International Entrepreneurship Question
Bank
Course Introduction
International Entrepreneurship explores the processes, strategies, and challenges involved in creating and managing entrepreneurial ventures across international borders. The course examines the dynamics of global markets, cross-cultural management, entry modes, and the influence of international economic, legal, and political environments on entrepreneurship. Students will analyze case studies of successful international startups, learn to identify and evaluate opportunities abroad, and develop skills necessary for launching and sustaining ventures in diverse international contexts. This course encourages innovative thinking and equips students with practical tools to navigate and succeed in the complex landscape of global entrepreneurship.
Recommended Textbook
International Business The New Realities 3rd Edition by S. Tamer Cavusgil
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Page 2
Chapter 1: Introduction: What Is International Business
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Sample Questions
Q1) MNEs with extensive international operations tend to focus mainly on downstream activities such as marketing in foreign countries.
A)True
B)False
Answer: False
Q2) Which of the following best explains why the Japanese firm Canon relocated much of its production to China?
A) low-cost financial capital
B) low-cost labor
C) access to raw materials
D) lack of skilled managerial talent in home country
Answer: B
Q3) Services are the fastest growing sector in international trade.
A)True
B)False
Answer: True
Q4) International business is primarily the domain of large, resourceful firms.
A)True
B)False
Answer: False
Page 3
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Chapter 2: Globalization of Markets and the
Internationalization of the Firm
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Sample Questions
Q1) Firms expand abroad solely as a reaction to market globalization.
A)True
B)False Answer: False
Q2) An underground economy ________.
A) refers to the informal economic sector
B) refers to the formal economic sector
C) is characterized by dominantly legal transactions
D) is regulated and monitored by public authorities
Answer: A
Q3) The globalization of capital refers to the aggregate activities of firms that gives rise to economic integration.
A)True
B)False
Answer: False
Q4) Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages.
A)True
B)False Answer: True
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Chapter 3: Organizational Participants That Make
International Business Happen
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Trading companies play an important role in Japan's external trade because Japan
A) manufactures technological devices
B) has few natural resources
C) has a steadily rising population
D) has a high average per-capita income
Answer: B
Q2) A focal firm that creates and owns a new legal entity through equity investment or pooling of assets is called a(n) ________.
A) project-based partner
B) joint venture partner
C) build-own-transfer venture
D) nonequity venture partner
Answer: B
Q3) Focal firms can be analyzed in terms of the entry strategies they use to expand abroad.
A)True
B)False
Answer: True
Page 5
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Chapter 4: The Cultural Environment of International Business
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Sample Questions
Q1) Acculturation is defined as the process of ________.
A) segregating ethnic minorities by distinct groups
B) adjusting and adapting to a culture other than one's own
C) learning the behavioral patterns and rules of one's own society
D) forcing minority cultures to adopt the values of the dominant culture
Q2) Which of the following refers to the extent to which people can tolerate risk in their lives?
A) uncertainty avoidance
B) long-term versus short-term orientation
C) power distance
D) individualism
Q3) ________ are letters, figures, colors, or other characters that communicate a meaning.
A) Rituals
B) Symbols
C) Norms
D) Customs
Q4) In a short essay, describe some of the subtleties of language. Provide examples that relate to international business situations.
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Chapter 5: Ethics and International Business
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Sample Questions
Q1) Which of the following is true of a good code of conduct?
A) It guides employee behavior in all situations.
B) It does not define the values and principles that are intended to guide organizational decision making.
C) It emphasizes profit over righteousness.
D) It is a cure for all ethical dilemmas.
Q2) Which of the following countries have the LEAST corruption?
A) Mexico
B) Philippines
C) Russia
D) Denmark
Q3) In a short essay, explain the five-step framework for making ethical decisions. Provide an example of how the framework can help managers resolve ethical dilemmas.
Q4) According to the framework for arriving at ethical decisions, a course of action must be identified as soon as the ethical problem is detected.
A)True
B)False
Q5) In a short essay, explain the value of CSR for businesses.
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Chapter 6: Theories of International Trade and Investment
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Sample Questions
Q1) Azure Inc. has established a domestic market in clothing and apparels in Thailand and has received orders from abroad. Currently, the firm is investigating the feasibility of undertaking international business. Azure is in the ________ stage of the internationalization process.
A) active involvement
B) experimental involvement
C) pre-export
D) committed involvement
Q2) In a short essay, explain mercantilism and the monopolistic advantage theory.
Q3) In which of the following stages of the internationalization process is a firm preoccupied with business in its home market?
A) domestic focus
B) experimental involvement
C) active involvement
D) pre-export
Q4) Relative efficiency of production refers to the total value of assets that MNEs own abroad via their investment activities.
A)True
B)False
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Chapter 7: Political and Legal Systems in National Environments
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Sample Questions
Q1) Which of the following countries would Representative A most likely be from?
A) Denmark
B) Zimbabwe
C) Sweden
D) Australia
Q2) Both common law and civil law systems originated in ________.
A) eastern Europe
B) western Europe
C) western Asia
D) eastern Asia
Q3) Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.
A)True
B)False
Q4) 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.
Q5) Explain command economies. Provide examples of nations that exhibit characteristics of command economies and why command economies are no longer common today.
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Chapter 8: Government Intervention in International Business
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Sample Questions
Q1) Which of the following countries has the lowest degree of economic freedom?
A) South Korea
B) Mexico
C) North Korea
D) Botswana
Q2) Governments impose defensive barriers to ________.
A) generate tax revenues
B) increase employment
C) pursue strategic policy objectives
D) promote national security
Q3) Which of the following countries has the highest degree of economic freedom?
A) Australia
B) China
C) Brazil
D) Venezuela
Q4) FDI and ownership restrictions increase the competitive advantage of foreigners while diminishing that of the local firms.
A)True
B)False
Q5) In a short essay, explain how the GATT changed international trade.
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Chapter 9: Regional Economic Integration
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Sample Questions
Q1) Which of the following has the longest experience with regional integration?
A) the United States of America
B) Asia
C) Europe
D) the Middle East
Q2) Which of the following statements best supports using a supplier from Paraguay over a supplier from Mexico or China?
A) Material sourced from Paraguay is of better quality compared to the ones sourced from Mexico or China.
B) Material sourced from Paraguay is more durable compared to the ones sourced from Mexico or China.
C) As a member of a trade bloc, it is expected that Bravo resort to trade diversion, even if Mexico and China provide better materials at lower costs.
D) Bravo could avoid tariffs because Paraguay is a member of MERCOSUR.
Q3) Which of the following economic blocs includes Switzerland as a member country?
A) EU
B) EFTA
C) CAN
D) APEC
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Page 11
Chapter 10: Understanding Emerging Markets
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Sample Questions
Q1) 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
Q2) Microfinance provides large-scale financial services mainly to global conglomerates.
A)True
B)False
Q3) Which of the following emerging market economies has the lowest middle-class population?
A) Indonesia
B) Thailand
C) China
D) India
Q4) Africa's GDP has improved substantially since the 1960s.
A)True
B)False
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Chapter 11: The International Monetary and Financial Environment
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Sample Questions
Q1) Which of the following resolves the problem of making international payments and facilitates international investment and borrowing among firms, banks, and governments?
A) foreign exchange
B) barter
C) capital flight
D) buyback
Q2) An increase in a nation's rate of inflation is caused by an oversupply of money and this eventually leads to a decrease in the value of the nation's currency.
A)True
B)False
Q3) Which of the following statements is true about currencies?
A) The British pound is an example of a nonconvertible currency.
B) Hard currencies are highly unstable currencies.
C) Currencies that are used for international transactions are called nonconvertible.
D) Convertible currencies can be readily exchanged for other currencies.
Q4) Explain the duties of central banks. How do central banks, such as the Federal Reserve, implement national monetary policies?
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Chapter 12: Strategy and Organization in the International Firm
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Sample Questions
Q1) When using a home replication strategy, firms delegate autonomy to managers in each foreign unit, allowing them to operate independently and pursue local responsiveness.
A)True
B)False
Q2) Which of the following strengthens the decision by Quik Meal executives to centralize operations?
A) Quik Meal offers five different flavors of energy gels for athletes.
B) Quik Meal executives report a steady rate of sales in the U.S. market.
C) Quik Meal country managers report few requests to alter product ingredients.
D) Quik Meal products use the same trademark and packaging in every country.
Q3) Discuss the factors relevant to a firm's decision to centralize or decentralize foreign operations.
Q4) Discuss the advantages and implementation of a transnational strategy, and explain why this strategy is closely associated with a global matrix structure.
Q5) An export department structure requires considerable resource commitment.
A)True B)False
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Chapter 13: Global Market Opportunity Assessment
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Sample Questions
Q1) Describe the variables used to identify the best markets for FDI entry. Which countries are popular for FDI entry? Why are they popular?
Q2) The "BRIC" countries show the least potential as target markets in the near future.
A)True
B)False
Q3) Discuss four macroeconomic trends that have the potential to significantly alter the current status of international business and trade.
Q4) Describe the two methods typically used to screen potential foreign markets for exporting: gradual elimination and indexing and ranking.
Q5) Trade audits may provide managers insight regarding ________.
A) manufacturing cost estimates
B) company employee opinions
C) competitors' offerings and pricing
D) market fluctuation tendencies
Q6) Explain the concept of a global market opportunity, and discuss the key questions to assess a firm's organizational readiness to pursue global market opportunities.
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15
Chapter 14: Exporting and Countertrade
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Sample Questions
Q1) Incoterms are universally accepted terms of sale that specify how the buyer and the seller share the cost of freight and insurance in an international transaction and at which point the buyer takes title to the goods.
A)True
B)False
Q2) Exporting is ________.
A) the procurement of products or services from independent suppliers or company-owned subsidiaries located abroad for consumption in the home country or a third country
B) the procurement of selected value-chain activities, including production of intermediate goods or finished products, from independent suppliers
C) the transfer of state-owned industries to private concerns
D) the strategy of producing products or services in one country (often the producer's home country), and selling and distributing them to customers located in other countries
Q3) Export Development Corporation is an example of a government assistance program in India.
A)True
B)False
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Page 16
Chapter 15: Foreign Direct Investment and Collaborative Ventures
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Sample Questions
Q1) A(n) ________ is the purchase of an existing company or facility.
A) greenfield investment
B) outsourcing arrangement
C) acquisition
D) offshoring arrangement
Q2) Describe the four primary barriers faced by retailers attempting to duplicate domestic success in international markets. Provide examples of mistakes made by U.S. retailers in foreign markets.
Q3) Which of the following questions would most likely be important for ABC managers to evaluate as they consider expanding into the Asian market?
A) What U.S. firms have successfully partnered with Asian companies?
B) Where will ABC management locate the staff needed to oversee an Asian plant?
C) How much control does ABC management want to have over their Asian operations?
D) What are the pricing strategies followed by competitor firms in Asia?
Q4) Using individual managers in each European country is more efficient that using the same base of managers all over Europe.
A)True
B)False
Page 17
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Chapter 16: Licensing, Franchising, and Other Contractual Strategies
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Sample Questions
Q1) The greatest amount of licensing occurs in the ________ industries.
A) pharmaceutical
B) music
C) toy
D) mining
Q2) When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as ________.
A) industrial design rights
B) franchising
C) joint venture
D) equity venture
Q3) Which of the following is an advantage of franchising to the franchisor?
A) It is easier to maintain control over a franchisee.
B) It is a low-risk, low-cost entry strategy.
C) There is seldom any risk of franchisees becoming future competitors.
D) There is seldom requirement for the franchisor to become familiar with foreign laws and regulations.
Q4) Compare and contrast licensing and franchising as foreign market entry strategies.
Why is franchising a more comprehensive strategy?
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Chapter 17: Global Sourcing
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Sample Questions
Q1) Industries that benefit the most from global sourcing are characterized by low labor intensity in product and service production.
A)True
B)False
Q2) Which of the following would most likely be considered by the consultants while deciding whether to keep each value-adding activity in the home country or locate it in a foreign country?
A) Who will be responsible for training suppliers in foreign locations?
B) Can different value-adding activities be effectively configured across the world?
C) Would the HR department of Fun Play be able to ensure smooth repatriation for managers after they complete their assignments abroad?
D) What is the odds in favor of Fun Play's dominating the children's toy segment in its home country?
Q3) In a short essay, discuss three advantages and three disadvantages of China as a location for global sourcing.
Q4) In a short essay, explain how global sourcing can affect home-country employees.
Q5) Distinguish between captive sourcing and contract manufacturing.
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Page 19
Chapter 18: Marketing in the Global Firm
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Sample Questions
Q1) Which of the following would most likely be a result of increased standardization of Cold-Aire refrigerators?
A) Cold-Aire would stop exporting refrigerators completely.
B) Cold-Aire would open a facility to produce customized refrigerator models.
C) Cold-Aire would implement a uniform international marketing campaign.
D) Cold-Aire would hire fewer workers and pay lower wages.
Q2) Before developing a print media campaign, which of the following must the marketing department of Quik-Vac determine about the company's target market?
A) the number of homes with TVs
B) the percentage of people owning radios
C) the number of global ad agencies in the target market
D) the literacy rate among the target population
Q3) Which of the following refers to an advantage of firms that enter new markets through FDI?
A) low employee attrition
B) minimal competition from other players in the market
C) direct selling of products to consumers through the Internet
D) control over pricing strategy
Q4) Briefly discuss the principal advantages of standardization.
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Chapter 19: Human Resource Management in the Global Firm
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Sample Questions
Q1) Firms prefer HCNs when ________.
A) the host country environment is complex
B) the host country has no specialized knowledge to share
C) the parent country is keen on maintaining full control over foreign operations
D) managers located in the headquarters adopt a dominantly ethnocentric approach to hiring
Q2) Which of the following employees is most likely a third-country national?
A) Raj Patel
B) Marcus Field
C) Shelly Eaton
D) Keiko Tran
Q3) Which of the following best describes an expatriate?
A) an employee who is assigned to live and work in a foreign country for an extended period
B) an employee who returns to his home country after a foreign assignment
C) an employee hired on a temporary basis by an MNE
D) an employee who is a host-country national
Q4) Why are taxes a concern for expatriates? Discuss how firms and governments often handle tax issues for employees working abroad.
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Chapter 20: Financial Management and Accounting in the Global Firm
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Sample Questions
Q1) Net working capital is ________.
A) the combined total of a firm's equity capital and net losses
B) the difference between a firm's current assets and current liabilities
C) the difference between a firm's expected profits and current debts
D) any currency deposited in a bank outside its country of origin
Q2) Which of the following statements is true of the Export Import Bank?
A) It is an international agency run by the WTO that provides capital to firms from emerging and developing economies.
B) It is a U.S. federal agency that provides direct loans to SMEs unable to raise money from other sources.
C) It is a branch of the EU that provides working capital loans to SMEs that are based in the economic bloc.
D) It is a privately owned bank that offers high interest loans to international firms with poor credit ratings.
Q3) The NYSE Euronext and the NASDAQ Stock Market are the largest in terms of volumes of shares traded.
A)True
B)False
Q4) Describe three methods used to transfer funds within an MNE.
Page 22
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