromptu presentation




a. allows time for preparation of visual aids.
b. provides an opportunity to respond to audience feedback.
c. restricts eye contact with the audience.
d. results in a low level of speaker anxiety




Answer: B

When speaking to an established committee within his or her organization, a speaker should analyze the audience for knowledge, interest, attitude, emotional reaction and which of the following?

When speaking to an established committee within his or her organization, a speaker should analyze the audience for knowledge, interest, attitude, emotional reaction and which of the following?



a. Age
b. Gender
c. Interaction style
d. Profession




Answer: C

A good way to gain confidence when speaking to a group is to

A good way to gain confidence when speaking to a group is to



a. concentrate on yourself and how you sound.
b. keep the emphasis on the listeners and use the you-viewpoint.
c. picture the audience dressed in their underwear.
d. tell yourself that you can do it




Answer: B

Darren Henderson is a college sophomore majoring in finance. He has been invited to return to his small, rural high school to give a presentation about the academic and social aspects of college life. Which of the following organizational patterns would be best for Darren to use for this presentation?

Darren Henderson is a college sophomore majoring in finance. He has been invited to return to his small, rural high school to give a presentation about the academic and social aspects of college life. Which of the following organizational patterns would be best for Darren to use for this presentation?




a. Causal
b. Chronological
c. Comparative
d. Problem and solution





Answer: C

The term "troublesome t's" refers to

The term "troublesome t's" refers to 



a. abdominal tightness during breathing.
b. characteristics associated with the tone of a message.
c. the causes of muffled, mumbled speech sounds.
d. the tension and trembling associated with stage fright




Answer: C

Storytelling

Storytelling 



a. can be used to communicate an organization's goals and values.
b. is a new concept in oral presentations.
c. is an appropriate technique to use in all oral communication situations.
d. should be used to cast suspicion on the credibility of a person or an organization.




Answer: A

Which of the following is NOT a nonverbal cue?

Which of the following is NOT a nonverbal cue?



a. Arriving late for a meeting
b. Crossing and uncrossing your legs
c. Drumming your fingers on the table top
d. Whispering to your colleague





Answer: D

Which of the following is an accurate statement about communication?

Which of the following is an accurate statement about communication?



a. Oral and written communication cannot exist without nonverbal communication.
b. Receivers form their first impression of a speaker when the speaker utters his or her first words.
c. The sender is aware of the nonverbal message that he or she is sending.
d. When interpreting a message, more weight is given to the words than the nonverbal communication.





Answer: A

Which of the following statements about listening is false?

Which of the following statements about listening is false?




a. College students spend more less listening than writing.
b. Employers rate listening as one of the top five skills they expect employees to have.
c. Good listening skills improve employee and customer satisfaction.
d. People have different reasons for listening




Answer: A

Which of the following are guidelines for communicating assertively?

Which of the following are guidelines for communicating assertively?




a. Respect the rights and feelings of others while standing up for your own rights, use the I-viewpoint, use factual information, and speak in a firm voice.
b. Respect the rights and feelings of others while standing up for your own rights, use the I-viewpoint, use personal judgments, and speak in a firm voice.
c. Respect the rights and feelings of others while standing up for your own rights, use the you-viewpoint, use factual information, and speak in a firm voice.
d. Respect the rights and feelings of others while standing up for your own rights, use the you-viewpoint, use personal judgments, and speak in a firm voice.




Answer: A

Which of the following are signs that a conflict exists?

Which of the following are signs that a conflict exists? 




a. Decline in productivity, emotional outbursts, absenteeism, and lowered morale
b. Decline in productivity, emotional outbursts, raised voices, and absenteeism
c. Decline in productivity, emotional outbursts, raised voices, and lowered morale
d. Lowered morale, absenteeism, accidents, and raised voices




Answer: A