International Business
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Course Introduction
International Business explores the dynamic environment of global commerce, equipping students with an understanding of how companies operate across borders. The course covers key topics such as globalization, international trade theories, foreign direct investment, cross-cultural management, global marketing strategies, international financial systems, and the regulatory and ethical issues that impact multinational enterprises. Through case studies and real-world examples, students gain insights into managing risks and leveraging opportunities in diverse markets, preparing them for careers in the global business arena.
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International Business The Challenges of Globalization 7th Edition by John J. 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 Flashcards
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Sample Questions
Q1) Which of the following actions can be adopted by developed nations to lessen the negative effects of globalization?
A)restrict the import of goods from developing countries
B)slash agricultural subsidies that hurt the exports of developing nations
C)discontinue foreign-aid programs to developing countries
D)pressurize developing nations to fend for themselves in matters of health and education
Answer: B
Q2) Gentian Violet is a dye manufacturing company that uses computer networks to sell its products,service customers,and collaborate with partners.Which of the following technologies is the company engaging in this scenario?
A)rapid prototyping
B)e-business
C)simulation
D)console automation
Answer: B
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Chapter 2: Cross-Cultural Business
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100 Flashcards
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Sample Questions
Q1) ________ is crucial in production facilities where nonnative managers supervise local employees.
A)Ethnocentricism
B)Language proficiency
C)Cultural isolation
D)Individualism
Answer: B
Q2) According to Hofstede's framework,cultures scoring high on the dimension of ________ generally have more relaxed lifestyles in which people are more concerned about caring for others as opposed to material gain.
A)feminity
B)ethnocentricity
C)imperialism
D)individualism
Answer: A
Q3) Hispanics comprise a subculture in the United States.
A)True
B)False
Answer: True
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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) The bureaucracy is the part of government that implements the rules and laws passed by elected representatives.
A)True
B)False
Answer: True
Q2) Pluralistic political systems include authoritarian regimes such as communism and fascism.
A)True
B)False
Answer: False
Q3) Which of the following do governments impose upon people to help pay for the consequences of using a particular product?
A)income taxes
B)consumption taxes
C)property taxes
D)value-added taxes
Answer: B
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Page 5
Chapter 4: Economics and Emerging Markets
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Sample Questions
Q1) 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.
Q2) Incentives and rewards for individual business initiatives are an important aspect of collectivist cultures.
A)True
B)False
Q3) Which of the following control inflation through policies regarding taxation and government spending in a market economy?
A)fiscal policies
B)monetary policies
C)social policies
D)trade policies
Q4) Describe the three main types of economic systems.
Q5) How are countries classified? Explain with examples.
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Chapter 5: International Trade
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Sample Questions
Q1) The condition that results when the value of a country's imports is greater than the value of its exports is called ________.
A)a trade deficit
B)economies of scale
C)a break-even point
D)absolute advantage
Q2) ________ refers to the purchase,sale,or exchange of goods and services across national borders.
A)Domestic trade
B)Foreign direct investment
C)International trade
D)Mercantilism
Q3) When a country's currency is weak relative to other nations,domestic products are more expensive than imports.
A)True
B)False
Q4) Describe the potential benefits of international trade.Why would a nation trading with a neomercantilist country be at a disadvantage?
Q5) Explain mercantilism.What were its major flaws?
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Chapter 6: Business-Government Trade Relations
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108 Flashcards
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Sample Questions
Q1) A country imposes a tariff on goods that it sells abroad at the request of another nation.This is an example of a(n)________.
A)embargo
B)ad valorem tariff
C)compound tariff
D)voluntary export restraint
Q2) France gave Excelsior's Limited permission to export its product as long as the company obtained a special license first.Excelsior has been waiting six months for the license and is wondering if it will ever arrive.Excelsior's Limited is experiencing a(n)________.
A)administrative delay
B)local content requirement
C)embargo
D)currency control
Q3) Describe each instrument that governments use to promote trade.
Q4) Write a short note on the World Trade Organization and its influence on the environment.
Q5) Describe the different types of tariffs and provide an example of each.
Q6) Describe the purpose of a foreign trade zone.How is it used to promote trade?
Q7) What are voluntary export restraints and how are they used?
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Chapter 7: Foreign Direct Investment
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104 Flashcards
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Sample Questions
Q1) A country's ________ is a national accounting system that records all monetary transactions to entities in other countries and all receipts coming into the nation.
A)balance of payments
B)chart of accounts
C)global financial system
D)international monetary system
Q2) The purchase of physical assets or a significant amount of ownership of a company in another country to gain a measure of management control is called ________.
A)portfolio investment
B)foreign direct investment
C)horizontal integration
D)vertical integration
Q3) According to the market imperfections theory,competition is a common market imperfection.
A)True
B)False
Q4) Explain the market power theory of FDI,and discuss why the decision whether or not to follow rivals into a new international market is important.
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Page 9
Chapter 8: Regional Economic Integration
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112 Flashcards
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Sample Questions
Q1) Which of the following is a potential drawback of regional economic integration?
A)ethnocentricity
B)trade diversion
C)economic nationalism
D)protectionism
Q2) Country X advocates the greatest level of integration possible for the member nations of the Moonland Union.Which of the following is Country X most likely to support?
A)political union
B)free trade area
C)customs union
D)economic union
Q3) Which of the following institutions is least likely to play an important role in monitoring and enforcing economic and political integration in the European Union?
A)European Parliament
B)Council of the European Union
C)European Court of Human Rights
D)European Commission
Q4) Differentiate among the five levels of economic and political integration.
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Chapter 9: International Financial Markets
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Sample Questions
Q1) Major financial activities take place in booking centers.
A)True
B)False
Q2) To insure against potential losses that result from adverse changes in exchange rates,Trader's Paradise should use currency ________.
A)swap
B)speculation
C)hedging
D)arbitrage
Q3) Which of the following is a debt instrument that specifies the timing of principal and interest payments?
A)stock
B)bond
C)share
D)equity
Q4) The international bond market consists of all bonds sold by issuing companies outside their own countries.
A)True
B)False
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Chapter 10: International Money System
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Sample Questions
Q1) Inflation is a result of the supply and demand for a currency.
A)True
B)False
Q2) Low unemployment rates can lead to higher inflation.
A)True
B)False
Q3) Translating subsidiary earnings from a strong host currency into a weak home currency increases stated earnings in the home currency.
A)True
B)False
Q4) Suppose Country A has a currency called the Pulse (P).At the beginning of the year,the exchange rate between the Pulse and the U.S.dollar was P150/$.The inflation rate in Country A is running at an annual rate of 250 percent ,whereas inflation in the U.S.is running at 2 percent.Which of the following would most likely be the new exchange rate that Color-Me-Green can expect at the end of the year?
A)P525/$
B)P514.70/$
C)P43.71/$
D)$43.71/P
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Chapter 11: International Strategy and Organization
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Sample Questions
Q1) Which of the following strategies is designed to guard an organization against change?
A)stability strategy
B)growth strategy
C)retrenchment strategy
D)differentiation strategy
Q2) A business-level strategy in which a company exploits economies of scale is called a ________.
A)differentiation strategy
B)stability strategy
C)low-cost leadership strategy
D)retrenchment strategy
Q3) Briefly describe the three generic business-level strategies,providing an example of each.
Q4) Which of the following refers to a written statement of why a company exists and what it plans to accomplish?
A)memorandum of association
B)mission statement
C)vision statement
D)articles of association
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Chapter 12: Analyzing International Opportunities
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Sample Questions
Q1) Which of the following stages of the market or site screening process involves competitor analysis?
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
Q2) If Susan wants to obtain information in the least expensive way,she should use ________.
A)secondary market research
B)consumer panels
C)structured interviews
D)large focus groups followed by surveys
Q3) What is country image? Explain how it affects the screening process using examples.
Q4) The first step in the screening process for potential markets and sites is to
A)select a favorable market or site
B)measure the market or site potential
C)identify the basic appeal of a market
D)assess the national business environment
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Chapter 13: Selecting and Managing Entry Modes
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Sample Questions
Q1) One option that intrigues Alistair is the process in which one company sells to another its obligation to make a purchase in a given country.This arrangement is known as ________.
A)barter
B)offset
C)switch trading
D)buyback
Q2) Which of the following methods would Gro-Tru be implementing if it exchanges its products directly for other goods or services without the use of money?
A)barter
B)offset
C)switch trading
D)buyback
Q3) What are the differences between a turnkey project and a strategic alliance?
Q4) Advance payment is commonly used for export/import financing when ________.
A)two parties are unfamiliar with each other
B)the buyer has obtained credit for the transaction
C)the transaction is for a relatively high amount
D)the buyer has good credit rating at banks
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Chapter 14: Developing and Marketing Products
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Sample Questions
Q1) Because Scooters Inc.caters to a very narrow niche of wealthy individuals,the CEO is interested in implementing a worldwide pricing scheme.Which of the following is most likely a reason for the establishment of such a scheme?
A)Their production costs differ from market to market.
B)The currency values fluctuate fairly predictably.
C)Their distribution channels are lengthy in each market.
D)Their customers have similar levels of purchasing power.
Q2) Old World should pursue a(n)________ channel if it decides to greatly intensify its direct marketing efforts.
A)intensive
B)one-level
C)zero-level
D)selective
Q3) Explain the effect of counterfeit goods and black markets on international product strategies.
Q4) Explain the primary concerns of managers when establishing distribution policies.
Q5) Differentiate between worldwide and dual pricing.Which one of these is more difficult to achieve and why?
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Chapter 15: Managing International Operations
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Sample Questions
Q1) Which of the following statements is true regarding total quality management (TQM)?
A)TQM emphasizes on a single effort at the start to improve the quality of its products.
B)TQM largely increases the responsibility on each individual to focus on quality.
C)TQM philosophy initially took hold in the U.S.
D)TQM applies solely to an employee's activities based inside a factory.
Q2) The ISO 9000 is a production technique in which inputs to the production process arrive exactly when they are needed.
A)True
B)False
Q3) An Asian jewelry company maintains production facilities in South Korea,Vietnam,and Malaysia.Which of the following is the company exemplifying?
A)lean production
B)decentralized production
C)vertical integration
D)continuous production
Q4) What are the options available to companies seeking financial resources?
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Chapter 16: Hiring and Managing Employees
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Sample Questions
Q1) The major disadvantage of a geocentric staffing policy is its potential for ________.
A)creating barriers for the host-country office
B)being costly due to high salaries and moving costs of managers
C)creating legal problems for the home-country office
D)losing control of host-country operations
Q2) ________ allows labor representatives in Germany to participate in high-level company meetings by actually voting on proposed actions.
A)Centralization
B)Codetermination
C)Individualism
D)Authoritarianism
Q3) The process of recruitment involves screening and hiring the best-qualified applicants with the greatest performance potential.
A)True
B)False
Q4) What challenges do international labor unions face as they try to accomplish their objectives?
Q5) Briefly explain how companies compensate managers in international markets.
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