BUSA 4000 exam 1 review (previous
quiz questions) with complete
solutions 2025/2026
which of the following would NOT be considered an example of Foreign Direct Investment (FDI)?
a)cross-border purchase of stocks
b)purchase of foreign land for business operations
c)purchase of capital assets of a foreign company
d)a cross-border purchase of a textile plant - ANS ✔✔cross-border purchase of stocks
international business is defined as the performance of __________ activities by firms across
national borders.
a)accounting and auditing
b)marketing and fiduciary
c)trade and investment
d)finance and operational - ANS ✔✔trade and investment
_________ refers to the transfer of assets to another country or the acquisition of assets in that
country
a)International risk
b)importing
c)exporting
,d)international investment - ANS ✔✔international investment
which of the following types of risk is also known as political risk?
a)commercial risk
b)cross-cultural risk
c)country risk
d)currency risk - ANS ✔✔country risk
Which of the following is NOT an example of cross-cultural risk factor?
a)costs of production
b)ethical practices
c)negotiation patterns
d)decision-making styles - ANS ✔✔costs of production
which of the following has contributed to the rapid growth of trade among nations EXCEPT____
a)the increase in trade barriers
b)advances in information technology
c)the liberalization of markets
d)advances in the information technology - ANS ✔✔the increase in trade barriers
______ is the total value of products and services produced in a country over the course of a
year
, a)CAD
b)PPP
c)GDP
d)FDI - ANS ✔✔GDP
fluctuating exchange rates are an example of which of the following?
a)currency risk
b)cross-cultural risk
c)political risk
d)country risk - ANS ✔✔currency risk
businesses that directly initiate international business transactions are known as____
a)fiduciary trusts
b)business affiliates
c)focal firms
d)fiscal enterprises - ANS ✔✔focal firms
which of the following best characterizes the development of international business?
a)it developed after the year 2000
b)it first started in Europe
c)its development has slowed in recent years
d)it has existed in some from for centuries - ANS ✔✔it has existed in some from for centuries
quiz questions) with complete
solutions 2025/2026
which of the following would NOT be considered an example of Foreign Direct Investment (FDI)?
a)cross-border purchase of stocks
b)purchase of foreign land for business operations
c)purchase of capital assets of a foreign company
d)a cross-border purchase of a textile plant - ANS ✔✔cross-border purchase of stocks
international business is defined as the performance of __________ activities by firms across
national borders.
a)accounting and auditing
b)marketing and fiduciary
c)trade and investment
d)finance and operational - ANS ✔✔trade and investment
_________ refers to the transfer of assets to another country or the acquisition of assets in that
country
a)International risk
b)importing
c)exporting
,d)international investment - ANS ✔✔international investment
which of the following types of risk is also known as political risk?
a)commercial risk
b)cross-cultural risk
c)country risk
d)currency risk - ANS ✔✔country risk
Which of the following is NOT an example of cross-cultural risk factor?
a)costs of production
b)ethical practices
c)negotiation patterns
d)decision-making styles - ANS ✔✔costs of production
which of the following has contributed to the rapid growth of trade among nations EXCEPT____
a)the increase in trade barriers
b)advances in information technology
c)the liberalization of markets
d)advances in the information technology - ANS ✔✔the increase in trade barriers
______ is the total value of products and services produced in a country over the course of a
year
, a)CAD
b)PPP
c)GDP
d)FDI - ANS ✔✔GDP
fluctuating exchange rates are an example of which of the following?
a)currency risk
b)cross-cultural risk
c)political risk
d)country risk - ANS ✔✔currency risk
businesses that directly initiate international business transactions are known as____
a)fiduciary trusts
b)business affiliates
c)focal firms
d)fiscal enterprises - ANS ✔✔focal firms
which of the following best characterizes the development of international business?
a)it developed after the year 2000
b)it first started in Europe
c)its development has slowed in recent years
d)it has existed in some from for centuries - ANS ✔✔it has existed in some from for centuries
