International Business Operations
Midterm Exam
Course Introduction
International Business Operations explores the strategies, structures, and processes involved in conducting business across national borders. The course examines the complexities of global business environments, including cultural differences, legal and regulatory considerations, and international trade and investment frameworks. Students will analyze the operational challenges and opportunities faced by multinational corporations, including supply chain management, logistics, global marketing, and financial practices. Emphasis is placed on understanding the dynamic nature of international markets and developing skills to effectively manage business activities in diverse geopolitical and economic contexts.
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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Page 2
Chapter 1: Globalization
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100 Verified Questions
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Source URL: https://quizplus.com/quiz/41907
Sample Questions
Q1) Explain how technological innovation has benefitted entrepreneurs.
Answer: Technological innovation is accelerating the pace of globalization.Significant advancements in information technology and transportation methods are making it easier,faster,and less costly to move data,goods,and equipment around the world.Important technological advances include e-mail,videoconferencing,the Internet and the World Wide Web,company intranets and extranets,and advancements in transportation technologies (including GPS and RFID).
Entrepreneurs and small businesses have benefitted from these technological innovations because in this age of globalization,small companies are increasingly active in international trade and investment.Companies are exporting earlier and growing faster,often with help from technology.Traditional distribution channels often gave only large companies access to distant markets,whereas electronic distribution is a cheap and effective alternative for small businesses that sell digitized products.Small companies that sell traditional products also benefit from technology that lowers the cost and difficulties of global communication.
Q2) Imports are goods and services purchased abroad and brought into a country.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Cross-Cultural Business
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Sample Questions
Q1) Material culture often displays uneven development across a nation's industries.
A)True
B)False
Answer: True
Q2) Their argument is vulnerable to criticism because ________.
A)most restaurants still display their menu cards in French
B)they fail to take other social and cultural factors into account
C)they do not distinguish between movies made by studios in England and movies made in Hollywood
D)no other country screens French movies or star French actors
Answer: B
Q3) ________ is often used to measure the technological advancement of a nation's markets or industries.
A)Material culture
B)Popular culture
C)Trash culture
D)Vernacular culture
Answer: A
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Chapter 3: Politics, Law, and Business Ethics
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) The Foreign Corrupt Practices Act forbids U.S.companies from bribing government officials or political candidates in other nations.
A)True
B)False
Answer: True
Q2) 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
Q3) A solid grasp of local values,customs,and traditions can help reduce a company's exposure to political risk.
A)True
B)False
Answer: True
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5
Chapter 4: Economics and Emerging Markets
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Sample Questions
Q1) A ________ economy is a system in which the government owns a nation's land,factories,and other economic resources,and schedules nearly all economic activities.
A)mixed
B)market
C)centrally planned
D)laissez-faire
Q2) The first question that Stephanie expects participants to ask is: "Which is more important for the Chinese,contacts or contracts?" Which of the following is the most effective response Stephanie could give for this question?
A)Contracts are critical because of their extreme importance in Chinese business.
B)Face-to-face communications and personal relationships take priority over written contracts.
C)Non-Chinese businesspeople should take time to agree on a legal contract before developing personal relationships.
D)Business relationships are established only after successful legal dealings are concluded.
Q3) Compare and contrast the business environments in China and Russia.
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6
Chapter 5: International Trade
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100 Flashcards
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Sample Questions
Q1) Economist David Ricardo developed the theory of comparative advantage.
A)True
B)False
Q2) Trade between most nations is presently characterized by a certain degree of isolationism.
A)True
B)False
Q3) 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
Q4) Another term for neomercantilism is ________.
A)new trade
B)free trade
C)economic nationalism
D)political nationalism
Q5) Explain how the theory of absolute advantage conflicts with the theory of mercantilism.
Q6) Discuss the factor proportions theory and describe the evidence on this theory.
Page 7
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Chapter 6: Business-Government Trade Relations
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108 Flashcards
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Sample Questions
Q1) Tariff-quotas are used extensively in the trade of ________.
A)manufactured goods
B)services
C)textiles
D)agricultural products
Q2) Products that are of use in both industrial and military applications are designated as dual-use products.
A)True
B)False
Q3) Which of the following will add to the cost of an imported product by levying an additional tax upon it?
A)tariffs
B)quotas
C)local content requirements
D)embargoes
Q4) The most common economic reason for nations attempts to influence international trade is preserving national security.
A)True
B)False
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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) Increasing globalization is causing a growing number of international companies from emerging markets to undertake FDI.
A)True
B)False
Q3) Ownership restrictions is a method used by host countries to restrict incoming foreign direct investment.
A)True
B)False
Q4) Identify why a home country might support or discourage outgoing foreign direct investment.
Q5) What two factors propel growth in foreign direct investment?
Q6) Discuss why a host country might promote or restrict foreign direct investment.
Page 9
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Chapter 8: Regional Economic Integration
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112 Flashcards
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Sample Questions
Q1) The NAFTA is best considered a(n)________.
A)free trade area
B)customs union
C)economic union
D)political union
Q2) Explain the concepts of trade creation and trade diversion.Who are the winners and losers in each scenario?
Q3) The main difference between a free trade area and a customs union is that the members of a customs union ________.
A)agree to the free movement of all factors of production
B)harmonize their tax,monetary,and fiscal policies and create a common currency
C)agree to treat trade with all nonmember nations in a similar manner
D)accept a common stance on economic and political policies regarding nonmember nations
Q4) Describe the structure of the European Union.
Q5) In regional economic integration,industries that require mostly unskilled labor tend to shift production to low-wage nations within a trading bloc.
A)True
B)False
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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) Which of the following represents a country or territory whose financial sector features very few regulations and few,if any,taxes?
A)offshore financial center
B)interbank market
C)international financial services district
D)Eurocurrency market
Q2) Which of the following is an exchange rate that requires delivery of the traded currency within two business days?
A)forward rate
B)spot rate
C)cross rate
D)prime rate
Q3) Eurobonds are popular because ________.
A)they are less risky than traditional bonds
B)they are always denominated in euros
C)governments of nations in which they are sold do not regulate them
D)European companies are considered very stable
Q4) Explain the function of spot rates and the spot market.
Q5) Differentiate between currency speculation and currency arbitrage.
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Chapter 10: International Money System
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Sample Questions
Q1) Explain the differences between a monetary policy and a fiscal policy,and discuss why the IMF was established.
Q2) In Country B,Color-Me-Green is faced with a tight labor market and a low unemployment rate.This low unemployment rate will most likely result in ________.
A)lower interest rates
B)lower wages for workers
C)higher purchasing power
D)higher rate of inflation
Q3) The lowering of taxes in the U.S.by its government is an example of the ________.
A)fiscal policy
B)monetary policy
C)social policy
D)foreign affairs policy
Q4) The European monetary system is still in practice today.
A)True
B)False
Q5) Compare and contrast the two main techniques for forecasting exchange rates.
Q6) Briefly describe the gold standard,its advantages,and why it collapsed.
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Chapter 11: International Strategy and Organization
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Sample Questions
Q1) A global strategy does not allow a company to modify its products except for the most superficial features.
A)True
B)False
Q2) A strategy designed to reduce the scale or scope of a corporation's business is called a ________ strategy.
A)growth
B)differentiation
C)retrenchment
D)stability
Q3) Strategy is the set of planned actions that managers take to help a company meet its objectives.
A)True
B)False
Q4) A main goal of the global product structure is to bring together geographic and product area managers in joint decision making.
A)True
B)False
Q5) Explain how a global strategy complements a corporate growth strategy.
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Chapter 12: Analyzing International Opportunities
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Sample Questions
Q1) Discuss the importance of field trips in last stage of the market-screening process.How do trade shows and trade missions help companies conducting primary international research?
Q2) Which of the following variables attempts to estimate market openness when creating a market-potential indicator for an emerging market?
A)market consumption capacity
B)market receptivity
C)market size
D)market intensity
Q3) Which of the following steps of the market screening process involves examining the cost of transporting goods?
A)identification of basic appeal of a market
B)assessment of the national business environment
C)measurement of market or site potential
D)selection of the market or site
Q4) The potential to conduct written surveys is independent of the literacy rates among the local population.
A)True
B)False
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Chapter 13: Selecting and Managing Entry Modes
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Sample Questions
Q1) The board of directors of Sports Stuff is concerned with the firm's lack of experience in foreign markets.To minimize this problem,Herb recommends that the firm create a ________ with a local partner.
A)joint venture
B)turnkey project
C)wholly owned subsidiary
D)franchise
Q2) Through his research,Owen learns that the first step in developing a successful export strategy is ________.
A)initiation of meetings with intermediaries
B)identification of a potential market
C)commitment of resources
D)matching of market needs to company abilities
Q3) The most common method used for buying and selling goods internationally is licensing.
A)True
B)False
Q4) Explain why companies consider exporting.Describe the four-step model of developing a successful export strategy.
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Chapter 14: Developing and Marketing Products
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Sample Questions
Q1) In marketing,distribution is the process of sending promotional messages about products to target markets.
A)True
B)False
Q2) Which of the following occurs when the price of a good is lower in export markets than it is in the domestic market?
A)skimming
B)dumping
C)transfer pricing
D)price escalation
Q3) The rapid pace of technological innovation today extends the life cycles of products.
A)True
B)False
Q4) The more intermediaries there are in a distribution channel,the less costly the channel becomes.
A)True
B)False
Q5) How does the dual extension method work as a promotional strategy?
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Chapter 15: Managing International Operations
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Sample Questions
Q1) Availability of energy is an important aspect of the business environment necessary for facilities location planning.
A)True
B)False
Q2) The decentralization of production facilities is a typical policy for companies that pursue ________.
A)a multinational strategy
B)a global strategy
C)mass customization
D)vertical integration
Q3) Companies with centralized production facilities are often pursuing ________ strategies.
A)low-cost
B)differentiation
C)retrenchment
D)combination
Q4) Companies selling differentiated products find centralized production most effective.
A)True
B)False
Page 17
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Chapter 16: Hiring and Managing Employees
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101 Flashcards
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Sample Questions
Q1) Which of the following is a drawback of Jerome's staffing approach?
A)expense to relocate managers
B)potential for losing control of the host-country operations
C)potential for losing control of the home-country operations
D)inability to re-create local operations in the image of the home-country operations
Q2) Which of the following is a psychological process affecting employees living abroad and is characterized by homesickness,irritability,confusion,aggravation,and depression?
A)social loafing
B)groupthink
C)culture shock
D)halo effect
Q3) Which of the following statements is true of geocentric staffing?
A)It reduces the high cost of relocating expatriate managers and their families.
B)It employs managers exclusively from the home country to look out for the company's interests.
C)It helps develop global managers who can adjust to any business environment.
D)It emphasizes on re-creating local operations in the image of home-country operations.
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