Question 1

What is a born global firm? Explain one strategic or reactive reason why an SME might choose to start as a born global.

Accepted Answer

A born global firm is a young entreprene

Question 2

Calexor is a telecommunications SME that has been highly successful despite its limited resources. Stakeholders attribute Calexor's success to its ability to serve niche markets. Which of the following, if true, would most strongly support the claim that Calexor's growth can be attributed to niche market sales?

Accepted Answer

A) Calexor developed an interest in serving niche markets through an R & D experiment. 
B) Most of Calexor's sales are in specialty markets that larger competitors do not serve. 
C) Calexor's sales in mainstream telecommunications markets have always been strong. 
D) Calexor's growth soared after it entered its first overseas market and has continued to climb. 
A) Calexor developed an interest in serving niche markets through an R & D experiment. 
B) Most of Calexor's sales are in specialty markets that larger competitors do not serve. 
C) Calexor's sales in mainstream telecommunications markets have always been strong. 
D) Calexor's growth soared after it entered its first overseas market and has continued to climb.

Question 3

Firms that do not export tend to create jobs more quickly than do exporting firms.

Accepted Answer

A) True 
 B)False

Question 4

In a short essay, explain the cross-cultural risk faced by internationalizing firms. What causes this type of risk? Why might it pose a problem for internationalizing firms?

Accepted Answer

Cross-cultural risk refers to a situatio

Question 5

International business today is predominantly the domain of large, multinational companies.

Accepted Answer

A) True 
 B)False

Question 6

International business is performed not just by individual firms, but also governments and international agencies.

Accepted Answer

A) True 
 B)False

Question 7

In a short essay, explain the main differences between international portfolio investment and foreign direct investment.

Accepted Answer

a. Types of assets purchased-The first m

Question 8

What is meant by the term "entrepôt economies?" In a short essay, explain the concept and provide an example.

Accepted Answer

Entrepôt is from the French for "interme

Question 9

The CEO introduced another overseas effort by noting that it represented an attempt to confront an international competitor. The CEO was most likely referring to which of the following efforts?

Accepted Answer

A) a new plant established in Vietnam to benefit from low-cost labor 
B) a sales outlet established in Indonesia, where Sterling could charge more for its products 
C) a marketing and advertising partnership established with a successful French car retailer 
D) a distribution center established in London to preempt the growth of a British car manufacturer 
A) a new plant established in Vietnam to benefit from low-cost labor 
B) a sales outlet established in Indonesia, where Sterling could charge more for its products 
C) a marketing and advertising partnership established with a successful French car retailer 
D) a distribution center established in London to preempt the growth of a British car manufacturer

Question 10

Since the 1980s, emerging market countries have experienced substantial market liberalization and privatization.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following best characterizes the development of international business?

Accepted Answer

A) It has existed in some form for centuries. 
B) It first started in Europe. 
C) It developed after the year 2000. 
D) Its development has slowed in recent years. 
A) It has existed in some form for centuries. 
B) It first started in Europe. 
C) It developed after the year 2000. 
D) Its development has slowed in recent years.

Question 12

SMEs usually choose exporting as their main strategy for entering foreign markets.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would NOT be considered an example of foreign direct investment (FDI)?

Accepted Answer

A) cross-border purchase of a textile plant 
B) cross-border purchase of stocks 
C) purchase of capital assets of a foreign company 
D) purchase of foreign land for business operations 
A) cross-border purchase of a textile plant 
B) cross-border purchase of stocks 
C) purchase of capital assets of a foreign company 
D) purchase of foreign land for business operations

Question 14

One of the attendees represents a leading nation in the international services trade. This attendee is most likely from which of the following countries?

Accepted Answer

A) Brazil 
B) Greece 
C) Singapore 
D) South Africa 
A) Brazil 
B) Greece 
C) Singapore 
D) South Africa

Question 15

The Coca-Cola Company is an example of ________.

Accepted Answer

A) born global firm 
B) SME 
C) multinational enterprise 
D) NGO 
A) born global firm 
B) SME 
C) multinational enterprise 
D) NGO

Question 16

Phillip Hardy, one of the potential investors, expresses the desire to purchase only those types of assets in which he can maintain a relatively short-term interest. Which of the following investment opportunities would be most suited for Mr. Hardy?

Accepted Answer

A) a venture that gives investors ownership of the equipment used by multiple South African mining companies 
B) an initiative to purchase the technology assets of an Indian consulting firm 
C) the Freehold Eastern Growth Fund, which purchases Eastern European growth stocks 
D) the Freehold World Climb Project, which maintains partial ownership of an Australian hiking equipment production plant 
A) a venture that gives investors ownership of the equipment used by multiple South African mining companies 
B) an initiative to purchase the technology assets of an Indian consulting firm 
C) the Freehold Eastern Growth Fund, which purchases Eastern European growth stocks 
D) the Freehold World Climb Project, which maintains partial ownership of an Australian hiking equipment production plant

Question 17

The process of targeting and serving markets outside the home country is known as ________.

Accepted Answer

A) market diversification 
B) competition intensity 
C) reactive internationalization 
D) trade protectionism 
A) market diversification 
B) competition intensity 
C) reactive internationalization 
D) trade protectionism

Question 18

________ is the total value of products and services produced in a country over the course of a year.

Accepted Answer

A) GDP 
B) CAD 
C) FDI 
D) PPP 
A) GDP 
B) CAD 
C) FDI 
D) PPP

Question 19

In a short essay, explain why non-profit organizations might conduct cross-border activities.

Accepted Answer

In addition to profit-seeking focal firm

Question 20

Which of the following contributes LEAST to increasing a company's profit margins?

Accepted Answer

A) increasing demand 
B) increasing global competition 
C) high-growth markets 
D) underserved economies 
A) increasing demand 
B) increasing global competition 
C) high-growth markets 
D) underserved economies

What is a born global firm? Explain one strategic or reactive reason why an SME might choose to start as a born global.

Firms that do not export tend to create jobs more quickly than do exporting firms.

In a short essay, explain the cross-cultural risk faced by internationalizing firms. What causes this type of risk? Why might it pose a problem for internationalizing firms?

International business today is predominantly the domain of large, multinational companies.

International business is performed not just by individual firms, but also governments and international agencies.

In a short essay, explain the main differences between international portfolio investment and foreign direct investment.

What is meant by the term "entrepôt economies?" In a short essay, explain the concept and provide an example.

The CEO introduced another overseas effort by noting that it represented an attempt to confront an international competitor. The CEO was most likely referring to which of the following efforts?

Since the 1980s, emerging market countries have experienced substantial market liberalization and privatization.

Which of the following best characterizes the development of international business?

SMEs usually choose exporting as their main strategy for entering foreign markets.

Which of the following would NOT be considered an example of foreign direct investment (FDI)?

One of the attendees represents a leading nation in the international services trade. This attendee is most likely from which of the following countries?

The Coca-Cola Company is an example of ________.

Phillip Hardy, one of the potential investors, expresses the desire to purchase only those types of assets in which he can maintain a relatively short-term interest. Which of the following investment opportunities would be most suited for Mr. Hardy?

The process of targeting and serving markets outside the home country is known as ________.

________ is the total value of products and services produced in a country over the course of a year.

In a short essay, explain why non-profit organizations might conduct cross-border activities.

Which of the following contributes LEAST to increasing a company's profit margins?

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

What is a born global firm? Explain one strategic or reactive reason why an SME might choose to start as a born global.

Firms that do not export tend to create jobs more quickly than do exporting firms.

In a short essay, explain the cross-cultural risk faced by internationalizing firms. What causes this type of risk? Why might it pose a problem for internationalizing firms?

International business today is predominantly the domain of large, multinational companies.

International business is performed not just by individual firms, but also governments and international agencies.

In a short essay, explain the main differences between international portfolio investment and foreign direct investment.

What is meant by the term "entrepôt economies?" In a short essay, explain the concept and provide an example.

The CEO introduced another overseas effort by noting that it represented an attempt to confront an international competitor. The CEO was most likely referring to which of the following efforts?

Since the 1980s, emerging market countries have experienced substantial market liberalization and privatization.

Which of the following best characterizes the development of international business?

SMEs usually choose exporting as their main strategy for entering foreign markets.

Which of the following would NOT be considered an example of foreign direct investment (FDI)?

One of the attendees represents a leading nation in the international services trade. This attendee is most likely from which of the following countries?

The Coca-Cola Company is an example of ________.

Phillip Hardy, one of the potential investors, expresses the desire to purchase only those types of assets in which he can maintain a relatively short-term interest. Which of the following investment opportunities would be most suited for Mr. Hardy?

The process of targeting and serving markets outside the home country is known as ________.

________ is the total value of products and services produced in a country over the course of a year.

In a short essay, explain why non-profit organizations might conduct cross-border activities.

Which of the following contributes LEAST to increasing a company's profit margins?

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