International Entrepreneurship Final
Exam
Course Introduction
International Entrepreneurship explores the process of identifying, evaluating, and exploiting entrepreneurial opportunities in a global context. The course covers the unique challenges and strategies involved in launching and managing ventures across national borders, including topics such as international market entry, cross-cultural management, global business models, and the impact of international economic, legal, and political environments on entrepreneurship. Students will learn how to navigate complex international networks, assess global risks and opportunities, and develop sustainable strategies for growth and innovation in diverse markets. Through case studies, simulations, and project-based learning, the course prepares students to create and scale entrepreneurial ventures in an increasingly interconnected world.
Recommended Textbook
International Business The New Realities 4th Edition by S. Tamer Cavusgil
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17 Chapters
1641 Verified Questions
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Page 2
Chapter 1: Introduction: What Is International Business
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Sample Questions
Q1) A country's economic assets are also known as factors of production.
A)True
B)False
Answer: True
Q2) Which of the following best explains why Taiwanese computer manufacturers established subsidiaries in the United States?
A)low-cost financial capital
B)low-cost labor
C)access to raw materials
D)lack of skilled managerial talent in home country
Answer: A
Q3) Which of the following types of risk is also known as political risk?
A)currency risk
B)cross-cultural risk
C)commercial risk
D)country risk
Answer: D
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Page 3
Chapter 2: Globalization of Markets and the
Internationalization of the Firm
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Sample Questions
Q1) Which of the following is Rina most likely to cite as a counter example to Juan's argument regarding the influence of MNEs on national sovereignty?
A)the dominating influence of market forces on the global economy
B)technological advances in computer-aided design of products
C)the political influence of large firms such as Walmart
D)the actual GDPs of underdeveloped economies
Answer: A
Q2) Which of the following statements is true about the firm-level consequences of market globalization?
A)The globalization of markets has narrowed down new business opportunities for internationalizing firms.
B)Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world.
C)A firm's value chain is not subject to internationalization.
D)Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market.
Answer: B
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Chapter 3: The Cultural Environment of International Business
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Sample Questions
Q1) Business dealings in low-context cultures are characterized by ________.
A)a high degree of sensitivity to the context
B)a high degree of mutual respect
C)efficient negotiations
D)complex rituals
Answer: C
Q2) In cultures with a monochronic view of time, people view time as linear, managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities.
A)True
B)False
Answer: True
Q3) ________ are ways of behaving and conducting oneself in public and business situations
A)Manners and customs
B)Creative expressions
C)Values and attitudes
D)Symbolic productions
Answer: A
Page 5
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Chapter 4: Ethics, Corporate Social Responsibility,
Sustainability and Corporate Governance
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Sample Questions
Q1) Failure to adopt CSR behaviors can have high detrimental effects on a company.
A)True
B)False
Q2) Ethics and appropriate behavior transcend all international business activities and figure prominently in management decisions about financial performance and competitive advantage.
A)True
B)False
Q3) In terms of CSR and sustainability, going wide implies ________.
A)a continuous effort to understand how CSR and sustainability affect every aspect of the firm's operations worldwide
B)institutionalizing appropriate behavior into the organization's culture so it becomes part and parcel of strategy
C)encouraging unstructured learning among employees
D)a sustained effort to reduce control mechanisms throughout the organization
Q4) The five approaches to analyzing ethical problems rarely conflict with each other.
A)True
B)False
Page 6
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Chapter 5: Theories of International Trade and Investment
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Sample Questions
Q1) According to the ________, a country benefits by producing only those products in which it has complete advantage or that it can produce using fewer resources than another country.
A)absolute advantage principle
B)comparative advantage principle
C)factor proportions theory
D)international product cycle theory
Q2) Which of the following is a benefit of internalizing foreign-based value-chain activities?
A)The MNE maintains a monopolistic presence in foreign countries.
B)The MNE eliminates employee turnover.
C)The MNE oversees control of foreign operations and ensures product quality.
D)The MNE learns new manufacturing methods from foreign partners.
Q3) According to the comparative advantage principle, what matters most is the absolute cost of production of the product and not the relative efficiency with which a country can produce the product.
A)True
B)False
Q4) In a short essay, discuss the internalization theory. Provide examples.
Q5) Distinguish between comparative and competitive advantages. Provide examples.
Page 7
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Chapter 6: Political and Legal Systems in National Environments
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Sample Questions
Q1) Provide an overview of totalitarianism, socialism and democracy. Provide examples of nations which adhere to each system.
Q2) Which of the following countries would Representative A most likely be from?
A)Denmark
B)Zimbabwe
C)Sweden
D)Australia
Q3) Describe the two elements which contribute to country risk. Provide examples of countries with high and low country risk, and explain the reasons for these two distinctions.
Q4) In a market economy, the government may intervene to address the inequalities that market economies sometimes produce.
A)True
B)False
Q5) Trade unions are part of a country's legal system.
A)True
B)False
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Q6) Explain the connection between democracy and economic freedom. What are some of the characteristics associated with political and economic freedom?
Chapter 7: Government Intervention and Regional Economic Integration
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Sample Questions
Q1) Which of the following is an example of nontariff trade barrier?
A)Gayle Inc. is a U.S.-based retailer that imports cosmetic products manufactured in Thailand. These products pass through U.S. customs and are subject to a 5 percent import duty.
B)The U.S. imports chocolates manufactured in Belgium that cost $65 a box with taxes.
C)The U.S. Department of Commerce announced that white sugar imports will be limited to 7,500 million tons.
D)Spices imported from India to the U.S. for sale in the domestic market are subject to a 10 percent import duty.
Q2) Explain how quotas work as an instrument of government intervention. What are voluntary export restraints? How can firms use foreign trade zones as a strategy to manage government intervention?
Q3) Currency controls harm companies that export their products from the host country, but favor those that rely heavily on imported parts and components.
A)True
B)False
Q4) Briefly describe the five levels of economic integration.
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Chapter 8: Understanding Emerging Markets
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Sample Questions
Q1) Emerging markets act as manufacturing bases for global MNEs because of
A)high regulations
B)high availability of low-wage workforce
C)well-developed infrastructure
D)strong intellectual property laws
Q2) In emerging markets, MNEs must set prices appropriate for local conditions because
A)research and development is relatively cheaper in emerging markets
B)of high corruption and bureaucracy
C)of inadequate legal framework
D)emerging market consumers cannot pay high prices
Q3) In a short essay, explain why family conglomerates dominate emerging markets. What are the benefits to foreign firms who collaborate with FCs in order to do business in emerging markets?
Q4) In the early stages of market research, managers examine three important statistics to estimate market potential: per-capita income, size of the middle class, and market potential indicators.
A)True
B)False
Page 10
Q5) Write a short essay on technology and emerging markets.
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Chapter 9: The International Monetary and Financial Environment
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Sample Questions
Q1) The integration of international financial and monetary activity can be attributed to the growing role of single-currency systems, such as the euro.
A)True
B)False
Q2) Which of the following does the central bank perform in order to accommodate a nation's economic growth?
A)enforce strict regulations on foreign direct investment
B)increase the nation's money supply
C)establish a voluntary export restraint
D)restrict innovation and entrepreneurship
Q3) Merchant banks provide capital to firms in the form of shares rather than loans.
A)True
B)False
Q4) Which of the following is most likely an additional problem faced by Country X due to its inflation?
A)high interest rates
B)herding behavior
C)balance of trade
D)country risk
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Chapter 10: Financial Management and Accounting in the Global Firm
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Sample Questions
Q1) In terms of financial management tasks that are key to MNE success, which of the following comes immediately after the task of raising funds for the firms?
A)assesses the financial attractiveness of major investment projects, such as foreign expansion
B)determines the ideal long-term mix of financing for the firm's international operations
C)learns to operate in a global environment with diverse accounting practices and international tax regimes
D)administer funds passing in and out of the firm's value-adding activities
Q2) Explain the differences between equity financing and debt financing, and discuss the ways international firms obtain equity financing or debt financing.
Q3) Describe three methods used to transfer funds within an MNE.
Q4) The purpose of capital budgeting is to defer payment for goods and services received from the parent firm.
A)True
B)False
Q5) What goals does harmonization of world accounting practices aim to achieve?
Q6) Explain the differences between a forward contract and a futures contract.
Page 12
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Chapter 11: Strategy and Organization in the International Firm
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Sample Questions
Q1) Graham Technologies is a U.K.-based consumer electronics manufacturer. The company markets netbooks, smartphones, laptops, and desktops in the international market and each product division operates as a stand-alone profit center with substantial autonomy. This is an example of a ________.
A)global matrix structure
B)functional structure
C)product structure
D)geographic area structure
Q2) Which of the following is a disadvantage of a geographic area structure?
A)geographic area managers' lack of global orientation for developing and managing products
B)limited communications and coordination among the subsidiaries within each geographic region
C)minimal balance between global integration and local adaptation
D)decreased responsiveness to customer needs and wants in each regional/local market
Q3) Discuss the advantages and implementation of a transnational strategy, and explain why this strategy is closely associated with a global matrix structure.
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Chapter 12: Global Market Opportunity Assessment
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Sample Questions
Q1) In the Emerging Market Potential Indicators index, households with Internet access per 100 inhabitants are an indicator of ________.
A)market intensity
B)commercial infrastructure
C)country risk
D)market consumption capacity
Q2) Which of the following tasks is the final stage of assessing the global market opportunities of a firm?
A)screen countries to identify target markets
B)assess product suitability for foreign markets
C)estimate company sales potential
D)assess industry market potential
Q3) Which of the following would most likely be useful market data for the Brown consultants?
A)discretionary income of young women
B)annual health care expenditures
C)average level of education
D)number of cellular phone subscribers
Q4) Describe the purpose of CORE. How does it aid managers?
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Chapter 13: Exporting and Global Sourcing
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Sample Questions
Q1) ________ will internationalize via FDI because they require direct contact with customers.
A)Insurance firms
B)Accountants
C)Construction firms
D)Retailing firms
Q2) If a computer contains a microprocessor from Costa Rica and a hard disk drive from the Philippines, the computer manufacturer, who is based in Texas and operates across Europe and West Asia, most likely uses ________ as an entry strategy.
A)exporting
B)franchising
C)global sourcing
D)licensing
Q3) Front-office activities cannot be classified under BPO.
A)True
B)False
Q4) What role do logistics play in global sourcing? In a short essay, discuss how logistics relates to cost. Provide an example of a firm that lost money as a result of inadequate logistics.
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Chapter 14: Foreign Direct Investment and Collaborative Ventures
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Sample Questions
Q1) Foreign direct investment is the least risky entry strategy.
A)True
B)False
Q2) While franchising facilitates rapid internationalization, compared to FDI, it affords the firm less control over its foreign operations.
A)True
B)False
Q3) During her presentation, Jessica describes how two automakers joined forces and formed a separate firm by pooling their assets. Which of the following topics was most likely assigned to Group A?
A)equity joint venture
B)acquisition
C)greenfield investment
D)vertical integration
Q4) New markets, new resources, and improved efficiency are the three main motives for firms to enter foreign markets through FDI.
A)True
B)False
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Chapter 15: Licensing, Franchising, and Other Contractual Strategies
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Sample Questions
Q1) Which of the following is true about cross-border contractual relationships?
A)It is a more visible strategy than FDI and draws a lot of criticism from the local market.
B)They are more susceptible to volatility and risk compared to FDI.
C)A local firm allows the focal firm to blend into the local market, attracting less attention.
D)Focal firms use contractual relationships as an advanced entry strategy in foreign markets.
Q2) Which of the following is an advantage of franchising to the franchisee?
A)reduced expenses as the franchisor provides supplies, equipment, and products
B)minimum initial investments or royalty payments are applicable
C)use of a well-known, recognizable brand name
D)franchisee holds much power, including superior bargaining power
Q3) Which of the following is characteristic of a know-how agreement?
A)exclusive rights to reproduce original art work
B)permission to use manufacturing facilities for a fee
C)exchanging technological or management information for royalties
D)trading the use of a name brand for management advice
Q4) Describe three challenges faced by professional service firms when they internationalize.
Page 17
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Chapter 16: Marketing in the Global Firm
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Sample Questions
Q1) Branding refers to the process of dividing a firm's total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group.
A)True
B)False
Q2) In a short essay, discuss the three common pricing strategies. How do firms employ each strategy? What are the main advantages and disadvantages of using such strategies?
Q3) Which of the following characterize the most successful global brands?
A)low visibility
B)narrow appeal
C)status symbols
D)highly complex product features
Q4) A reputed American automaker competes in the premium car market segment. It targets affluent buyers with refined tastes who would not mind paying several thousand dollars for a premium car. This is an example of positioning.
A)True
B)False
Q5) Briefly discuss the principal advantages of standardization.
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Chapter 17: Human Resource Management in the Global Firm
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Sample Questions
Q1) Strikes organized by labor unions are aimed at ________.
A)settling disputes regarding offshore unions
B)pressuring management to grant union demands
C)pressuring management to unionize
D)creating public awareness about social issues
Q2) Which of the following, if true, most seriously undermines the argument in favor of hiring Devon Parks as manager for CCC's facility in New Delhi?
A)Devon has few local connections in New Delhi where success is largely determined by local connections and networking.
B)CCC wants to maintain strong control over all its foreign operations including India.
C)Devon is capable of working independently and with little direction.
D)CCC has significantly benefitted in the past by hiring PCNs for training local managers in Asia.
Q3) In traditional societies, women tend to enjoy a high degree of economic independence.
A)True
B)False
Q4) Discuss the reasons why labor union membership has declined in recent years.
Page 19
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