Course Introduction
International Business
Textbook Exam Questions
International Business explores the complexities of operating in the global marketplace, examining how organizations expand and manage business activities across national borders. The course covers fundamental topics such as global trade theories, international market entry strategies, cultural differences, cross-border legal and ethical considerations, global marketing, and the impact of economic, political, and technological factors on international operations. Students will develop an understanding of the challenges and opportunities associated with international business, learning how to devise strategies for successful competition and sustainable growth in diverse global environments.
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
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Page 2
Chapter 1: Globalization
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Sample Questions
Q1) Her argument is vulnerable to criticism because it fails to ________.
A) quantify the disparity between high-income and low-income nations
B) show that political and cultural factors have been taken into account
C) demonstrate the importance of market flexibility
D) highlight the environmental effect of globalization
Answer: B
Q2) To minimize the economic inequality within developing nations,studies suggest that the nations can boost incomes of their poorest citizens by ________.
A) rejecting globalization and sheltering themselves from exploitation
B) embracing globalization and integrating themselves into the global economy
C) fortifying trade barriers and discouraging exports
D) encouraging economic independence and restricting imports
Answer: B
Q3) The products that Ureshi Toys manufactures are examples of ________.
A) global products
B) niche products
C) intangible products
D) customized products
Answer: A
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Page 3
Chapter 2: Cross-Cultural Business
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100 Flashcards
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Sample Questions
Q1) A folk custom can be defined as ________.
A) behavior shared by a heterogeneous group or by several groups of people
B) behavior, often dating back several generations, that is practiced by a homogeneous group of people
C) positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts
D) positive or negative evaluations, feelings, and tendencies that individuals harbor toward themselves
Answer: B
Q2) It is most accurate to say that within most nations' borders,people largely share such essential attributes as ________ and ________.
A) work attitudes; occupations
B) lifestyles; education level
C) education level; ethnicity
D) values; language
Answer: D
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Chapter 3: Political Economy and Ethics
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100 Verified Questions
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Sample Questions
Q1) ________ political systems include democracies,constitutional monarchies,and some aristocracies.
A) Totalitarian
B) Anarchist
C) Fascist
D) Pluralistic
Answer: D
Q2) Which of the following philosophies maintains that a company should maximize "good" outcomes and minimize "bad" outcomes wherever it operates?
A) Friedman view
B) righteous moralist view
C) cultural relativist view
D) utilitarian view
Answer: D
Q3) In a coalition government,the strongest political parties share power by dividing government responsibilities among themselves.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Economic Development of Nations
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Sample Questions
Q1) Explain each of the four means of incorporating risk into business strategies when companies employ an adaptation strategy.
Q2) U.S.individuals are exempt from being prosecuted for bribery under the Foreign Corrupt Practices Act.
A)True
B)False
Q3) If a foreign company is taken over by the host-country government and some form of compensation is paid,confiscation is said to have occurred.
A)True
B)False
Q4) Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing no compensation in return.
A)True
B)False
Q5) How does economic development in countries affect international business?
Q6) Why are many mixed economies converting to market-based systems? How does the role of government change when a mixed economy transitions to a market economy?
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Chapter 5: International Trade Theory
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Sample Questions
Q1) Country A produces a ton of coffee using one unit of resources.Country B produces two tons of coffee using one unit of resources.Which of the following is true regarding Country A and Country B?
A) Country A has an absolute advantage in producing coffee.
B) Country B has an absolute advantage in producing coffee.
C) Neither Country A nor Country B has an absolute advantage in producing coffee.
D) Both Country A and Country B have an absolute advantage in producing coffee.
Q2) Explain mercantilism.What were its major flaws?
Q3) Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.
A)True
B)False
Q4) Which of the following refers to the ability of a nation to produce a good more efficiently than any other nation?
A) mercantilism
B) comparative advantage
C) absolute advantage
D) neomercantilism
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Chapter 6: Political Economy of Trade
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Sample Questions
Q1) Which of the following is true of quotas?
A) They are the most common type of trade barrier.
B) They help domestic producers maintain their market shares and prices.
C) Their licenses are granted by governments to other nation companies on a five-year basis.
D) They lead to a decrease in the prices of intermediate goods.
Q2) A voluntary export restraint refers to a quota that a nation imposes on its exports,usually at the request of another nation.
A)True
B)False
Q3) Describe the three categories of tariffs,and explain how the Smoot-Hawley Act of 1930 influenced tariffs in the United States.
Q4) Nations often restrict trade in goods and services to achieve cultural objectives,the most common being protection of national identity.
A)True
B)False
Q5) Tariffs are a source of government revenue mostly among developing nations.
A)True
B)False
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Chapter 7: Foreign Direct Investment
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Sample Questions
Q1) Foreign direct investment is acquisition of foreign assets for the purpose of controlling them.
A)True
B)False
Q2) GMI's subsidiary for component B in Thailand is best described as a(n)________.
A) greenfield investment
B) portfolio investment
C) acquisition
D) merger
Q3) Which of the following methods is being used when a host country provides lower tax rates and low-interest loans to firms from abroad for encouraging inflows of foreign direct investment?
A) financial incentives
B) sanctions
C) local content requirements
D) embargoes
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.
Q5) What two factors propel growth in foreign direct investment?
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Chapter 8: Regional Economic Integration
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Sample Questions
Q1) Which of the following is an important goal of regional economic integration?
A) to increase the selling prices of products
B) to raise the living standards of people
C) to limit the choice of products available to customers
D) to establish a socialist government
Q2) The European Free Trade Association was formed in 1960 to focus on trade in ________.
A) consumer goods
B) agricultural goods
C) industrial goods
D) services
Q3) The primary purpose of the Gulf Cooperation Council (GCC)at its formation was to create a political union between Iraq and Iran.
A)True
B)False
Q4) The Council of the European Union is the ________ body of the European Union.
A) legislative
B) executive
C) judicial
D) monitoring
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Chapter 9: International Financial Markets
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Sample Questions
Q1) Identify and explain the types of currency instruments used in the forward market.
Q2) Forward rates represent the expectations of currency traders and bankers regarding a currency's future spot rate.
A)True
B)False
Q3) ________ refers to the most commonly quoted interest rate that London banks charge other large banks that borrow Eurocurrency.
A) London Interbank Offer Rate (LIBOR)
B) London Interbank Bid Rate (LIBID)
C) Spot rate
D) Cross rate
Q4) An offshore financial center is a territory whose financial sector features very few regulations and few,if any,taxes.
A)True
B)False
Q5) Briefly describe the three main institutions of the foreign exchange market.
Q6) Briefly describe any two of the three main components of the international capital market.
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Chapter 10: International Monetary System
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Sample Questions
Q1) ________ is an activity under the monetary policy of a nation.
A) Increasing taxes
B) Lowering taxes
C) Increasing government spending
D) Selling government securities
Q2) Which of the following forecasting techniques employs statistical models based on key economic indicators to forecast exchange rates?
A) financial analysis
B) fundamental analysis
C) probability bounds analysis
D) technical analysis
Q3) Devaluation increases the price of a country's exports in the global market and increases the price of its imports.
A)True
B)False
Q4) The IMF asset whose value is based on a "weighted basket" of four currencies is called a special drawing right.
A)True
B)False
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Chapter 11: International Strategy and Organization
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Sample Questions
Q1) A main goal of the global product structure is to bring together geographic and product area managers in joint decision making.
A)True
B)False
Q2) Decreasing levels of customer loyalty to an organization's products is a major disadvantage of the ________ strategy.
A) blue ocean
B) stability
C) low-cost leadership
D) growth
Q3) TeleToys recently opened eighteen new toy stores in Brazil.This move can best be described as a ________ strategy.
A) growth
B) stability
C) retrenchment
D) differentiation
Q4) Briefly describe the three generic business-level strategies,providing an example of each.
Q5) Explain how a global strategy complements a corporate growth strategy.
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Chapter 12: Analyzing International Opportunities
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Sample Questions
Q1) Food and utilities are examples of income-inelastic products.
A)True
B)False
Q2) Companies that require particular resources to carry out local business activities must be sure they are available.
A)True
B)False
Q3) Which of the following methods would be most appropriate for conducting primary market research in Country A?
A) Internet research
B) verbal questioning
C) written surveys
D) consumer panels
Q4) ________ is relatively inexpensive because it has already been collected,analyzed,and summarized by another party.
A) Primary data
B) Secondary data
C) Raw data
D) Transaction data
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Chapter 13: Selecting and Managing Entry Modes
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Sample Questions
Q1) In a backward integration joint venture,the parties choose to invest together in downstream business activities.
A)True
B)False
Q2) Distributors are firms who take ownership of the merchandise when it enters their country.
A)True
B)False
Q3) Martin Exporting requests ABC Bank to add its own guarantee of payment to a letter of credit,which creates a(n)________.
A) advised letter of credit
B) confirmed letter of credit
C) irrevocable letter of credit
D) unconfirmed letter of credit
Q4) A(n)________ exports products on behalf of an indirect exporter.
A) local distributor
B) subsidiary
C) sales representative
D) export management company
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Chapter 14: Developing and Marketing Products
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Sample Questions
Q1) Which of the following is a promotional strategy designed to pressure channel members to carry a product and promote it to final users?
A) differentiation strategy
B) retrenchment strategy
C) push strategy
D) pull strategy
Q2) Which of the following occurs when an idea to be communicated is translated into images,words,and symbols?
A) compiling
B) encoding
C) parsing
D) processing
Q3) The rapid pace of technological innovation today extends the life cycles of products.
A)True
B)False
Q4) How can a lack of market understanding,theft,and corruption affect distribution?
Q5) Describe any four factors that affect international product strategies.
Q6) Using examples,explain the circular process of marketing communication.
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Chapter 15: Managing International Operations
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Sample Questions
Q1) Which of the following should most likely be considered in making the decision to outsource some of Echo's manufacturing activities?
A) Do purchasing components present the lowest cost option for Echo?
B) Would Echo engineers be willing to relocate to a foreign nation?
C) Is Echo prepared to cover moving expenses for its managerial talent?
D) Can Echo find employees for a customer service center in the U.S.?
Q2) It is important for low-cost competitors to locate near their markets in order to keep track of buyer preferences.
A)True
B)False
Q3) Money earned from the sale of goods and services is known as ________.
A) revenue
B) dividend
C) depreciation
D) book value
Q4) Companies selling undifferentiated products find centralized production most effective.
A)True
B)False
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Chapter 16: Hiring and Managing Employees
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Sample
Questions
Q1) Differentiate between culture shock and reverse culture shock.How can companies help employees deal with such issues?
Q2) To teach its employees the values,attitudes,manners,and customs of the host-country culture,Gem Jewels should offer ________.
A) language training
B) environmental briefings
C) cultural assimilation
D) field experience
Q3) Companies typically recruit ________ to train individuals placed in more demanding non-managerial positions at foreign branches.
A) workers from the local market
B) recent college graduates from the host country
C) qualified third-party nationals
D) specialists from the home country
Q4) The process of reducing the size of an organization's workforce is called decruitment. A)True
B)False
Q5) What factors influence the wages of non-managerial workers?
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