International Business Test Questions
Course Introduction
International Business explores the complexities of conducting commerce across global markets, focusing on cultural, legal, economic, and political factors that influence international trade and investment. The course analyzes strategies for entering and operating in foreign markets, the impact of globalization, management of cross-border operations, international financial systems, and the challenges associated with ethical practices, communication, and negotiation in diverse environments. Students will develop an understanding of global business trends, risk assessment, and the skills needed to compete effectively in the international business landscape.
Recommended Textbook
International Business 1st Edition by Michael Geringer
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18 Chapters
2767 Verified Questions
2767 Flashcards
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Page 2
Chapter 1: The Challenging Context of International Business
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153 Verified Questions
153 Flashcards
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Sample Questions
Q1) Examples of the kinds of internal forces listed in the text are each of the following except
A) human resources.
B) capital.
C) taxation.
D) labor.
E) production.
Answer: D
Q2) Discuss the arguments supporting and opposing globalization of trade and investment.
Answer: Answers may vary,but arguments supporting globalization should include discussion about how free trade enhances socioeconomic development and about how free trade promotes more and better jobs.Arguments opposing globalization of trade and investment should include discussion of how globalization has produced uneven results across nations and people,has had deleterious effects on labor and labor standards,and has contributed to a decline in environmental and health conditions.
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Page 3
Chapter 2: International Trade and Investment
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Sample Questions
Q1) The vast proportion of outward FDI,about two-thirds,still originates from the
Answer: developed countries
Explanation: The overall volume of outward FDI from developing nations in 2013 was nine times the level in 2003, and the proportion of worldwide outward FDI that came from developing nations increased from under 5 percent in 1990 to over 32 percent in 2013. Despite this increase, the vast proportion of outward FDI, about two-thirds, still originates from the developed countries.
Q2) The three nations that exported the largest amount of goods to the United States in 2013 were
A) China, Canada, and Japan.
B) China, Mexico, and the UK.
C) China, Japan, and Saudi Arabia.
D) Canada, Mexico, and Japan.
E) China, Canada, and Mexico.
Answer: E
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4
Chapter 3: Sociocultural Forces
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) An example of a culture-based error in marketing is when a company tried to sell ________________ in Southeast Asia where people chew betel nut.
Answer: whitening toothpaste
Explanation: Pepsodent made this error. People who think black, betel nut juice-stained teeth are beautiful don't have a need for whitening toothpaste.
Q2) Material culture includes all the human-made objects of a culture,also known as its
Answer: artifacts
Explanation: Artifacts are the objects of a material culture.
Q3) The second aspect of Trompenaars's time dimension describes whether actions are sequential (linear)or _____________.
Answer: synchronous or polychronic
Explanation: In sequential or linear cultures, actions tend to be sequential. In polychromic cultures, many actions can occur at more or less the same time.
Q4) Islam,Judaism,and Christianity share ___________________ cultural roots. Answer: Abrahamic
Explanation: These three religions have shared cultural roots.
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Chapter 4: Sustainability and Natural Resources
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149 Flashcards
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Sample Questions
Q1) Plains and plateaus facilitate exchanges between people:
A) except with deserts and other inhabitable climates.
B) in all situations, in contrast to mountainous terrain.
C) and Switzerland is a good example of this facilitated exchange. D) except in the 42<sup>nd</sup> parallel.
Q2) As an energy source,nuclear power:
A) is growing insignificantly, except in developing countries.
B) has been growing.
C) has been rejected by France, which had one of the lowest greenhouse gas emissions in the industrialized world until they switched from nuclear power to coal. D) has been abandoned because of the dangers associated with the storage of spent fuel rods.
Q3) Densely populated areas coincide with:
A) rivers, lakes, and seacoasts.
B) inland waterways.
C) rich mineral reserves and rare earth deposits.
D) low levels of environmental awareness.
Q4) Business approaches to sustainability consider ecological,social,and _____________ aspects of the business.
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Chapter 5: Political Forces That Affect Global Trade
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) Terrorists avoid kidnapping because the repercussions can be harmful to their movement.
A)True
B)False
Q2) An argument against using trade restrictions to punish an offending nation is that
A) sanctions seldom achieve their goal of forcing change in the offending country.
B) sanctions are relatively harmful to the citizens of the offending country.
C) sanctions are not condoned by the UN.
D) sanctions decrease the cost of doing business.
Q3) Governments nationalize private firms in order to
A) extract money from the firms when the firms are suspected of concealing profits.
B) decrease exports to balance the balance of payments.
C) learn about business development experientially.
D) punish workers at the firms for their political activism.
Q4) The _____________ is having difficulty successfully completing trade negotiations due to politically motivated agricultural tariff barriers.
Q5) A ______________ is a combination of specific and ad valorem duties.
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Chapter 6: Intellectual Property Rights and Other Legal Forces
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Sample Questions
Q1) ____________ are the most common form of IP protection that international businesses pursue.
Q2) A shape,color,design,phrase,abbreviation,or sound used by merchants or manufacturers to designate and differentiate their products is known as a
Q3) The main sources of international law are
A) the UN International Court of Justice.
B) the U.S. Supreme Court and the EU Court of Justice.
C) bilateral and multilateral treaties, along with customary law.
D) nonexistent at this point.
Q4) Legal systems are based on __________,common law,or civil law.
Q5) An alternative to settling an international dispute in a U.S.court is to use
Q6) In the __________ system,the trial is adversarial,and the defendant is presumed innocent until proven guilty.
Q7) Enforcing contracts that cross international borders is
A) simply a matter of applying the local law to the contract.
B) complicated and governed in most nations by the CISG.
C) secondary to who has possession of the goods, regardless of title.
D) nearly impossible, so negotiation is important. Page 8
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Page 9
Chapter 7: Economic and Socioeconomic Forces
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Sample Questions
Q1) Why are international managers interested in age distribution studies?
Q2) A large international debt may cause a government to
A) impose wage controls.
B) increase government spending.
C) eliminate price controls.
D) restrict bankers' ability to issue debt.
E) start a trade war.
Q3) According to the text,primary reasons for relative changes in labor costs include increases or decreases in
A) compensation.
B) total output.
C) inflation rates.
D) hours worked.
E) level of education.
Q4) The increase in the number of working women is significant because it may result in a greater market for convenience goods.
A)True
B)False
Q5) Total direct labor costs divided by units produced are known as __________.
Page 10
Q6) The most general indicator of potential market size is __________.
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Chapter 8: The International Monetary System and Financial Forces
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Sample Questions
Q1) The Big Mac Index is an example of purchasing power parity (PPP),an international measure of junk food consumption.
A)True
B)False
Q2) After the crises in Japan in the spring of 2011,the
A) yen strengthened.
B) yen reached all-time lows against the dollar and the euro.
C) Japanese monetary authorities allowed the yen to trade against the renminbi.
D) yen stabilized at a 10-year low.
Q3) _____________ is the simultaneous buying and selling to make a profit with no risk.
Q4) Purchasing power parity is a way to compare
A) the purchasing power of several currencies.
B) tastes in several different cultures.
C) the impact of financial aid in several economies.
D) meals in different economic systems, via the Big Mac Index.
Q5) Charles De Gaulle pushed the Bank of ___________ to redeem its dollar holdings for gold,resulting in the end of the Bretton Woods system.
Q6) _______________ is a sustained increase in prices.
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Chapter 9: International Competitive Strategy
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) To develop a strategy for reaching corporate objectives,management must first try to
A) select a viable market segment.
B) quantify them.
C) define the firm's mission.
D) research the market.
E) develop scenarios.
Q2) Cultural practices that affect business,such as relationships in the procurement process,are not a part of any manual,nor can they be described in a series of action steps.They therefore represent an example of ________ knowledge.
Q3) ________ planning processes are something that only the company's most senior executives are involved with.
Q4) A planning process that begins at the lowest level in the organization and continues upward is known as ________ planning.
Q5) Contingency plans are developed in some firms for the best- and worst-case scenarios and for critical events.
A)True
B)False
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Chapter 10: Organizational Design and Control
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Sample Questions
Q1) The horizontal organization has been characterized as antiorganization because its designers try to remove the constraints imposed by the conventional organizational structure.
A)True
B)False
Q2) A decision to move production factors from one country to another would be:
A) unaffected by currency and political stability.
B) made cooperatively by subsidiary managers.
C) based on tax, labor supply, and market conditions.
D) rejected by managers of the host country receiving the new activity.
Q3) Organizations,like people,have ____________.In their youth,they are small,fast growing,and tend toward the entrepreneurial.However,as they age,they often become big,complex,and out of touch with their markets.
Q4) Managers have to consider the nature of their company's international ______ environment and ______,both currently and how they might look in the future,when deciding on the IC's structure.
Q5) A business entity with a clearly defined market,specific competitors,the ability to carry out its business mission,and a size appropriate for control by a single manager is a(n)________________.
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Chapter 11: Global Leadership Issues and Practices
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158 Flashcards
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Sample Questions
Q1) The GLED model assumes that a ______ process influences the relationship between the initial conditions and the outcomes that result.
Q2) Most experts in the field think global leadership effectiveness is the result of a ______ process rather than ______ capability,at least in part.
Q3) The Global Executive Leadership Inventory (GELI)is a 360-degree feedback approach for identifying leadership competencies and ______.
Q4) Research conducted by Aperian Global identified five abilities that returning expatriates thought were necessary for a successful global leadership assignment,including A) monitoring.
B) seeing differences.
C) innovating.
D) negotiating.
E) globalizing.
Q5) A model designed for developing the expertise of global leaders,the Global Leadership Expertise Development (GLED)model emphasizes the ______ by which expertise is developed.
Q6) Research has shown that women's and men's typical leadership styles ______.
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Chapter 12: International Markets: Assessment and Entry
Modes
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Sample Questions
Q1) The means of supplying overseas markets-exporting to and production in those markets-depend on non-equity modes of entry.
A)True
B)False
Q2) In a personal interview or phone survey situation,some respondents want to help the interviewer out of politeness,or just to please them.This is known as __________.
Q3) The analyst is mostly concerned with which of the following during the second screening?
A) Trends in inflation, interest rates, exchange rates
B) Banking legislation and regulation
C) Market growth
D) Consumer profile
Q4) A turnkey project includes
A) plant design and technology supply.
B) direct selling.
C) government training.
D) construction up to but not including trial runs.
Q5) Size of the urban population and electricity consumption are part of the __________ index.
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Chapter 13: Marketing Internationally
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Sample Questions
Q1) The physical product includes the total product,brand name,accessories,after-sales service,warranty and instructions for use,company image,and package.
A)True
B)False
Q2) The product is
A) the central focus of the marketing mix.
B) only a physical object.
C) the result of economies of scale.
D) the only thing the buyer wants in the international market.
Q3) The variation in channel member availability and the presence of environmental forces constrain ____________ of distribution.
Q4) The attraction of using the Internet as an international advertising medium
A) includes the use of common languages, two-way communication, and user profile.
B) is that new technology adds to the product benefits.
C) is the user controls when the message is received.
D) is that Internet sales far exceed average sales per square foot in major consumer goods stores.
Q5) Recruiting ________ in foreign countries is more difficult than at home.
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Chapter 14: Managing Human Resources in an International Context
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Sample Questions
Q1) Nearly 30 percent of the world's population lived in urban areas in 1950; in 2010,more than half of the world's population was urban,and this proportion is projected to increase to 60 percent by the year 2030.
A)True
B)False
Q2) In the U.S.,what approximate percentage of workers with doctorates in engineering is foreign-born?
A) 20 percent
B) 3 percent
C) 75 percent
D) 50 percent
Q3) The process in which a union represents the interests of a bargaining unit in negotiations with management is referred to as ____________________.
Q4) Labor unions represent the largest percentage of workers in
A) Sweden and Denmark.
B) France and the U.S.
C) Japan and Germany.
D) Australia and Canada.
E) Canada and the U.K. To view
Chapter 15: International Accounting and Financial Management
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Sample Questions
Q1) ___________ is taking a position in one market to offset exposure to price changes in another market.
Q2) Microloans are hardly ever repaid,so they function as an aid to developing economies.
A)True
B)False
Q3) Using the current rate,equity accounts are translated
A) using the historical rates of the transaction.
B) using current rates, just as in assets and liabilities.
C) using market rates (real estate market, stock market).
D) only when they are liquidated, and then at current rates.
Q4) Another source of funding for the small firm is venture capital (VC),
A) private funding in return for equity.
B) although this may be risky due to control issues.
C) a government-supported effort to stimulate small business.
D) an approach that developed in the EU.
Q5) Exposure netting is the acceptance of closed positions in two or more currencies that are considered to balance one another.
A)True
B)False
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Chapter 16: Appendix A: International Institutions From a Business Perspective
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Sample Questions
Q1) Strictly speaking,the impact of the EU on the WTO could be said to be negative,because
A) a country could belong to only one of these organizations.
B) the favored trade relationships among EU members are not extended to nonmember countries, so the EU undercuts the WTO.
C) the euro threatens other hard currencies supported by the WTO, such as the dollar and the yen.
D) the WTO does not collect dues from EU member nations.
Q2) Some think that renewed focus on exchange rates would be a good path forward for the IMF,which is struggling with core issues related to its purpose.
A)True
B)False
Q3) In contrasting China and the U.S.,who must cooperate in the modern world,one is autocracy,the other a ________.
Q4) In a ______________,trade among members is tariff free.
Q5) The agreement establishing a free trade area among Canada,the U.S.,and Mexico is known by the acronym
Page 19
Q6) The body of the EU that handles daily operations is the __________.
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Chapter 17: Appendix B: Export and Import Practices
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Sample Questions
Q1) Three of the five export payment terms mentioned in the textbook are: __________,__________,and __________.
Q2) For exporters,which of the following is the preferred pricing method?
A) FOB
B) FAS
C) Ex-works
D) FCA
E) CIP
Q3) Customhouse brokers have functions parallel to those of foreign freight forwarders,but on the export side of the transaction.
A)True
B)False
Q4) Once the firm knows that a potential market exists,it needs to choose between exporting ______ through U.S.-based exporters and exporting ______ using its own staff.
Q5) HTSA is the U.S.version of the global tariff code known as the
Q6) The first step in locating foreign markets is to determine whether there is a ______ for the firm's products.
Q7) Independent businesses that handle import shipments for compensation are
Page 20
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Chapter 18: Appendix C: Global Operations and Supply Chain Management
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Sample Questions
Q1) Sometimes called additive manufacturing,_______________creates a product by methodically adding material in a layer-by-layer manner.
Q2) For purchases of capital goods such as manufacturing equipment,many U.S.buying organizations now use _____ to analyze purchasing decisions,including trade-in or future estimated salvage value.
A) e-procurement
B) activity-based costing
C) total costing
D) life-cycle costing
Q3) ______ JIT involves a narrow focus on managing goods inventories.
Q4) According to the text,increased emphasis on the achievement of effective supply chain performance has resulted from all of the following except A) shorter, more predictable product life cycles.
B) the impact of unplanned political and social events.
C) web-enabled tools for planning, executing, and optimizing supply chains.
D) the impact of unplanned economic events.
Q5) A typical company's supply chain costs can represent more than ______ percent of the firm's assets.
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