Question 1

A country's economic assets are also known as factors of production.

Accepted Answer

A) True 
 B)False

Question 2

Rosa Suarez reported on her analysis of cross-cultural risks involved with establishing the plant in Country C. Each of the following was most likely discussed in her report EXCEPT ________.

Accepted Answer

A) language barriers 
B) lifestyle differences 
C) religious beliefs 
D) the level of national debt 
A) language barriers 
B) lifestyle differences 
C) religious beliefs 
D) the level of national debt

Question 3

The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide.

Accepted Answer

A) True 
 B)False

Question 4

The level of government intervention in commercial activities is similar across most countries.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) New Zealand 
B) Germany 
C) Kenya 
D) Saudi Arabia 
A) New Zealand 
B) Germany 
C) Kenya 
D) Saudi Arabia

Question 6

Fluctuating exchange rates are an example of which of the following?

Accepted Answer

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

Question 7

Although services trade is growing rapidly, the value of merchandise trade is still much larger.

Accepted Answer

A) True 
 B)False

Question 8

In a short essay, explain the meaning of international trade. Describe the two major forms through which international trade takes place.

Accepted Answer

International trade describes the exchan

Question 9

China has the second most MNEs.

Accepted Answer

A) True 
 B)False

Question 10

Why might firms choose to pursue internationalization strategies? In a short essay, identify five major motivations for expanding overseas. Classify these motivations as strategic or reactive and provide an example of each.

Accepted Answer

Strategic Motivations
a. One reason why

Question 11

A few decades ago, international business was largely the domain of ________.

Accepted Answer

A) service firms 
B) multinational firms 
C) smaller firms 
D) all of the above 
A) service firms 
B) multinational firms 
C) smaller firms 
D) all of the above

Question 12

Which of the following is another term for importing?

Accepted Answer

A) capital investment 
B) supply side development 
C) global sourcing 
D) unilateral procurement 
A) capital investment 
B) supply side development 
C) global sourcing 
D) unilateral procurement

Question 13

A U.S. shoe manufacturer is considering internationalizing to promote growth by diversifying its markets. Which of the following, if true, would most strongly support the claim that moving to France would help the company grow through market diversification?

Accepted Answer

A) Doing business in France would likely expose the company to new ideas for product innovation. 
B) French women tend to purchase shoes more frequently than do French men. 
C) French consumers represent a sizeable market that could significantly boost the company's sales. 
D) Many of the company's U.S. customers have moved overseas to Europe. 
A) Doing business in France would likely expose the company to new ideas for product innovation. 
B) French women tend to purchase shoes more frequently than do French men. 
C) French consumers represent a sizeable market that could significantly boost the company's sales. 
D) Many of the company's U.S. customers have moved overseas to Europe.

Question 14

Bethany presents another opportunity that involves the purchase of a manufacturing plant in South Korea. She explains that this type of strategy will involve ________ ownership on the part of the firm.

Accepted Answer

A) indirect 
B) passive 
C) short-term 
D) active 
A) indirect 
B) passive 
C) short-term 
D) active

Question 15

What is international business, and how has it transformed the world economy?

Accepted Answer

International business refers to the per

Question 16

In discussing the expansion effort to India, the CEO reminded shareholders of Black and Decker's move to partner with the Indian auto retailer Bajaj. The CEO was most likely attempting to justify which of the following?

Accepted Answer

A) a joint venture that would position Sterling for long-term sales in India 
B) a marketing effort targeted to American citizens living in India 
C) a price drop to ward off competition from an emerging Indian auto retailer 
D) a new manufacturing protocol based on an efficient Indian production method 
A) a joint venture that would position Sterling for long-term sales in India 
B) a marketing effort targeted to American citizens living in India 
C) a price drop to ward off competition from an emerging Indian auto retailer 
D) a new manufacturing protocol based on an efficient Indian production method

Question 17

Which of the following is subject to importing and exporting?

Accepted Answer

A) both finished products and intermediate goods 
B) finished products but not intermediate goods 
C) intermediate goods but not raw materials 
D) raw materials and components, but not finished products 
A) both finished products and intermediate goods 
B) finished products but not intermediate goods 
C) intermediate goods but not raw materials 
D) raw materials and components, but not finished products

Question 18

At the meeting, Dan explains to the attendees that Freehold direct investment projects differ from international trade in that ________.

Accepted Answer

A) the firm itself is crossing international borders to purchase foreign assets 
B) the firm is restricting its investments to stocks and does not purchase mutual funds 
C) the firm has chosen to focus strictly on the technology sector 
D) the firm is engaging in the transfer of products across national borders 
A) the firm itself is crossing international borders to purchase foreign assets 
B) the firm is restricting its investments to stocks and does not purchase mutual funds 
C) the firm has chosen to focus strictly on the technology sector 
D) the firm is engaging in the transfer of products across national borders

Question 19

The two primary types of international investment are portfolio investment and foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 20

The CEO justified one of the company's moves by pointing out that it not only enabled Sterling to benefit from global sourcing advantages, but it also provided access to new ideas about business methods. The shareholders viewed this justification positively most likely because they understood which of the following?

Accepted Answer

A) Sourcing advantages are usually more important to growth than obtaining new business ideas. 
B) International firms may have more than one motive for international expansion. 
C) The most compelling motive for international expansion is to gain new ideas from other markets. 
D) This expansion strategy would enable the company to better manage cross-cultural risk. 
A) Sourcing advantages are usually more important to growth than obtaining new business ideas. 
B) International firms may have more than one motive for international expansion. 
C) The most compelling motive for international expansion is to gain new ideas from other markets. 
D) This expansion strategy would enable the company to better manage cross-cultural risk.

A country's economic assets are also known as factors of production.

Rosa Suarez reported on her analysis of cross-cultural risks involved with establishing the plant in Country C. Each of the following was most likely discussed in her report EXCEPT ________.

The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide.

The level of government intervention in commercial activities is similar across most countries.

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

Fluctuating exchange rates are an example of which of the following?

Although services trade is growing rapidly, the value of merchandise trade is still much larger.

In a short essay, explain the meaning of international trade. Describe the two major forms through which international trade takes place.

China has the second most MNEs.

Why might firms choose to pursue internationalization strategies? In a short essay, identify five major motivations for expanding overseas. Classify these motivations as strategic or reactive and provide an example of each.

A few decades ago, international business was largely the domain of ________.

Which of the following is another term for importing?

A U.S. shoe manufacturer is considering internationalizing to promote growth by diversifying its markets. Which of the following, if true, would most strongly support the claim that moving to France would help the company grow through market diversification?

Bethany presents another opportunity that involves the purchase of a manufacturing plant in South Korea. She explains that this type of strategy will involve ________ ownership on the part of the firm.

What is international business, and how has it transformed the world economy?

In discussing the expansion effort to India, the CEO reminded shareholders of Black and Decker's move to partner with the Indian auto retailer Bajaj. The CEO was most likely attempting to justify which of the following?

Which of the following is subject to importing and exporting?

At the meeting, Dan explains to the attendees that Freehold direct investment projects differ from international trade in that ________.

The two primary types of international investment are portfolio investment and foreign direct investment.

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

A country's economic assets are also known as factors of production.

Rosa Suarez reported on her analysis of cross-cultural risks involved with establishing the plant in Country C. Each of the following was most likely discussed in her report EXCEPT ________.

The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide.

The level of government intervention in commercial activities is similar across most countries.

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

Fluctuating exchange rates are an example of which of the following?

Although services trade is growing rapidly, the value of merchandise trade is still much larger.

In a short essay, explain the meaning of international trade. Describe the two major forms through which international trade takes place.

China has the second most MNEs.

Why might firms choose to pursue internationalization strategies? In a short essay, identify five major motivations for expanding overseas. Classify these motivations as strategic or reactive and provide an example of each.

A few decades ago, international business was largely the domain of ________.

Which of the following is another term for importing?

A U.S. shoe manufacturer is considering internationalizing to promote growth by diversifying its markets. Which of the following, if true, would most strongly support the claim that moving to France would help the company grow through market diversification?

Bethany presents another opportunity that involves the purchase of a manufacturing plant in South Korea. She explains that this type of strategy will involve ________ ownership on the part of the firm.

What is international business, and how has it transformed the world economy?

In discussing the expansion effort to India, the CEO reminded shareholders of Black and Decker's move to partner with the Indian auto retailer Bajaj. The CEO was most likely attempting to justify which of the following?

Which of the following is subject to importing and exporting?

At the meeting, Dan explains to the attendees that Freehold direct investment projects differ from international trade in that ________.

The two primary types of international investment are portfolio investment and foreign direct investment.

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