International Business Exam Questions
Course Introduction
International Business explores the concepts, strategies, and challenges associated with conducting commerce across national borders. This course examines how global markets operate, the dynamics of international trade and investment, cultural and legal differences, and the impact of economic, political, and technological factors on global business operations. Students will gain an understanding of international business strategies, entry modes, and the management of multinational organizations, equipping them with the skills necessary to navigate the complexities and opportunities of the global marketplace.
Recommended Textbook
Global Business Today 3rd Canadian Edition by Charles Hill Thomas McKaig
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16 Chapters
2010 Verified Questions
2010 Flashcards
Source URL: https://quizplus.com/study-set/2573 Page 2
Chapter 1: Globalization
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128 Verified Questions
128 Flashcards
Source URL: https://quizplus.com/quiz/51210
Sample Questions
Q1) As a result of a variety of innovations, the real costs of information processing and communication have __________ over the past two decades.
A)fallen slightly
B)increased slightly
C)remained constant
D)fallen dramatically
E)had no impact on the cost of international business
Answer: D
Q2) Why is international trade important to Canada?
Answer: Canada's exports contribute about 40% of our GDP.We have a trade surplus overall meaning we are exporting more than we are importing.Many jobs and FDI are dependent upon international trade.Canada needs international trade in order to maintain its standard of living.However, Canada's standard of living has been decreasing relative to the United States and unless Canada begins to increase their productivity and international sales, the standard of living will continue to decrease.
Q3) General Agreement on Tariffs and Trade is what the acronym GATT stands for.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Country Differences in Political Economy
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) The group that believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as:
A)Communists
B)Fascists
C)Political democrats
D)Collectivists
E)Mensheviks
Answer: A
Q2) Individualism is opposite to collectivism.In a political sense, individualism refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.
A)True
B)False
Answer: True
Q3) Many social democratic governments nationalize private companies.
A)True
B)False
Answer: True
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Chapter 3: The Cultural Environment
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) _______ are the two major categories of norms.
A)Routines and values
B)Conduct and culture
C)Rites and rituals
D)Values and mores
E)Folkways and mores
Answer: E
Q2) An act, as simple as shaking hands when meeting new people is an example of practicing
A)values.
B)customs
C)culture.
D)criterion
E)norms.
Answer: E
Q3) Many of the economic principles of Islam are anti-free enterprise.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Ethics in International Business
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123 Verified Questions
123 Flashcards
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Sample Questions
Q1) _________ approaches to business ethics are raised by business ethics scholars primarily to demonstrate that they offer inappropriate guidelines for ethical decision-making in a multinational enterprise.
A)Straw men
B)The Enron principles
C)Just distribution
D)Rights theories
E)Cultural relativism
Q2) Basic human rights are still not respected in many other nations.
A)True
B)False
Q3) Identify and discuss the ethics theory that is attributed to philosopher John Rawls.In which category is this theory placed when discussing ethical conduct? Discuss the two fundamental principles of this theory of justice.
Q4) In the modern world global corporations can contribute to the tragedy of commons by moving manufacturing to jurisdictions that are more environmentally sensitive.
A)True
B)False
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Chapter 5: International Trade Theories
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Porter considered four factors of production in developing his theory of international trade.These four factors help determine the difference in production between different countries.Describe and explain the four factors.Explain which factor would be more important and why for computer chips and hand made shoes.
Q2) Which of the following choices correctly matches a scholar with the theory that he or she proposed?
A)Adam Smith/Comparative Advantage
B)David Ricardo/New Trade
C)Raymond Vernon/Product Life Cycle
D)Eli Heckscher/Absolute Advantage
E)Michael Porter/Factor Endowment
Q3) Ricardo's theory of comparative advantage suggests that consumers in all nations can consume more if there are
A)trade restrictions on services only.
B)no trade restrictions.
C)severe trade restrictions.
D)trade restrictions on manufactured goods only.
E)restrictions on currencies
Q4) Describe what is meant by first-mover advantages?
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Chapter 6: The Political Economy of International Trade
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) When the British Parliament repealed the ______________, free trade as a government policy was first officially embraced by Great Britain in 1846.
A)Corn Laws
B)Steel Laws
C)Coal Laws
D)Apparel Laws
E)Child Labour Laws
Q2) The main gains from subsidies accrue to __________, whose international competitiveness is increased as a result of them.
A)traders
B)consumers
C)governments
D)importers
E)domestic producers
Q3) Consumers are benefited by quotas.
A)True
B)False
Q4) What is a local content requirement? How are local content requirements typically expressed?
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Chapter 7: Foreign Direct Investment
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) If TransCanada Pipelines, a Canadian based corporation, purchased a 50% interest in a company in Italy, that purchase would be an example of
A)multinational investment.
B)reciprocal foreign investment.
C)foreign direct investment.
D)cross-boarder international investment.
E)foreign joint venture
Q2) According to the textbook, FDI is expensive because
A)a firm must pay a high franchising fee to participate in foreign direct investment in most countries.
B)a firm must pay the transportation costs to ship domestically produced products overseas.
C)a firm must establish production facilities in a foreign country or acquire a foreign enterprise.
D)a firm must pay a high licensing fee to participate in foreign direct investment in most countries.
E)a firm must pay taxes in both countries
Q3) How do transportation costs affect the attractiveness of exporting?
Q4) Name three reasons that licensing may not be an attractive option.
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Chapter 8: Regional Economic Integration
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) Economic theory predicted that Canadian and U.S.producers would soon benefit from __________________.
A)increased B2B demand in the expanding Mexican industries that were geared toward export
B)increased demand for transportation products due to increased exports and imports
C)there would be no benefit because economic benefits would only be realized in the long-run
D)from lower labour costs once they moved to Mexico
E)increased consumer demand in Mexico, because of better wages
Q2) Currently, the four member states of MERCOSUR include
A)Peru, Chile, Brazil, and Mexico.
B)Columbia, Chile, Brazil, and Paraguay.
C)Argentina, Mexico, Chile, and Brazil.
D)Brazil, Argentina, Paraguay, and Uruguay.
E)Brazil, Argentina, Chile and Peru
Q3) Describe the difference between a free trade area and a common market?
Q4) Europe has been the most successful example of regional integration
A)True
B)False
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Chapter 9: The Foreign Exchange Market
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141 Verified Questions
141 Flashcards
Source URL: https://quizplus.com/quiz/51202
Sample Questions
Q1) The ______________ is less useful for predicting exchange movements between the currencies of advanced industrialized nation that have relatively small differentials in inflation rates.
A)tolerant market
B)efficiency theory
C)PPP theory
D)closed market
E)supply and demand mechanism
Q2) The text gives Bolivia as an example of the impact of ______________ on exchange rates.
A)interest rates
B)trade imbalances
C)market psychology
D)bad economic management
E)money supply
Q3) Explain the difference between spot exchange rates and forward exchange rates.Briefly explain how the forward exchange market works.
Q4) What is the International Fisher Effect? (note: you do not need to provide the mathematical formula provided in the book)
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Chapter 10: The Global Monetary System
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) After Jamaica, the IMF continued its role of helping countries cope with macroeconomic and exchange rate problems, albeit within the context of a radically different exchange rate regime.
A)True
B)False
Q2) The gold standard was temporarily abandoned by Canada in A)1870. B)1889.
C)1914.
D)1924.
E)1934
Q3) The Bretton Woods system of fixed exchange rates collapsed in 1973.Since then the many of the world's countries have operated with a A)mixed system.
B)random monetary system.
C)regulated standard system.
D)monitored spot market.
E)managed-float system
Q4) Explain what is a moral hazard when it is used as a criticism of IMF policies.
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Chapter 11: Global Strategy
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132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/51200
Sample Questions
Q1) Cooperative agreements between potential or actual competitors are called:
A)economic associations.
B)tactical unions.
C)trade unions.
D)strategic alliances.
E)partnerships
Q2) Which of the following two international strategies are disadvantaged by a lack of local responsiveness?
A)Global and international
B)multi-domestic and transnational
C)Transnational and global
D)multi-domestic and international
E)multi-domestic and multinational
Q3) Skills within the firm that competitors can easily match or imitate are called core competence.
A)True
B)False
Q4) Under what circumstances is entering into strategic alliances a risky undertaking?
Q5) What is the difference between learning effects and economies of scale?
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Chapter 12: Entering Foreign Markets
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116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/51199
Sample Questions
Q1) From the perspective of a domestic firm, what are the advantages and disadvantages of licensing the rights to the company's production process and trademark to a firm in a foreign country? What are some of the ways that a firm can reduce the risk of losing its proprietary know-how to foreign companies through licensing agreements?
Q2) All of the following are disadvantages of exporting except?
A)It may help a firm achieve experience curve economies
B)High transportation costs can make exporting uneconomical
C)Tariff barriers can make exporting uneconomical
D)Exporting from a firm's home bases may not be appropriate if there are lower-cost locations for manufacturing the product abroad
E)Marketing is the responsibility of local agents
Q3) In a _____________, the firm owns 100 percent of the stock.
A)joint venture
B)turnkey operation
C)wholly owned subsidiary
D)strategic alliance
E)acquisition
Q4) In what situation would you choose exporting over wholly owned subsidiary?
Q5) What are pioneering costs? When do these costs arise?
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Chapter 13: Exporting, Importing, and Countertrade
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) According to the UN, the time involved in preparing documentation and costs of common errors in paper work often amounts to 25 percent of the final value of goods exported.
A)True
B)False
Q2) ABC International's market research identified that Canadian consumers prefer relatively less sugar in their soft drinks whereas Asian consumers prefer more.ABC exported their best selling soft drink in Canada, Tasty, without modification to the Asian market.ABC committed which of the common mistakes of exporting?
A)Poor market analysis
B)A failure to customize the product
C)A poorly executed promotional campaign
D)A poor understanding of competitive conditions
E)A poor choice of retailers
Q3) What is countertrade? Give an example of when it can be used.
Q4) Describe the pros and cons of countertrade.Who is most likely to engage in countertrade?
Q5) Why do many neophyte exporters have problems when first trying to do business abroad? What are the common pitfalls of neophyte exporters?
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Chapter 14: Global Marketing and RD
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132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/51197
Sample Questions
Q1) Pull strategies tend to be emphasized for ______________.
A)commodities
B)consumer goods
C)industrial goods
D)services
E)cultural goods
Q2) Research has long maintained that a major factor of success for new products is the closeness of the relationship between
A)finance and marketing.
B)marketing and R&D.
C)finance and materials management.
D)operations and R&D.
E)sales and R&D
Q3) The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are perhaps the two most important.
A)True
B)False
Q4) Describe the concept of channel length? How does a firm determine its channel length?
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Chapter 15: Global Production, Outsourcing, and Logistics
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/51196
Sample Questions
Q1) One of Toyota's engineers, Ohno Taiichi, found many problems with the company's mass production system.Which of the following is not one of these problems?
A)The system was unable to accommodate consumer preferences for product diversity
B)Long production runs created massive inventories that had to be stored in large warehouses which was expensive
C)The system ran too quickly for the employees to keep up which created a high turnover due to frustration and low evaluations
D)If the initial machine settings were wrong, long production runs resulted in the production of a large number of defects
E)Small production runs were uneconomical
Q2) What is the potential for reducing costs through more efficient materials management?
A)enormous
B)moderate
C)minor
D)insignificant
E)unknown
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Chapter 16: Global Human Resource Management
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) Philip Thomas is a manager for XYZ International Inc.Philip's job requires him to deal with the differences in equal employment legislations between each country.Philip could be considered to be a(n)
A)external manager.
B)account manager.
C)human resource manager.
D)expatriate manager.
E)labour lawyer
Q2) Japanese expatriate managers would have to comply with Canada's _____________, which mandates __________ in the workplace.
A)Employment Compensation Act; equal pay for equal work
B)Fair Employment Practices Act; seniority based compensation
C)Minorities Employment Act; hiring of minorities
D)Unemployment Insurance Act; severance pay
E)Employment Equity Act; equality
Q3) Describe the concept of human resources management.What extra challenges confront an international business in this area?
Q4) What is the purpose of cultural training for an expatriate? How can "culture shock" be avoided?
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