INTERNATIONAL BUSINESS THE NEW
REALITIES ACTUAL TEST QUESTIONS AND
SOLUTIONS COMPREHENSIVE REVIEW
PACKAGE
●● What are the three major benefits of international business from an
individual company's standpoint?
Answer: More potential customers, lower production costs from the
economics of scale, and the ability to hone skills through competing on
foreign markets
●● Which factors typically drive international business?
Answer: Market, environment, cost, and competition
●● How is the relative participation of countries in the world trade
evolving?
Answer: Western Europe's relative participation is dwindling, while that
of China, Brazil and ASEAN countries has grown
●● Wide-scale trade was present in and around the area controlled by the
Roman Empire in its heyday. How was trade affected by Rome?
Answer: The safety provided by the legions and navy, the roads built and
common coinage within the empire helped trade flourish
,●● International business is conducted in the form of:
Answer: Direct trade, management contracts, licensing, and franchising
over national borders
●● What is required to develop an international business partnership?
Answer: An international transaction that is followed by mutual feeling
that the participants are better off after the transaction than they were
before it
●● Communication technology has affected global trade in all of the
following ways, except
Answer: quick and precise communication practices have effectively
made the notions of previous generations, such as law of supply and
demand, obsolete
●● How has international business changed policy makers' job?
Answer: The complicated trade networks have increased the number of
responsibilities, while international market interconnectedness have
limited the
tools to balance local market economv
●● Which methods are generally accepted in global free trade to reach
long-term balance of payments?
, Answer: Generating enough export sales and attracting enough foreign
investments to balance out imports and outgoing investments
●● Guaranteed government contracts, purchases, protection from
competition through tariffs, and local content requirements are examples
of
which kind of investment promotion?
Answer: non-financial
●● All of the following are ways import controls may backfire and cause
unforeseen consequences, except
Answer: Importing natons often use military action to retallate
●● What typically drives and shapes the relationship between a host
country and a business engaging in direct foreign investment?
Answer: The relative bargaining power or each party
●● What are known as brownfield investments?
Answer: Investments resulting in acquisitions of local companies
●● Providing roads, land, buildings, loans, and provisions of education
are examples of which kind of incentives on investments?
Answer: financial
REALITIES ACTUAL TEST QUESTIONS AND
SOLUTIONS COMPREHENSIVE REVIEW
PACKAGE
●● What are the three major benefits of international business from an
individual company's standpoint?
Answer: More potential customers, lower production costs from the
economics of scale, and the ability to hone skills through competing on
foreign markets
●● Which factors typically drive international business?
Answer: Market, environment, cost, and competition
●● How is the relative participation of countries in the world trade
evolving?
Answer: Western Europe's relative participation is dwindling, while that
of China, Brazil and ASEAN countries has grown
●● Wide-scale trade was present in and around the area controlled by the
Roman Empire in its heyday. How was trade affected by Rome?
Answer: The safety provided by the legions and navy, the roads built and
common coinage within the empire helped trade flourish
,●● International business is conducted in the form of:
Answer: Direct trade, management contracts, licensing, and franchising
over national borders
●● What is required to develop an international business partnership?
Answer: An international transaction that is followed by mutual feeling
that the participants are better off after the transaction than they were
before it
●● Communication technology has affected global trade in all of the
following ways, except
Answer: quick and precise communication practices have effectively
made the notions of previous generations, such as law of supply and
demand, obsolete
●● How has international business changed policy makers' job?
Answer: The complicated trade networks have increased the number of
responsibilities, while international market interconnectedness have
limited the
tools to balance local market economv
●● Which methods are generally accepted in global free trade to reach
long-term balance of payments?
, Answer: Generating enough export sales and attracting enough foreign
investments to balance out imports and outgoing investments
●● Guaranteed government contracts, purchases, protection from
competition through tariffs, and local content requirements are examples
of
which kind of investment promotion?
Answer: non-financial
●● All of the following are ways import controls may backfire and cause
unforeseen consequences, except
Answer: Importing natons often use military action to retallate
●● What typically drives and shapes the relationship between a host
country and a business engaging in direct foreign investment?
Answer: The relative bargaining power or each party
●● What are known as brownfield investments?
Answer: Investments resulting in acquisitions of local companies
●● Providing roads, land, buildings, loans, and provisions of education
are examples of which kind of incentives on investments?
Answer: financial
