BUSA 4000 EXAMINATION TEST PAPER 2026
QUESTIONS AND SOLUTIONS
◉ International business is defined as the performance of
_____________ activities by firms across national borders. Answer:
trade and investment
◉ Fluctuating exchange rates are an example of which of the following?
Answer: currency risk
◉ Which of the following would NOT be considered an example of
foreign direct investment (FDI)? Answer: cross-border purchase of
stocks
◉ Which of the following types of risk is also known as political risk?
Answer: country risk
◉ Which of the following best characterizes the development of
international business ? Answer: It has existed in some form for
centuries.
◉ Businesses that directly initiate international business transactions are
known as Answer: focal firms
, ◉ Which of the following is NOT an example of a cross-cultural risk
factor? Answer: costs of production
◉ --------- is the total value of products and services produced in a
country over the course of a year. Answer: GDP
◉ ____________ refers to the transfer of assets to another country or the
acquisition of assets in that country. Answer: International investment
◉ A _______ strategy is characterized by substantial control over
country operations by headquarters in order to incréase efficiency and
integration. Answer: multidomestic
◉ A firm would be compelled to seek global integration when it has to
Answer: capitalize on converging consumer trends and universal needs
◉ Graham Technologies is a U.K.-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 autonomv. This
is an example of a Answer: product structure
◉ Firms that emphasize global integration make and sell ________.
Answer: products that require minimal adaptation
QUESTIONS AND SOLUTIONS
◉ International business is defined as the performance of
_____________ activities by firms across national borders. Answer:
trade and investment
◉ Fluctuating exchange rates are an example of which of the following?
Answer: currency risk
◉ Which of the following would NOT be considered an example of
foreign direct investment (FDI)? Answer: cross-border purchase of
stocks
◉ Which of the following types of risk is also known as political risk?
Answer: country risk
◉ Which of the following best characterizes the development of
international business ? Answer: It has existed in some form for
centuries.
◉ Businesses that directly initiate international business transactions are
known as Answer: focal firms
, ◉ Which of the following is NOT an example of a cross-cultural risk
factor? Answer: costs of production
◉ --------- is the total value of products and services produced in a
country over the course of a year. Answer: GDP
◉ ____________ refers to the transfer of assets to another country or the
acquisition of assets in that country. Answer: International investment
◉ A _______ strategy is characterized by substantial control over
country operations by headquarters in order to incréase efficiency and
integration. Answer: multidomestic
◉ A firm would be compelled to seek global integration when it has to
Answer: capitalize on converging consumer trends and universal needs
◉ Graham Technologies is a U.K.-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 autonomv. This
is an example of a Answer: product structure
◉ Firms that emphasize global integration make and sell ________.
Answer: products that require minimal adaptation
