BUSI 303 EXAM 1 FINAL PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ Two characteristics of international business that contribute to its
high level of risk compared with domestic business are. Answer:
Uncertainty and Consequences: R = U & C
◉ The practice in international business of identifying opportunities
that arise from differences between countries is called. Answer:
Arbitrage
◉ The three components of the Transnationality Index (TNI) that
measures the internationalization of companies. Answer: a) Foreign
sales as percentage of total sales
b) Foreign assets as percentage of total assets
c) Foreign employees as percentage of total employees
TNI = (a + b + c)/3
TNI is a measure of a firm's globalization
◉ American companies operating in Latin America have faced
business risks from sinking local currency values such as. Answer:
Loans becoming more expensive to repay in the future
,◉ The "collective action" problem that makes it difficult for
governments to take joint steps to achieve common interests like
economic growth arises from the following aspect of the
international environment. Answer: Decentralization
◉ Indicate which of the following statements are true. Answer: 1.US
trade (exports & imports) represents nearly 27% of US GDP
2.The largest percentage of US exporting companies is SME
companies
3.US exporters pay higher wages and have higher productivity than
non-exporters
4.US GDP is a much higher share of world GDP (25%) than US trade
is of world trade
◉ In balance of payments accounting a deficit in the current account
trade balance (exports & imports) is offset by. Answer: capital
account (investments)
◉ In assessing the overall level of international business activity,
which of the following represents the largest annual dollar value?.
Answer: World GDP 75 trillion
◉ The greatest economic growth (GDP) to 2050 is projected to occur
in. Answer: China
, ◉ When "peak" industrial output occurs in countries like India at
relatively low levels of per capita income and manufacturing
employment (compared with early industrializers) it is called.
Answer: premature deindustrialization
◉ What characteristics of business environments in emerging
market can companies anticipate when entering those markets?.
Answer: • Economic Shift to Emerging Markets (EM):
- GDP growth shifts to emerging markets
- Growing role of Emerging Market multinational
enterprises(EMNEs)
- Decentralization of international institutional structure
• Increasing role of state
- State-owned multinational enterprises (SO-MNE): 1500
- Sovereign Wealth Funds (SWF)
◉ The occurrence of a "demographic dividend" (increase in GDP
growth) becomes possible when two things occur:. Answer: Low
"dependency ratio" creates a "window of opportunity" that may
provide a
demographic dividend.
QUESTIONS WITH SOLUTIONS GRADED A+
◉ Two characteristics of international business that contribute to its
high level of risk compared with domestic business are. Answer:
Uncertainty and Consequences: R = U & C
◉ The practice in international business of identifying opportunities
that arise from differences between countries is called. Answer:
Arbitrage
◉ The three components of the Transnationality Index (TNI) that
measures the internationalization of companies. Answer: a) Foreign
sales as percentage of total sales
b) Foreign assets as percentage of total assets
c) Foreign employees as percentage of total employees
TNI = (a + b + c)/3
TNI is a measure of a firm's globalization
◉ American companies operating in Latin America have faced
business risks from sinking local currency values such as. Answer:
Loans becoming more expensive to repay in the future
,◉ The "collective action" problem that makes it difficult for
governments to take joint steps to achieve common interests like
economic growth arises from the following aspect of the
international environment. Answer: Decentralization
◉ Indicate which of the following statements are true. Answer: 1.US
trade (exports & imports) represents nearly 27% of US GDP
2.The largest percentage of US exporting companies is SME
companies
3.US exporters pay higher wages and have higher productivity than
non-exporters
4.US GDP is a much higher share of world GDP (25%) than US trade
is of world trade
◉ In balance of payments accounting a deficit in the current account
trade balance (exports & imports) is offset by. Answer: capital
account (investments)
◉ In assessing the overall level of international business activity,
which of the following represents the largest annual dollar value?.
Answer: World GDP 75 trillion
◉ The greatest economic growth (GDP) to 2050 is projected to occur
in. Answer: China
, ◉ When "peak" industrial output occurs in countries like India at
relatively low levels of per capita income and manufacturing
employment (compared with early industrializers) it is called.
Answer: premature deindustrialization
◉ What characteristics of business environments in emerging
market can companies anticipate when entering those markets?.
Answer: • Economic Shift to Emerging Markets (EM):
- GDP growth shifts to emerging markets
- Growing role of Emerging Market multinational
enterprises(EMNEs)
- Decentralization of international institutional structure
• Increasing role of state
- State-owned multinational enterprises (SO-MNE): 1500
- Sovereign Wealth Funds (SWF)
◉ The occurrence of a "demographic dividend" (increase in GDP
growth) becomes possible when two things occur:. Answer: Low
"dependency ratio" creates a "window of opportunity" that may
provide a
demographic dividend.
