International Business Strategy
Exam Practice Tests
Course Introduction
International Business Strategy explores the frameworks and tools essential for formulating and implementing strategies in a global business environment. The course examines how firms develop competitive advantages across borders, analyze international markets, and respond to cultural, political, and economic differences. Topics include entry modes, global value chains, international alliances, risk management, and the role of multinational enterprises in the global economy. Students will apply strategic models and case studies to understand decision-making in dynamic international contexts, aiming to navigate complexities and seize global opportunities.
Recommended Textbook
International Business The Challenges of Globalization 5th Edition by John J. Wild
Available Study Resources on Quizplus
16 Chapters
3050 Verified Questions
3050 Flashcards
Source URL: https://quizplus.com/study-set/2032
Page 2
Chapter 1: Globalization
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/40384
Sample Questions
Q1) One remarkable commonality among the world's least-global nations is their low levels of corruption.
A)True
B)False
Answer: False
Q2) ________ differ(s) from management of a purely domestic firm in nearly all respects.
A) National business environments
B) Globalization
C) International business environment
D) International firm management
Answer: D
Q3) The World Trade Organization (WTO) is the international organization that enforces the rules of international trade.
A)True
B)False
Answer: True
Q4) ________ refers to convergence in buyer preferences in markets around the world. Answer: Globalization of markets
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Cross-Cultrual Busines
Available Study Resources on Quizplus for this Chatper
232 Verified Questions
232 Flashcards
Source URL: https://quizplus.com/quiz/40385
Sample Questions
Q1) Why is it important for firms to recognize and understand the concept of subculture? Provide an example with your answer.
Answer: It is important for firms to recognize and understand the concept of subculture because subcultures represent smaller, distinct groups within a larger society that share unique values, beliefs, and behaviors. By understanding these subcultures, firms can tailor their products, marketing strategies, and customer experiences to better resonate with these specific groups. This can lead to increased customer satisfaction, loyalty, and ultimately, higher profits for the firm.
For example, a clothing company may recognize the subculture of "skateboarders" as a distinct group with their own fashion preferences and lifestyle. By understanding this subculture, the company can create and market clothing lines specifically designed for skateboarders, using imagery and messaging that resonates with their unique values and interests. This targeted approach can lead to increased sales and brand loyalty within the skateboarding subculture.
Q2) Understanding a culture's ________ provides great insight into a people's thoughts and actions.
Answer: language
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Politics, Law, and Business Ethics
Available Study Resources on Quizplus for this Chatper
218 Verified Questions
218 Flashcards
Source URL: https://quizplus.com/quiz/40386
Sample Questions
Q1) Experts agree that the best investment a company can make against kidnapping is to buy kidnap, ransom, and extortion insurance.
A)True
B)False
Answer: False
Q2) ________ occurs when people who are capable of influencing the political system make an effort to do so.
A) Narrow participation
B) Wide participation
C) Normal participation
D) Ordinary participation
Answer: B
Q3) Which of the following refers to the belief that every aspect of people's lives must be controlled for a nation's political system to be effective?
A) Totalitarianism
B) Capitalism
C) Anarchism
D) Pluralism
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Economic Systems and Development
Available Study Resources on Quizplus for this Chatper
218 Verified Questions
218 Flashcards
Source URL: https://quizplus.com/quiz/40387
Sample Questions
Q1) If Sam selects France for his venture, he should know that France is a(n) ________.
A) emerging market
B) developing country
C) mixed economy
D) centrally planned economy
Q2) One of the most important factors in forming a successful venture in China is guanxi, which means ________.
A) bribing the government officials
B) manufacturing cheap products
C) personal relationships
D) following Confucianism
Q3) If Cleanshot wants to avoid the headaches of dealing with economies in transition and wants to deal with countries that are highly industrialized, efficient, and whose people enjoy a high quality of life, they should explore opportunities in ________.
A) developing countries
B) developed countries
C) emerging markets
D) newly industrialized countries
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: International Trade
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/40388
Sample Questions
Q1) Nearly 74 percent of Europe's exports are destined for other European nations.
A)True
B)False
Q2) Factor proportions theory was developed by ________.
A) Smith and Ricardo
B) Ricardo and Ohlin
C) Hecksher and Ohlin
D) Hecksher and Smith
Q3) A trade deficit is the condition that results when the value of a nation's exports is greater than the value of its imports.
A)True
B)False
Q4) Merchandise trade between low- and middle-income nations accounts for about ________ percent of total world trade.
A) 6
B) 23
C) 42
D) 61
Q5) Describe the volume and overall patterns of international trade.
Q6) Compare and contrast the theories of absolute and comparative advantage.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Business-Government Trade Relations
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/40389
Sample Questions
Q1) ________ is the unwanted cultural influence in a nation that can cause great distress and cause governments to block imports it believes to be harmful.
Q2) The infant industry argument says government financial support is not necessary for small, promising companies because they find it is easy to obtain funding in capital markets.
A)True
B)False
Q3) The General Agreement on Tariffs and Trade (GATT) was a treaty designed to promote free trade by reducing tariffs and nontariff barriers to international trade, and which has since been absorbed into the World Trade Organization (WTO).
A)True
B)False
Q4) Financial assistance to domestic producers in the form of cash payments, low-interest loans, tax breaks, and product price supports are all types of antidumping duties.
A)True
B)False
Q5) Describe each instrument governments use to promote trade.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Foreign Direct Investment
Available Study Resources on Quizplus for this Chatper
173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/40390
Sample Questions
Q1) Reasons for home nations to discourage foreign direct investment outflows include all of the following EXCEPT that it may ________.
A) send resources out of the home country
B) cause loss of jobs at home
C) destroy "sunset" industries
D) damage a nation's balance of payments
Q2) Building a subsidiary abroad from the ground up is called a(n) ________.
A) portfolio investment
B) vertical integration investment
C) acquisition
D) greenfield investment
Q3) One board member has asked about the maquiladora industry, which refers to
A) Mexico's low-cost labor unions
B) the cross-border drug trafficking problem that threatens to limit legitimate production in Mexico
C) the low-wage, 130-mile-wide strip along the U.S.-Mexico border
D) Latin America's new model for business that allows foreign investors to take advantage of government incentives designed to attract foreign direct investment
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Regional Economic Integration
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/40391
Sample Questions
Q1) The only Western Hemisphere nation that would NOT be part of the Free Trade Area of the Americas (FTAA) is Cuba.
A)True
B)False
Q2) Which of the following created what was called the European Economic Community?
A) The Treaty of Rome
B) The Maastricht Treaty
C) The Single European Act
D) Warsaw Pact
Q3) A benefit of regional economic integration is that it always expands employment opportunities in all nations.
A)True
B)False
Q4) The European Union plan that established its own central bank and currency in January 1999 is known as the ________.
A) Single European Act
B) European monetary union
C) Copenhagen Criteria
D) European currency union
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: International Financial Markets
Available Study Resources on Quizplus for this Chatper
195 Verified Questions
195 Flashcards
Source URL: https://quizplus.com/quiz/40392
Sample Questions
Q1) All of Europe's currencies combined are referred to as Eurocurrency.
A)True
B)False
Q2) By issuing bonds in the international bond market, borrowers from newly industrialized and developing nations can borrow money from other nations where interest rates are ________.
Q3) If Trader's Paradise purchases and sells the European Union euro simultaneously in different markets for profit, it would be called currency ________.
A) conversion
B) speculation
C) hedging
D) arbitrage
Q4) In any exchange rate, the quoted currency is always the numerator and the base currency is always the denominator.
A)True
B)False
Q5) Currency that trades freely in the foreign exchange market, with its price determined by the forces of supply and demand, is called a ________.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: International Money System
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/40393
Sample Questions
Q1) The World Bank was created by the ________.
A) Jamaica Agreement
B) Bretton Woods Agreement
C) Smithsonian Agreement
D) Plaza Accord
Q2) In country B, Color-Me-Green is faced with a tight labor market and a low unemployment rate. This low unemployment rate will likely cause ________.
A) the government to cut interest rates
B) organizations to lower wages
C) the government to raise tariffs
D) inflation to occur
Q3) Through his research, Tom learned that exchange rate changes affect the ________ decisions of companies.
A) production
B) marketing
C) financial
D) all of the above
Q4) The ________ was a 1985 agreement among the G5 nations to act together in forcing down the value of the U.S. dollar.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: International Strategy and Organization
Available Study Resources on Quizplus for this Chatper
199 Verified Questions
199 Flashcards
Source URL: https://quizplus.com/quiz/40394
Sample Questions
Q1) The main benefit of a(n) ________ strategy is that it allows companies to closely monitor buyer preferences in each local market and respond quickly and effectively as new buyer preferences emerge.
Q2) During the second stage of the strategy formulation process, a company does all of the following EXCEPT analyze ________.
A) the firm's primary activities
B) competitors unique abilities
C) national and international business environments
D) the firm's support activities
Q3) Which of these would be considered a primary activity in creating value for customers?
A) Firm infrastructure
B) Procurement
C) Human resource management
D) Logistics
Q4) Companies following a(n) ________ strategy often take advantage of scale and location economies by producing entire inventories of products or components in a few optimal locations.
Q5) What is a work team? Describe the three different types of teams.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Analyzing International Opportunities
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/40395
Sample Questions
Q1) Focus group interviews tend to work best when moderators are natives of the countries where the interviews are held.
A)True
B)False
Q2) Government regulations can ________.
A) create investment barriers to ensure domestic control of a company or industry
B) extend investment rules to bar international companies from competing in certain sectors of the domestic economy
C) restrict companies from freely removing profits earned in a nation
D) all of the above
Q3) Secondary data tends to be very expensive because it has already been collected, analyzed, and summarized by another party.
A)True
B)False
Q4) What types of information are found in a typical industry analysis? How can companies use this information?
Q5) An income elasticity coefficient greater than 1.0 conveys an ________ product.
Q6) ________ provides a snapshot of the size of a market at any point in time.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Selecting and Managing Entry Modes
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/40396
Sample Questions
Q1) Through his research, Sanjeer learned that the first step in developing a successful export strategy is to ________.
A) initiate meetings
B) identify a potential market
C) commit resources
D) match needs to abilities
Q2) Individuals or organizations that represent one or more indirect exporters in a target market are called ________.
Q3) A contractual entry mode in which one company supplies another with intangible property and other assistance over an extended period is called ________.
Q4) Countertrade can provide access to markets that are otherwise closed because of a lack of hard currency.
A)True
B)False
Q5) The most important disadvantage of a strategic alliance is that it can create a future local or even global competitor.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Developing and Marketing Products
Available Study Resources on Quizplus for this Chatper
187 Verified Questions
187 Flashcards
Source URL: https://quizplus.com/quiz/40397
Sample Questions
Q1) The physical path a product follows on its way to customers is called a ________.
Q2) A(n) ________ is one in which a producer grants the right to sell its product to many resellers.
Q3) Culture is causing people's needs and preferences to converge throughout the world.
A)True
B)False
Q4) Another term for a zero-level channel is ________.
Q5) Counterfeiting is common among highly visible brand-name consumer goods.
A)True
B)False
Q6) If Old World wants to have its furniture sold through as many distribution outlets as possible, it should consider a(n) ________.
A) exclusive channel
B) dual-price channel
C) zero-level channel
D) intensive channel
Q7) What is value density and what is its impact on an organization's distribution policy?
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Managing International Operations
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/40398
Sample Questions
Q1) The process of assessing a company's ability to produce enough output to satisfy market demand is called ________.
Q2) If Verandas International chooses to pursue equity financing, but wants to avoid the time and money required to comply with stock exchange regulations, the company could issue ________.
A) American Depository Receipts (ADRs)
B) Special Drawing Rights (SDRs)
C) equity shares
D) Gouda bonds
Q3) Deciding whether to make a component or to buy it from another company is called the ________.
Q4) ________ are company assets such as production facilities, inventory warehouses, retail outlets, and production and office equipment.
Q5) By outsourcing, a company can reduce the degree to which it is vertically integrated and the overall amount of specialized skills and knowledge it must possess.
A)True
B)False
Q6) Selecting the location for production facilities is called ________.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Hiring and Managing Employees
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/40399
Sample Questions
Q1) Differentiate among the three approaches to the staffing of international business operations. What are the advantages and disadvantages of each?
Q2) Polycentric staffing places managerial responsibility in the hands of people intimately familiar with the local business environment.
A)True
B)False
Q3) What challenges do international labor unions face as they try to accomplish their objectives?
Q4) The geocentric staffing policy is typically reserved for nonmanagerial workers. A)True B)False
Q5) Sensitivity training constitutes the most basic level of training for international assignments.
A)True B)False
Q6) An ethnocentric strategy can facilitate the transfer of special know-how. A)True B)False
Q7) ________ offer insight into social, political, legal, and economic institutions.
Page 18
To view all questions and flashcards with answers, click on the resource link above.