International Business
Exam Materials
Course Introduction
International Business explores the complexities of conducting commerce across national borders, examining the strategic, cultural, legal, and economic environments that shape global enterprises. This course provides students with an understanding of international trade theories, foreign market entry strategies, cross-cultural management, global supply chains, and the impact of international institutions and regulations. Emphasis is placed on how businesses adapt to diverse economic systems, political risks, ethical challenges, and the dynamics of globalization, equipping students with the analytical tools necessary to make informed decisions in a competitive global marketplace.
Recommended Textbook
International Business 16th Edition by John Daniels
Available Study Resources on Quizplus
20 Chapters
1801 Verified Questions
1801 Flashcards
Source URL: https://quizplus.com/study-set/1462
Page 2
Chapter 1: Globalization and International Business
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/29061
Sample Questions
Q1) The production of goods by a French company in Italy for sale in Italy is an example of an Italian merchandise import.
A)True
B)False
Answer: False
Q2) 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.
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: The Cultural Environments Facing Business
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/29072
Sample Questions
Q1) If an MNE convinced a popular priest that its vitamin-enriched soft drink would benefit parishioners' health, the MNE would be using ________ to help bring about change.
A)participation
B)reward sharing
C)an opinion leader
D)materialistic motivation
Answer: C
Q2) The attempt to resolve small issues before principles is a characteristic of which of the following?
A)relativism
B)monochronic behavior
C)pragmatism
D)uncertainty avoidance
Answer: C
Q3) Cultures do not transcend national (state)boundaries.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: The Political and Legal Environments Facing Business
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/29074
Sample Questions
Q1) Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?
A)Totalitarian regimes delivered acceptable economic progress to their populations.
B)Economic advances caused contentment among the working class and minimized the need to push for democratic reforms.
C)Many groups were able to successfully challenge the legitimacy of democratic systems.
D)Information and communications technologies broke down the ability of the state to control access to uncensored information, especially that from foreign sources.
Answer: D
Q2) Which of the following countries has a collectivist orientation?
A)Canada
B)Australia
C)Japan
D)Netherlands
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Economic Environments Facing Businesses
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/29075
Sample Questions
Q1) Market economies are primarily characterized by ________.
A)formal cooperation among government, companies, and workers to achieve stable growth
B)heavy government spending and high taxation to pay for a range of social services
C)minimal governmental participation
D)restricted consumer powers
Q2) Tatum Manufacturing recently opened a new facility in Hong Kong.The firm can most likely expect the Hong Kong government to ________.
A)monitor market prices
B)control natural resources
C)ensure fair competition
D)provide innovation incentives
Q3) The recent global financial crisis has led to which of the following?
A)governments seeking to impose more constraints on capitalism
B)governments seeking to eliminate constraints on capitalism
C)governments seeking to increase the interdependence of developing economies
D)governments seeking to eliminate the interdependence of developing economies
Q4) Describe the three ways economies can be categorized.
Q5) What is inflation?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Globalization and Society
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/29076
Sample Questions
Q1) Which of the following statements is most likely true regarding relationships between MNEs and stakeholders?
A)An MNE typically serves all stakeholder groups equally at any given time.
B)No individual stakeholder group is powerful enough to cause the demise of an MNE.
C)All stakeholders of an MNE have the same short-term and long-term goals and interests.
D)The inability to adequately meet the long-term needs of all stakeholders increases the probability of an MNE failing.
Q2) A payment to a customs official to clear legitimate merchandise is permitted by the Foreign Corrupt Practices Act.
A)True
B)False
Q3) Under the practice of extraterritoriality, legal and ethical values in a country may cause its companies to operate abroad according to home country laws rather than host country laws.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: International Trade and Factor-Mobility Theory
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/29077
Sample Questions
Q1) The trade theory that says countries should concentrate production on those products using their most abundant production factors is the ________.
A)factor proportions theory
B)theory of comparative advantage
C)theory of absolute advantage
D)theory of nontradable goods
Q2) Most world trade takes place between raw material exporters and manufacturing exporters.
A)True
B)False
Q3) A governmental strategic trade (industrial)policy is one that ________.
A)lessens dependence on foreign military goods
B)seeks reciprocal free trade agreements between developed and developing countries
C)targets the resources needed to support industries that seem to fit best with the country's advantages
D)limits imports to encourage domestic production of what would otherwise be imported
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Governmental Influence on Trade
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/29078
Sample Questions
Q1) Exporting below cost or below the home country price is called ________.
A)countertrade
B)an export-led development policy
C)a strategic trade policy
D)dumping
Q2) Which of the following is a problem with the infant-industry argument for protection?
A)Most developed countries increasingly have a larger portion of retirees than youth.
B)Consumer groups become very active in protesting the higher prices that result during infancy.
C)Other countries retaliate by limiting exports of technology needed by the infant industry producers.
D)If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection.
Q3) Export prices of primary products fluctuate less than export prices of manufactured products.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Cross-National Cooperation and Agreements
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/29079
Sample Questions
Q1) Members of the Andean Community (CAN)have a common external tariff.CAN is most likely a ________.
A)free trade agreement
B)customs union
C)domestic trade zone
D)free trade sovereignty
Q2) NGOs must be recognized by the United Nations in order to do humanitarian work in developing countries.
A)True
B)False
Q3) MNEs are attracted to regional trading groups because of their large market sizes and production locations, and because they ________.
A)are good sources for raw materials
B)implement trade restrictions
C)offer both internal and external tariffs
D)have very little competition
Q4) Most MNEs generate a large portion of their revenues in their home regions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Global Foreign-Exchange Markets
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/29080
Sample Questions
Q1) The ________ is the most widely traded currency in the world.
A)pound
B)yen
C)euro
D)U.S. dollar
Q2) Outright forward transactions involve the exchange of currency on a future date beyond two business days at a fixed exchange rate, known as the ________.
A)spot rate
B)forward rate
C)option rate
D)reverse transaction rate
Q3) If Toranaga-san, who works for a Japanese trading company that operates in Japanese yen, wanted to purchase Spanish castanets from a company in Barcelona and needed euros to complete the transaction, he would use the ________ to gain access to spot euros.
A)stock market
B)foreign-exchange market
C)New York Stock Exchange
D)international export market
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: The Determination of Exchange Rates
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/29062
Sample Questions
Q1) If the real interest rate is 5%, the rate of inflation in the United States is 6%, and the rate of inflation in the United Kingdom is 3%, which of the following statements would NOT be true?
A)The nominal rate of interest in the United States would be greater than the nominal interest rate in the United Kingdom.
B)The difference between the U.K. and U.S. interest rates is a function of the difference between their inflation rates.
C)The nominal rate of interest in the United States and the United Kingdom would be the same because of purchasing power parity.
D)Investors would get a higher return on their money in the United States.
Q2) In a short essay, discuss purchasing power parity and the short-run problems that affect PPP.
Q3) The primary result of the Jamaica Agreement was to ________.
A)allow greater exchange-rate flexibility
B)set austerity measures for debt control
C)establish a system based on par values
D)implement fixed exchange rates
Q4) What is a black market? Under what conditions might one exist?
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Global Capital Markets
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/29063
Sample Questions
Q1) What is the primary concern about offshore financial centers?
A)engaging in illegal activities
B)enabling firms to avoid taxation
C)allowing the transfer of large funds
D)existing in politically risky environments
Q2) Brooke buys shares of stock in a small bakery in a foreign country in return for an ownership position and promised capital gains.This is an example of ________.
A)equity securities
B)debt financing
C)playing the stock market
D)investing in Euroequities
Q3) The CFO's function in a company focuses on ________.
A)improving distributor relationships
B)acquiring financial resources
C)handling accounting issues
D)creating financial statements
Q4) The Eurocurrency market is a retail, rather than wholesale, market.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: The Strategy of International Business
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/29064
Sample Questions
Q1) Which of the following is the purpose of a company's value proposition?
A)to exceed customers' expectations
B)to force competitors into a price war
C)to identify consumers for whom the company creates products
D)to explain why a consumer should buy the company's products
Q2) Google essentially views the entire world as one market and assumes that there are no fundamental differences among countries with regard to consumers' preferences.Google is engaging a(n)________ strategy.
A)international
B)localization
C)transnational
D)global
Q3) A company's value chain is best described as the ________.
A)variable sequence of converting product ideas into value for shareholders
B)mixture of activities taken to define product value standards and price points
C)discrete series of steps taken to move a product from conception to end-users
D)blueprint that must be followed to leverage the core capabilities of a global firm
Q4) Describe the pressures for local responsiveness that international companies face.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Country Evaluation and Selection
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/29065
Sample Questions
Q1) A go/no-go decision means ________.
A)an individual project decision is based on whether the project meets threshold criteria
B)projects are ranked and approved from the top of the list down until available resources are exhausted
C)management reviews existing information and decides whether additional individualized feasibility studies are warranted
D)projects are approved or disapproved based on the potential ease of divestment
Q2) Published government data is most often inaccurate because of translation errors from other countries' languages.
A)True
B)False
Q3) The major use of the matrix as a tool in international location strategy is to
A)pinpoint acceptable and unacceptable characteristics of countries
B)indicate the relative placement of countries in terms of attributes
C)rank countries on the basis of expected investment return
D)show the degree of certainty for projected returns
Q4) Why do companies engage in international harvesting or divestment?
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Export and Import
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/29066
Sample Questions
Q1) What difficulties of exporting can be minimized by customs brokers?
Q2) Countertrade is an efficient way of doing business.
A)True
B)False
Q3) Why are financial risks a key concern of SMEs considering international trade?
Q4) Countertrade refers to any one of several different arrangements that parties negotiate so that they can trade goods and services with limited or no use of currency.
A)True
B)False
Q5) Which of the following is NOT an example of a service export?
A)a management firm providing advice to a foreign client
B)an investment bank arranging financing for a foreign firm
C)a coffee chain opening a new store in a foreign country
D)an engineering firm building roads in a foreign country
Q6) Advocates of exporting e-waste assert that the activity helps entrepreneurs in developing countries create value by recovering and recycling scarce resources such as copper.
A)True
B)False
16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Direct Investment and Collaborative Strategies
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/29067
Sample Questions
Q1) Which of the following describes a cross-licensing agreement?
A)allocation of exclusive rights to a licensee to prevent competition
B)an agreement between two or more companies not to compete in each other's home countries
C)an exchange of explicit knowledge for tacit knowledge
D)the exchange of intangible property rights between two or more companies
Q2) A U.S.firm plans to shift from exporting to production in China to serve the Chinese market.Which of the following statements would best explain this decision?
A)China's currency is appreciating relative to the U.S. dollar.
B)The firm is nearing capacity utilization in its U.S. plant.
C)The company need not alter its products for the Chinese market.
D)Transportation costs have become low relative to production costs.
Q3) An agreement for the use of a trademark and assistance with business operations is known as a cross-licensing agreement.
A)True
B)False
Q4) What is the difference between licensing and cross-licensing? What factors do firms need to consider before entering into licensing agreements?
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: The Organization of International Business
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/29068
Sample Questions
Q1) A major benefit of the international division structure is ________.
A)outsourcing distribution and shipping tasks
B)responding quickly to foreign events
C)diversifying most product groups
D)hiring low-cost, local workers
Q2) Which of the following is promoted by a neoclassical structure?
A)innovation of ideas
B)information control
C)project competition
D)minimal relationships
Q3) Tyrone is a production manager at Penderhall Electronics, an MNE with operations in Asia, Europe, and the United States.Tyrone has very little decision-making authority at Penderhall, since most decisions are made at headquarters and distributed downward.Which structure is most likely used by Penderhall?
A)centralized
B)systematic
C)decentralized
D)multidomestic
Q4) How might centralization of decision making adversely affect local managers in an MNE?
18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Marketing Globally
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/29069
Sample Questions
Q1) A push strategy is most likely preferable to a pull strategy when goods are sold using self-service distribution.
A)True
B)False
Q2) If a company's foreign sales per customer is small compared to those in its domestic market, it should most likely ________.
A)introduce a larger family of products
B)narrow the product line offered to the market
C)reconfigure the product life cycle marketing strategy
D)shift additional salespeople to the domestic market
Q3) What is the gray market?
A)sales targeted to elderly consumers
B)selling goods through unofficial distributors
C)a legal black market run by governments
D)selling counterfeit merchandise
Q4) Why does price escalation most likely occur in exporting?
A)The WTO requires that prices increase.
B)Companies rely on skimming price strategies.
C)Greater distances and more intermediaries increase distribution costs.
D)Uncertain currency value changes necessitate charging higher prices.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Global Manufacturing and Supply Chain Management
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/29070
Sample Questions
Q1) MedCo uses an IT system that labels a product with an electronic tag to provide real-time information.Which of the following does MedCo most likely use?
A)EDI (electronic data interchange)
B)RFID (radio frequency ID)
C)PTX (private technology exchange)
D)ERP (enterprise resource planning)
Q2) Which of the following should an MNE most likely consider in a make-or-buy decision?
A)organizational hierarchy
B)supplier capabilities
C)employee morale
D)niche markets
Q3) EDI is software that can link information flows from different parts of a business and from different geographic areas.
A)True
B)False
Q4) The make-or-buy decision applies only to domestic firms.
A)True
B)False
Chapter 19: International Accounting and Finance Issues
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/29071
Sample Questions
Q1) Which of the following is true concerning the International Accounting Standards Board?
A)The IASB is an EU institution designed to harmonize accounting standards among EU member countries.
B)The EU has voted to not adopt IFRS issued by the IASB so that it will not hurt its own convergence efforts.
C)The IASB and the FASB of the United States are working closely to harmonize accounting standards.
D)FASB has been ordered by the SEC to not work with the IASB in setting accounting standards.
Q2) The global integration of capital markets is a major force leading to the convergence of accounting standards.
A)True
B)False
Q3) Germany's accounting system has historically been a ________ system.
A)micro-pragmatic
B)macro-pragmatic
C)law-based
D)political-based
To view all questions and flashcards with answers, click on the resource link above.
Page 21
Chapter 20: International Human Resource Management
Available Study Resources on Quizplus for this Chatper
91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/29073
Sample Questions
Q1) Companies find it challenging to judge a potential expatriate's adaptability to foreign places, people, and processes.
A)True
B)False
Q2) Studies indicate that the main cause of nearly half of failed expatriate assignments is the inability of the expatriate to ________.
A)meet performance expectations
B)initiate a fair compensation package
C)adapt to the host culture
D)learn the local language
Q3) Companies often face problems repatriating executives from foreign assignments to the home nation due to which of the following?
A)The vacant position cannot be filled overseas.
B)The firm must increase compensation substantially.
C)Different departments compete excessively to hire the repatriated manager.
D)The returning expatriate has less social status and autonomy than when abroad.
Q4) What are the differences between ethnocentric, polycentric, and geocentric frameworks?
Q5) List and discuss the main components of an expatriate's compensation package.
To view all questions and flashcards with answers, click on the resource link above. Page 22