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D270 – Introduction to International
Business Midterm Exam Questions
With Solutions - Western Governors
University (WGU)
Question 1
The broadening set of interdependent relationships among people from different
parts of the world is known as ________.
A. Offshoring
B. Globalization
C. Franchising
D. Outsourcing
Correct Answer: B
Rationale: Globalization is defined as the process of broadening interdependent
relationships among people divided by national borders, involving the reduction
of barriers to movements of goods, services, capital, technology, and people .
Question 2
Which of the following is NOT a likely reason to study international business?
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A. Global events affect almost all companies
B. Differences among countries in physical, social, and competitive conditions
may cause companies to alter their operating methods
C. Business conducted outside the confines of any one country is inexplicably on
the decline
D. Firms may be better able to obtain better or less expensive resources by
operating internationally
Correct Answer: C
Rationale: International business is actually growing, not declining. Studying it is
essential because global events affect all companies, operating methods must
adapt to local conditions, and firms can access better or cheaper resources
internationally .
Question 3
Devon, an accounts manager at a large electronics firm, does not have any direct
international responsibilities. However, Devon would most likely benefit from
studying international business issues so that he can ________.
A. Conduct better job interviews
B. Better understand how foreign operations affect the company's competitive
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position
C. Supervise and evaluate subordinates who have global assignments
D. Understand the legalities of importing and exporting products overseas
Correct Answer: B
Rationale: Even employees without direct international roles benefit from
understanding how foreign operations affect the overall company's competitive
position and strategy .
Question 4
Which of the following best explains why international business has grown rapidly
in the past few decades?
A. The end of the political schism between the Communist and non-Communist
blocs
B. Greater income equality in most countries
C. Growing concern about climate change
D. Increased concerns about terrorism
Correct Answer: A
D270 – Introduction to International
Business Midterm Exam Questions
With Solutions - Western Governors
University (WGU)
Question 1
The broadening set of interdependent relationships among people from different
parts of the world is known as ________.
A. Offshoring
B. Globalization
C. Franchising
D. Outsourcing
Correct Answer: B
Rationale: Globalization is defined as the process of broadening interdependent
relationships among people divided by national borders, involving the reduction
of barriers to movements of goods, services, capital, technology, and people .
Question 2
Which of the following is NOT a likely reason to study international business?
,2|Page
A. Global events affect almost all companies
B. Differences among countries in physical, social, and competitive conditions
may cause companies to alter their operating methods
C. Business conducted outside the confines of any one country is inexplicably on
the decline
D. Firms may be better able to obtain better or less expensive resources by
operating internationally
Correct Answer: C
Rationale: International business is actually growing, not declining. Studying it is
essential because global events affect all companies, operating methods must
adapt to local conditions, and firms can access better or cheaper resources
internationally .
Question 3
Devon, an accounts manager at a large electronics firm, does not have any direct
international responsibilities. However, Devon would most likely benefit from
studying international business issues so that he can ________.
A. Conduct better job interviews
B. Better understand how foreign operations affect the company's competitive
, 3|Page
position
C. Supervise and evaluate subordinates who have global assignments
D. Understand the legalities of importing and exporting products overseas
Correct Answer: B
Rationale: Even employees without direct international roles benefit from
understanding how foreign operations affect the overall company's competitive
position and strategy .
Question 4
Which of the following best explains why international business has grown rapidly
in the past few decades?
A. The end of the political schism between the Communist and non-Communist
blocs
B. Greater income equality in most countries
C. Growing concern about climate change
D. Increased concerns about terrorism
Correct Answer: A
