International Business Law
Pre-Test Questions
Course Introduction
International Business Law examines the legal frameworks and principles governing cross-border commercial activities and transactions. The course covers topics such as international contracts, dispute resolution mechanisms, trade regulations, intellectual property rights, and the role of global institutions like the World Trade Organization (WTO). Students will explore the complexities of operating in diverse legal environments, considering issues like jurisdiction, choice of law, and enforcement of international agreements. Through real-world case studies and legal analysis, the course prepares students to navigate the legal risks and opportunities of international commerce and to understand the impact of globalization on business law.
Recommended Textbook
International Business The Challenges of Globalization 7th Global Edition by John Wild
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16 Chapters
1669 Verified Questions
1669 Flashcards
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Chapter 1: Globalization
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/41907
Sample Questions
Q1) Crystal inc.is a multifaceted company that deals with the mining,cutting,and selling of diamonds.It gives distributors and suppliers access to its database to place orders or restock inventories electronically and automatically.Which of the following is the network implemented in the company?
A)intranet
B)chaosnet
C)extranet
D)ethernet
Answer: C
Q2) Goods and services purchased abroad and brought into a country are called
A)gross domestic products
B)exports
C)gross national products
D)imports
Answer: D
Q3) Imports are goods and services purchased abroad and brought into a country.
A)True
B)False Answer: True
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Chapter 2: Cross-Cultural Business
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100 Flashcards
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Sample Questions
Q1) ________ facilitate(s)the process of cultural imperialism.
A)Strict product liability laws
B)Relaxed trade and investment barriers
C)Technological stagnation
D)Social media censorship
Answer: B
Q2) ________ refers to socially learned traits associated with,and expected of,men or women.
A)Conformity
B)Social mobility
C)Individualism
D)Gender
Answer: D
Q3) Hispanics comprise a subculture in the United States.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Politics, Law, and Business Ethics
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Product liability laws are those which ________.
A)provide consumers with a wide variety of products at fair prices
B)add value to a product throughout its production and distribution
C)protect people from defective products
D)define the taxation on locally manufactured products
Answer: C
Q2) Developing nations have the toughest product liability laws,while developed countries have more relaxed laws.
A)True
B)False
Answer: False
Q3) Which of the following is an advantage of conducting business in totalitarian nations?
A)International companies are less likely to face local political opposition to their activities.
B)Government deals are always straightforward and transparent.
C)Laws regarding the resolution of contractual disputes are clearly defined.
D)International companies run no risk of their public image being tarnished.
Answer: A
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Page 5
Chapter 4: Economics and Emerging Markets
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Sample Questions
Q1) What is privatization? What role does it play in economic transition?
Q2) Which of the following terms refers to the broadest measure of economic development of a country?
A)gross domestic product (GDP)
B)purchasing power parity (PPP)
C)gross national product (GNP)
D)human development index (HDI)
Q3) Which of the following would characterize a nation with high degree of economic freedom?
A)low tariffs
B)strict trade policies
C)government interventions
D)flourishing black markets
Q4) Compare and contrast the business environments in China and Russia.
Q5) In most centrally planned economies that failed,________.
A)market conditions had determined who would produce goods
B)prices of products were seen as a function of supply and demand
C)central planning agencies had specified the production goals
D)central planners had paid attention to efficiency improvement
Q6) How are countries classified? Explain with examples.
Page 6
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Chapter 5: International Trade
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100 Flashcards
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Sample Questions
Q1) The Leontief paradox describes evidence ________.
A)in support of the predictions of the mercantilist theory
B)contrary to the predictions of the factor proportions theory
C)that the assumptions of international product life cycle theory are invalid
D)that the assumptions of the new trade theory are invalid
Q2) Discuss the volume of international trade,and explain the role government and chance play in the growth of international trade.
Q3) Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?
A)The theories assume that there are many number of countries engaged in the production and consumption of just two goods.
B)The theories assume that there are additional costs for transporting traded goods from one country to another.
C)The theories assume labor to be the only resource used in the production process.
D)The theories assume that specialization in the production of one particular good results in gains in efficiency.
Q4) Explain mercantilism.What were its major flaws?
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Chapter 6: Business-Government Trade Relations
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) The purpose of ________ is to force companies from other nations to use local resources in their production processes,particularly labor.
A)administrative delays
B)currency controls
C)local content requirements
D)voluntary export restraints
Q2) Describe the different types of tariffs and provide an example of each.
Q3) Which of the following do products designated as dual use require before exports can take place?
A)currency controls
B)countervailing duties
C)special government approval
D)local content requirements
Q4) The main cultural motive behind government intervention in trade includes protection of domestic jobs.
A)True
B)False
Q5) Describe the three categories of tariffs,and explain how the Smoot-Hawley Act of 1930 influenced tariffs in the United States.
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Chapter 7: Foreign Direct Investment
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104 Flashcards
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Sample Questions
Q1) The ________ account within the United States' current account includes financial gains compensated to entities in other nations that is earned on assets they hold in the United States.
A)income receipts
B)income payments
C)merchandise
D)services
Q2) A potential problem with a rationalized production model is that a work stoppage in one country can bring the entire production process to a standstill.
A)True
B)False
Q3) According to the eclectic theory that explains FDI,an ownership advantage is the advantage that arises from internalizing a business activity rather than leaving it to a relatively inefficient market.
A)True
B)False
Q4) Explain the market power theory of FDI,and discuss why the decision whether or not to follow rivals into a new international market is important.
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Chapter 8: Regional Economic Integration
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112 Flashcards
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Sample Questions
Q1) Which of the following is a result of trade creation?
A)The demand for goods tends to increase.
B)Purchasing power of consumers decreases.
C)Consumers have a limited choice for selection of goods.
D)Imported goods are seldom available at lower prices.
Q2) Which of the following is the lowest extent of regional economic integration?
A)free trade area
B)political union
C)common market
D)customs union
Q3) Which of the following countries of the Central American Common Market has adopted the U.S.dollar as its official currency?
A)El Salvador
B)Honduras
C)Nicaragua
D)Costa Rica
Q4) Explain the Single European Act and how it helped to integrate Europe.How did the Single European Act help prompt the creation of NAFTA?
Q5) Differentiate among the five levels of economic and political integration.
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Chapter 9: International Financial Markets
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Differentiate between currency speculation and currency arbitrage.
Q2) Briefly describe the three main institutions of the foreign exchange market.
Q3) Which of the following factors is responsible for growth in the international equity market?
A)advent of cybermarkets
B)spread of countertrade
C)centrally planned economies
D)government partnerships
Q4) An offshore financial center is a territory whose financial sector features very few regulations and few,if any,taxes.
A)True
B)False
Q5) A bond issued by a Venezuelan company,denominated in U.S.dollars,and sold in Britain,France,and Germany is an example of a ________.
A)dragon bond
B)yankee bond
C)Eurobond
D)samurai bond
Q6) What is the foreign exchange market? Explain why investors use this market.
Page 11
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Chapter 10: International Money System
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107 Flashcards
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Sample Questions
Q1) According to the efficient market view for forecasting exchange rates,forward exchange rates are perfect predictors of future exchange rates.
A)True
B)False
Q2) The ________ called for large-scale reduction of the debt owed by poorer nations,the exchange of old loans for new low-interest loans,and the making of debt instruments that would be tradable on world financial markets.
A)Brady Plan
B)Louvre Accord
C)Bretton Woods Agreement
D)Smithsonian Agreement
Q3) Explain how a pegged exchange-rate system works. Why would a country choose to follow this system?
Q4) The value of a currency expressed in terms of gold is called its ________.
A)book value
B)net asset value
C)par value
D)carrying value
Q5) Discuss the role of business confidence and psychology in currency values.
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Chapter 11: International Strategy and Organization
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Sample Questions
Q1) Centralized decision making is beneficial when fast-changing national business environments put a premium on local responsiveness.
A)True
B)False
Q2) An international area structure separates domestic from international business activities by creating a separate international division with its own manager.
A)True
B)False
Q3) Organic growth refers to an organization's corporate strategy that relies on growth
A)through mergers and acquisitions
B)based on strategic alliances
C)generated internally
D)achieved from joint ventures
Q4) Which of the following is considered as a support activity in an organization?
A)inbound logistics
B)marketing and sales
C)procurement
D)customer service
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Chapter 12: Analyzing International Opportunities
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Sample Questions
Q1) A product for which demand increases more relative to an increase in income has an income-elasticity coefficient less than 1.
A)True
B)False
Q2) The likelihood that a society will undergo governmental changes that negatively affect local business activity is known as ________.
A)volatility risk
B)systemic risk
C)political risk
D)credit risk
Q3) An ongoing process of gathering,analyzing,and dispensing information for tactical or strategic purposes is called ________.
A)data harvesting
B)peer production
C)survey research
D)environmental scanning
Q4) What is primary market research? Describe any four primary market research methods.
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Page 14
Chapter 13: Selecting and Managing Entry Modes
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Sample Questions
Q1) Which of the following is the first step in developing a successful export strategy?
A)identification of a potential market
B)match market needs to the company's abilities
C)initiation of meetings
D)commitment of resources
Q2) Which of the following methods of export/import financing is Techno Toys' bank using if it acts as an intermediary without accepting financial risk?
A)documentary collection
B)buyback
C)letter of credit
D)advance payment
Q3) What are the different financing methods available to exporters and importers?
Q4) Advance payment is commonly used for export/import financing when ________.
A)two parties are unfamiliar with each other
B)the buyer has obtained credit for the transaction
C)the transaction is for a relatively high amount
D)the buyer has good credit rating at banks
Q5) What are the advantages of pursuing a wholly owned subsidiary as an entry strategy?
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Chapter 14: Developing and Marketing Products
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103 Flashcards
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Sample Questions
Q1) A(n)________ channel gives producers a good deal of control over the sale of their product by channel members such as wholesalers and retailers.
A)exclusive
B)intensive
C)two-level
D)selective
Q2) In marketing,distribution is the process of sending promotional messages about products to target markets.
A)True
B)False
Q3) The product adaptation/communications extension method adapts both the product and its marketing communication to suit the target market.
A)True
B)False
Q4) Using examples,explain the circular process of marketing communication.
Q5) What is value density and what is its impact on an organization's distribution policy?
Q6) Explain the primary concerns of managers when establishing distribution policies.
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Page 16
Chapter 15: Managing International Operations
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Sample Questions
Q1) Worker productivity tends to be lower in most developing nations than in developed nations.
A)True
B)False
Q2) ________ are traded in Luxembourg and London and represent a specific number of shares in an outside company.
A)Common stock
B)Bills of lading
C)Revocable letters of credit
D)Global Depository Receipts
Q3) Deciding the spatial arrangement of production processes within production units is called ________.
A)facilities layout planning
B)capacity planning
C)process planning
D)location economies
Q4) Explain the concept of capital structure as it applies to a company with international operations.
Q5) What are the options available to companies seeking financial resources?
Q6) What role does flexibility play in the make-or-buy decision?
Page 17
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Chapter 16: Hiring and Managing Employees
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Sample Questions
Q1) Describe the differences between human resource management in a domestic setting and an international setting,and explain the three phases of human resources planning.
Q2) In ethnocentric staffing,operations outside the home country are managed by individuals from the host country.
A)True
B)False
Q3) The major drawback of polycentric staffing is the potential to ________.
A)lose control of host-country operations
B)experience a high incidence of expatriate failure
C)create barriers for the host-country office
D)create legal problems for the home-country office
Q4) If the family finds it difficult to adjust on returning to Japan after three years,they will experience ________.
A)social loafing
B)reverse culture shock
C)expatriate failure
D)halo effect
Q5) What factors influence the wages of nonmanagerial workers?
Q6) Briefly explain how companies compensate managers in international markets.
Page 18
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