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IBUS 401 FINAL EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) | LATEST UPDATE
2026/2027 | GRADED A+.
As a US resident, a _________________ dollar indicates
cheaper imported goods. - ANSWER-stronger
As a US resident, a _________________ dollar indicates more
expensive imported goods. - ANSWER-weaker
MNCs usually have ______________ agency cost. Why? -
ANSWER-Higher, for several reasons:
- monitoring managers of distant subsidiaries in foreign
countries is more difficult
- foreign subsidiary managers raised in different cultures may
not follow uniform goals
- sheer size of larger MNCs can create large agency problems
- some non-US managers tend to downplay the short-term
effects of decisions
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Theory of Competitive Advantage - ANSWER-Specialization
increases production efficiency. (a country does something
better than another country so you should do work with them)
Imperfect Markets Theory - ANSWER-Factors of production are
somewhat immobile providing incentive to seek out foreign
opportunities
Product Cycle Theory - ANSWER-As a firm matures, it
recognizes opportunities outside its domestic market. Ex:
moving VA factory to Thaiwan - outsourcing)
How firms engage in international business - ANSWER-1.
International Trade
2. Licensing
3. Franchising
4. Joint Ventures
5. Acquisitions of existing operations
6. Establishing new foreign subsidiaries
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Franchising - ANSWER-Firm provides a specialized sales or
service strategy, support assistance, and possibly an initial
investment in the franchise in exchange for periodic fees (will
teach you how to do everything for money)
Theories of International Business - ANSWER-1. Theory of
Competitive Advantage
2. Imperfect Market Theory
3. Product Cycle Theory
Agency Cost - ANSWER-cost of ensuring that managers
maximize shareholder wealth
Joint Ventures - ANSWER-Two or more companies form a
venture and own that company. Problem - somebody owns more
than the other, problem if you are the minority party)
IBUS 401 FINAL EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) | LATEST UPDATE
2026/2027 | GRADED A+.
As a US resident, a _________________ dollar indicates
cheaper imported goods. - ANSWER-stronger
As a US resident, a _________________ dollar indicates more
expensive imported goods. - ANSWER-weaker
MNCs usually have ______________ agency cost. Why? -
ANSWER-Higher, for several reasons:
- monitoring managers of distant subsidiaries in foreign
countries is more difficult
- foreign subsidiary managers raised in different cultures may
not follow uniform goals
- sheer size of larger MNCs can create large agency problems
- some non-US managers tend to downplay the short-term
effects of decisions
,2 | Page
Theory of Competitive Advantage - ANSWER-Specialization
increases production efficiency. (a country does something
better than another country so you should do work with them)
Imperfect Markets Theory - ANSWER-Factors of production are
somewhat immobile providing incentive to seek out foreign
opportunities
Product Cycle Theory - ANSWER-As a firm matures, it
recognizes opportunities outside its domestic market. Ex:
moving VA factory to Thaiwan - outsourcing)
How firms engage in international business - ANSWER-1.
International Trade
2. Licensing
3. Franchising
4. Joint Ventures
5. Acquisitions of existing operations
6. Establishing new foreign subsidiaries
,3 | Page
Thank you for Purchasing this exam
Study Guide. We provide high-quality
academic materials to help students
excel in exams. Our other Services
include but not limited to: academic
research, University & College
assignments writing, essay writing,
Online Classes, and research projects.
Our services are reliable, affordable,
and plagiarism-free. All the Best in
your Exam. For more information;
Contact us at:
or
0R +254
741484450
, 4 | Page
Franchising - ANSWER-Firm provides a specialized sales or
service strategy, support assistance, and possibly an initial
investment in the franchise in exchange for periodic fees (will
teach you how to do everything for money)
Theories of International Business - ANSWER-1. Theory of
Competitive Advantage
2. Imperfect Market Theory
3. Product Cycle Theory
Agency Cost - ANSWER-cost of ensuring that managers
maximize shareholder wealth
Joint Ventures - ANSWER-Two or more companies form a
venture and own that company. Problem - somebody owns more
than the other, problem if you are the minority party)
