Question 1

Each of the following has contributed to the rapid growth of trade among nations EXCEPT ________.

Accepted Answer

A) the growth of emerging market countries 
B) the increase in trade barriers 
C) advances in information technology 
D) the liberalization of markets 
A) the growth of emerging market countries 
B) the increase in trade barriers 
C) advances in information technology 
D) the liberalization of markets B

Question 2

Philip Baxter reported on the risks associated with establishing the plant in Country A. The most significant risk, in his view, was posed by the government's complex bureaucratic structure. Philip reported the likelihood of significant administrative delays in opening the plant. The risk identified by Philip is an example of which of the following?

Accepted Answer

A) country risk 
B) commercial risk 
C) currency risk 
D) cross-cultural risk 
A) country risk 
B) commercial risk 
C) currency risk 
D) cross-cultural risk A

Question 3

In a short essay, explain the four trends that provide evidence for the globalization of markets. Provide an example to illustrate one of the trends.

Accepted Answer

In practical terms, the globalization of markets is evident in several related trends. First is the unprecedented growth of international trade. For example, cross-border trade was modest-about $100 billion per year. Today, it accounts for a substantial proportion of the world economy, with world exports alone amounting to some $18 trillion annually-that is, $18,000,000,000,000! Second, trade between nations is accompanied by substantial flows of capital, technology, and knowledge. The third trend is the development of highly sophisticated global financial systems and mechanisms that facilitate the cross-border flow of products, money, technology, and knowledge. Fourth, globalization has brought about a greater degree of collaboration among nations through such organizations as the World Trade Organization and the International Monetary Fund.

Question 4

The world's largest MNEs are concentrated in emerging economies.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following, if true, would most strongly support the claim that national prosperity is increased by participation in international business?

Accepted Answer

A) Countries that participate in international trade have higher GDP per capita than non-participating countries. 
B) Individuals in advanced economies tend to set purchasing trends for consumers worldwide. 
C) For most countries, levels of international trade have increased significantly in recent decades. 
D) National literacy levels are strongly correlated with a country's degree of political freedom. 
A) Countries that participate in international trade have higher GDP per capita than non-participating countries. 
B) Individuals in advanced economies tend to set purchasing trends for consumers worldwide. 
C) For most countries, levels of international trade have increased significantly in recent decades. 
D) National literacy levels are strongly correlated with a country's degree of political freedom.

Question 6

________ refers to the transfer of assets to another country or the acquisition of assets in that country.

Accepted Answer

A) International investment 
B) International trade 
C) Importing 
D) Exporting 
A) International investment 
B) International trade 
C) Importing 
D) Exporting

Question 7

Each of the following types of organizations is active in international business EXCEPT ________.

Accepted Answer

A) MNE 
B) SME 
C) RND 
D) NGO 
A) MNE 
B) SME 
C) RND 
D) NGO

Question 8

Which of the following best explains why Taiwanese computer manufacturers established subsidiaries in the United States?

Accepted Answer

A) low-cost financial capital 
B) low-cost labor 
C) access to raw materials 
D) lack of skilled managerial talent in home country 
A) low-cost financial capital 
B) low-cost labor 
C) access to raw materials 
D) lack of skilled managerial talent in home country

Question 9

For manufacturing companies, on a per-unit-of-output basis, high volumes of production are correlated with lower per-unit cost.

Accepted Answer

A) True 
 B)False

Question 10

One shareholder questioned the CEO's rationale for beginning an exploratory effort to establish a new manufacturing plant in India. The CEO responded by explaining that India was an untapped market with a high demand for products such as those produced by Sterling. His rationale represented an example of which of the following reasons for international expansion?

Accepted Answer

A) investing in a potentially rewarding relationship with a foreign partner 
B) gaining access to lower-cost or better-value factors of production 
C) seeking opportunities for growth through market diversification 
D) better serving key customers that have relocated abroad 
A) investing in a potentially rewarding relationship with a foreign partner 
B) gaining access to lower-cost or better-value factors of production 
C) seeking opportunities for growth through market diversification 
D) better serving key customers that have relocated abroad

Question 11

Dan discusses an investment opportunity that involves the purchase of selected securities from the Chinese stock market. This opportunity represents which type of international investment?

Accepted Answer

A) indirect production 
B) international portfolio 
C) foreign direct 
D) domestic securities 
A) indirect production 
B) international portfolio 
C) foreign direct 
D) domestic securities

Question 12

International business is defined as the performance of ________ activities by firms across national borders.

Accepted Answer

A) marketing and fiduciary 
B) trade and investment 
C) finance and operational 
D) accounting and auditing 
A) marketing and fiduciary 
B) trade and investment 
C) finance and operational 
D) accounting and auditing

Question 13

Which of the following types of risk is also known as political risk?

Accepted Answer

A) currency risk 
B) cross-cultural risk 
C) commercial risk 
D) country risk 
A) currency risk 
B) cross-cultural risk 
C) commercial risk 
D) country risk

Question 14

In the past, international trade and investment activities were mainly conducted by companies that sold services.

Accepted Answer

A) True 
 B)False

Question 15

What are the main differences between products and services? In a short essay, explain the difference between the two and provide three examples of each. Which sector has seen the greatest growth in international trade in recent years?

Accepted Answer

Products are defined as tangible merchan

Question 16

For internationalizing firms, the consequences of poor business management decisions are usually more costly when mistakes occur abroad than when they occur at home.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are reasons to study international business EXCEPT ________.

Accepted Answer

A) international business contributes to economic prosperity 
B) international trade is a critical engine for job creation 
C) international trade and investment have experienced unprecedented decline 
D) international business provides an opportunity to support sustainability and corporate citizenship 
A) international business contributes to economic prosperity 
B) international trade is a critical engine for job creation 
C) international trade and investment have experienced unprecedented decline 
D) international business provides an opportunity to support sustainability and corporate citizenship

Question 18

Each of the following represents a factor of production EXCEPT ________.

Accepted Answer

A) manufacturing infrastructure 
B) technology 
C) government regulations 
D) managerial talent 
A) manufacturing infrastructure 
B) technology 
C) government regulations 
D) managerial talent

Question 19

One shareholder wanted clarification about a research effort that investigated the possibility of setting up a plant in China. The CEO explained that serving China's rapidly growing middle class population would enable Sterling to increase the size of its customer base dramatically. In China, the CEO was most likely interested in ________.

Accepted Answer

A) avoiding government intervention 
B) challenging Chinese competitors 
C) gaining access to innovative ideas 
D) developing economies of scale 
A) avoiding government intervention 
B) challenging Chinese competitors 
C) gaining access to innovative ideas 
D) developing economies of scale

Question 20

Exporting is an entry strategy involving the sale of products or services to customers located abroad.

Accepted Answer

A) True 
 B)False

Each of the following has contributed to the rapid growth of trade among nations EXCEPT ________.

In a short essay, explain the four trends that provide evidence for the globalization of markets. Provide an example to illustrate one of the trends.

The world's largest MNEs are concentrated in emerging economies.

Which of the following, if true, would most strongly support the claim that national prosperity is increased by participation in international business?

________ refers to the transfer of assets to another country or the acquisition of assets in that country.

Each of the following types of organizations is active in international business EXCEPT ________.

Which of the following best explains why Taiwanese computer manufacturers established subsidiaries in the United States?

For manufacturing companies, on a per-unit-of-output basis, high volumes of production are correlated with lower per-unit cost.

Dan discusses an investment opportunity that involves the purchase of selected securities from the Chinese stock market. This opportunity represents which type of international investment?

International business is defined as the performance of ________ activities by firms across national borders.

Which of the following types of risk is also known as political risk?

In the past, international trade and investment activities were mainly conducted by companies that sold services.

What are the main differences between products and services? In a short essay, explain the difference between the two and provide three examples of each. Which sector has seen the greatest growth in international trade in recent years?

For internationalizing firms, the consequences of poor business management decisions are usually more costly when mistakes occur abroad than when they occur at home.

All of the following are reasons to study international business EXCEPT ________.

Each of the following represents a factor of production EXCEPT ________.

Exporting is an entry strategy involving the sale of products or services to customers located abroad.

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 1: Introduction: What Is International Business

Each of the following has contributed to the rapid growth of trade among nations EXCEPT ________.

In a short essay, explain the four trends that provide evidence for the globalization of markets. Provide an example to illustrate one of the trends.

The world's largest MNEs are concentrated in emerging economies.

Which of the following, if true, would most strongly support the claim that national prosperity is increased by participation in international business?

________ refers to the transfer of assets to another country or the acquisition of assets in that country.

Each of the following types of organizations is active in international business EXCEPT ________.

Which of the following best explains why Taiwanese computer manufacturers established subsidiaries in the United States?

For manufacturing companies, on a per-unit-of-output basis, high volumes of production are correlated with lower per-unit cost.

Dan discusses an investment opportunity that involves the purchase of selected securities from the Chinese stock market. This opportunity represents which type of international investment?

International business is defined as the performance of ________ activities by firms across national borders.

Which of the following types of risk is also known as political risk?

In the past, international trade and investment activities were mainly conducted by companies that sold services.

What are the main differences between products and services? In a short essay, explain the difference between the two and provide three examples of each. Which sector has seen the greatest growth in international trade in recent years?

For internationalizing firms, the consequences of poor business management decisions are usually more costly when mistakes occur abroad than when they occur at home.

All of the following are reasons to study international business EXCEPT ________.

Each of the following represents a factor of production EXCEPT ________.

Exporting is an entry strategy involving the sale of products or services to customers located abroad.

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters