International Business Strategy Exam
Review
Course Introduction
International Business Strategy explores the frameworks, tools, and concepts necessary for firms to compete effectively in the global marketplace. The course examines the complexities of operating across diverse political, economic, and cultural environments, focusing on topics such as multinational entry strategies, international alliances, competitive positioning, risk management, and global organizational structures. Through case studies and real-world examples, students will analyze how businesses identify and leverage opportunities abroad while addressing challenges such as cross-border integration, regulatory compliance, and ethical considerations.
Recommended Textbook
International Business The Challenges of Globalization 9th Edition by John J. Wild
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16 Chapters
1650 Verified Questions
1650 Flashcards
Source URL: https://quizplus.com/study-set/2033
Page 2
Chapter 1: Globalization
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40400
Sample Questions
Q1) Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies.
A)True
B)False
Answer: True
Q2) The products that Ureshi Toys manufactures are examples of ________.
A) global products
B) niche products
C) intangible products
D) customized products
Answer: A
Q3) The term ________ refers to entities cooperating across national boundaries.
A) internationalization
B) supranationalism
C) denationalization
D) multiculturalism
Answer: A
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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 terms refers to the technology used in a culture to manufacture goods and provide services?
A) vernacular culture
B) popular culture
C) trash culture
D) material culture
Answer: D
Q2) A culture's values tend to become inflexible over time.
A)True
B)False
Answer: True
Q3) Low levels of class consciousness encourage social mobility and lessen conflict.
A)True
B)False
Answer: True
Q4) A nuclear family comprises of one's immediate family,along with grandparents,uncles,aunts,and cousins.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Political Economy and Ethics
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Trademark protection typically lasts indefinitely,provided the word or symbol continues to be distinctive.
A)True
B)False
Answer: True
Q2) Stephanie also expects participants to ask: "Are the Chinese as formal and business-oriented as Americans are?" Which of the following would most likely be Stephanie's response?
A) The Chinese operate very much like Americans, for them business is more important than pleasure.
B) The Chinese dislike guessing games; give them your sales pitch right away and let the meeting develop.
C) Don't overlook the importance of personal relationships; friendship comes before business.
D) The Chinese are very flexible and will easily adapt to your culture's way of doing business.
Answer: C
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Page 5
Chapter 4: Economic Development of Nations
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) A country that has recently increased the portion of its national production and exports derived from industrial operations is called a(n)________.
A) newly industrialized country (NIC)
B) developing country
C) emerging market
D) developed country
Q2) The GDP per capita of a country is lower than that of France.If the GDP per capita of the country is adjusted for PPP,the country's revised GDP is higher than that of France.Which of the following is most likely true about the country?
A) The cost of living in the country is higher than that of France.
B) The cost of living in the country is lower than that of France.
C) The cost of living in the country is approximately equal to that of France.
D) The cost of living in the country has increased over the past decade.
Q3) Russia is in transition from ________.
A) a capitalist economy to a mixed economy
B) a centrally planned economy to a free-market economy
C) a market economy to a centrally planned economy
D) a mixed economy to a centrally planned economy
Q4) What is privatization? What role does it play in economic transition?
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Chapter 5: International Trade Theory
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following is an assumption made by the comparative advantage theory?
A) maximization of production and consumption
B) government interference and control in trade activities
C) creation of trade deficits
D) creation of trade surpluses
Q2) The ability of a nation to produce a good more efficiently than any other nation is called its absolute advantage.
A)True
B)False
Q3) How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.
Q4) ________ says that nations should accumulate financial wealth,usually in the form of gold,by encouraging exports and discouraging imports.
A) Absolute advantage theory
B) Factor proportions theory
C) Mercantilism
D) Communism
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Chapter 6: Political Economy of Trade
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) Restrictions on the convertibility of one currency into others is called currency controls.
A)True
B)False
Q2) Which of the following statements is true of embargoes?
A) An embargo may be placed on one or a few goods or may completely ban trade in all goods.
B) An embargo is the least restrictive nontariff barrier available.
C) An embargo is usually employed for economic reasons.
D) Embargoes are used frequently today because they are easy to implement.
Q3) Which of the following is an import tariff?
A) transit tariff
B) ad valorem tariff
C) sua sponte tariff
D) complex tariff
Q4) Describe the three categories of tariffs,and explain how the Smoot-Hawley Act of 1930 influenced tariffs in the United States.
Q5) Write a short note on the World Trade Organization and its influence on the environment.
Q6) Describe the purpose of a foreign trade zone.How is it used to promote trade?
Page 8
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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) A(n)________ advantage is the one that a company gains from incorporating a business activity within itself rather than leaving it to a relatively inefficient market.
A) ownership
B) internalization
C) location
D) comparative
Q2) Firms engage in FDI when the firms they supply have already invested abroad.This practice of "following clients" is observed in industries having ________.
A) a huge number of clients
B) only large companies as clients
C) suppliers who are geographically scattered around the world
D) suppliers who have close working relationships with producers
Q3) Explain the various methods that host countries use to restrict and promote foreign direct investment.
Q4) Performance demands made by host countries to restrict incoming FDI apply exclusively to businesses in cultural industries.
A)True
B)False
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Chapter 8: Regional Economic Integration
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) As a first stage of cooperation,the countries agree to remove all barriers to trade among themselves.Each country also maintains policies it sees fit against nonmembers.At this stage,Moonland Union can be described as a ________.
A) free trade area
B) political union
C) common market
D) customs union
Q2) No proposed legislation becomes EU law unless the ________ votes it into law.
A) Council of the European Union
B) European Parliament
C) Court of Auditors
D) European Commission
Q3) Economic integration whereby countries remove barriers to trade and the movement of labor and capital among members,set a common trade policy against nonmembers,and coordinate their economic policies is called a(n)________.
A) customs union
B) common market
C) economic union
D) free trade area
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Page 10
Chapter 9: International Financial Markets
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) All foreign exchange transactions can be performed in the over-the-counter (OTC)market.
A)True
B)False
Q2) The spread of nationalization encourages the growth of the international equity market.
A)True
B)False
Q3) Issuing bonds internationally is an increasingly popular way to obtain needed funding.
A)True
B)False
Q4) A(n)________ is a system that allocates financial resources in the form of debt and equity according to their most efficient uses.
A) international equity market
B) forward market
C) capital market
D) eurocurrency market
Q5) Differentiate between currency speculation and currency arbitrage.
Q6) What is the foreign exchange market? Explain why investors use this market.
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Chapter 10: International Monetary System
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Full employment or low unemployment rates can lead to higher inflation.
A)True
B)False
Q2) The IMF asset whose value is based on a "weighted basket" of four currencies is called a special drawing right.
A)True
B)False
Q3) Discuss the role of business confidence and psychology in currency values.
Q4) It is the nature of arbitrage to even out excessive fluctuation by destroying its own profitability.
A)True
B)False
Q5) Differentiate between efficient and inefficient market views and discuss the implications of the two schools of thought for companies.
Q6) Inflation is a result of the supply and demand for a currency.
A)True
B)False
Q7) Explain how exchange rates adjust to inflation.
Q8) 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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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The strategy that Beanstalk would most likely want to follow is called a ________ strategy.
A) multinational
B) retrenchment
C) global
D) stability
Q2) A team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems is referred to as a ________ team.
A) virtual
B) global team
C) cross-functional team
D) self-managed team
Q3) A team in which employees from a single department take on responsibilities of their former supervisors is called a ________ team.
A) cross-functional
B) self-managed
C) global
D) virtual
Q4) Explain how a global strategy complements a corporate growth strategy.
Page 13
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Chapter 12: Analyzing International Opportunities
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Countries differ significantly in their cultures,politics,laws,and economies.International managers must work to understand these differences and to incorporate their understanding into market- and site-selection decisions.Which of the following steps of 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) Which of the following is an income-elastic product?
A) food
B) utilities
C) jewelry
D) beverages
Q3) Which of the following is not one of the three steps in increasing market share,revenue,and profits?
A) assess alternative markets
B) evaluate respective costs, benefits, and risks
C) perform a situation analysis
D) select market with most potential for entry or expansion
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Chapter 13: Selecting and Managing Entry Modes
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106 Verified Questions
106 Flashcards
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Sample Questions
Q1) Which of the following will most likely help Techno Toys sell its toys directly to buyers in the target market?
A) agents
B) sales representatives
C) export management companies
D) export trading companies
Q2) Which of the following methods of export/import financing is Techno Toys' bank using if it acts as an intermediary without accepting financial risk?
A) documentary collection
B) buyback
C) letter of credit
D) advance payment
Q3) ________ occur(s)when a firm sells its products to a domestic customer,which in turn exports the product,in either its original form or a modified form.
A) Indirect exporting
B) Direct exporting
C) Intercorporate transfers
D) Intracorporate transfers
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15
Chapter 14: Developing and Marketing Products
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103 Flashcards
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Sample Questions
Q1) A(n)________ channel places a single intermediary between the producer and the buyer.
A) intensive
B) exclusive
C) one-level
D) two-level
Q2) The value of a product relative to its weight and volume is called its ________.
A) face value
B) value investing
C) real value
D) value density
Q3) A pull rather than a push strategy is most likely preferable when ________.
A) self-service is not predominant
B) the price of a product is high relative to incomes
C) there are few governmental restrictions on advertising
D) there are a large number of languages and a low literacy rate
Q4) The rapid pace of technological innovation today extends the life cycles of products.
A)True
B)False
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Chapter 15: Managing International Operations
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Debt appeals to companies because it lowers the amount of taxes the companies must pay.
A)True
B)False
Q2) ________ refers to a situation in which facilities are spread over several locations,with one facility for each national business environment in which the company markets its products.
A) Continuous production
B) Decentralized production
C) Vertical integration
D) Lean production
Q3) Worker productivity tends to be lower in most developing nations than in developed nations.
A)True
B)False
Q4) Availability and cost of labor in the local market is crucial to capacity planning.
A)True
B)False
Q5) What are the options available to companies seeking financial resources?
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Chapter 16: Hiring and Managing Employees
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Training local workers on how to work on an assembly line is an example of cultural assimilation.
A)True
B)False
Q2) Reverse culture shock is much milder than the initial culture shock an expatriate faces.
A)True
B)False
Q3) Firms using a(n)________ primarily use parent country nationals to staff higher-level foreign positions.
A) ethnocentric staffing model
B) polycentric staffing model
C) geocentric staffing model
D) monocentric staffing model
Q4) In geocentric staffing,operations outside the home country are managed by the best-qualified individuals,regardless of their nationality.
A)True
B)False
Q5) Briefly explain how companies compensate managers in international markets.
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