IBA EXAM 1 | 146 Questions With
Complete Solutions
Which term refers to the trend of corporations to methodically expand their worldwide
business activities? CORRECT ANSWERS internationalization
________ involves the allocation of assets to another country or the attainment of
assets in that particular country. CORRECT ANSWERS International investment
Which term refers to the continuing economic assimilation and interdependency of
countries across the globe? CORRECT ANSWERS Globalization of markets
Assets such as technology, capital, and managerial talent are known as ________.
CORRECT ANSWERS Factors of production
Which one of the following factors best explains why trade growth has outperformed
GDP growth over the years? CORRECT ANSWERS The liberalization of markets
Which one of these describes a strategy that involves a firm's establishing a presence
overseas by acquiring productive assets such asland, plants, equipment, capital, and
technology? CORRECT ANSWERS Foreign direct investment
Which one of the following statements is most likely true?
A.
Risks can be avoided, but not managed, by taking proactive action.
B.
Political risks can be avoided by having a company presence in the country.
C.
Risks cannot be avoided, but they can be managed and anticipated.
D.
Commercial risks can be avoided by constantly conducting research to find out how to
prevent them.
E.
Country risk and cross-cultural risk can be managed and anticipated, but currency risk
cannot. CORRECT ANSWERS Risks cannot be avoided, but they can be managed and
anticipated.
Lifestyles, customs, and religion have a potential for causing which type of international
business risk? CORRECT ANSWERS Cross-cultural
Which term refers to the risk of adverse fluctuations in exchange rates? CORRECT
ANSWERS Currency risk
, ________ risks represents possible losses or failures as a result of poorly implemented
business strategies, maneuvers, or processes. CORRECT ANSWERS Commercial risk
involves possible adverse effects on operations and profitability due to developments in
the political, legal, and economic environments of a foreign country. CORRECT
ANSWERS Country risk
________ initiate international business activities by envisioning, crafting, and creating
goods and services for global buyers. CORRECT ANSWERS Focal firms
A company with ________ or fewer employees is defined as an SME. CORRECT
ANSWERS 500
A ________ is a professional company that offers logistics and marketing services for
focal firms as part of worldwide supply chains. CORRECT ANSWERS A distribution
channel intermediary
A distribution channel intermediary CORRECT ANSWERS A specialist firm that
provides various logistics and marketing services for focal firms as part of international
supply chains, both in the home country and abroad.
A(n) ________ is a large corporation with significant resources that executes countless
business activities through a system of subsidiaries and affiliates located in various
countries. CORRECT ANSWERS multinational enterprise
________ are corporations or individuals with expertise in finance, legal advice,
customs clearance, or support services that help firms perform international business
transactions. CORRECT ANSWERS facilitator
facilitator CORRECT ANSWERS a firm or an individual with special expertise in
banking, legal advice, customs clearance, or related support services that helps focal
firms perform international business transactions.
A newly established corporation that begins international business activity very early in
its development, allowing it to move promptly into overseas markets, is called a
________. CORRECT ANSWERS born global firm
born global firm CORRECT ANSWERS is a young entrepreneurial company that
initiates international business activity very early in its evolution, moving rapidly into
foreign markets.
When a domestic firm seeks opportunities in foreign markets, the firm's motive is best
described as ________. CORRECT ANSWERS strategic
Which of the following is a motivation for international expansion? CORRECT
ANSWERS Being closer to supply sources
Complete Solutions
Which term refers to the trend of corporations to methodically expand their worldwide
business activities? CORRECT ANSWERS internationalization
________ involves the allocation of assets to another country or the attainment of
assets in that particular country. CORRECT ANSWERS International investment
Which term refers to the continuing economic assimilation and interdependency of
countries across the globe? CORRECT ANSWERS Globalization of markets
Assets such as technology, capital, and managerial talent are known as ________.
CORRECT ANSWERS Factors of production
Which one of the following factors best explains why trade growth has outperformed
GDP growth over the years? CORRECT ANSWERS The liberalization of markets
Which one of these describes a strategy that involves a firm's establishing a presence
overseas by acquiring productive assets such asland, plants, equipment, capital, and
technology? CORRECT ANSWERS Foreign direct investment
Which one of the following statements is most likely true?
A.
Risks can be avoided, but not managed, by taking proactive action.
B.
Political risks can be avoided by having a company presence in the country.
C.
Risks cannot be avoided, but they can be managed and anticipated.
D.
Commercial risks can be avoided by constantly conducting research to find out how to
prevent them.
E.
Country risk and cross-cultural risk can be managed and anticipated, but currency risk
cannot. CORRECT ANSWERS Risks cannot be avoided, but they can be managed and
anticipated.
Lifestyles, customs, and religion have a potential for causing which type of international
business risk? CORRECT ANSWERS Cross-cultural
Which term refers to the risk of adverse fluctuations in exchange rates? CORRECT
ANSWERS Currency risk
, ________ risks represents possible losses or failures as a result of poorly implemented
business strategies, maneuvers, or processes. CORRECT ANSWERS Commercial risk
involves possible adverse effects on operations and profitability due to developments in
the political, legal, and economic environments of a foreign country. CORRECT
ANSWERS Country risk
________ initiate international business activities by envisioning, crafting, and creating
goods and services for global buyers. CORRECT ANSWERS Focal firms
A company with ________ or fewer employees is defined as an SME. CORRECT
ANSWERS 500
A ________ is a professional company that offers logistics and marketing services for
focal firms as part of worldwide supply chains. CORRECT ANSWERS A distribution
channel intermediary
A distribution channel intermediary CORRECT ANSWERS A specialist firm that
provides various logistics and marketing services for focal firms as part of international
supply chains, both in the home country and abroad.
A(n) ________ is a large corporation with significant resources that executes countless
business activities through a system of subsidiaries and affiliates located in various
countries. CORRECT ANSWERS multinational enterprise
________ are corporations or individuals with expertise in finance, legal advice,
customs clearance, or support services that help firms perform international business
transactions. CORRECT ANSWERS facilitator
facilitator CORRECT ANSWERS a firm or an individual with special expertise in
banking, legal advice, customs clearance, or related support services that helps focal
firms perform international business transactions.
A newly established corporation that begins international business activity very early in
its development, allowing it to move promptly into overseas markets, is called a
________. CORRECT ANSWERS born global firm
born global firm CORRECT ANSWERS is a young entrepreneurial company that
initiates international business activity very early in its evolution, moving rapidly into
foreign markets.
When a domestic firm seeks opportunities in foreign markets, the firm's motive is best
described as ________. CORRECT ANSWERS strategic
Which of the following is a motivation for international expansion? CORRECT
ANSWERS Being closer to supply sources
