International Trade Study Guide Questions
Course Introduction
International Trade explores the theories, policies, and practical dynamics governing the exchange of goods and services across national borders. The course examines the rationale for trade, patterns of trade, and the effects of trade policies such as tariffs, quotas, and trade agreements. Students analyze how international trade impacts economic growth, income distribution, and development, while also considering the roles of global organizations like the World Trade Organization (WTO). Through real-world examples and case studies, learners gain insights into the challenges and opportunities presented by globalization, trade negotiations, and contemporary issues such as trade wars and protectionism.
Recommended Textbook
International Business The Challenges of Globalization 9th Edition by John J. Wild
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16 Chapters
1650 Verified Questions
1650 Flashcards
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Chapter 1: Globalization
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) According to the opponents of globalization,which of the following occurs as a result of worker dislocation brought about by globalization?
A) increased labor costs for companies
B) lower workers' wages in developed nations
C) surfeit of jobs in developed nations
D) increased investment in individual education
Answer: B
Q2) The term "globalization of production" refers to convergence in buyer preferences in markets around the world.
A)True
B)False
Answer: False
Q3) International firms tend to support reasonable labor and environmental laws to expand future local markets for their businesses.
A)True
B)False
Answer: True
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Chapter 2: Cross-Cultural Business
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100 Flashcards
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Sample Questions
Q1) Sally,a social worker from the United States,has been stationed in Konesia for a year.She notices several things about the Konesian society; the people who report to her,for example,do so with an excessive amount of submissiveness,and her superior seems to expect the same of her.Which of the following statements about Konesia would be consistent with Hofstede's framework?
A) Konesians work best in an informal environment.
B) Konesia has a large power distance culture.
C) Konesian society is primarily individualistic.
D) Konesians derive power from their entrepreneurial drive.
Answer: B
Q2) Cultures isolated by topographical barriers are characterized by slower cultural change.
A)True
B)False
Answer: True
Q3) People in collectivistic cultures are more focused on the success of the organization.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Political Economy and Ethics
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) In a command economy,the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold are planned by ________.
A) government officials
B) private industries
C) individual entrepreneurs
D) local trade associations
Answer: A
Q2) Which of the following do governments impose upon people to help pay for the consequences of using a particular product?
A) income taxes
B) consumption taxes
C) property taxes
D) value-added taxes
Answer: B
Q3) Trademark protection typically lasts indefinitely,provided the word or symbol continues to be distinctive.
A)True
B)False
Answer: True
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Chapter 4: Economic Development of Nations
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86 Flashcards
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Sample Questions
Q1) Briefly explain each of the three main methods companies use to manage political risk.
Q2) One of the key obstacles faced by countries in economic transition is the lack of managerial expertise.
A)True
B)False
Q3) Which of the following challenges is Cleanshot most likely to face in Russia?
A) organized crime
B) too many competitors
C) low demand for the products of non-Russian companies
D) fading underground economy
Q4) Given the lack of available hard currency,Russian businesses often use goods and services as payment for other products they buy from abroad.This practice is referred to as ________.
A) letter of credit
B) fiat money
C) barter
D) guanxi
Q5) What is economic transition? Describe the obstacles that countries face during economic transition.
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Chapter 5: International Trade Theory
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Sample Questions
Q1) The ________ theory states that a country's export eventually becomes its import.
A) competitive advantage
B) factor proportions
C) international product life cycle
D) new trade
Q2) Describe the potential benefits of international trade.Why would a nation trading with a neo-mercantilist country be at a disadvantage?
Q3) The theories of comparative and absolute advantage assume that specialization in the production of one particular good results in efficiency gains.
A)True
B)False
Q4) Which of the following statements is incorrect with regard to the importance of colonies for mercantilist nations?
A) They served as sources of inexpensive raw materials.
B) They served as markets for higher-priced finished goods.
C) They served as a source of military protection.
D) They served as a source of profits for mercantilist powers.
Q5) Discuss the dangers of trade dependency.
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Chapter 6: Political Economy of Trade
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) A country imposes a tariff on goods that it sells abroad at the request of another nation.This is an example of a(n)________.
A) embargo
B) ad valorem tariff
C) compound tariff
D) voluntary export restraint
Q2) Which of the following is an example of a dual use product?
A) a blowdryer
B) a GPS navigation device
C) a food processor
D) a vacuum cleaner
Q3) Nations often restrict trade in goods and services to achieve cultural objectives,the most common being protection of national identity.
A)True
B)False
Q4) When a company exports a product at a price lower than the price normally charged in its domestic market,it is said to be dumping.
A)True
B)False
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Chapter 7: Foreign Direct Investment
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) The soaring cost of developing subsequent stages of technology has led multinationals to engage in cross-border alliances and acquisitions.
A)True
B)False
Q2) If Happyland is successful in attracting foreign direct investment,transactions involving those investments would appear in the country's ________ account.
A) capital
B) services
C) income payments
D) merchandise
Q3) The possibility that a company will create a future competitor by charging another company for access to its knowledge is a(n)________ that can encourage FDI.
A) ownership advantage
B) internalization advantage
C) market imperfection
D) trade barrier
Q4) Explain the various methods that host countries use to restrict and promote foreign direct investment.
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Page 9
Chapter 8: Regional Economic Integration
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) Which of the following is currently a member of the European Free Trade Association?
A) Slovakia
B) Ireland
C) Norway
D) Italy
Q2) The regional trading bloc that Zucoland will be joining is most likely a(n)________.
A) economic union
B) free trade area
C) customs union
D) political union
Q3) In a(n)________,members eliminate internal trade barriers,adopt a common external policy toward nonmembers,and eliminate barriers to the movement of the factors of production.
A) free trade area
B) customs union
C) common market
D) economic union
Q4) Describe the Association of Southeast Asian Nations (ASEAN).
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Page 10
Chapter 9: International Financial Markets
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) ________ are usually located on small island nations or territories with favorable tax and/or secrecy laws.
A) Cybermarkets
B) Over-the-counter markets
C) Booking centers
D) Operational centers
Q2) Which of the following is true about a quote of ¥117.87/$?
A) It is equal to $.008484/¥.
B) The quote is in U.S. dollars.
C) This is an indirect quote on the yen.
D) It costs a little more than a dollar to buy one yen.
Q3) Companies use interest arbitrage to find better interest rates abroad than those that are available in their home countries.
A)True
B)False
Q4) Booking centers are usually located on small territories with high taxes and/or secrecy laws.
A)True
B)False
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Chapter 10: International Monetary System
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Sample Questions
Q1) The exchange rate at the beginning of a year between the Indian Rupee (R)and the U.S.dollar is R43.125/$.The annual inflation rates in India and in the United States are 19 percent and 3 percent respectively.What would be the new exchange rate at the end of the year?
A) R49.8224/$
B) R37.327/$
C) R0.0267/$
D) $37.327/R
Q2) The lowering of the value of a currency by a nation's government is called
A) devaluation
B) securitization
C) fundamental disequilibrium
D) currency hedging
Q3) The gold standard is a ________ because it secured nations' currencies to the value of gold.
A) floating exchange-rate system
B) fixed exchange-rate system
C) linked exchange-rate system
D) free float system
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Chapter 11: International Strategy and Organization
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112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/40410
Sample Questions
Q1) Companies involved in more than one line of business must first formulate a ________ strategy.
A) business-level
B) department-level
C) corporate-level
D) global-level
Q2) Free-market economies tend to levy high taxes on business profits whereas socialist economic systems normally levy lighter taxes.
A)True
B)False
Q3) The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.
A) grapevine communication
B) symbolic interactionism
C) value chain
D) chains of command
Q4) The scope of a corporation's operations refers to the size of its operations.
A)True
B)False
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Chapter 12: Analyzing International Opportunities
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Which of the following stages of the market-screening process would require John to visit a potential market personally?
A) assessment of the national business environment
B) selection of the market
C) identification of the basic appeal for markets
D) measurement of market potential
Q2) Countries differ significantly in their cultures,politics,laws,and economies.International managers must work to understand these differences and to incorporate their understanding into market- and site-selection decisions.Which of the following steps of the market screening process involves an evaluation of the government bureaucracy?
A) identification of basic appeal of a market
B) assessment of the national business environment
C) measurement of market or site potential
D) selection of the market or site
Q3) A typical industry analysis does not include the ________.
A) names, production volumes, and market shares of the largest competitors
B) structure of the wholesale and retail distribution networks
C) background on the market, including population figures and key social trends
D) history of currency fluctuations
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Chapter 13: Selecting and Managing Entry Modes
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106 Flashcards
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Sample Questions
Q1) Which of the following is an advantage of exporting?
A) vulnerability to tariffs
B) logistical complexities
C) potential conflicts with distributors
D) access to new markets
Q2) A time draft extends the period of time following delivery by which the importer must pay for goods.
A)True
B)False
Q3) Which of the following refers to the exchange of goods or services directly for other goods or services without the use of money?
A) offset
B) barter
C) counterpurchase
D) switch trading
Q4) Explain franchising with examples.Mention the advantages and disadvantages associated with franchising.How is franchising different from licensing?
Q5) What are the different financing methods available to exporters and importers?
Q6) What are the differences between a turnkey project and a strategic alliance?
Page 15
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Chapter 14: Developing and Marketing Products
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103 Verified Questions
103 Flashcards
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Sample Questions
Q1) A promotional strategy designed to create buyer demand that will encourage channel members to stock a company's product is called a ________.
A) pull strategy
B) push strategy
C) retrenchment strategy
D) stability strategy
Q2) A distribution channel in which a producer grants the right to sell its product to many resellers is referred to as a(n)________.
A) one-level channel
B) zero-level channel
C) exclusive channel
D) intensive channel
Q3) Which of the following communication strategies expands the same product into new target markets but alters its marketing promotion?
A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation
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Chapter 15: Managing International Operations
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following statements is true regarding the ISO 9000 standards?
A) They specify details on how companies should develop its quality processes.
B) The standards are applicable to Asia exclusively.
C) ISO 9000 is a certification that companies get for their environment-friendly initiatives.
D) The standards require each company to define and document its own quality processes.
Q2) Debt appeals to companies because it lowers the amount of taxes the companies must pay.
A)True
B)False
Q3) Which of the following processes will a computer assembling firm engage in if it decides to manufacture its own monitors and printers?
A) outsourcing
B) vertical integration
C) niche marketing
D) lean production
Q4) Discuss why companies strive toward quality improvement and the two methods of doing so.
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Chapter 16: Hiring and Managing Employees
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102 Flashcards
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Sample Questions
Q1) Describe the differences between human resource management in a domestic setting and an international setting,and explain the three phases of human resources planning.
Q2) What challenges do international labor unions face as they try to accomplish their objectives?
Q3) Discuss the disadvantages of an ethnocentric staffing policy.How do bonuses,tax incentives,and employee expectations contribute to high personnel costs?
Q4) Expatriate failure refers to an employee's early return from an international assignment because of inadequate job performance.
A)True
B)False
Q5) The process of staffing a company and ensuring employees are as productive as possible is called human resource management.
A)True
B)False
Q6) Differentiate between the three types of staffing policies used by international companies.What are the advantages of each?
Q7) What factors influence the wages of non-managerial workers?
Page 18
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