International Business Strategy Exam
Review
Course Introduction
International Business Strategy explores the frameworks, tools, and decision-making processes employed by organizations to compete and grow in the global market. The course examines how firms identify and assess international opportunities, develop entry and expansion strategies, and navigate the complexities of cross-cultural management, international competition, and regulatory environments. Emphasis is placed on analyzing competitive advantage in a global context, managing global value chains, and adapting to local market dynamics while maintaining overall coherence in strategy. Through case studies and practical applications, students gain insight into the challenges and best practices for formulating and implementing effective international business strategies.
Recommended Textbook
International Business Competing in the Global Marketplace 12th Edition
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20 Chapters
2122 Verified Questions
2122 Flashcards
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Page 2
by Charles W. L. Hill
Chapter 1: Globalization
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105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/3547
Sample Questions
Q1) The volume of world trade in merchandise is growing faster than world GDP. This implies that
A) more firms are dispersing their production processes to global locations.
B) the economies of the world's nation-states are becoming more independent from each other.
C) the global economy is headed for a large downward correction.
D) the world is becoming poorer.
Answer: A
Q2) The Uruguay Round, finalized in December 1993, reduced protection for patents, trademarks, and copyrights.
A)True
B)False
Answer: False
Q3) "Beggar thy neighbor" retaliatory trade policies involved countries progressively lowering trade barriers against each other, which contributed to the Great Depression of the 1930s.
A)True
B)False
Answer: False
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Page 3
Chapter 2: National Differences in Political, Economic, and Legal Systems
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) In a ________, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.
A) mixed economy
B) market economy
C) collectivist economy
D) command economy
Answer: B
Q2) ________ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles.
A) Representative democracy
B) Theocratic totalitarianism
C) Tribal anarchism
D) Monotheistic communism
Answer: B
Q3) A theocratic law system is one in which the law is based on religious teachings.
A)True
B)False
Answer: True
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Chapter 3: National Differences in Economic Development
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103 Verified Questions
103 Flashcards
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Sample Questions
Q1) Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation and entrepreneurial activity in developing nations.
A)True
B)False
Answer: True
Q2) GDP allows a more direct comparison of living standards in different countries than other measures.
A)True
B)False
Answer: False
Q3) Countries with ________ economies in which property rights are protected tend to achieve greater economic growth rates than other economies where property rights are poorly protected.
A) mixed
B) market
C) free market
D) command
Answer: C
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Page 5
Chapter 4: Differences in Culture
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Religion may be defined as
A) routine conventions of everyday life.
B) social rules that govern people's actions toward each other.
C) shared beliefs and rituals that are concerned with the realm of the sacred.
D) a set of moral principles, or values, that are used to guide and shape behavior.
Q2) What is ethnocentrism?
A) a belief in the superiority of one's business or organization over another
B) a belief in the superiority of another group or culture over one's own group or culture
C) a belief in the superiority of one's own ethnic group or culture
D) a belief in the superiority of one's self over another person
Q3) The convergence hypothesis states that there is a slow but steady merging occurring across different cultures toward some universally accepted values and norms.
A)True
B)False
Q4) Explain how the Koran views business.
Q5) Explain the concept of social stratification.
Q6) What are the determinants of culture?
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Page 6
Chapter 5: Ethics, Corporate Social Responsibility, and Sustainability
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108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/3551
Sample Questions
Q1) Why do organizations appoint an ethics officer?
Q2) Grady works at a fast food restaurant. One day he noticed a co-worker giving free food to a friend. He was unsure about what to do. Grady most likely decided to follow the example of
A) other employees.
B) his supervisor.
C) his family.
D) government leaders.
Q3) Which of the following is an example of an external stakeholder?
A) employees
B) customers
C) stockholders
D) the board of directors
Q4) Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople.
A)True B)False
Q5) Societal business ethics are divorced from personal ethics. A)True B)False
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Chapter 6: International Trade Theory
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) Porter argues that a nation's firms gain competitive advantage if
A) their domestic consumers lack technical awareness.
B) they function in a labor-intensive market.
C) the country has an abundant supply of unskilled workers.
D) their domestic consumers are demanding.
Q2) Factor endowments refer to the extent to which a country
A) supports education, research, and development.
B) develops the infrastructure to support industrialism.
C) supports free trade.
D) has such resources as land, labor, and capital.
Q3) Heckscher-Ohlin theory stresses that comparative advantage arises from differences in productivity.
A)True
B)False
Q4) The ________ theory argues that the pattern of international trade is determined by differences in factor endowments.
A) comparative advantage
B) Leontief Paradox
C) Heckscher-Ohlin
D) absolute advantage
Page 8
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Chapter 7: Government Policy and International Trade
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) Explain the disadvantages of government protectionism as it relates to competitive advantage.
Q2) Foreign producers typically agree to voluntary export restrictions because
A) their manufacturing capacity is limited.
B) they can divert their exports to other countries and charge more for their products.
C) they fear far more damaging punitive tariffs or import quotas might follow if they do not.
D) they are required to by the World Trade Organization.
Q3) The TRIPS regulations oblige WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.
A)True
B)False
Q4) Antidumping duties are often called
A) special circumstance duties.
B) positive duties.
C) retroactive duties.
D) countervailing duties.
Q5) What are the central issues facing the WTO at the present time?
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Chapter 8: Foreign Direct Investment
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) ________ arise(s) from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets.
A) Multipoint competition
B) The eclectic paradigm
C) Location-specific advantages
D) Outflow of FDI
Q2) FDI undertaken to serve the home market is known as A) outsourcing.
B) FDI substitution.
C) offshore production.
D) home market FDI.
Q3) A country's ________ accounts keep track of both its payments to and its receipts from other countries.
A) current
B) offshore
C) balance-of-payments
D) currency
Q4) Discuss why firms selling products with low value-to-weight ratios choose FDI over exporting.
Page 10
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Chapter 9: Regional Economic Integration
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98 Verified Questions
98 Flashcards
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Sample Questions
Q1) Describe the disadvantages of economic integration for international businesses. How can firms protect themselves from these threats?
Q2) Which is the most enduring free trade area in the world?
A) Central America Free Trade Association (CAFTA)
B) European Free Trade Association (EFTA)
C) Association of Southeast Asian Nations (ASEAN)
D) North American Free Trade Association (NAFTA)
Q3) Which of the following is seen as a disadvantage of the euro?
A) higher foreign exchange and hedging costs
B) national authorities losing control over monetary policy
C) difficulty comparing prices across Europe
D) undermining the development of a pan-European capital market
Q4) Three long-term EU members, Great Britain, ________, and Sweden, have not adopted the euro.
A) France
B) Norway
C) Denmark
D) Greece
Q5) What are impediments to countries integrating?
Q6) Discuss the trend toward increased regional economic integration.
Page 11
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Chapter 10: The Foreign Exchange Market
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Which of the following is one of the most important trading centers in the foreign exchange market?
A) Beijing
B) Sau Paulo
C) Zurich
D) Seoul
Q2) If the spot exchange rate is £1 = $1.50 when the market opens, and £1 = $1.48 at the end of the day, the pound has appreciated, and the dollar has depreciated.
A)True
B)False
Q3) The ________ is a global network of banks, brokers, and foreign exchange dealers connected by electronic communications systems.
A) foreign exchange market
B) united global database
C) global marketplace
D) foreign market database
Q4) Where is the foreign exchange market located? What is the nature of the market? Is the market growing or shrinking on a global basis?
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Page 12
Chapter 11: The International Monetary System
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) Compare and contrast a pegged exchange system with a dirty-float system of exchange rates.
Q2) Which of the following observations is true of the current system of the foreign exchange market?
A) Most of the currencies can be converted to gold in the current system of foreign exchange.
B) The current system is driven by fixed exchange rates.
C) Currencies float freely against others in the current system.
D) The current system is a combination of government intervention and speculative activity.
Q3) The International Monetary Fund has been criticized for exacerbating moral hazard
A) with its rescue programs.
B) by increasing the probability of debt default.
C) making loans to countries that are trying to reduce national debt by "playing the market."
D) by refusing to bail out banks that made loans to overleveraged Asian companies during the 1990s.
Q4) What is the gold standard? What was the major advantage of the system?
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Chapter 12: The Global Capital Market
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104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/3558
Sample Questions
Q1) ________ are normally underwritten by an international syndicate of banks.
A) Samurai bonds
B) Eurobonds
C) Yankee bonds
D) Foreign bonds
Q2) The forward exchange market does not provide adequate coverage for long-term borrowings.
A)True
B)False
Q3) Discuss the impact of technology on the growth of the global capital market.
Q4) A Chinese firm borrows 1 million U.S. dollars from an American bank. The cost of this loan will be less if the U.S. dollar appreciates against the Chinese currency.
A)True
B)False
Q5) Eurodollars are
A) the exchange value of the dollar with the euro.
B) used to pay for imports from Europe.
C) dollars banked outside of the United States.
D) the exchange buffer that the euro has against dollar.
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Chapter 13: The Strategy of International Business
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) The percentage increase in net profits over time measures
A) capital return.
B) profitability.
C) market growth.
D) profit growth.
Q2) What is strategy? How does strategy relate to a firm's profitability?
Q3) Location economies are the economies that arise from performing a ________ activity in the optimal location for that activity.
A) universal need
B) core competence
C) value creation
D) localization strategy
Q4) What are learning effects? When are learning effects most significant?
Q5) 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
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Chapter 14: The Organization of International Business
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106 Verified Questions
106 Flashcards
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Sample Questions
Q1) Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure?
A) operating decisions
B) overall strategic development of the firm
C) financial control of the various divisions
D) decisions regarding legal issues
Q2) ________ control is achieved by comparing actual performance against targets and intervening selectively to take corrective action.
A) Personal
B) Output
C) Bureaucratic
D) Cultural
Q3) Discuss the issues involved in unfreezing an organization.
Q4) What are the basic principles for successful organizational change?
Q5) Consider the use of personal controls in international firms. In which type of firm is this control most common?
Q6) Discuss the issues involved in refreezing an organization.
Q7) Why should a firm centralize its decision making?
Q8) Explain the five reasons a firm should decentralize its decision making.
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Chapter 15: Entry Strategy and Strategic Alliances
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) Apple exports its products to many countries. An advantage of exporting products to another country is that it
A) minimizes exchange rate risks.
B) provides the ability to achieve experience curve and location economies.
C) faces less trade barriers.
D) gives firms access to local knowledge.
Q2) According to the ________, top managers typically overestimate their ability to create value from an acquisition.
A) misvaluation theory
B) performance extrapolation hypothesis
C) market timing theory
D) hubris hypothesis
Q3) When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a ________ to handle local marketing, sales, and service.
A) wholly owned subsidiary
B) franchising arrangement
C) turnkey operation
D) licensing agreement
Q4) What are first-mover advantages? Discuss these advantages.
Page 17
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Chapter 16: Exporting, Importing, and Countertrade
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106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/3562
Sample Questions
Q1) Which of the following statements is true about the Small Business Administration (SBA)?
A) It is the most comprehensive source of export opportunities information.
B) The SBA is a private organization managed by leaders of large corporations.
C) The SBA employs trade officers throughout the United States.
D) The SBA offers help exclusively to small businesses that sell products within the United States.
Q2) A ________ states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.
A) bill of exchange
B) bill of lading
C) letter of credit
D) bank statement
Q3) The Japanese sogo shosha have offices all over Japan, and companies wishing to trade with Japan must go through them.
A)True
B)False
Q4) Describe the 14 steps in a typical international trade transaction.
Q5) What is the Foreign Credit Insurance Association?
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Chapter 17: Global Production and Supply Chain Management
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105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/3563
Sample Questions
Q1) Cost and ________ are the two main drivers behind make-or-buy choices made by global companies when they engage in global supply chains.
A) production capacity
B) assurance of continual supply
C) quality control
D) control
Q2) With ________ system, suppliers, shippers, and the purchasing firm can communicate with each other with no time delay.
A) a CAD
B) a JIT
C) a CAM
D) an EDI
Q3) When a multinational corporation buys products or services from one of its suppliers that produces them somewhere else, whether domestically or globally, it is referred to as
A) offshoring.
B) insourcing.
C) outsourcing.
D) co-sourcing.
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Chapter 18: Global Marketing and R&D
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121 Verified Questions
121 Flashcards
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Sample Questions
Q1) The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as
A) market segmentation.
B) market penetration.
C) diversification strategy.
D) differentiation.
Q2) The number of intermediaries between the producer and the consumer is known as the
A) channel quality.
B) marketing mix.
C) channel length.
D) experience curve.
Q3) Tight cross-functional integration between R&D, production, and marketing can help a company to ensure that which of the following takes place?
A) Time to market is maximized.
B) Development costs are not a consideration in developing the best product.
C) New products are designed for ease of manufacture.
D) Product development projects are driven by internal needs.
Q4) Compare and contrast push strategies and pull strategies.
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Chapter 19: Global Human Resource Management
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) Most expatriates believe that more weight should be given to an on-site manager's appraisal than to an off-site manager's appraisal.
A)True
B)False
Q2) How can firms reduce the bias in performance appraisals of expatriate managers?
Q3) Which of the following issues was not addressed by Mendenhall and Oddou's study?
A) expatriate failure due to a spouse's inability to adjust
B) expatriate failure due to a manager's lack of self-esteem
C) expatriate failure due to lack of relationship development
D) expatriate failure due to a manager's inability to empathize
Q4) Unions' bargaining power is
A) largely derived from their ability to threaten to disrupt production.
B) rooted in their government backing.
C) largely derived from their ability to control corporate managers.
D) rooted in their financial resources.
Q5) Explain how the wide variation in union structure around the world has been an impediment to cooperation between international companies and various unions.
Q6) Discuss the advantages and disadvantages of a polycentric approach to staffing.
Q7) Discuss the concerns of organized labor.
Page 21
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Chapter 20: Accounting and Finance in the International Business
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3566
Sample Questions
Q1) The connection between cash flows to the parent and the source of financing must be recognized when performing capital budgeting for an international business.
A)True
B)False
Q2) A tax haven is a country that gives income tax exemptions to firms that export all or part of its products.
A)True
B)False
Q3) ________ is a term used to describe the mix of techniques used to transfer liquid funds from a foreign subsidiary to the parent company.
A) Deferral principle
B) Bilateral netting
C) Unbundling
D) Multilateral netting
Q4) The principles of multilateral netting and bilateral netting are different.
A)True
B)False
Q5) What are the main steps in the control process of a typical firm?
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