International Business Solved
Exam Questions
Course Introduction
International Business explores the complexities of conducting commercial transactions across national boundaries. The course examines the influences of culture, politics, law, technology, and economics on global trade and investment. Students learn how international markets operate, how multinational corporations manage operations in different countries, and the strategies firms use to compete globally. Topics include foreign market entry, global supply chains, international financial management, trade theories, cultural negotiation, and ethical challenges. By analyzing real-world case studies, students develop a deeper understanding of the risks and opportunities inherent in international business environments.
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
100 Flashcards
Source URL: https://quizplus.com/quiz/41907
Sample Questions
Q1) The term ________ refers to entities cooperating across national boundaries.
A)internationalization
B)supranationalism
C)denationalization
D)multiculturalism
Answer: A
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) Globalization is characterized by ________.
A)the demise of democracy within a nation
B)national boundaries becoming less relevant
C)the fortification of trade barriers
D)rigid foreign relations policies
Answer: B
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Page 3
Chapter 2: Cross-Cultural Business
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following is the most common form of social stratification in the world today?
A)racial segregation
B)class system
C)gender-based division
D)language-based stratification
Answer: B
Q2) Cultures that score low on uncertainty avoidance tend to be less open to change and new ideas.
A)True
B)False
Answer: False
Q3) Which of the following terms is used to refer to the departure of highly educated people from one profession,geographic region,or nation to another?
A)social mobility
B)repatriation
C)stratification
D)brain drain
Answer: D
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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) A ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives.
A)democracy
B)theocracy
C)plutocracy
D)autocracy
Answer: A
Q2) Horizon Ltd.is a software company that,over the last year,incorporated social responsibility into its core operations to create value and build competitive advantage.Which layer of corporate social responsibility does Horizon Ltd.function at?
A)risk management
B)traditional philanthropy
C)strategic CSR
D)political CSR
Answer: C
Q3) Totalitarian governments tend to favor private ownership of economic resources.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Economics and Emerging Markets
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100 Verified Questions
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Sample Questions
Q1) The Chinese term "guanxi" means government ownership.
A)True
B)False
Q2) 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
Q3) Economic transition is the process of moving from ________.
A)developed to developing economies
B)centrally planned to free-market economies
C)developed to emerging economies
D)free-market to centrally planned economies
Q4) How are countries classified? Explain with examples.
Q5) What is economic transition? Describe the obstacles that countries face during economic transition.
Q6) Describe the three main types of economic systems.
Q7) Compare and contrast the business environments in China and Russia.
Q8) What is privatization? What role does it play in economic transition?
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Chapter 5: International Trade
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100 Verified Questions
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Sample
Questions
Q1) Country A produces a ton of coffee using one unit of resources.Country B produces two tons of coffee using one unit of resources.Which of the following is true regarding Country A and Country B?
A)Country A has an absolute advantage in producing coffee.
B)Country B has an absolute advantage in producing coffee.
C)Neither Country A nor Country B has an absolute advantage in producing coffee.
D)Both Country A and Country B have an absolute advantage in producing coffee.
Q2) Discuss the dangers of trade dependency.
Q3) In the maturing product stage of the international product life cycle theory,production facilities are introduced in countries with the highest demand.
A)True
B)False
Q4) 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
Q5) 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) What are voluntary export restraints and how are they used?
Q2) Describe the role of special government agencies in promoting exports and imports.
Q3) When a company exports a product at a price higher than the price normally charged in its domestic market,it is said to be dumping.
A)True
B)False
Q4) If Konesia chooses to levy tariffs as a percentage of the stated price of an imported product,this would be an example of a(n)________.
A)compound tariff
B)specific tariff
C)ad valorem tariff
D)tariff-quota
Q5) Tariff-quotas are used extensively in the trade of ________.
A)manufactured goods
B)services
C)textiles
D)agricultural products
Q6) Describe each instrument that governments use to promote trade.
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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) According to the market imperfections theory,competition is a common market imperfection.
A)True
B)False
Q2) Which of the following systems of production is used by GMI?
A)job
B)craft
C)rationalized
D)customized
Q3) In the maturing product stage of the international product life cycle theory,increased competition creates pressures to reduce production costs.
A)True
B)False
Q4) Increasing globalization is causing a growing number of international companies from emerging markets to undertake FDI.
A)True
B)False
Q5) How does the eclectic theory explain the concept of FDI? How can a host country offer incentives to attract FDI?
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Chapter 8: Regional Economic Integration
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112 Flashcards
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Sample Questions
Q1) The least amount of sovereignty that must be surrendered to a trading bloc occurs in a ________.
A)economic union
B)common market
C)free trade area
D)political union
Q2) Which of the following is currently a member of the European Free Trade Association?
A)Slovakia
B)Ireland
C)Norway
D)Italy
Q3) The Court of Justice is the court of appeals of the European Union.
A)True
B)False
Q4) Which of the following is true of the euro?
A)It increases exchange-rate risk for business deals between member nations.
B)It increases transaction costs.
C)It makes prices between markets more transparent.
D)It is not accepted among merchants in France,Germany,and Italy.
Page 10
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Chapter 9: International Financial Markets
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Sample Questions
Q1) When doing business with former communist countries,Trader's Paradise insists on getting paid in a currency that can be traded freely in the foreign exchange market.The price of this currency is determined by the forces of supply and demand.Which of the following is the mode of payment illustrated in this scenario?
A)community currency
B)private currency
C)local currency
D)convertible currency
Q2) An exchange rate of ¥117.87/$ indicates ________.
A)that 117.87 yen buys one dollar
B)that 117.87 dollars buys one yen
C)a direct quote on the dollar
D)an indirect quote on the yen
Q3) If an individual is traveling to another country and wants to exchange currencies at his bank before departing,he will be quoted the spot rate since he is exchanging on the spot.
A)True
B)False
Q4) Explain the function of spot rates and the spot market.
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Chapter 10: International Money System
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Sample Questions
Q1) Which of the following was created by the Bretton Woods Agreement to enforce the rules of the international monetary system?
A)International Bank for Reconstruction and Development
B)International Capital Market
C)International Monetary Fund
D)World Bank
Q2) In order to capture the gains from currency translation,managers prefer exchange rates that are volatile and unpredictable.
A)True
B)False
Q3) Suppose Sam then noticed that the actual euro/dollar exchange rate on currency markets is 1.2/$,and that a kilogram of wheat still costs $1 in the U.S.and 1.5 in France.Sam then knows that ________.
A)the expected exchange rate between the euro and the dollar is 1.5/$
B)wheat is priced higher in France
C)wheat is priced lower in France
D)an arbitrage opportunity does not exist in the international wheat market
Q4) Briefly describe how exchange rates influence business activities.
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) Which of the following is a characteristic based on which products are typically differentiated?
A)brand loyalty
B)brand equity
C)product design
D)product cost
Q2) Centralized decision making is beneficial when fast-changing national business environments put a premium on local responsiveness.
A)True
B)False
Q3) 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
Q4) Objectives of individual business units in an organization exclusively contain numerical targets of performance.
A)True
B)False
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Chapter 12: Analyzing International Opportunities
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Sample Questions
Q1) Which of the following steps of the the market screening process involves an evaluation of the government bureaucracy?
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
Q2) During which stage of the market or site screening process do managers normally want to visit locations?
A)identification of basic appeal of a product
B)measurement of market or site potential
C)assessment of the national business environment
D)selection of the market or site
Q3) 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
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14
Chapter 13: Selecting and Managing Entry Modes
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Sample Questions
Q1) Which of the following refers to the exchange of goods or services directly for other goods or services without the use of money?
A)offset
B)barter
C)counterpurchase
D)switch trading
Q2) Most large companies use exporting as a means of expanding total sales when the domestic market has become saturated.
A)True
B)False
Q3) Switch trading is the export of industrial equipment in return for products produced by that equipment.
A)True
B)False
Q4) Explain why companies consider exporting.Describe the four-step model of developing a successful export strategy.
Q5) Explain franchising with examples.Mention the advantages and disadvantages associated with franchising.How is franchising different from licensing?
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Chapter 14: Developing and Marketing Products
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103 Flashcards
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Sample Questions
Q1) What is value density and what is its impact on an organization's distribution policy?
Q2) Describe the five communication strategies that companies commonly use and cite situations where the strategies are used.
Q3) Which of the following occurs when an idea to be communicated is translated into images,words,and symbols?
A)compiling
B)encoding
C)parsing
D)processing
Q4) Which of the following would be most appropriate for its consumer product line?
A)horizontal integration
B)vertical integration
C)push strategy
D)pull strategy
Q5) Differentiate between the push and pull promotional strategies.Explain the factors that determine whether the push or the pull strategy is appropriate in a given marketing environment.
Q6) Using examples,explain the circular process of marketing communication.
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Chapter 15: Managing International Operations
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Sample Questions
Q1) Explain the process of facilities location planning.What issues must companies consider while selecting the location for their production facilities?
Q2) Which of the following is true of American Depository Receipts (ADRs)?
A)Investors who buy ADRs have to pay a currency-conversion fee.
B)There is a minimum purchase requirement for ADRs.
C)Companies offer ADRs in the U.S.to appeal to mutual funds.
D)ADRs are listed and traded in London and Luxembourg.
Q3) Deciding the sequence of operations a company will use to create its product is called ________.
A)product planning
B)capacity planning
C)location economies
D)process planning
Q4) The process by which a company extends its control over additional stages of production is called vertical integration.
A)True
B)False
Q5) Why might companies decide to reinvest,scale back,or divest local operations?
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) Sensitivity training constitutes the most basic level of cultural training for managers on international assignments.
A)True
B)False
Q2) The compensation of nonmanagerial workers is strongly influenced by increased cross-border business investment.
A)True
B)False
Q3) Which staffing policy should Swingset consider if it wants its foreign operations to be managed by the best-qualified individuals regardless of nationality?
A)nepotism
B)ethnocentric staffing
C)geocentric staffing
D)employee referrals
Q4) The process of identifying and attracting a qualified pool of applicants for vacant positions is called selection.
A)True
B)False
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Page 18