International Trade and Investment Exam Review
Course Introduction
International Trade and Investment explores the fundamental theories, policies, and practical aspects of the exchange of goods, services, and capital across borders. The course covers key concepts such as comparative advantage, trade barriers, trade agreements, foreign direct investment, and the roles of global institutions like the World Trade Organization (WTO) and International Monetary Fund (IMF). Students will examine how globalization affects economies, the impact of multinational corporations, and the political, economic, and legal factors influencing international trade and investment flows. Through case studies and current examples, the course prepares students to analyze global economic trends and assess strategies for businesses and policymakers in the international marketplace.
Recommended Textbook
International Business Opportunities and Challenges v2.0 by Mason A. Carpenter
Available Study Resources on Quizplus
15 Chapters
1488 Verified Questions
1488 Flashcards
Source URL: https://quizplus.com/study-set/2859
Page 2
Chapter 1: Introduction
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/56998
Sample Questions
Q1) Global business professionals conduct stakeholder analysis in order to understand the:
A)financial implications of conducting business in foreign countries.
B)strategies required to overcome political and legal barriers in business.
C)human capital skills required to face the challenges of a fast changing market.
D)impact of operations in different countries on the overall corporate strategy.
E)nature of the competition operating in the globalized market.
Answer: D
Q2) The government of any country is generally not considered to be a stakeholder in any business venture.
A)True
B)False
Answer: False
Q3) According to Thomas Friedman,the _____ stage of global development saw the introduction of modern communications and cheaper shipping costs.
Answer: second
Q4) The ____ stage of global development saw nations dominate global expansion.
Answer: first
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: International Trade and Foreign Direct Investment
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/56997
Sample Questions
Q1) The British colonial empire sought to increase its wealth by using raw materials from places ranging from what are now the Americas and India.
A)True
B)False
Answer: True
Q2) Outward FDI for a country:
A)are investments made by companies from a foreign country into the companies of that country.
B)are investments made by companies from that country into foreign companies in other countries.
C)refers to financial help to developing countries in environmental causes.
D)refers to financial help to boost the agricultural production of a country.
E)refers to financial and technical help to charitable organizations.
Answer: B
Q3) The _____ theory is based on a country's production factors,i.e.,land,labor,and capital,which provide the funds for investment in plants and equipment.
Answer: factor proportions
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Culture and Business
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/56996
Sample Questions
Q1) In individualistic cultures,_____ is counted as the most important attribute of an individual.
Answer: self-realization
Q2) In theory,most global firms have clear guidelines articulating antidiscrimination policies whereas in reality,they routinely self-censor.
A)True
B)False
Answer: True
Q3) Individualism refers to people's tendency to take care of themselves and their immediate circle of family and friends,perhaps at the expense of the overall society.
A)True
B)False
Answer: True
Q4) Culture awareness most commonly refers to having an understanding of the values and perspective of another _____.
Answer: culture
Q5) Ethical behavior refers to behavior that is generally accepted across cultures. Answer: Fals e
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: World Economies
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/56995
Sample Questions
Q1) The GDP per person adjusted for purchasing power helps professionals to evaluate what consumers in the local market can actually afford.
A)True
B)False
Q2) _____ refers to a market in which prices steadily drop,in a downward cycle.
A)Currency market
B)Bull market
C)Labor market
D)Commodity market
E)Bear market
Q3) Political unrest,poverty,and corruption remain persistent challenges to sustained and consistent economic growth in the African continent.
A)True
B)False
Q4) What are the observable changes in the South African business sector in the post-apartheid era?
Q5) There are two different HPI,one for developing countries (HPI-1) and another for a group of select _____ countries (HPI-2).
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Global and Regional Economic Cooperation and Integration
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/56994
Sample Questions
Q1) Intellectual property refers to:
A)the physical infrastructure of an organization.
B)the magazines and journals that are subscribed to by an organization.
C)the property acquired by an organization in case of a takeover.
D)the skilled manpower of an organization.
E)anything that a person or entity creates with the mind.
Q2) _____ are diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments,and are used to fund military action in opposition to those governments.
Q3) A country may resort to reducing the tax rates on its citizens in order to stimulate its economy.
A)True
B)False
Q4) What is the UN Global Compact?
Q5) The primary difference of the customs union from the free trade area is that members agree to treat trade with nonmember countries in a similar manner.
A)True
B)False
Q6) Explain GATS.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: International Monetary System
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/56993
Sample Questions
Q1) What were the advantages of the gold standard?
Q2) _____ refers to a situation when a currency's value increases or decreases based on demand and supply.
A)Float
B)Trade deficit
C)Exchange rate
D)Reserve currency
E)Bank reserve
Q3) Which of the following is true for the International Bank for Reconstruction and Development (IBRD)?
A)It disburses loans to countries with the purpose of building economies and reducing poverty.
B)It provides interest-free loans to countries with sovereign guarantees.
C)It facilitates sustainable development by improving investments in the private sector.
D)It focuses on improving the foreign direct investment of developing countries.
E)It provides a means for dispute resolution between governments and private investors with the end goal of enhancing the flow of capital.
Q4) A(n)_____ is an international monetary reserve asset of the IMF.
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Foreign Exchange and the Global Capital Markets
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/56992
Sample Questions
Q1) Currency option is a right but not a requirement and therefore parties in a currency option do not have to actually exchange the currencies if they choose not to.
A)True
B)False
Q2) The _____ is the mechanism in which currencies can be bought and sold.
Q3) A _____ is a bond that is sold simultaneously in several global financial centers and is denominated in one currency,usually U.S.dollars or euros.
A)Yankee bond
B)samurai bond
C)Eurobond
D)global bond
E)dragon bond
Q4) How do you differentiate between a futures contract and a forward contract?
Q5) What is venture capital (VC)?
Q6) _____ refers to the exchange rate between two currencies,neither of which is the official currency in the country in which the quote is provided.
Q7) The _____ method follows the American terms for noting the base and quoted currency.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: International Expansion and Global Market Opportunity Assessment
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/56991
Sample Questions
Q1) _____ refer to the forces of change whose direction and pace is largely unknown.
A)Uncertainties
B)Trends
C)Occurrences
D)Scenarios
E)Forecasts
Q2) The advantage of exporting is that firms avoid the expense of establishing operations in the new country.
A)True
B)False
Q3) Which of the following is an advantage of partnering and strategic alliance?
A)Lower cost than exporting,licensing,or franchising
B)High control over product quality,operating costs,and employees
C)Limited liability
D)Absence of integration problems between corporate cultures
E)Shared costs reduce investment needed
Q4) When entering a new market,the two typical dimensions of corporate fit are _____ and the firm's risk tolerance.
Q5) What are the key drivers of globalization?
Q6) What are the six basic steps of scenario planning? Page 10
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Exporting,Importing,and Global Sourcing
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/56990
Sample Questions
Q1) Most companies consider licensing to be a low-risk market-entry option because there is typically no upfront investment.
A)True
B)False
Q2) Under a licensing agreement,the multinational firm grants rights on its intangible property to a foreign company for a specified period of time.
A)True
B)False
Q3) What is a letter of credit?
Q4) _____ refers to the granting of permission by one party to another party to use intellectual property rights,such as trademarks,patents,brand names,or technology,to a foreign company under defined conditions along with providing a bundle of services and products.
A)Joint venture
B)Licensing
C)Leasing
D)Acquisition
E)Franchising
Q5) What are the two contractual modes of entry into a foreign country?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 10: Strategy and International Business
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/56989
Sample Questions
Q1) _____ refer(s) to how a firm will earn a profit; that is,how a firm will generate positive returns over and above its cost of capital.
A)Staging and pacing
B)Vehicle
C)Arenas
D)Economic logic
E)Differentiators
Q2) What is transnational strategy?
Q3) _____ are features and attributes of a company's product or service that helps it beat its competitors in the marketplace.
Q4) Which of the following are what drive potential customers to choose one firm's offerings over those of competitors?
A)Differentiators
B)Arenas
C)Economic logic
D)Staging and pacing
E)Mission statement
Q5) _____ involves organizing jobs so that each position makes productive use of an individual's talents.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Global Entrepreneurship and Intrapreneurship
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/56988
Sample Questions
Q1) _____ refer(s) to a system that ranks nations quantitatively according to a weighted index of 12 assessed pillars.
A)Index of Economic Freedom
B)Global Entrepreneurship Monitor
C)Doing Business Index
D)The World Bank Doing Business Reports
E)Global Competitiveness Index
Q2) Opportunity identification does not form a part of the entrepreneurial process.
A)True
B)False
Q3) A local dry cleaner has been through four different owners and provides dry cleaning facilities to customers in a particular locality.The current owner would be considered an entrepreneur.
A)True
B)False
Q4) The _____ approach is one form of organizational intrapreneurship in which the firm sets up an internal new-venture division.
Q5) _____ indicators measure how long it takes to complete a regulatory goal.
Q6) What methods are used by organizations to foster intrapreneurship?
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Winning Through Effective,global Talent Management
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/56987
Sample Questions
Q1) Typical ratios associated with strategic metrics include the training cost factor and training cost percentage.
A)True
B)False
Q2) The questions as to whether the right employees are being trained and whether they're remembering and using what they learned are part of the _____ metrics.
Q3) The employee-performance aspects of the Balanced Scorecard analyze employee capabilities,satisfaction,retention,and productivity.
A)True
B)False
Q4) _____ refers to the process of combining tasks to form a whole job while taking into account issues of worker health and safety.
A)Job factor
B)Job selection
C)Job description
D)Job evaluation
E)Job design
Q5) Explain pay for performance.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: Harnessing the Engine of Global Innovation
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/56986
Sample Questions
Q1) Which of the following statements holds true for the concept,"bottom of the pyramid (BOP)" as defined by professors C.K.Prahalad and Stuart L.Hart?
A)It represents the four billion to five billion people who form a part of the lowest economic strata in the developed economies.
B)It represents the four billion to five billion people for whom the availability of electricity,telephones,credit,refrigeration,and other such amenities are guaranteed by their respective governments.
C)It represents the four billion to five billion people living on less than $2 per day,typically in emerging economies.
D)It represents the four billion to five billion people of the third world countries who have been subject to political persecution.
E)It represents the four billion to five billion people constituting the persecuted ethnic minority groups of Eastern Europe.
Q2) A(n) _____ prohibits other people from selling the identical product built in the same way as a product protected by intellectual property rights law.
Q3) What role can governments play in promoting R&D?
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 14: Competing Effectively Through Global
Marketing, Distribution, and Supply-Chain Management
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/56985
Sample Questions
Q1) Total Quality Management (TQM) refers to a set of management practices which focuses on:
A)monitoring and controlling a process to ensure that it operates at its full potential.
B)increasing quality and reducing errors in production or service delivery.
C)management principles that focus on modifying the quality of the product to suit local affordability.
D)improving a business' return on investment by reducing in-process inventory and associated carrying costs.
E)creating new products for developing countries using totally new and innovative processes.
Q2) What location strategies are followed by companies when they decide to produce products for the international markets?
Q3) One advantage of straight product extension is that the products may be less costly due to lower manufacturing and labour costs in the United States.
A)True
B)False
Q4) A(n) _____ means that there is no more stock of the company's product.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Understanding the Roles of Finance and Accounting in Global Competitive Advantage
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/56984
Sample Questions
Q1) Why do some firms choose a decentralized financial organization structure?
Q2) What are the advantages of centralized depositories?
Q3) The internal forward rate is a company-generated forecast of future spot-exchange rates.
A)True
B)False
Q4) Premium pricing,bank fees,and interest payments are costs associated with the current-rate method of foreign-currency translation.
A)True
B)False
Q5) What facts must be considered by an organization when using centralized depositories?
Q6) _____ is the risk of a change in the exchange rate that will adversely affect the company.
Q7) _____ refers to Islamic law which,in terms of finance,prohibits charging interest on money and other common business activities,including short selling.
Q9) What are the advantages of a fronting loan? Page 18
Q8) _____ refers to a country that has very advantageous (i.e.,low) corporate income taxes.
To view all questions and flashcards with answers, click on the resource link above.
Page 19