International Entrepreneurship
Final Exam Questions
Course Introduction
International Entrepreneurship explores the processes, challenges, and strategies involved in creating and managing new ventures across national borders. This course examines the entrepreneurial mindset within a global context, focusing on opportunity identification, business model adaptation, cross-cultural management, international market entry strategies, and resource acquisition. Through case studies and real-world examples, students will develop the skills required to navigate diverse regulatory and cultural environments, assess global markets, and leverage international networks to drive business growth and innovation.
Recommended Textbook
International Business The New Realities 4th Edition by S. Tamer Cavusgil
Available Study Resources on Quizplus
17 Chapters
1641 Verified Questions
1641 Flashcards
Source URL: https://quizplus.com/study-set/1449
Page 2
Chapter 1: Introduction: What Is International Business
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/28761
Sample Questions
Q1) One shareholder questioned the CEO's rationale for beginning an exploratory effort to establish a new manufacturing plant in India. The CEO responded by explaining that India was an untapped market with a high demand for products such as those produced by Sterling. His rationale represented an example of which of the following reasons for international expansion?
A)investing in a potentially rewarding relationship with a foreign partner
B)gaining access to lower-cost or better-value factors of production
C)seeking opportunities for growth through market diversification
D)better serving key customers that have relocated abroad
Answer: C
Q2) The world's largest MNEs are concentrated in emerging economies.
A)True
B)False Answer: False
Q3) Over the last few decades, export activity by nations has grown more quickly than has domestic production.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Globalization of Markets and the
Internationalization of the Firm
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/28762
Sample Questions
Q1) Market globalization compels firms to organize their sourcing, manufacturing, marketing, and other value-adding activities on a strictly local scale.
A)True
B)False
Answer: False
Q2) Which of the following statements most likely to counters Juan's argument concerning the homogenization of national cultures?
A)As globalization standardizes superficial aspects of life across national cultures, people resist these forces by insisting on their national identity and taking steps to protect it.
B)Foreign values tend to shift not just superficial aspects of culture, but deeply held beliefs as well.
C)Material goods such as cell phones and computers are found in most homes throughout the world.
D)In most industries, domestic operation alone cannot sustain competitive business growth.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: The Cultural Environment of International Business
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/28763
Sample Questions
Q1) Jordan is employed in an American investment firm and is currently working with some Japanese clients on a new project. He uses a lot of hand gestures during meetings which his clients find very distracting and rude. This has also led to many misunderstandings between Jordan and his Japanese clients in the recent past. Which of the following best describes such a situation?
A)risk aversion
B)organizational anarchy
C)cross-cultural risk
D)acculturation
Answer: C
Q2) ________ refers to the values, beliefs, customs, arts, and other products of human thought and work that characterize the people of a given society.
A)Ethnicity
B)Heritage
C)Culture
D)Race
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Ethics, Corporate Social Responsibility,
Sustainability and Corporate Governance
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/28764
Sample Questions
Q1) 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
Q2) The most advanced companies monitor suppliers to ensure that they use sustainable practices.
A)True
B)False
Q3) When using the five-step framework for making ethical decisions, which of the following steps involves investigating which individuals have a stake in the outcome?
A)examining the facts
B)implementing a decision
C)evaluating alternatives
D)identifying the ethical problem
Q4) In a short essay, explain the concept of CSR. List some typical CSR values.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Theories of International Trade and Investment
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/28765
Sample Questions
Q1) Which of the following is true with regard to competitive advantage?
A)Competitive advantages are typically derived from deliberate national policies.
B)A competitive advantage is difficult for competitors to imitate.
C)A competitive advantage is also known as a country-specific advantage.
D)Competitive advantage includes inherited resources, such as arable land.
Q2) Entrepreneurial orientation and availability of venture capital are examples of country-specific advantages .
A)True
B)False
Q3) According to the internationalization process model, a firm advances to the ________ stage by initiating limited international activity, typically in the form of basic exporting.
A)active involvement
B)experimental involvement
C)pre-export
D)domestic focus
Q4) In a short essay, explain mercantilism and the monopolistic advantage theory.
Q5) Distinguish between comparative and competitive advantages. Provide examples.
Q6) In a short essay, discuss the internalization theory. Provide examples.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Political and Legal Systems in National Environments
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/28766
Sample Questions
Q1) The World Bank is classified as a(n)________.
A)international organization
B)regional economic bloc
C)special interest group
D)competing firm
Q2) 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
Q3) Which of the following supports a decision in favor of Super Sports opening a store in Norway?
A)MNEs may transfer profits back to the home country without restriction.
B)The opening of warehouse-style stores requires the approval of local retailers.
C)Product injury cases generally rule in favor of plaintiffs regardless of evidence.
D)Advertising and marketing of particular products are banned under local distribution laws.
Q4) What is transparency? Explain how transparency varies around the world.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Government Intervention and Regional Economic Integration
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/28767
Sample Questions
Q1) 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
Q2) ________ represent a major driver of market globalization.
A)Continued reductions
B)Export controls
C)Import controls
D)Prohibitive tariffs
Q3) In 1938, the United States passed the Smoot-Hawley Tariff Act, which ________.
A)opened foreign markets for U.S. agricultural products
B)led to the consolidation of the U.S. banking system
C)instituted strict regulations to contain intellectual property theft
D)raised U.S. tariffs to near-record highs of more than 50 percent
Q4) In a short essay, explain how the GATT changed international trade.
Q5) Governments impose defensive barriers to ________.
A)generate tax revenues
B)increase employment
C)pursue strategic policy objectives
D)promote national security
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Understanding Emerging Markets
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/28768
Sample Questions
Q1) Counterfeiting is fairly uncommon in China, Indonesia, and Russia.
A)True
B)False
Q2) What leading advocate of microfinance was awarded the 2006 Nobel Peace Prize?
A)Muhammed Yunus
B)Bill Gates
C)Melinda Gates
D)Bill Clinton
Q3) The new global challengers have become formidable competitors primarily because ________.
A)of instant brand recognition
B)of the easy availability of low-cost labor, skilled workforces, government support, and family conglomerates
C)of superior market research and customer service
D)substantial government funding, high wages, and value-chain diversification
Q4) Increasingly, mainstream banks view microfinance as a source of future growth.
A)True
B)False
Q5) Write a short essay on technology and emerging markets.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The International Monetary and Financial Environment
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/28769
Sample Questions
Q1) The most universally accepted currencies for international business transactions are the British pound, European euro, Japanese yen, and U.S. dollar, which are all considered hard currencies.
A)True
B)False
Q2) Which of the following is the most likely underlying reason for the demise of the Bretton Woods system?
A)U)S. trade deficits
B)creation of the EU
C)gold depreciation
D)WTO restrictions
Q3) The largest proportion of government debt results from national pension and healthcare programs.
A)True
B)False
Q4) The 2008 global financial crisis began in the United States and quickly spread around the world.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Financial Management and Accounting in the Global Firm
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/28770
Sample Questions
Q1) Capital budgeting is intended to ________.
A)assist in the means by which subsidiaries and affiliates charge each other as they exchange goods and services
B)help managers decide which international projects provide the best financial return
C)defer payment for goods and services received from the parent firm
D)eliminate the need for international accounting experts
Q2) Economic exposure results from exchange-rate fluctuations that affect ________.
A)marketing strategies
B)tariffs and duties
C)brand personality
D)product pricing
Q3) All of the following are characteristic of the parent's perspective approach in capital budgeting EXCEPT that it ________.
A)estimates future cash flows from the project
B)uses the subsidiary's local currency
C)forecasts forward rates
D)uses the functional currency of the parent
Q4) Explain the differences between a forward contract and a futures contract.
Q5) Describe three methods used to transfer funds within an MNE.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Strategy and Organization in the International Firm
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/28771
Sample Questions
Q1) Describe four factors that might persuade a firm to become locally responsive in a nation where it conducts business.
Q2) In the ________ strategy, a firm views international business as separate from, and secondary to, its domestic business.
A)home replication
B)multilocal
C)global
D)transnational
Q3) Which of the following would exert pressure on a U.S.-based clothing company,
ZSource Ltd. , to become locally responsive?
A)to seek cost reduction through scale economies
B)to conduct global sourcing of raw materials, components, energy, and labor
C)to monitor and respond to global competitors
D)to meet host government requirements and regulations
Q4) Due to the competition involved in global industries, marketing strategies are determined by the unique needs and regulations of each nation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Global Market Opportunity Assessment
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/28772
Sample Questions
Q1) Born-global companies seldom venture into countries outside their comfort zone.
A)True
B)False
Q2) Which of the following will be accomplished by potential exporters who are involved in studying import statistics?
A)evaluating the political risk of different markets
B)estimating the profitability of domestic sales
C)predicting the culture risk of an emerging market
D)assessing a market's viability for accepting new sales
Q3) Products or services that are well-received at a firm's home country are more likely to be accepted in foreign countries as well.
A)True
B)False
Q4) CORE is a diagnostic tool mainly used by managers to choose qualified business partners.
A)True
B)False
Q5) Describe the variables used to identify the best markets for FDI entry. Which countries are popular for FDI entry? Why are they popular?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Exporting and Global Sourcing
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/28773
Sample Questions
Q1) Which of the following is most likely a disadvantage to firms who use exporting as an entry strategy?
A)high cost of foreign market entry
B)difficulties withdrawing from foreign markets
C)high risk of low sales due to fluctuations in exchange rates
D)high risk due to uncertainty in the political environment of the foreign market
Q2) The likelihood of a firm internalizing research and development instead of outsourcing it is low.
A)True
B)False
Q3) Which of the following questions must be evaluated by OTC managers as a first step to exporting?
A)What are the risks involved in exporting OTC towels to Earth Waves?
B)Do Canadian towel companies have a high success rate when they export?
C)Will OTC save money on domestic marketing by exporting?
D)How can OTC adapt its distribution strategy in Canada?
Q4) In a short essay, describe three key drivers responsible for the recent growth of global sourcing.
Q5) Distinguish between captive sourcing and contract manufacturing.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Foreign Direct Investment and Collaborative Ventures
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/28774
Sample Questions
Q1) The strategic purpose behind firms competing with rivals in their own market is to force them to expend resources and thus, defend the firm's own market.
A)True
B)False
Q2) Discuss three reasons for firms seeking new market opportunities. Illustrate each with an example of a firm that sought a new foreign market for that particular motive.
Q3) Explain why FDI is a particularly risky foreign entry strategy. How is FDI different from international portfolio investment?
Q4) Avoiding trade barriers is classified as a market-seeking motive for FDI.
A)True B)False
Q5) Equity joint ventures have the simplest management structure. A)True B)False
Q6) Discuss resource and asset-seeking motives for FDI. Why might a company favor acquisition over greenfield investment as an FDI approach?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Licensing, Franchising, and Other Contractual Strategies
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/28775
Sample Questions
Q1) A know-how agreement grants a firm permission to use another firm's proprietary names, characters, or logos for a specified period of time in exchange for a royalty.
A)True
B)False
Q2) The greatest amount of licensing occurs in the ________ industries.
A)pharmaceutical
B)music
C)toy
D)mining
Q3) In international leasing, a major advantage for the lessor is the ability to gain quick access to target markets, while putting assets to use earning profits.
A)True
B)False
Q4) Key challenges faced by the franchisee is the decreased likelihood of operating an independent business.
A)True
B)False
Q5) Describe the guidelines for protecting intellectual property.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Marketing in the Global Firm
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/28776
Sample Questions
Q1) ________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer's mind, emphasizing differences from competitors' offerings.
A)Positioning
B)Standardization
C)Diversifying
D)Adaptation
Q2) ________ is the process of dividing the firm's total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group.
A)Brand management
B)Customer relationship management
C)Market segmentation
D)Market diversification
Q3) Gray market activity often leads to enhanced brand equity.
A)True
B)False
Q4) Prices do not affect customers' perception of value.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Human Resource Management in the Global Firm
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/28777
Sample Questions
Q1) Which of the following most likely complicates international performance appraisals?
A)overproduction
B)distance from the headquarters
C)lack of general consensus among managers with regard to reward systems
D)cost of doing business abroad
Q2) Richard Johnson, an American citizen, is a senior manager in a telecom company based in Texas. He is currently posted in and works from the company's subsidiary in Uganda, Africa. Richard is a ________.
A)host-country national
B)parent-country national
C)third-country national
D)repatriate
Q3) Through labor relations, management and workers identify and determine job relationships that will apply in the workplace.
A)True
B)False
Q4) What are the principal characteristics of managers who are best suited to working in foreign environments?
To view all questions and flashcards with answers, click on the resource link above. Page 19