International Business Operations
Solved Exam Questions
Course Introduction
International Business Operations explores the strategies, structures, and processes that organizations use to conduct business across national borders. The course examines key concepts such as global trade theories, international market entry strategies, cross-cultural management, supply chain logistics, global financial systems, and the regulatory environment affecting multinational enterprises. Students will analyze case studies to understand the challenges and opportunities of operating in various economic, political, and cultural contexts, and learn how to develop effective approaches for managing risk, leveraging global resources, and achieving competitive advantage in the international marketplace.
Recommended Textbook
International Business Competing in the Global Marketplace 12th Edition by Charles
Available Study Resources on Quizplus
20 Chapters
2122 Verified Questions
2122 Flashcards
Source URL: https://quizplus.com/study-set/231
Page 2
W. L. Hill
Chapter 1: Globalization
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/3547
Sample Questions
Q1) Why is managing an international business different from managing a purely domestic business?
Answer: Managing an international business is different from managing a purely domestic business for at least four reasons: (1) countries are different, (2) the range of problems confronted by a manager in an international business is wider and the problems themselves more complex than those confronted by a manager in a domestic business, (3) an international business must find ways to work within the limits imposed by government intervention in the international trade and investment system, and (4) international transactions involve converting money into different currencies.
Q2) The average tariff rates for manufactured goods have fallen significantly since 1950, and now stand at about
A) 18 percent.
B) 5.9 percent.
C) 4.8 percent.
D) 1.6 percent.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: National Differences in Political, Economic, and Legal Systems
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/3548
Sample Questions
Q1) Modern socialists trace their intellectual roots to ________, although socialist thought clearly predates this individual.
A) David Hume
B) Karl Marx
C) Adam Smith
D) John Stuart Mill
Answer: B
Q2) A common law system is different from a civil law system because
A) a common law system is based on religious teachings, while a civil law system is based on cultural traditions.
B) a common law system is very rigid, while a civil law system tends to be more flexible.
C) in a common law system a judge relies on legal codes to make rulings, while in a civil law system a judge relies on his intuition and moral reasoning to make judgments.
D) in a common law system a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: National Differences in Economic Development
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/3549
Sample Questions
Q1) ________ is seen as a way to stimulate gains in economic efficiency by giving owners a powerful incentive-the reward of greater profits-to search for increases in productivity, to enter new markets, and to exit losing ones.
A) Globalization
B) Economic transformation
C) Deregulation
D) Privatization
Answer: D
Q2) Sony was a pioneer in the portable music market segment. The Sony Walkman was an innovative product that created a new category altogether and made Sony a technological leader. This gave the company an edge over other consumer electronics brands that introduced portable music players for a very long time. In this example, Sony had the
A) vertical integration advantage.
B) purchasing power parity advantage.
C) free-rider advantage.
D) first-mover advantage.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Differences in Culture
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/3550
Sample Questions
Q1) Which of the following statements is true about the murabaha contract?
A) Under the murabaha contract, when an Islamic bank lends money to a business it takes a share in the profits that are derived from the investment.
B) Under the murabaha contract, money deposited in a savings account is treated as an equity investment in whatever activity the bank uses the capital for.
C) The murabaha contract is widely used among the world's Islamic banks because it is the easiest to implement.
D) The murabaha contract is a more efficient system than the Western banking system since it encourages both long-term savings and long-term investment.
Q2) Cross-cultural literacy refers to
A) an individual's self-concept derived from perceived membership in a relevant social group.
B) the phenomenon of merging and converging cultures.
C) abstract ideas about what a group believes to be good, right, and desirable.
D) an understanding of how cultural differences can affect business.
Q3) Explain how the Koran views business.
Q4) Describe the four dimensions of culture as identified by Geert Hofstede.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Ethics, Corporate Social Responsibility, and Sustainability
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/3551
Sample Questions
Q1) According to the ________, even if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation, that manager should maintain the standards of the company's home country.
A) cultural relativist
B) righteous moralist
C) utilitarian
D) naive immoralist
Q2) What is considered normal business practice in one country may be considered unethical in other countries.
A)True
B)False
Q3) Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople.
A)True
B)False
Q4) Why do organizations appoint an ethics officer?
Q5) Discuss the utilitarian approach to business ethics. When was this approach developed? What are its drawbacks?
Q6) How can companies strengthen the moral courage of employees?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: International Trade Theory
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/3552
Sample Questions
Q1) Country A can produce product X, but it can also buy it at a cheap rate from Country B. Which of the following courses of action is suitable in this situation according to Adam Smith's theory of absolute advantage?
A) Country A should import product X from Country B and it should not attempt to produce it at home.
B) Country A should partly import the product and produce it domestically.
C) Country A should produce more of product X and should attempt to obtain an absolute advantage for the product.
D) Country A should subsidize the production of product X to obtain an absolute advantage over Country B.
Q2) Which of the following refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country?
A) economic patriotism
B) protectionism
C) free trade
D) offshoring
Q3) Do you think a new trade theorist would stress the role of luck and entrepreneurship? Explain.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Government Policy and International Trade
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/3553
Sample Questions
Q1) A ________ helps domestic producers to compete against foreign imports.
A) An ad valorem tariff
B) A specific tariff
C) An import quota
D) A subsidy
Q2) Tariffs on industrial goods remain higher than tariffs on services.
A)True
B)False
Q3) According to the ________ policy, subsidies can help a firm achieve a first-mover advantage in an emerging industry.
A) strategic trade
B) antidumping
C) tariff quota
D) free trade
Q4) Which of the following is a political reason for governments to intervene in markets?
A) to help citizens obtain jobs in foreign markets
B) to aid their country's businesses in foreign markets
C) to subsidize multinational companies
D) to protect jobs and industries
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Foreign Direct Investment
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/3554
Sample Questions
Q1) FDI has been declining in the last few decades because protectionist pressures have become less intense.
A)True
B)False
Q2) ________ is essentially the service-industry version of licensing, although it normally involves much longer-term commitments.
A) Franchising
B) Subsidizing
C) Greenfield investment
D) Patenting
Q3) Tax concessions, low-interest loans, and grants or subsidies are all incentives that governments offer to foreign firms to invest in their countries.
A)True
B)False
Q4) Licensing is usually a good option for firms in high-tech industries where protecting firm-specific expertise is of paramount importance.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Regional Economic Integration
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/3555
Sample Questions
Q1) Which of the following was required for new applicants to qualify for EU membership?
A) minimum economy size of 1 trillion
B) nationalization of private assets
C) deregulation of markets
D) sustained GDP growth of 10 percent for five years
Q2) A regional free trade agreement will benefit the world only when the amount of trade it creates exceeds the amount of trade it diverts.
A)True
B)False
Q3) In 1990, Bolivia, Peru, Ecuador, Colombia, and Venezuela relaunched
A) Mercosur.
B) NAFTA.
C) APEC.
D) the Andean Pact.
Q4) Because of the fact that everyone benefits from economic integration, it is easy to achieve and sustain.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: The Foreign Exchange Market
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/3556
Sample Questions
Q1) When a tourist goes to a bank in a foreign country to convert money into the local currency, the exchange rate used is the
A) currency swap rate.
B) forward rate.
C) carry trade.
D) spot rate.
Q2) A(n) ________ involves attempting to collect foreign currency receivables early when a foreign currency is expected to depreciate and paying foreign currency payables before they are due when a currency is expected to appreciate.
A) A follower strategy
B) An interim strategy
C) A lead strategy
D) A lag strategy
Q3) When two parties agree to exchange currency and execute the deal at some specific time in the future, a ________ occurs.
A) currency swap
B) forward exchange
C) hedging
D) spot exchange
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: The International Monetary System
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/3557
Sample Questions
Q1) Recent policies of the International Monetary Fund have drawn a lot of criticism. Discuss these criticisms.
Q2) Which of the following is an advantage of using the gold standard?
A) The standard makes sure that goods are not priced out from markets due to inflation.
B) The standard does not require a commitment from a nation to maintain its currency's value.
C) The standard effectively prevents the devaluation of currencies across the world.
D) The standard contains a powerful mechanism for achieving balance-of-trade equilibrium by all countries.
Q3) Which of the following statements is true of the Bretton Woods agreement?
A) All countries agreed to fix the value of their currency in terms of gold under the agreement.
B) The system accepted the British pound as the official reference currency against gold.
C) The agreement established a floating system of monetary exchange.
D) Two multinational institutions, the World Economic Forum and WTO, were formed under the agreement.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: The Global Capital Market
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/3558
Sample Questions
Q1) What is a disadvantage of the global capital market?
A) Foreign investments may be driven by speculative flows in the market.
B) A truly global market reduces the liquidity of investments.
C) The availability of capital is low in a global capital market.
D) The cost of capital is more in a global market than a domestic market.
Q2) Eurocurrency can be created anywhere in the world.
A)True
B)False
Q3) Which of the following is true of the Eurobond market?
A) There are many regulations that protect investors.
B) Government limitations are generally more stringent for securities denominated in foreign currencies.
C) There are less stringent disclosure requirements than in most domestic bond markets.
D) They have an unfavorable tax status.
Q4) What are foreign bonds?
Q5) Explain Eurobonds with an example.
Q6) Explain how equity loans and debt loans differ in terms of attractiveness to businesses.
Q7) Write a brief note on foreign exchange risks and the cost of capital.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: The Strategy of International Business
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/3559
Sample Questions
Q1) Global expansion offers companies the opportunity to generate greater profits than companies that focus strictly on
A) value creation.
B) economies of scale.
C) location economies.
D) the domestic market.
Q2) How can a firm increase its profitability?
Q3) Which of the following is one of the two types of competitive pressure that affects the ability of multinational enterprises to compete in the global marketplace?
A) pressure for cost increases
B) pressure for local responsiveness
C) pressure for value creation
D) pressure for increased profitability
Q4) Economies that arise from performing a value creation activity in the optimal location are known as
A) international strategies.
B) location economies.
C) localization strategies.
D) economies of scale.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: The Organization of International Business
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/3560
Sample Questions
Q1) Firms pursuing a global standardization strategy must cope with a higher level of ________, and this raises their costs of control.
A) vertical differentiation
B) cultural division
C) horizontal differentiation
D) performance ambiguity
Q2) All of the following are strategies that multinational firms pursue except a ________ strategy.
A) localization
B) domestic
C) transnational
D) global
Q3) ________ is valuable because it can be used as a nonbureaucratic conduit for information flows within a multinational enterprise.
A) A liaison network
B) A matrix structure
C) An organizational structure
D) A knowledge network
Q4) Discuss the issues involved in unfreezing an organization.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Entry Strategy and Strategic Alliances
Available Study Resources on Quizplus for this Chatper
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/3561
Sample Questions
Q1) Turnkey projects are most common in which of the following industries?
A) fresh fruit, grain, and meat products
B) chemical, pharmaceutical, and metal refining
C) consumer durables, computer peripherals, and automotive parts
D) apparel, shoes, and leather products
Q2) A good ally will expropriate the firm's technological know-how while giving away little in return.
A)True
B)False
Q3) A ________ entails establishing a firm that is owned together by two or more otherwise independent firms.
A) joint venture
B) licensing agreement
C) franchisee
D) turnkey contract
Q4) Brand names such as Starbucks and Subway are well protected by international laws pertaining to trademarks.
A)True
B)False
Q5) Compare and contrast licensing agreements and franchising agreements.
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Exporting, Importing, and Countertrade
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/3562
Sample Questions
Q1) Which of the following is a major advantage of using a letter of credit?
A) It gives the importer time to resell the merchandise before payment.
B) It guarantees the exporter preexport financing.
C) It helps international traders engage in trade with trust.
D) It guarantees the importer extra funds for other purposes.
Q2) A counterpurchase gives exporters more flexibility than an offset.
A)True
B)False
Q3) ________ is a reciprocal buying agreement and occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made.
A) Counterpurchase
B) Barter
C) Offset
D) Switch trading
Q4) Compare and contrast time drafts and sight drafts.
Q5) Why do so many firms take a reactive approach to exporting rather than a proactive approach?
Q6) What is the Foreign Credit Insurance Association?
Q7) Discuss the importance of the Export-Import Bank, its goals, and its operations.
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Global Production and Supply Chain Management
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/3563
Sample Questions
Q1) Products such as electronic components and pharmaceuticals have low value-to-weight ratios.
A)True
B)False
Q2) Flexible manufacturing technologies enable companies to customize products to the demands of small consumer groups.
A)True
B)False
Q3) Central to the concept of economies of scale is the idea that the best way to achieve high efficiency, and hence low unit costs, is through the
A) customization of products for each individual market.
B) mass production of a standardized output.
C) production of goods that vary from one another.
D) production of small volumes of high-quality products.
Q4) Logistics is the activity that controls the
A) effective flows of physical materials through the value chain.
B) customer contact points of a business.
C) activities involved in creating a product.
D) information flows between a business and its customers.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Global Marketing and R&D
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/3564
Sample Questions
Q1) Which of the following is one of the four elements that constitute a firm's marketing mix?
A) inventory accounting
B) product reengineering
C) reverse engineering
D) distribution strategy
Q2) ________ is an international market research company based in London that works with more than half of the Fortune 500 companies.
A) Ipsos
B) Nielsen
C) NPD Group
D) Kantar
Q3) A measure of the responsiveness of demand for a product to change in price is referred to as
A) arbitrage demand.
B) predatory pricing.
C) price elasticity of demand.
D) experience curve pricing.
Q4) Compare and contrast push strategies and pull strategies.
Q5) Explain briefly the regulatory influences on pricing.
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Global Human Resource Management
Available Study Resources on Quizplus for this Chatper
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/3565
Sample Questions
Q1) ________ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality.
A) An ethnocentric
B) A polycentric
C) A eurocentric
D) A geocentric
Q2) Union influence in the auto industry is increasing in part due to Japanese carmakers building autos in the United States.
A)True
B)False
Q3) Selection is the first step in matching a manager with a job.
A)True
B)False
Q4) Expatriate failure refers to a manager's failure to understand host-country cultural norms and values, leading to ineffective work.
A)True
B)False
Q5) Discuss why the repatriation process is so difficult for so many expatriates.
Q6) What is human resource management? Why is HRM an important strategic component?
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Accounting and Finance in the International Business
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3566
Sample Questions
Q1) Multilateral netting is used primarily to A) reduce transaction costs between subsidiaries.
B) avail tax credit from governments.
C) establish a tax treaty among multiple countries.
D) reduce the fixed costs of establishing a subsidiary.
Q2) The IASB has the power to enforce its standards, so it has considerable power in the industry.
A)True
B)False
Q3) In countries such as the United States and Britain, firms typically raised capital by A) obtaining funding from the government.
B) borrowing money from national banks.
C) issuing stock or bonds to investors.
D) borrowing money from international banks.
Q4) Describe the problem of blocked earnings.
Q5) Describe the three exchange rates that can be used to translate foreign currencies into the corporate currency in setting budgets and in the subsequent tracking of performance that Lessard and Lorange pointed out.
Q6) Briefly differentiate accounting standards and auditing standards.
To view all questions and flashcards with answers, click on the resource link above. Page 22