Course Introduction
International Economics Exam Preparation Guide
International Economics explores the fundamental principles governing economic interactions between countries. The course examines theories of international trade, including comparative advantage and trade policy, and analyzes the effects of tariffs, quotas, and exchange rates on global markets. Students will evaluate the roles of international organizations, trade agreements, and economic integration, alongside the impacts of globalization on labor markets, income distribution, and economic development. By integrating real-world case studies and quantitative analysis, the course aims to enhance understanding of how nations engage in and are affected by the global economy.
Recommended Textbook
International Business 8th Edition by Michael Czinkota
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19 Chapters
1659 Verified Questions
1659 Flashcards
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Page 2
Chapter 1: The International Business Imperative
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82 Verified Questions
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Sample Questions
Q1) Although U.S.exports have grown rapidly and successfully over the last few years,many new participants have entered the international market,resulting in a decline in the global market share of exports for the U.S.
A)True
B)False Answer: True
Q2) Importing is not only good in the international trade picture,but is a key factor in increasing employment.
A)True
B)False Answer: False
Q3) Which of the following countries is expected to have continued economic growth during and despite the economic downturn that began in 2007?
A)Canada
B)Brazil
C)Switzerland
D)Russia
E)France
Answer: B
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Page 3
Chapter 2: Trade and Investment
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Sample Questions
Q1) ____________ negotiations are carried out between two nations focusing only on their own interests.
A)Unilateral
B)Multilateral
C)Polylateral
D)Bilateral
E)Restrained
Answer: D
Q2) Juan is an international business person who has become frustrated with the fact that in recent years,international trade organizations have been vetoing policy measures that would benefit his company and the local area. Instead,decisions are made based on worldwide influences. Juan's frustration highlights which significant change that has recently occurred in the global policy environment?
A)Strengthening of domestic policy influence
B)Reduction of domestic policy influence
C)Weakening of traditional international institutions
D)Strengthening of traditional international institutions
E)Sharpening of the conflict between industrialized and developing nations
Answer: B
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Chapter 3: The Theory of Trade and Investment
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Sample Questions
Q1) Internal economies of scale occur when the cost per unit increases as the firm grows in scope.
A)True
B)False
Answer: False
Q2) The four circumstances involving imperfect competition in which strategic trade may apply include price,cost,repetition,and externalities.
A)True
B)False
Answer: True
Q3) The ability of multinational firms to be successfully rests on their ability to gain an advantage. This demonstrates imperfections in:
A)Access
B)Factor mobility
C)Government
D)Management
E)Labor
Answer: D
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Chapter 4: The Balance of Payments
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Sample Questions
Q1) In almost all cases,a country's current account and financial account:
A)Fluctuate at random
B)Are inverse of one another
C)Have a direct relationship
D)Are always growing simultaneously
E)Are always shrinking simultaneously
Q2) Obstfeld and Taylor argued that due to two wars and a worldwide depression,the period of ________ was a period of global economic destruction.
A)Bretton Woods
B)1860-1914
C)1914-1945
D)1945-1971
E)1971-2000
Q3) ____________ refers to how a firm is managed and operated.
A)Corporate governance
B)Corporate socialism
C)Organizational structure
D)Capitalism
E)Causal complexity
Q4) Describe how the flow of capital has changed from 1860 through 2000.
Page 6
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Chapter 5: Culture
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Sample Questions
Q1) Banks belong to which infrastructure system within a country?
A)Marketing infrastructure
B)Financial infrastructure
C)Social infrastructure
D)Economic infrastructure
E)Services infrastructure
Q2) Explain the role of language in international business.
Q3) __________ are training programs that provide factual preparation prior to an overseas assignment.
A)Social stratification
B)Reference groups
C)In-depth studies
D)Area studies
E)Focus groups
Q4) Experiential knowledge is only acquired by being involved in a culture other than one's own.
A)True
B)False
Q5) ________ is the process of adjusting and adapting to a specific culture other than one's own.
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Chapter 6: Politics and Law
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Sample Questions
Q1) __________ are well-connected individuals or firms that are hired by a business to influence the decision making of policymakers and legislators.
A)Terrorists
B)Reference groups
C)Loyalists
D)Lobbyists
E)Arbitrators
Q2) Arthur is a U.S.city mayor who has recently been accused of accepting payment to support local natural gas drilling. Such an act can best be described as:
A)Bribery
B)Blackmail
C)Corruption
D)Extortion
E)Business as usual
Q3) _________ are typically well-connected individuals or firms that are hired by a business to influence the decision making of policymakers and legislators.
Q4) Define and describe the different forms of political and economic risk.
Q5) Describe some of the steps that international managers can take to manage risk.
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Chapter 7: Financial Markets
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Sample Questions
Q1) Between 1880 and 1915,the global monetary system relied on a system of fixed rates of exchange between participating countries. This was the era of the:
A)Bretton Woods agreement
B)Diamond standard
C)Gold standard
D)Interwar years
E)Floating exchange rate
Q2) The ___________ is a standard for international currencies in which currency values were stated in terms of gold.
Q3) Describe the launch of the euro and the outcomes after a decade.
Q4) According to the __________,the relative prices of any single good between countries expressed in each country's currency is representative of the proper or appropriate exchange rate value.
Q5) Leading up to World War I,the U.S.dollar was the dominant currency.
A)True
B)False
Q6) A(n)________ bank is an unrelated bank (by ownership)based in a foreign country.
Q7) __________ is the process of turning an illiquid asset into a liquid saleable asset.
Page 9
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Chapter 8: Economic Integration, emerging and Developing Markets
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Sample Questions
Q1) When ___________,companies must combine advanced technology with local insights in order to be successful in developing markets.
A)researching
B)creating buying power
C)tailoring local situations
D)improving access
E)shaping aspirations
Q2) India's growth is largely a result of an emphasis on:
A)Aviation manufacturing
B)Mining and refraction
C)Educational services
D)Commercial services
E)Agriculture
Q3) Which of the following would most likely be considered a transition economy?
A)Somalia
B)Czech Republic
C)Greece
D)Mexico
E)Antigua
Q4) Discuss the four levels of economic integration in countries.
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Chapter 9: Strategic Planning
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Sample Questions
Q1) __________ takes advantage of a company's real or perceived uniqueness on elements such as design or after-sales service.
Q2) A(n)________ is a local company that has assets that give it a competitive advantage only in its home market.
Q3) ___________ is a term coined to describe the networked global organization approach to an organizational structure.
Q4) In today's global market,channels of distribution are becoming increasingly global.
A)True
B)False
Q5) _________ is any unit in an organization around which decisions are based.
A)Strategic business unit
B)Geographic division
C)Matrix unit
D)Product division
E)Headquarters division
Q6) ________ is the ability to obtain what one wants through co-option and attraction.
Q7) Describe the four primary globalization drivers in international business.
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Chapter 10: Corporate Governance and Reform
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Q1) Stakeholder capitalism has its own set of challenges.Finding common ground between multiple stakeholder interests often proves daunting,slowing decision making and often the ability to move quickly enough to remain competitive.
A)True
B)False
Q2) The Sarbanes-Oxley Act has been an effective tool in the reformation of corporate governance.As a result,it has become widely accepted and adopted by firms internationally.
A)True
B)False
Q3) The Sarbanes-Oxley Act was passed in an effort to reform corporate governance.
A)True
B)False
Q4) The open and public disclosure and reporting of the activities of an organization,including financial,civil,and environmental impacts and concerns is referred to as ________.
Q5) ________is the dividend paid per share to shareholders as a percent of the current share price.
Q6) List and briefly describe the five structures of corporate governance.
Page 12
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Chapter 11: Coordination, implementation, and Control
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Sample Questions
Q1) All of the following are factors affecting the organizational structure and locus of decision making in a multinational corporation EXCEPT:
A)Its degree of involvement in international operations
B)The products the firm markets
C)The geographic size of the firm's home country
D)The size and importance of the firm's markets
E)The human resource capability of the firm
Q2) The ________ division aims to eliminate a possible bias against international operations that may exist if domestic divisions are allowed to serve international customers independently.
A)global
B)little/no organization
C)international
D)product
E)functional
Q3) A variation of the functional structure in which departments are formed on the basis production processes is referred to as a(n)________ structure.
Q4) A(n)________ is a highly competent firm located in a strategically critical market.
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Chapter 12: Building the Knowledge Base Research Tools
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Sample Questions
Q1) The question,"How attractive is the potential demand for company products and services?" should be answered in stage ________ in the determination of market potential.
A)one
B)two
C)three
D)four
E)five
Q2) The information obtained through environmental scanning or Delphi studies can then be used to conduct a(n)________.
A)foreign market opportunity analysis
B)scenario analysis
C)survey
D)interview
E)joint occurrence
Q3) ________ allow customers to contact the original supplier of a product in order to inquire about products,make suggestions,or present complaints.
Q4) ________ requires the researcher to play the role of a nonparticipating observer of activity and behavior.
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Chapter 13: Entry and Expansion
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Sample Questions
Q1) Research has shown that U.S.firms perceive Canada to be much closer ________ than Mexico.
A)physically
B)mentally
C)emotionally
D)psychologically
E)intellectually
Q2) Participation by a firm in international business through an intermediary,in which the firm does not deal with foreign customers or firms is called _________.
A)transaction cost theory
B)indirect involvement
C)direct involvement
D)royalty
E)born global
Q3) Power conflicts between export management companies and clients are not an issue because laws have been enacted to prevent and resolve such conflicts.
A)True
B)False
Q4) ________ allow collaboration among firms,often similar to joint ventures.
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Chapter 14: Marketing
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Sample Questions
Q1) How might an international marketer select and screen intermediary candidates?
A)Use the service of governmental agencies
B)Use private sources such as trade directories
C)Use telephone directories
D)Facilitate the support of banks and airlines
E)All of the above
Q2) Executives at M.L.Jones Company are interested in selecting a target market for the company's new line of computer software.Executives are currently assessing the size of existing markets and forecasting the size of future markets.What stage of the process for screening and analyzing foreign markets is the Company currently in?
A)Preliminary screening
B)Estimating market potential
C)Estimating sales potential
D)Identification of potential employees
E)Identification of segments
Q3) ________ are brands that reach the world's mega-markets and are perceived as the same brand by consumers and internal constituents.
Q4) ________ refers to the ability to offer goods and services over the Web.
Q5) Marketing of products through unauthorized channels is called ________.
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Chapter 15: Services
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Sample Questions
Q1) Uniform quality of service is known as ________.
A)market transparency
B)service heterogeneity
C)service consistency
D)intangibility
E)perishability
Q2) Service exporters have ________ ways to gain credibility abroad.
A)two
B)three
C)four
D)five
E)six
Q3) A new type of business which requires some time to get started is called a(n)________.
Q4) The maximum level at which a service provider is able to provide services to customers is known as ________.
Q5) Availability of full disclosure and information about key market factors such as supply,demand,quality,service,and prices is known as ________.
Q6) ________ refers to uniform quality of service.
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Chapter 16: Logistics
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Sample Questions
Q1) ________ specialize in handling international transportation by contracting with carriers on behalf of shippers.
Q2) The purpose of the ________ is to minimize the firm's overall logistics cost by implementing the systems concept appropriately.
A)trade-off concept
B)total cost concept
C)liner service
D)tramp service
E)ex-works
Q3) ________ vessels are built to accommodate trucks,which can drive on in one port and drive off at their destinations.
Q4) Under ________ to a named overseas port of import,the seller quotes a price for the goods,including the cost of transportation to the named port of debarkation.
Q5) The price quoted by an exporter for shipments not involving waterway transport,not including insurance,is called ________.
Q6) ________ refers to materials scheduled to arrive precisely when they are needed on a production line.
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Page 18
Chapter 17: Financial Management
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Sample Questions
Q1) Diversification is an active rather than a passive solution to the exposure problem.
A)True
B)False
Q2) Paying a debt late to take advantage of exchange rates is called ________.
Q3) Continental European and Japanese firms tend to seek ________.
A)shareholder wealth maximization
B)stockholder wealth maximization
C)shareholder wealth minimization
D)corporate wealth maximization
E)profit maximization
Q4) A ________ is composed of three primary cash flow components: initial expenses and capital outlays,operating cash flows,and terminal cash flows.
A)bank draft
B)trade draft.
C)draft
D)capital budget
E)draft.
Q5) A financial document drawn against a bank is referred to as a(n)________.
Q6) Paying a debt early to take advantage of exchange rates is called ________.
Page 19
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Chapter 18: Human Resource Management
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Q1) Salary not including special payments such as allowances paid during overseas assignments is referred to as ________.
Q2) A management approach in which employees are represented on supervisory boards to facilitate communication and collaboration between management and labor is referred to as ________.
Q3) A premium paid during assignment overseas to provide living quarters is referred to as a(n)________.
Q4) ________ costs and related expenses are typically the largest expenditure in the expatriate manager's budget.
A)Transportation
B)Housing
C)Food
D)Recreational
E)Medical
Q5) ________ refers to a modification of work scheduling that allows workers to determine their own starting and ending times within a broad range of available hours.
Q6) The language habitually used among people of diverse speech to facilitate communication is known as ________.
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Chapter 19: New Horizons
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Sample Questions
Q1) ________ refers to mechanisms used to influence and alter trade relationships.
Q2) Executives at Apple were aware that the demand for their latest phone,the iPhone 4,would be high.As a result,the company set a high price for the product before it was even introduced to the market.Apple engaged in ________.
A)backward pricing
B)forward pricing
C)vertical pricing
D)horizontal pricing
E)diagonal pricing
Q3) ________ requires working with existing product technology to create specific product bundles for a particular customer,resulting in tailor-made jeans or a customized car.
A)Universal uniqueness
B)One-of-a-kind customization
C)Rarity
D)Mass customization
E)Forward pricing
Q4) The interaction of factors in nature and society which determine the longevity and continuity of an approach is called ________.
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