INTERNATIONAL BUSINESS
EXAMINATION|QUESTIONS AND CORRECT
ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
Question 1
International business primarily involves:
A. Commercial transactions between organizations across national
borders
B. Marketing within a single city
C. Internal employee scheduling only
D. Local product packaging design
Correct Answer: A
Rationale: International business focuses on cross-border trade and
operations.
Question 2
Which of the following BEST describes globalization in business?
A. Integration of markets, trade, and production across countries
B. Reduction of trade between nations
C. Elimination of exports
D. Isolation of domestic markets
Correct Answer: A
Rationale: Globalization connects economies and increases international
interaction.
Question 3
A company selling products in multiple countries is engaging in:
A. International trade
B. Internal auditing
C. Local marketing
D. Brand isolation
,Correct Answer: A
Rationale: Selling across borders constitutes international trade.
Question 4
Which of the following is a KEY driver of international business?
A. Technological advancement
B. Office interior design
C. Employee dress codes
D. Local branding colors
Correct Answer: A
Rationale: Technology enables global communication and trade.
Question 5
A company sets up production facilities in another country. This is:
A. Foreign direct investment (FDI)
B. Domestic outsourcing
C. Brand licensing
D. Market segmentation
Correct Answer: A
Rationale: FDI involves establishing operations in a foreign country.
Question 6
Which of the following BEST describes exports?
A. Goods produced domestically and sold internationally
B. Goods produced internationally and sold locally only
C. Internal company transfers
D. Marketing campaigns
Correct Answer: A
Rationale: Exports involve selling domestic goods abroad.
, Question 7
A company faces cultural differences when entering a new market. This
is a:
A. Cultural barrier
B. Financial strategy
C. Branding advantage
D. Marketing trend
Correct Answer: A
Rationale: Cultural differences can affect international operations.
Question 8
Which of the following BEST describes imports?
A. Goods purchased from foreign countries
B. Goods sold locally only
C. Internal production processes
D. Marketing strategies
Correct Answer: A
Rationale: Imports are goods brought into a country from abroad.
Question 9
A company adapts its products for local tastes in different countries. This
is:
A. Localization strategy
B. Standardization strategy
C. Centralization strategy
D. Outsourcing strategy
Correct Answer: A
Rationale: Localization modifies products for local markets.
Question 10
Which of the following is a trade barrier?
EXAMINATION|QUESTIONS AND CORRECT
ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
Question 1
International business primarily involves:
A. Commercial transactions between organizations across national
borders
B. Marketing within a single city
C. Internal employee scheduling only
D. Local product packaging design
Correct Answer: A
Rationale: International business focuses on cross-border trade and
operations.
Question 2
Which of the following BEST describes globalization in business?
A. Integration of markets, trade, and production across countries
B. Reduction of trade between nations
C. Elimination of exports
D. Isolation of domestic markets
Correct Answer: A
Rationale: Globalization connects economies and increases international
interaction.
Question 3
A company selling products in multiple countries is engaging in:
A. International trade
B. Internal auditing
C. Local marketing
D. Brand isolation
,Correct Answer: A
Rationale: Selling across borders constitutes international trade.
Question 4
Which of the following is a KEY driver of international business?
A. Technological advancement
B. Office interior design
C. Employee dress codes
D. Local branding colors
Correct Answer: A
Rationale: Technology enables global communication and trade.
Question 5
A company sets up production facilities in another country. This is:
A. Foreign direct investment (FDI)
B. Domestic outsourcing
C. Brand licensing
D. Market segmentation
Correct Answer: A
Rationale: FDI involves establishing operations in a foreign country.
Question 6
Which of the following BEST describes exports?
A. Goods produced domestically and sold internationally
B. Goods produced internationally and sold locally only
C. Internal company transfers
D. Marketing campaigns
Correct Answer: A
Rationale: Exports involve selling domestic goods abroad.
, Question 7
A company faces cultural differences when entering a new market. This
is a:
A. Cultural barrier
B. Financial strategy
C. Branding advantage
D. Marketing trend
Correct Answer: A
Rationale: Cultural differences can affect international operations.
Question 8
Which of the following BEST describes imports?
A. Goods purchased from foreign countries
B. Goods sold locally only
C. Internal production processes
D. Marketing strategies
Correct Answer: A
Rationale: Imports are goods brought into a country from abroad.
Question 9
A company adapts its products for local tastes in different countries. This
is:
A. Localization strategy
B. Standardization strategy
C. Centralization strategy
D. Outsourcing strategy
Correct Answer: A
Rationale: Localization modifies products for local markets.
Question 10
Which of the following is a trade barrier?
