International Management
Midterm Exam
Course Introduction
International Management explores the strategies, operations, and challenges faced by organizations operating across national borders. The course examines key topics such as cross-cultural communication, global leadership, international market entry, and the complexities of managing a multinational workforce. Students will analyze how institutional, economic, and legal differences influence management practices worldwide, and will develop the skills necessary to formulate effective strategies for businesses in a globalized environment. Through case studies and real-world examples, the course prepares students to navigate the dynamic and interconnected nature of international business.
Recommended Textbook
International Business The Challenges of Globalization 5th Edition by John J. Wild
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16 Chapters
3050 Verified Questions
3050 Flashcards
Source URL: https://quizplus.com/study-set/2032
Page 2
Chapter 1: Globalization
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213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/40384
Sample Questions
Q1) The World Bank is an agency created to provide financing for national economic development efforts.
A)True
B)False
Answer: True
Q2) A business that has direct investments abroad in multiple countries is called a multinational corporation (MNC).
A)True
B)False
Answer: True
Q3) In the debate over inequality, poor nations open to world trade and investment appear to grow faster than rich nations.
A)True
B)False
Answer: True
Q4) Globalization ________ argue that globalization and international outsourcing help to advance developing nations' economies.
Answer: supporters
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Page 3
Chapter 2: Cross-Cultrual Busines
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232 Verified Questions
232 Flashcards
Source URL: https://quizplus.com/quiz/40385
Sample Questions
Q1) ________ is the set of values, beliefs, rules and institutions held by a specific group of people.
Answer: Culture
Q2) Social structure has no effect on business decisions concerning the selection of a production site or advertising methods.
A)True
B)False
Answer: False
Q3) Isolated cultures are less exposed to the ________ of other peoples.
A) climates
B) cultural traits
C) lingua mokshas
D) ethnocentricities
Answer: B
Q4) Arab culture considers the left hand the "________" hand.
A) eating
B) writing
C) toilet
D) greeting
Answer: C
Page 4
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Chapter 3: Politics, Law, and Business Ethics
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218 Verified Questions
218 Flashcards
Source URL: https://quizplus.com/quiz/40386
Sample Questions
Q1) Which of the following tries to force change through fear and destruction of life or property?
A) Conflict
B) Kidnapping
C) Terrorism
D) Property seizure
Answer: C
Q2) Political relations among countries tend to have little impact on international business.
A)True
B)False
Answer: False
Q3) The U.S. legal system is based largely on ________.
A) common law
B) political law
C) civil law
D) theocratic law
Answer: A
Q4) ________ law is based on a detailed set of written rules and statutes.
Answer: Civil
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Chapter 4: Economic Systems and Development
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218 Verified Questions
218 Flashcards
Source URL: https://quizplus.com/quiz/40387
Sample Questions
Q1) ________ in a market economy gives individuals access to alternative purchase options.
Q2) If Sam selects France for his venture, he should know that France is a(n) ________.
A) emerging market
B) developing country
C) mixed economy
D) centrally planned economy
Q3) Laissez-faire economics called for greater government involvement in commerce.
A)True
B)False
Q4) What is economic transition? Describe the remaining obstacles that countries face in their economic transition.
Q5) If GDP per capita at PPP is lower in country X as compared with country Y, it costs more to buy the same basket of goods in country Y than it does in country X.
A)True
B)False
Q6) Countries with the greatest economic freedom tend to have the ________ standards of living.
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Chapter 5: International Trade
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179 Verified Questions
179 Flashcards
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Sample Questions
Q1) The ________ theory states that a nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade.
Q2) National competitive advantage theory considers a nation's resources (such as a large labor force, natural resources, and climate) to be advanced factors in a nation's competitive advantage.
A)True
B)False
Q3) The ________ theory destroys the mercantilist notion that international trade is a zero-sum game.
Q4) Two-way trade between high-income countries and low- and middle-income nations accounts for less than 1 percent of total world trade.
A)True
B)False
Q5) According to the theory of absolute advantage, because there are gains to be had by both countries involved in an exchange, international trade is a ________.
Q6) Compare and contrast the theories of absolute and comparative advantage.
Q7) Explain the effect of trade on developing and transition nations.
Q8) Trade in ________ makes up roughly 20 percent of total world trade.
Page 7
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Chapter 6: Business-Government Trade Relations
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194 Verified Questions
194 Flashcards
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Sample Questions
Q1) Countries normally self impose a(n) ________ in response to the threat of an import tariff or total ban on a product by an importing nation.
Q2) Industries considered essential to national security often receive government-sponsored protection.
A)True
B)False
Q3) A restriction on the amount of a good that can enter or leave a nation during a certain period of time is called a tariff.
A)True
B)False
Q4) A tariff levied by the government of a country that a product is passing through on its way to a final destination is called a ________ tariff.
A) transit
B) domestic
C) export
D) import
Q5) A product having both industrial and military applications is called a ________ product.
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Chapter 7: Foreign Direct Investment
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173 Verified Questions
173 Flashcards
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Sample Questions
Q1) The eclectic theory states that a company will begin by exporting its products and later undertake foreign direct investment as a product moves through its life cycle.
A)True
B)False
Q2) The ________ is a national account that records transactions involving the purchase or sale of assets.
Q3) A greenfield investment is ________.
A) an investment in Southeast Asia's former agricultural region
B) the building of a subsidiary abroad from the ground up
C) an investment in the United States by a non-U.S. company
D) the purchase of an existing business that is still in its infancy
Q4) Explain the methods of restricting and promoting foreign direct investment that home and host countries can use.
Q5) A potential problem with rationalized production is that ________.
A) it is highly inefficient
B) a work stoppage in one country can bring the entire production process to a standstill
C) unionization in one country affects operations in other countries
D) all of the above
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Chapter 8: Regional Economic Integration
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182 Verified Questions
182 Flashcards
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Sample Questions
Q1) The European Free Trade Association (EFTA) has been completely abolished in light of successful integration of the European Union.
A)True
B)False
Q2) A common market requires that member nations harmonize their tax, monetary, and fiscal policies, and that they create a common currency.
A)True
B)False
Q3) North America was about three decades behind Europe in taking major steps toward economic integration.
A)True
B)False
Q4) In 2006, the United States and six Central American nations established the CAFTA-DR, which stands for ________.
A) Coffee And Fruit Trade Agreement
B) Central Area For Trade Agreement
C) Central American Free Trade Agreement
D) Central Andes Fair Trade Area
Q5) Discuss the benefits and drawbacks of regional integration.
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Chapter 9: International Financial Markets
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195 Verified Questions
195 Flashcards
Source URL: https://quizplus.com/quiz/40392
Sample Questions
Q1) ABC Software has had difficulty obtaining funds to expand and a friend of the CEO recommends the company explore an offshore financial center, which ________.
A) is a country or territory whose financial sector features very few regulations and few, if any, taxes
B) tends to be characterized by political and economic instability making them cheap, but risky sources of funds
C) typically lends money to companies that have had difficulty getting financing elsewhere because of poor credit records
D) is a financial center located in a resort community that is popular among financiers, and therefore allows companies seeking financing to make lucrative contacts
Q2) ________ refers to the shares of ownership in a company's assets that give shareholders a claim on the company's future cash flows.
Q3) The exchange rate at which two parties agree to exchange currencies on a specified future date is called the ________.
Q4) The world's three most important financial centers are ________.
Q5) Identify and discuss strategies for effective foreign exchange management.
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Chapter 10: International Money System
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182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/40393
Sample Questions
Q1) The United States was the first nation to implement the gold standard in the early 1700s.
A)True
B)False
Q2) To cool off an inflationary economy, a government might ________.
A) lower interest rates
B) raise interest rates
C) lower foreign exchange rates
D) raise foreign exchange rates
Q3) Explain the impact of interest rates on exchange rates and purchasing power.
Q4) Which of the following was created by the Bretton Woods Agreement to enforce the rules of the international monetary system?
A) International Monetary Fund (IMF)
B) International Bank for Reconstruction and Development (IBRD)
C) Special Drawing Rights (SDR)
D) World Bank
Q5) The ________ holds that prices of financial instruments do not reflect all publicly available information.
Q6) What was the significance of the Jamaica Agreement? Identify its key provisions.
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Q7) Today's international monetary system is considered a ________ float system.
Chapter 11: International Strategy and Organization
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199 Verified Questions
199 Flashcards
Source URL: https://quizplus.com/quiz/40394
Sample Questions
Q1) A main goal of the matrix structure is to bring together ________ and ________ in joint decision making.
Q2) A(n) ________ is an organizational structure that divides worldwide operations according to a company's product areas.
Q3) An architect's ability to design an office building in the Victorian style is an example of a(n) ________.
A) core competency
B) skill
C) ability
D) capability
Q4) Which of these is a primary activity in a company's value chain?
A) Infrastructure
B) Marketing and sales
C) Procurement
D) Human resource management
Q5) The key to developing an effective business-level strategy is deciding on a general competitive strategy in the marketplace.
A)True
B)False
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Chapter 12: Analyzing International Opportunities
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169 Verified Questions
169 Flashcards
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Sample Questions
Q1) When creating a market-potential indicator for an emerging market, the ________ variable reflects the fact that although overall size of the market is important, so too is its rate of growth.
A) market intensity
B) market consumption capacity
C) market receptivity
D) market growth rate
Q2) A(n) ________ is an international trip by government officials and businesspeople that is organized by agencies of national or provincial governments for the purpose of exploring international business opportunities.
Q3) The income elasticity of Zulu doll is determined in which step of the screening process?
A) Select the market
B) Assess the national business environment
C) Identify basic appeal
D) Measure market potential
Q4) When creating a market-potential indicator for an emerging market, ________ attempts to estimate the extent to which free-market principles predominate.
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Page 14
Chapter 13: Selecting and Managing Entry Modes
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212 Verified Questions
212 Flashcards
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Sample Questions
Q1) When one company sells to another its obligation to make a purchase in a given country, it is called ________.
A) counterpurchase
B) offset
C) switch trading
D) barter
Q2) A wholly owned subsidiary is a facility owned and controlled by a single parent company.
A)True
B)False
Q3) Management contracts are better than turnkey projects at allowing governments to obtain designs for infrastructure projects from the world's leading companies.
A)True
B)False
Q4) A freight forwarder is a specialist in export-related activities such as customs clearing, tariff schedules, and shipping and insurance fees.
A)True
B)False
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Page 15
Chapter 14: Developing and Marketing Products
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187 Verified Questions
187 Flashcards
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Sample Questions
Q1) An ________ channel gives producers a good deal of control over the sale of their product by channel members such as wholesalers and retailers.
A) exclusive
B) inclusive
C) extensive
D) intensive
Q2) Which of these methods adapts both the product and its marketing communication to suit the target market?
A) Product/communications extension
B) Product extension, communication adaptation
C) Product adaptation, communication extension
D) Product/communication adaptation
Q3) Lower levels of education and less buying experience mean consumers in developing countries are less likely to need protection.
A)True
B)False
Q4) Planning, implementing, and controlling the physical flow of a product from its point of origin to its point of consumption is called ________.
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Page 16
Chapter 15: Managing International Operations
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/40398
Sample Questions
Q1) American Depository Receipts (ADRs) are ________.
A) certificates that trade outside the U.S., but represent American companies
B) dollar deposits made by foreign firms doing business in the U.S.
C) certificates that trade in the U.S. and represent a specific number of shares of stock in a non-U.S. company
D) currency deposits made in the United States by non-U.S. firms
Q2) What roles do shipping and inventory costs play in a company's international logistics strategy?
Q3) Companies usually decide to divest when a market is experiencing rapid growth. A)True B)False
Q4) Describe the issues involved in the decision of how a company acquires raw materials and fixed assets.
Q5) The process by which a company extends its control over additional stages of production is called vertical integration.
A)True
B)False
Q6) The ________ of a company is the mix of equity, debt, and internally generated funds it uses to finance its activities.
Page 17
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Chapter 16: Hiring and Managing Employees
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157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/40399
Sample Questions
Q1) If Gem Jewels wants its employees to get "into the mind" of local people, they should provide which of these?
A) Language training
B) Sensitivity training
C) Cultural assimilation
D) Field experience
Q2) Explain the stages of culture shock. What steps can prospective expatriates take to reduce the burden of culture shock during an international assignment?
Q3) The psychological process of readapting to one's home culture is called ________.
Q4) Employees who are visiting another culture, walking the streets of its cities and villages and becoming absorbed by the culture for a short time are probably gaining ________.
Q5) Under a plan called ________, German workers have a direct say in the strategies and policies of their employers.
A) strategic direction
B) joint strategy
C) codetermination
D) worker input
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