International Business Environment
Test Preparation
Course Introduction
International Business Environment explores the dynamic and complex factors influencing business activities across national borders. This course examines the economic, political, legal, technological, and socio-cultural environments that shape international trade and investment decisions. Students will analyze how globalization, international institutions, and regional economic integration impact multinational enterprises. Through case studies and real-world examples, the course develops an understanding of the challenges and opportunities faced by businesses operating in diverse global markets, preparing students to make informed strategic decisions in the international arena.
Recommended Textbook
Global Business Today 7th Edition by Charles
W. L. Hill
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16 Chapters
2381 Verified Questions
2381 Flashcards
Source URL: https://quizplus.com/study-set/3022
Page 2
Chapter 1: Globalization
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151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/60083
Sample Questions
Q1) After World War I,the advanced nations of the West committed themselves to removing barriers to the free flow of goods,services,and capital between nations.
A)True
B)False
Answer: False
Q2) A firm that imports products from other countries can be termed an international business.
A)True
B)False
Answer: True
Q3) Although early outsourcing efforts were primarily confined to _____,increasingly,companies are taking advantage of outsourcing for _____.
A)healthcare;manufacturing
B)manufacturing;services
C)consulting;manufacturing
D)manufacturing;agriculture
Answer: B
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Page 3
Chapter 2: National Differences in Political Economy
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) Command economies are dynamic economic systems that encourage innovation.
A)True
B)False
Answer: False
Q2) Democracy,in its purest form,is based on the belief that:
A)citizens should be directly involved in decision making.
B)citizens are ill-equipped to make their own decisions and should be governed by a few.
C)citizens are responsible for their own economic health and thus need no government.
D)education of citizens is the most important resource of societies.
Answer: A
Q3) When firms do not wish to accept the rules of the CIGS,they usually rely on _____ to settle contract disputes.
A)UN involvement
B)arbitration
C)local codes
D)U.S.law
Answer: B
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4
Chapter 3: Differences in Culture
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) _____ refers to a condition where people tend to perceive themselves in terms of their class background,and this shapes their relationships with members of other classes.
A)Social mindedness
B)Class consciousness
C)Class literacy
D)Social consciousness
Answer: B
Q2) Indictments against theft,incest,and cannibalism are examples of how violating _____ can bring about serious retribution.
A)structures
B)mores
C)folkways
D)etiquette
Answer: B
Q3) India boasts of a rapidly growing economy,in spite of the values of asceticism preached by Hinduism.
A)True
B)False Answer: True
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Chapter 4: Ethics in International Business
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) Myanmar and Nigeria have been cited in the text as examples of countries where:
A)sanctions have been instrumental in toppling repressive regimes.
B)democracy has been ushered in as a result of economic growth.
C)the economy has grown as a result of foreign investment.
D)investment cannot be justified on ethical grounds.
Q2) The concept of social responsibility refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions.
A)True
B)False
Q3) The Universal Declaration of Human Rights is a(n):
A)OECD guideline.
B)United Nations document.
C)WHO initiative.
D)movement by the International Red Cross.
Q4) Which of the following is a straw men approach to business ethics?
A)The Friedman doctrine
B)Kantian ethics
C)Sullivan's principles
D)Utilitarian approach
Page 6
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Chapter 5: International Trade Theory
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151 Verified Questions
151 Flashcards
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Sample Questions
Q1) What is a possible explanation for the Leontief paradox?
A)U.S.imports goods that heavily use skilled labor and innovative entrepreneurship.
B)U.S.has a special advantage in producing new products made with innovative technologies.
C)U.S.exports heavy manufacturing products that use large amounts of capital.
D)U.S.has a strong absolute advantage over all other foreign nations because of its advantageous factor endowments.
Q2) _____ argued that contrary to the standard interpretation,in certain circumstances,the theory of comparative advantage predicts that a rich country might actually be worse off by switching to a free trade regime with a poor nation.
A)Raymond Vernon
B)Andrew Warner
C)Paul Samuelson
D)Jeffery Sachs
Q3) Most economists prefer Ricardo's theory to the Heckscher-Ohlin theory because it makes fewer simplifying assumptions.
A)True
B)False
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Chapter 6: The Political Economy of International Trade
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) Who gains and who loses from the imposition of a tariff on imported goods? How can it be determined whether the net gain from the tariff exceeds the net loss?
Q2) Empirical evidence suggests the relationship between income levels and pollution is not a linear one-rather it is an inverted U-shaped relationship-implying that international trade,and the growth that results from it,may not be damaging to the environment.Important exceptions to this trend are:
A)pollution levels evidenced in burgeoning economies like China and IndiA.
B)incidents like the Chernobyl disaster and HYPERLINK "http://en.wikipedia.org/wiki/Tokaimura_nuclear_accident"" Tokaimura nuclear accident.
C)results revealing rise in carbon dioxide emissions with rise in income levels.
D)frequent oil spills occurring in various seas across the worlD.
Q3) Which of the following represents the reason for the British Parliament repealing the Corn Laws in 1846?
A)Opium wars that polarized world opinion against Great Britain
B)Prospect of harvest failure in Britain and famine in Ireland
C)Imminent threat of rebellions in most of its colonies
D)Labor party taking over the government from the Liberal Conservatives
Q4) List the fours issues at the forefront of the current agenda of the WTO.
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Chapter 7: Foreign Direct Investment
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151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/60077
Sample Questions
Q1) According to the text,a firm will favor FDI over exporting as an entry strategy when:
A)the costs of establishing production facilities are high.
B)the transportation costs or trade barriers are high.
C)there are problems associated with doing business in a different culture.
D)products with a high value-to-weight ratio are involveD.
Q2) The inability of Africa to attract greater investment is in part a reflection of the rigid and unchanging economic policy in the region.
A)True
B)False
Q3) Despite its advantages,FDI has been described as an "expensive" and "risky" international growth strategy.Other things being equal,why is FDI expensive and risky when compared to licensing and exporting?
Q4) Which theory helps explain how location factors affect the direction of FDI?
A)The eclectic paradigm
B)The theory of pragmatic nationalism
C)The product life-cycle theory
D)The new trade theory
Q5) What are the types of industries for which licensing is not a good option?
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Chapter 8: Regional Economic Integration
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149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/60076
Sample Questions
Q1) The emergence of single markets presents the threat to companies that the business environment within each grouping will become more competitive.
A)True
B)False
Q2) Which of the following illustrates the costs associated with regional economic integration?
A)Americans suffer job losses when technology support work is outsourced to cheaper locations in countries such as IndiA.
B)Due to the establishment of NAFTA,Canadian workers in the textile industry lost their jobs as Canadian firms moved production to Mexico.
C)The euro is now used by 16 of the 27 member states of the European Union,with some countries opting to retain their national currencies.
D)The Andean Pact was largely based on the EU model,but was far less successful at achieving its stated goals.
Q3) Discuss the factors that led to the creation of the European Union.
Q4) What are the primary impediments to regional economic integration?
Q5) Discuss the impact of the Association of Southeast Asian Nations.
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Page 10
Chapter 9: The Foreign Exchange Market
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150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/60075
Sample Questions
Q1) How does an increase in the money supply in an economy lead to inflation?
Q2) Identify one of the major reasons behind the decline in the dollar-yen carry trade during 2008-09.
A)Increase in risk appetite making the carry trade less attractive
B)Increase in the value of Japanese yen against the U.S.dollar
C)Increase in interest rate differentials as Japanese rates came down
D)Decrease in interest rate differentials as the U.S.rates went up
Q3) Capital flight is most likely to occur when the value of the domestic currency depreciates because of deflation.
A)True
B)False
Q4) Which of the following analysis is based on the premise that there are analyzable market trends and waves and that previous trends and waves can be used to predict future trends and waves?
A)Variable analysis
B)Fundamental analysis
C)SWOT analysis
D)Technical analysis
Q5) Differentiate between spot exchange rates and forward exchange rates.
Q6) What is the Fisher effect?
Page 11
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Chapter 10: The International Monetary System
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) The Bretton Woods system could work only as long as the U.S.inflation rate remained low and the United States did not run a balance-of-payments deficit.
A)True
B)False
Q2) Which of the following is a position taken by advocates of a fixed exchange rate system?
A)Removal of the obligation to maintain exchange rate parity would restore monetary control to a government.
B)Destabilizing speculation tends to accentuate the fluctuations around the exchange rate's long-run value.
C)Speculation has negligible impact on foreign exchange rates.
D)The forward exchange market insures against the risks associated with exchange rate fluctuations.
Q3) If the IMF agreed that the country's balance of payments was in "fundamental disequilibrium," the system of adjustable parities allowed for the devaluation of a country's currency by more than 10 percent.
A)True
B)False
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Chapter 11: The Strategy of International Business
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) Which of the following constrains a firm's ability to increase its profitability and profit growth by expanding globally?
A)The imperative of localization
B)The realization of location economies
C)The realization of cost economies
D)The leveraging of skills developed in foreign operations
Q2) The shift from a global strategy to a localization strategy is a response to the increasing localization of markets.
A)True
B)False
Q3) This function can create a perception of superior value in the minds of consumers by solving customer problems and supporting customers after they have purchased the product.
A)Production
B)Marketing and sales
C)Human resources
D)Customer service
Q4) What is the experience curve? How can an involvement in overseas markets help a firm capture experience curve advantages more rapidly?
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Chapter 12: Entering Foreign Markets
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150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/60072
Sample Questions
Q1) Suzie's Sleds Incorporated is considering establishing a subsidiary in Japan.Suzie's has no competition in that particular product segment in the region.In this case,which of the following is the only mode available to Suzie's in establishing a wholly owned subsidiary in the country?
A)Franchise.
B)Acquisition.
C)Joint venture.
D)Green-field venture.
Q2) The lack of commitment associated with _____ may make it more difficult for the low-scale entrant to build market share and to capture first-mover or early-mover advantages.
A)an early entry
B)small-scale entry
C)rapid entry
D)late entry
Q3) What are the six different ways for a firm to enter a foreign market? Provide a brief description of each of these foreign market entry strategies.
Q4) Why do acquisitions sometimes fail?
Q5) What are pioneering costs? When do these costs arise?
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Chapter 13: Exporting,Importing,and Countertrade
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) The Foreign Credit Insurance Association (FCIA)is an association of private commercial institutions operating under the guidance of the
A)Federal Mediation and Conciliation Service.
B)U.S.Department of Commerce.
C)Export-Import Bank.
D)International Trade Administration.
Q2) Between 30 and 40 percent of world trade by value is now in the form of countertrade.
A)True
B)False
Q3) Explain how the Small Business Administration (SBA)can help potential exporters.D.C.Through its Service Corps of Retired Executives (SCORE)program,the SBA oversees some 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.The SBA also coordinates the Export Legal Assistance Network (ELAN),a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.
Q4) Simple ignorance of potential opportunities is a huge barrier to exporting.
A)True
B)False
Page 15
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Chapter 14: Global Production,Outsourcing,and Logistics
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150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/60070
Sample Questions
Q1) Which of the following is an objective of flexible manufacturing technology?
A)Bringing a factory into compliance with ISO 9000.
B)Reducing setup times for complex equipment.
C)Improving quality control only during the final stages of the manufacturing process.
D)Decreasing utilization of individual machines through scheduling.
Q2) A _____ is an asset whose value is contingent upon a particular persisting relationship.
A)value asset
B)specialized asset
C)conditional asset
D)general asset
Q3) A technology that is unique to a firm is called the company's proprietary product technology.
A)True
B)False
Q4) Discuss the role played by ISO 9000 certification in improving product quality.
Q5) Discuss the two basic strategies for locating production facilities.When is it better to centralize production,and when is it better to decentralize production?
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Chapter 15: Global Marketing and RD
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150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/60069
Sample Questions
Q1) Which of the following communication strategies relies primarily on mass media advertising rather than personal selling?
A)Indirect
B)Pull
C)Push
D)Push-and-pull
Q2) Describe channel exclusivity.Explain Japan's exclusive system.How is it changing now?
Q3) Discuss the factors that lead to a greater rate of new-product development.
Q4) Religion is an example of a sociocultural factor used for market segmentation.
A)True
B)False
Q5) The _____ that make up a car include power,design,quality,performance,fuel consumption,and comfort.
A)qualifications
B)products
C)attributes
D)commodities
Q6) Describe a concentrated retail system and a fragmented retail system.
Q7) Describe channel quality.
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Chapter 16: Global Human Resource Management
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/60068
Sample Questions
Q1) Clive,who was working as a manager in India,was a little shocked to receive a negative feedback for his lack of expertise and aptitude to take effective decisions.All that he had to say was that he had tried to involve his team in participative decision-making and that this might have led them to think so.Clive's negative feedback could be attributed to _____.
A)ineffective transfer of skills
B)cultural myopia
C)unintentional bias
D)poor expectation setting
Q2) Performance appraisal systems that firms use must measure the perceptions that the firm wants to encourage.
A)True
B)False
Q3) According to Mendenhall and Oddou,the attribute of _____ provides an expatriate the ability to understand why people of other countries behave the way they do.
A)cultural toughness
B)perceptual ability
C)self orientation
D)others-orientation
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Page 18