Business Principles (BUSI 1301)
Exam Questions with 100%
Complete Solutions
Which of the elements in Porter's diamond model of national advantage takes into
consideration the sophistication of a company's customers?
export conditions
factor conditions
demand conditions
government - Answer- demand conditions
How are exchange rates used in international trade?
-Exchange rates are used to convert from foreign to domestic currency.
-Exchange rates indicate which products create an absolute advantage for trading
partners.
-Exchange rates are used to devalue property in exchange for goods.
-Exchange rates set the costs of labor. - Answer- Exchange rates are used to convert
from foreign to domestic currency.
Which country ranked the highest in 2016 in terms of merchandise exports?
United Kingdom
India
China
United States - Answer- China
The development of expanded regional trade agreements, such as the Association of
Southeast Asian Nations, Mercosur, and the EU, can substantially alter the level and
proportion of trade flows within and across regions.
(T/F) - Answer- True
The theory that for a firm to successfully invest overseas, it must have not only
ownership of unique knowledge or resources, but also the ability to dynamically create,
sustain, and exploit these capabilities over time, is known as
-internalization theory.
-internationalization theory.
-strategic behavior theory.
, -dynamic capabilities theory. - Answer- dynamic capabilities theory
The theory suggesting that rivalry between firms in an oligopolistic industry will result in
firms closely following and imitating each other's international investments in order to
keep a competitor from gaining an advantage is known as
-internalization theory.
-internationalization theory.
-strategic behavior theory.
-competitive imitation theory. - Answer- strategic behavior theory
The theory that to obtain a higher return on its investment, a firm will transfer its superior
knowledge to a foreign subsidiary that it controls, rather than sell it in the open market is
known as
-internalization theory.
-internationalization theory.
-strategic behavior theory.
-dynamic capabilities theory - Answer- internalization theory
The proportion of merchandise exports from Asia has ________ since 1983.
-increased by 20 percent
-tripled
-seen an overall decline
-almost doubled - Answer- almost doubled
Since 1983, the proportion of world trade coming from the United States has
increased by 20 percent.
tripled.
decreased overall.
not changed. - Answer- decreased overall
Nations encounter a trade surplus when the value of
-exports exceeds the value of imports.
-imports and exports doesn't change.
-imports exceeds the value of exports.
-imports and exports is balanced. - Answer- exports exceeds the value of imports.
Which element in Porter's diamond model of national advantage distinguishes between
the land a company owns and the transportation systems available for it to use?
-competitive conditions
-export conditions
Exam Questions with 100%
Complete Solutions
Which of the elements in Porter's diamond model of national advantage takes into
consideration the sophistication of a company's customers?
export conditions
factor conditions
demand conditions
government - Answer- demand conditions
How are exchange rates used in international trade?
-Exchange rates are used to convert from foreign to domestic currency.
-Exchange rates indicate which products create an absolute advantage for trading
partners.
-Exchange rates are used to devalue property in exchange for goods.
-Exchange rates set the costs of labor. - Answer- Exchange rates are used to convert
from foreign to domestic currency.
Which country ranked the highest in 2016 in terms of merchandise exports?
United Kingdom
India
China
United States - Answer- China
The development of expanded regional trade agreements, such as the Association of
Southeast Asian Nations, Mercosur, and the EU, can substantially alter the level and
proportion of trade flows within and across regions.
(T/F) - Answer- True
The theory that for a firm to successfully invest overseas, it must have not only
ownership of unique knowledge or resources, but also the ability to dynamically create,
sustain, and exploit these capabilities over time, is known as
-internalization theory.
-internationalization theory.
-strategic behavior theory.
, -dynamic capabilities theory. - Answer- dynamic capabilities theory
The theory suggesting that rivalry between firms in an oligopolistic industry will result in
firms closely following and imitating each other's international investments in order to
keep a competitor from gaining an advantage is known as
-internalization theory.
-internationalization theory.
-strategic behavior theory.
-competitive imitation theory. - Answer- strategic behavior theory
The theory that to obtain a higher return on its investment, a firm will transfer its superior
knowledge to a foreign subsidiary that it controls, rather than sell it in the open market is
known as
-internalization theory.
-internationalization theory.
-strategic behavior theory.
-dynamic capabilities theory - Answer- internalization theory
The proportion of merchandise exports from Asia has ________ since 1983.
-increased by 20 percent
-tripled
-seen an overall decline
-almost doubled - Answer- almost doubled
Since 1983, the proportion of world trade coming from the United States has
increased by 20 percent.
tripled.
decreased overall.
not changed. - Answer- decreased overall
Nations encounter a trade surplus when the value of
-exports exceeds the value of imports.
-imports and exports doesn't change.
-imports exceeds the value of exports.
-imports and exports is balanced. - Answer- exports exceeds the value of imports.
Which element in Porter's diamond model of national advantage distinguishes between
the land a company owns and the transportation systems available for it to use?
-competitive conditions
-export conditions
