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 the global business environment, including cultural, legal, economic, and political factors that impact decision-making. Students will learn about international market entry strategies, global supply chain management, cross-cultural communication, foreign exchange risk, and the role of international institutions. Through case studies and real-world examples, the course provides practical insights and analytical tools necessary for managing operations and competing effectively in the global marketplace.
Recommended Textbook
International Business The Challenges of Globalization 7th Edition by John J. 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
100 Flashcards
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Sample Questions
Q1) The role of the World Bank is to provide financing for national economic development efforts.
A)True
B)False
Answer: True
Q2) Small companies selling traditional products benefit from ________.
A)the barriers to trade that restrict their products from crossing domestic boundaries
B)increased investment by foreign competitors in domestic markets
C)government policies that seek to regulate the flow of capital across national borders
D)technology that lowers the costs and difficulties of global communication
Answer: D
Q3) A born global firm is a company that engages in international business from or near its inception.
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) ________ 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
Q2) Which of the following terms is used to refer to the process of ranking people into social layers or classes?
A)social transformation
B)social stratification
C)social loafing
D)social mobility
Answer: B
Q3) ________ tend to occupy the highest social layer in industrialized countries.
A)Teachers
B)Scientists
C)Medical doctors
D)Business leaders
Answer: D
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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) ________ are words or symbols that distinguish a product and its manufacturer from competitors.
A)Patents
B)Trademarks
C)Watermarks
D)Copyrights
Answer: B
Q2) Pluralism is the belief that only individuals and private groups should control a nation's political activities.
A)True
B)False
Answer: False
Q3) The ________ view says that a company should maintain its home-country ethics wherever it operates because the home-country's view of ethics and responsibility is superior to others' views.
A)Friedman
B)righteous moralist
C)cultural relativist
D)utilitarian
Answer: B
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Chapter 4: Economics and Emerging Markets
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?
A)fiat money
B)letter of credit
C)barter
D)guanxi
Q2) Individualist cultures tend to offer fewer incentives and rewards than collectivist cultures.
A)True
B)False
Q3) Discuss the challenges China faces as it continues its experiment on "socialism with Chinese characteristics."
Q4) Barter is an alternative for buyers who lack money needed to pay for imports.
A)True
B)False
Q5) No nation has a completely individualist or completely collectivist cultural orientation.
A)True
B)False
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Chapter 5: International Trade
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Sample Questions
Q1) The theory of absolute advantage destroys the mercantilist idea that international trade is a ________.
A)positive-sum game
B)zero-sum game
C)negative-sum game
D)win-win game
Q2) The danger of trade dependency is that ________.
A)it often leads to the exploitation of developed countries
B)political turmoils in a country might affect all dependent countries
C)the countries involved in trade often get into rivalry over trade tariff issues
D)it is difficult to end trade activities with current trade partners and find new trade partners
Q3) Trade deficit occurs when the value of a country's imports is greater than the value of its exports.
A)True
B)False
Q4) Describe the potential benefits of international trade.Why would a nation trading with a neomercantilist country be at a disadvantage?
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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) Which of the following statements is true of tariffs?
A)Tariffs increase an imported product's appeal to buyers.
B)Transit tariffs are the most widely-levied tariffs.
C)Ad valorem tariffs are levied as a specific fee for each unit of an imported product.
D)Export tariffs are used by countries when they believe an export's price is lower than it should be.
Q2) Describe each instrument that governments use to promote trade.
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) Restrictions on the convertibility of a currency into other currencies are referred to as
A)administrative delays
B)currency crisis
C)local content requirements
D)currency controls
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Chapter 7: Foreign Direct Investment
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) The soaring cost of developing subsequent stages of technology has led multinationals to engage in cross-border alliances and acquisitions.
A)True
B)False
Q2) According to the eclectic theory that explains FDI,an internalization advantage is the advantage of locating a particular economic activity in a specific location because of the characteristics of that location.
A)True
B)False
Q3) Discuss why a host country might promote or restrict foreign direct investment.
Q4) Not all factors of production are internationally mobile.
A)True
B)False
Q5) Explain the theory of market imperfections and describe the two major market imperfections.
Q6) Why is it important to assess R&D costs when considering FDI? Given its costs,how can FDI benefit the host country with access to technology,management skills,and employment?
Q7) What two factors propel growth in foreign direct investment?
Page 9
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Chapter 8: Regional Economic Integration
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The common currency of the European Union is known as the ________.
A)European currency unit
B)eurodollar
C)euro
D)European unit of account
Q2) The Court of Justice is the ________ of the European Union.
A)court of honor
B)court of appeals
C)small-claims court
D)arbitral tribunal
Q3) The main challenge facing the Caribbean Community and Common Market (CARICOM)is that ________.
A)the bloc has not yet signed an agreement calling for a single market
B)military conflicts continue to hamper efforts to move toward political union
C)most members trade more with nonmembers than they do with each other
D)the bloc has had no success in persuading Chile to become a member
Q4) In a free trade area,each country can maintain whatever policy it sees fit against nonmember countries.
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) Briefly describe any two of the three main components of the international capital market.
Q2) Which of the following is true about a quote of ¥117.87/$?
A)It is equal to $.008484/¥.
B)The quote is in U.S.dollars.
C)This is an indirect quote on the yen.
D)It costs a little more than a dollar to buy one yen.
Q3) ________ refers to the most commonly quoted interest rate that London banks charge other large banks that borrow Eurocurrency.
A)London Interbank Offer Rate (LIBOR)
B)London Interbank Bid Rate (LIBID)
C)Spot rate
D)Cross rate
Q4) An exchange rate requiring delivery of the traded currency within two business days is called a cross rate.
A)True
B)False
Q5) What is currency speculation? Why do some governments protect their markets from currency speculation?
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Chapter 10: International Money System
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Under the gold standard,if the U.S.dollar was fixed at $30/oz of gold and Japan was fixed at ¥75/oz of gold,what would be the Yen/dollar exchange rate?
A)¥2.50/$
B)$2.50/¥
C)¥0.40/$
D)¥2250/$
Q2) The French government buying its own securities on the open market is part of the ________ of France.
A)fiscal policy
B)monetary policy
C)industrial policy
D)investment policy
Q3) The European monetary system is still in practice today.
A)True
B)False
Q4) According to Fisher effect,real interest rate is the sum of the nominal interest rate and the expected rate of inflation over a specific period.
A)True
B)False
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Chapter 11: International Strategy and Organization
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112 Flashcards
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Sample Questions
Q1) When should managers consider decentralized decision making? What type of work teams might emerge in organizations that practice decentralized decision making?
Q2) The strategy that Beanstalk would most likely want to follow is called a ________ strategy.
A)multinational
B)retrenchment
C)global
D)stability
Q3) A multinational strategy is most appropriate for companies that do not have foreign direct investments but rather export their products to foreign markets.
A)True
B)False
Q4) Which of the following strategies is designed to guard an organization against change?
A)stability strategy
B)growth strategy
C)retrenchment strategy
D)differentiation strategy
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Page 13
Chapter 12: Analyzing International Opportunities
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106 Verified Questions
106 Flashcards
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Sample Questions
Q1) Which stage of the market-screening process is John involved in,while examining government regulations and bureaucracy in a market?
A)assessment of the national business environment
B)selection of the market
C)identification of the basic appeal for markets
D)measurement of market potential
Q2) 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
Q3) Which of the following is a source of secondary data for conducting international market research?
A)surveys
B)interviews
C)focus groups
D)trade associations
Q4) What is country image? Explain how it affects the screening process using examples.
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14
Chapter 13: Selecting and Managing Entry Modes
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Sample Questions
Q1) Which of the following normally takes the form of a wire transfer of money from the bank account of the importer directly to that of the exporter prior to shipment of merchandise?
A)documentary collection
B)letter of credit
C)advance payment
D)open account
Q2) A(n)________ is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.
A)confirmed letter of credit
B)transferrable letter of credit
C)revocable letter of credit
D)irrevocable letter of credit
Q3) Which of the following occurs when a company sells its products to intermediaries who then resell to buyers in a target market?
A)indirect exporting
B)counterpurchase
C)an acquisition
D)a joint venture
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Page 15
Chapter 14: Developing and Marketing Products
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103 Flashcards
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Sample Questions
Q1) A ________ strategy is best suited for the promotion of industrial products because potential buyers usually need to be informed about a product's special features before purchase.
A)push
B)pull
C)stability
D)differentiation
Q2) ________ refers to anything that disrupts the audience's ability to receive and interpret a promotional message.
A)Noise
B)Interpolation
C)Feedback
D)Resonance
Q3) ________ are imitation products passed off as legitimate trademarks,patents,or copyrighted works.
A)Giffen goods
B)Counterfeit goods
C)Inferior goods
D)Intangible goods
Q4) Using examples,explain the circular process of marketing communication.
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Chapter 15: Managing International Operations
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99 Flashcards
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Sample Questions
Q1) Money earned from the sale of goods and services is known as ________.
A)revenue
B)dividend
C)depreciation
D)book value
Q2) Which of the following most likely supports the argument of Echo managers to outsource some of the firm's manufacturing activities?
A)Echo managers could reduce the wages of U.S.based employees and sub-contractors.
B)Echo could save money by reducing the costs incurred in manufacturing the component parts.
C)Echo managers could implement a marketing campaign for foreign markets that is identical to the outsourced firm's marketing campaign.
D)Echo could merge with one of its U.S.-based competitors to gain a larger market share.
Q3) Debt appeals to companies because it lowers the amount of taxes the companies must pay.
A)True
B)False
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Page 17
Chapter 16: Hiring and Managing Employees
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101 Flashcards
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Sample Questions
Q1) Centralizing the decisions that directly impact workers' lives contribute to better labor-management relations.
A)True
B)False
Q2) The early return by an employee from an international assignment because of inadequate job performance is called ________.
A)culture shock
B)decruitment
C)reverse culture shock
D)expatriate failure
Q3) In ________,operations outside the home country are managed by individuals from the host country.
A)vertical integration
B)horizontal integration
C)ethnocentric staffing
D)polycentric staffing
Q4) Explain the advantages and disadvantages of a geocentric staffing policy,and discuss the effects of culture shock when assigning an employee to work in another country.
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