BUSA 4000 FINAL EXAM REVIEW QUESTIONS AND ANSWERS
International business is defined as the performance of _____ activities by firms across national borders
- CORRECT ANSWER✅✅Trade and Investment
Which of the following best characterizes the development of international business? - CORRECT
ANSWER✅✅It has existed in some form for centuries
_____ refers to the transfer of assets to another country of the acquisition of assets in that country -
CORRECT ANSWER✅✅International Investment
Which of the following would NOT be considered an example of foreign direct investment (FDI)? -
CORRECT ANSWER✅✅Cross border purchase of stocks
____ is the total value of products and services produced in a country over the course of a year -
CORRECT ANSWER✅✅GDP
Which of the following has contributed to the rapid growth of trade among nations EXCEPT - CORRECT
ANSWER✅✅The increase in trade barriers
Which of the following types of risk is also known as political risk? - CORRECT ANSWER✅✅Country Risk
Which of the following is NOT an example of a cross-cultural risk factor? - CORRECT ANSWER✅✅Cost of
production
Fluctuating exchange rates are an example of which of the following? - CORRECT ANSWER✅✅Currency
Risk
Businesses that directly initiate international business transactions are known as - CORRECT
ANSWER✅✅Focal firms
, Firms that emphasize global integration make and sell - CORRECT ANSWER✅✅Products that require
minimal adaption
Graham Technologies is a UK-based consumer electronics manufacturer. The company markets
netbooks, smartphones, laptops, and desktops in the international market and each product division
operates as a stand-alone profit center with substantial autonomy. This is an example of a - CORRECT
ANSWER✅✅Product structure
Which of the following is necessary for local responsiveness to effectively increase a firm's
competitiveness? - CORRECT ANSWER✅✅Local managers need to be able to make decisions based on
local needs
Which of the following is a disadvantage of a geographic area structure? - CORRECT
ANSWER✅✅Geographic area managers potential lack of global orientation for developing and
managing products
Which of the following activities would be considered last by a manager while developing strategies? -
CORRECT ANSWER✅✅Deciding how best to contend with competitors
A _____ strategy is characterized by substantial control over country operations by headquarters in
order to increase efficiency and integration - CORRECT ANSWER✅✅Global
In which of the following are substantial autonomy and decision-making authority delegated to a firm's
subsidiaries around the world? - CORRECT ANSWER✅✅Decentralized Approach
GramTech Solutions is a software develoment based in the US. The firm's CEO, David Ghaster, wants to
open an outlet in India. Being a visionary leader, he would - CORRECT ANSWER✅✅Acquire managers
with an international mind-set, showing an openness to and awareness of diversity across cultures
A global industry is one in which competition is on a regional or worldwide scale. Which of the following
is more commonly a global industry? - CORRECT ANSWER✅✅Automobiles
International business is defined as the performance of _____ activities by firms across national borders
- CORRECT ANSWER✅✅Trade and Investment
Which of the following best characterizes the development of international business? - CORRECT
ANSWER✅✅It has existed in some form for centuries
_____ refers to the transfer of assets to another country of the acquisition of assets in that country -
CORRECT ANSWER✅✅International Investment
Which of the following would NOT be considered an example of foreign direct investment (FDI)? -
CORRECT ANSWER✅✅Cross border purchase of stocks
____ is the total value of products and services produced in a country over the course of a year -
CORRECT ANSWER✅✅GDP
Which of the following has contributed to the rapid growth of trade among nations EXCEPT - CORRECT
ANSWER✅✅The increase in trade barriers
Which of the following types of risk is also known as political risk? - CORRECT ANSWER✅✅Country Risk
Which of the following is NOT an example of a cross-cultural risk factor? - CORRECT ANSWER✅✅Cost of
production
Fluctuating exchange rates are an example of which of the following? - CORRECT ANSWER✅✅Currency
Risk
Businesses that directly initiate international business transactions are known as - CORRECT
ANSWER✅✅Focal firms
, Firms that emphasize global integration make and sell - CORRECT ANSWER✅✅Products that require
minimal adaption
Graham Technologies is a UK-based consumer electronics manufacturer. The company markets
netbooks, smartphones, laptops, and desktops in the international market and each product division
operates as a stand-alone profit center with substantial autonomy. This is an example of a - CORRECT
ANSWER✅✅Product structure
Which of the following is necessary for local responsiveness to effectively increase a firm's
competitiveness? - CORRECT ANSWER✅✅Local managers need to be able to make decisions based on
local needs
Which of the following is a disadvantage of a geographic area structure? - CORRECT
ANSWER✅✅Geographic area managers potential lack of global orientation for developing and
managing products
Which of the following activities would be considered last by a manager while developing strategies? -
CORRECT ANSWER✅✅Deciding how best to contend with competitors
A _____ strategy is characterized by substantial control over country operations by headquarters in
order to increase efficiency and integration - CORRECT ANSWER✅✅Global
In which of the following are substantial autonomy and decision-making authority delegated to a firm's
subsidiaries around the world? - CORRECT ANSWER✅✅Decentralized Approach
GramTech Solutions is a software develoment based in the US. The firm's CEO, David Ghaster, wants to
open an outlet in India. Being a visionary leader, he would - CORRECT ANSWER✅✅Acquire managers
with an international mind-set, showing an openness to and awareness of diversity across cultures
A global industry is one in which competition is on a regional or worldwide scale. Which of the following
is more commonly a global industry? - CORRECT ANSWER✅✅Automobiles
