Introduction to International Business Review Questions
Course Introduction
Introduction to International Business provides students with a comprehensive overview of how businesses operate in a global environment. The course examines the economic, cultural, legal, and political factors that influence international trade and investment. Topics include globalization, international market entry strategies, foreign direct investment, cross-cultural management, global supply chains, and the impact of international organizations. Through case studies and real-world examples, students gain insight into the opportunities and challenges companies face when expanding beyond domestic markets, preparing them to understand and navigate the complexities of global business operations.
Recommended Textbook
International Business 7th Edition by
Ricky W. Griffin
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19 Chapters
2470 Verified Questions
2470 Flashcards
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Page 2
Chapter 1: An Overview of International Business
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Sample Questions
Q1) The World Trade Organization is the successor to the General Agreement on Tariffs and Trade.
A)True
B)False
Answer: True
Q2) A manager who has cultural literacy can most likely ________.
A) speak and read in more than one language
B) recognize the similarities and differences of cultures
C) develop accurate cultural assessments of foreign colleagues
D) function as an expatriate manager in multiple foreign locations
Answer: B
Q3) In which country is AG used to indicate that a business has limited liability?
A) Germany
B) Sweden
C) Mexico
D) Japan
Answer: A
Q4) Into what two categories can international investments be divided?
Answer: International investments can be divided into portfolio investments and foreign direct investments.
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Chapter 2: Global Marketplaces and Business Centers
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Sample Questions
Q1) The Four Tigers refers to the countries listed below except ________.
A) South Korea
B) Indonesia
C) Taiwan
D) Singapore
Answer: B
Q2) Which EU country has drawn criticism for promoting an agenda of economic nationalism, and in particular, for protecting its farmers under the guise of the Common Agricultural Policy?
A) Germany
B) France
C) Italy
D) Spain
Answer: B
Q3) Japan's remarkable growth rate has continued into the twenty-first century.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Legal, Technological, Accounting, and Political Environments
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Sample Questions
Q1) ________ operates under bureaucratic law.
A) England
B) Mexico
C) Iran
D) China
Answer: D
Q2) What was the key to the transition from communism to capitalism for Hungary and Poland?
A) technology transfer from FDI
B) investment in infrastructure
C) the adoption of the euro
D) low-cost labor forces
Answer: A
Q3) What is forum shopping? Why do you think forum shopping puts American companies at a disadvantage?
Answer: Forum shopping is the process whereby international businesses seek to have disputes heard in the court system most favorable to its own interests. Because monetary awards are higher in the U.S. courts, American companies may be at a disadvantage in this process.
Page 5
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Chapter 4: The Role of Culture
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Sample Questions
Q1) Movies that are successful in the United States and the United Kingdom are generally successful in other developed markets such as Japan and India.
A)True
B)False
Q2) What are the four characteristics of culture? How can an international manager adapt to a culture and develop cross-cultural literacy?
Q3) Family is more important to business in the U.S. than it is in China.
A)True
B)False
Q4) Identify five forms of nonverbal communication. Why are nonverbal forms of communication important in international business?
Q5) Communication senders and receivers from different cultures use ________ to encode or decode the message.
A) perceptions
B) cultural filters
C) written tools
D) media
Q6) Discuss the cultural cluster approach to making sense of national cultures.
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Chapter 5: Ethics and Social Responsibility in International Business
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Sample Questions
Q1) Accepting gifts in a business relationship is unethical behavior in any country.
A)True
B)False
Q2) ________ are the things a person feels to be important.
A) Values
B) Ethics
C) Norms
D) Expectations
Q3) The extent to which an organization conforms to regional, national, and international laws is known as ________.
A) guanxi
B) legal compliance
C) ethical compliance
D) whistle-blowing
Q4) Companies that are socially responsible to their investors do all of the following except ________.
A) provide appropriate information to shareholders and investors
B) manage the organization to protect shareholder rights
C) adhere to appropriate accounting procedures
D) manipulate stock prices
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Chapter 6: International Trade and Investment
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Sample Questions
Q1) Which of the following was determined by Leontief?
A) U.S. exports were less capital intensive than imports.
B) U.S. exports were more capital intensive than imports.
C) Relative factor endowments were not a factor in determining trade patterns.
D) Specialization was not a factor in determining imports and exports.
Q2) Which type of investment involves the acquisition of foreign assets for the purpose of controlling them?
A) Foreign direct investment
B) Foreign portfolio investment
C) Capital investment
D) Controlling ownership
Q3) During which century were the first theories of international trade developed?
A) sixteenth
B) seventeenth
C) eighteenth
D) nineteenth
Q4) Briefly explain the connection between transaction costs and internalization theory.
Q5) Explain the three stages in the international product life cycle theory.
Q6) Which trade theory is best at explaining trade in differentiated goods?
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Chapter 7: The International Monetary System and the Balance of Payments
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Sample Questions
Q1) What is the official settlements balance?
Q2) How was the Bretton Woods system beneficial for international firms? Does the IMF benefit international firms? Why or why not?
Q3) Under the Bretton Woods system, all countries agreed to peg the value of their currency to the U.S. dollar.
A)True
B)False
Q4) Because countries pegged their currencies to gold, the gold standard was a fixed exchange rate system.
A)True
B)False
Q5) The ________ refers to an international monetary system in which countries agreed to buy or sell their paper currencies in exchange for gold on the request of any individual or firm and to allow the free export of gold.
A) foreign exchange system
B) free market system
C) gold standard
D) mercantilism
Q6) What was the Baker Plan?
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Chapter 8: Foreign Exchange and International Financial Markets
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Sample Questions
Q1) Why does arbitrage most likely exist?
Q2) ________ focus on offering banking and other financial services to nonresident customers.
A) Subsidiary banks
B) Branch banks
C) Affiliated banks
D) Offshore financial centers
Q3) Spot transactions account for about two-thirds of all foreign exchange transactions.
A)True
B)False
Q4) Explain the theory of purchasing power parity. How does it affect arbitrage?
Q5) Currency futures represent only 1 percent of the foreign-exchange market.
A)True
B)False
Q6) Euroloans are quotes at which of the following rates?
A) LIBOR
B) the euro rate
C) prime plus 2 percent
D) prime plus .5 percent
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Chapter 9: Formulation of National Trade Policies
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Sample Questions
Q1) What is the national defense argument for protectionism?
Q2) For which industry did Alexander Hamilton propose the infant industry argument?
A) manufacturing
B) electronics
C) merchant marine
D) farming
Q3) Which of the following tariffs is not an import tariff?
A) transit tariff
B) ad valorem tariff
C) specific tariff
D) compound tariff
Q4) How is a countervailing duty determined?
Q5) What is a voluntary export restraint? Why would a VER be imposed?
Q6) A transit tariff is a form of import tariff.
A)True
B)False
Q7) What types of unfair trade practices do organizations like the International Trade Commission focus on?
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Q8) What types of regulatory controls can governments use to create nontariff barriers?
Chapter 10: International Cooperation Among Nations
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Sample Questions
Q1) The GATT rounds focused on decreasing ________.
A) dumping
B) trade tariffs
C) preferential treatment
D) domestic industry subsidies
Q2) What function is served by the European Commission?
A) executive
B) administrative
C) legislative
D) judicial
Q3) The Cassis de Dijon case brought about the concept of ________ among member nations in the EU.
A) harmonization
B) arbitration
C) mutual recognition
D) free movement of goods
Q4) What is a common market? What is the primary benefit of the common market to European firms and European workers?
Q5) What are the four organizations that govern the EU?
Q6) What is the most important characteristic of regional trading blocs?
Page 12
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Chapter 11: International Strategic Management
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Sample Questions
Q1) When managers develop, refine, and agree on which markets to enter or exit and how to best compete in each, the managers are engaged in the strategy ________ process.
A) development
B) formulation
C) implementation
D) evaluation
Q2) What is the purpose of conducting a SWOT analysis? As an international manager, how would you conduct a SWOT analysis? How would you use the gathered information?
Q3) A global firm's worldwide learning is most likely increased by ________.
A) economies of scope and scale
B) diverse operating environments
C) similar domestic experiences
D) stringent selection practices
Q4) When is a global strategy most appropriate?
Q5) A decentralized structure is ideal for transferring learning from one subsidiary to another.
A)True
B)False
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Chapter 12: Strategies for Analyzing and Entering Foreign Markets
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Sample Questions
Q1) Comtex, a U.S. clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex?
A) joint venture strategy
B) brownfield strategy
C) acquisition strategy
D) greenfield strategy
Q2) Embedded technology is often best transferred through an equity mode.
A)True
B)False
Q3) Turnkey projects and foreign direct investment are both risky modes for entering foreign markets. Briefly describe the risks associated with each mode.
Q4) Dunning's eclectic theory is useful in understanding which mode of entry to use.
A)True
B)False
Q5) Firms should use both objective and subjective measures when considering the potential for growth in an economy.
A)True
B)False
Page 14
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Chapter 13: International Strategic Alliances
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Sample Questions
Q1) Countries concerned about the influence of foreign firms on their economies may require MNCs to work with a local partner to enter the market.
A)True
B)False
Q2) Otis Elevator strives to enter emerging markets before competitors and work with local partners to minimize risks.
A)True
B)False
Q3) Research suggests that strategic alliances are more likely to be successful if the skills and resources of the partners are ________.
A) nearly identical
B) complementary
C) incompatible
D) observable
Q4) Public-private ventures are typical in the oil industry.
A)True
B)False
Q5) What types of functional alliances exist?
Q6) What is a functional alliance?
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Chapter 14: International Organization Design and Control
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Sample Questions
Q1) What is the meaning of functional knowledge?
Q2) What types of firms use the functional design?
Q3) The main levels at which control can be implemented include all of the following except ________.
A) marketing level
B) strategic level
C) organizational level
D) operations level
Q4) What is the focus of strategic control?
Q5) Explain the meaning of product knowledge.
Q6) Discuss the behavioral aspects of international control and the reasons for resistance to control.
Q7) ________ is the process of monitoring ongoing performance and making necessary changes to keep the organization moving toward its performance goals.
A) Coordination
B) Control
C) Implementation
D) Execution
Q8) What is the focus of organizational control?
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Chapter 15: Leadership and Employee Behavior in International Business
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Sample Questions
Q1) In individualistic cultures, leaders need to focus on individual employees rather than the group.
A)True
B)False
Q2) Which attitude reflects an individual's loyalty to an employer?
A) job satisfaction
B) organizational commitment
C) business acumen
D) organizational culture
Q3) Which task characteristic is more appropriate for problem solving by homogeneous teams?
A) complex
B) nonroutine
C) routine
D) ambiguous
Q4) According to research, Europeans with high conscientiousness and emotional stability are more likely to perform at a higher level than those with low conscientiousness and less emotional stability.
A)True
B)False
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Chapter 16: International Marketing
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Sample
Questions
Q1) What role does an international firm's distribution strategy play in its promotion strategy? Provide examples for illustration.
Q2) Why are synergies and coordination important in international marketing?
Q3) International pricing strategies are significantly affected by all of the following EXCEPT ________.
A) exchange rate fluctuations
B) competitors' warranties
C) transportation costs
D) distribution practices
Q4) Industrialized products are more likely to be customized than consumer products.
A)True
B)False
Q5) Under the ________ price policy, firms can set higher prices where markets will tolerate them and lower prices where necessary to remain competitive.
A) standard
B) two-tiered
C) market
D) global
Q6) What are public relations?
Page 18
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Chapter 17: International Operations Management
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Sample Questions
Q1) A weakness of the Japanese keiretsu system is its inability to reduce the problem of enforcing contracts between a firm and its suppliers.
A)True
B)False
Q2) What are operations management decisions, processes, and issues that involve the creation of tangible goods called?
A) service operations management
B) production management
C) management of goods
D) manufacturing
Q3) Firms that have little vertical integration typically make the inputs necessary for manufacturing.
A)True
B)False
Q4) What is statistical process control?
Q5) When quality is high, productivity goes down.
A)True
B)False
Q6) What is an information system?
Page 19
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Chapter 18: International Financial Management
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Sample Questions
Q1) Both payment in advance and open account share the characteristic of shifting the cash flow burden and risk of default to one party in a transaction.
A)True
B)False
Q2) A sight draft requires payment prior to the shipment of the goods.
A)True
B)False
Q3) How can firms reduce their translation exposure?
A) go naked
B) use a balance sheet hedge
C) buy forward currency
D) acquire an offsetting asset
Q4) Fulsom Exporting prefers that customers who pay in advance use a wire transfer. What is the most likely reason for this preference?
A) protection from FDIC
B) immediate access to funds
C) minimal interest rates and fees
D) protection from currency fluctuation
Q5) What are the major forms of payment for international transactions?
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Chapter 19: International Human Resource Management and Labor Relations
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Sample Questions
Q1) The most promising candidates for a foreign assignment have managerial competence, appropriate training, and are able to adapt to new situations.
A)True
B)False
Q2) After training and development takes place, what comes next in the international human resource management process?
A) contribution to organizational effectiveness
B) performance appraisal
C) compensation and benefits
D) labor relations
Q3) Japanese firms have a tendency to ________.
A) reserve top positions for Japanese managers
B) fill foreign management positions too quickly
C) ignore nationality when filling management positions
D) employ only non-Japanese managers for foreign positions
Q4) Standardized basic training methods tend to be less expensive than customized ones.
A)True
B)False
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