BUSA 4000 MIDTERM EXAM WITH ACTUAL QUESTIONS AND DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS)/ALREADY GRADED A+ 2025-2026!!
International Business - ANSWER>>refers to the trade and investment activities by
companies across national borders
Globalization of Markets - ANSWER>>Refers to ongoing economic integration and
growing interdependency of countries worldwide
What is visionary leadership? - ANSWER>>A quality of senior management that
provides superior strategic guidance for managing efficiency, flexibility, and learning
What is global team? - ANSWER>>an internationally distributed group of employees
charged with a specific problem solving mandate that affects the whole firm.
What is global integration? - ANSWER>>Coordination of the firm's value-chain
activities across multiple countries to achieve worldwide efficiency, synergy and
cross-fertilization, to take advantage of similarities between countries.
What is local responsiveness? - ANSWER>>meeting the specific needs of buyers in
individual countries
What is a centralized approach? - ANSWER>>headquarters has considerable authority
and control over the firm's activities worldwide. EX: global integration
What is a decentralized approach? - ANSWER>>significant autonomy and freedom to
act are transferred to the company's subsidiaries overseas. EX: local responsiveness
What is a global market opportunity? - ANSWER>>conditions, places, or
circumstances especially fitted or prepared for the commercial transaction of
exporting, investing, sourcing, or partnering abroad.
,What are the 6 tasks of global market opportunity assessment? -
ANSWER>>Organizational readiness, suitability, country screening, assess the industry
market, choose business partners, and estimate target market sales
What is organizational readiness? - ANSWER>>Analyze organizational readiness to
internationalize to provide an objective assessment of the firm's preparedness to
engage in international business.
What is product suitability? - ANSWER>>Assess suitability of the firm's products and
services for foreign markets by conducting a systematic assessment of company
offerings for international customers. Assess the fit between the offerings and foreign
customer needs.
What is country screening? - ANSWER>>Screen countries to identify target markets.
Narrow the number of countries that merit detailed investigation as potential target
markets to a manageable few.
2 ways to screen potential country markets: - ANSWER>>gradual elimination and
indexing and ranking
What is indirect exporting? - ANSWER>>Contracting with an intermediary in the firm's
home country to perform all export functions, often an export management or trading
company.
What is direct exporting? - ANSWER>>Contracting with intermediaries in the foreign
market, such as distributors or agents, to perform export functions. They perform
downstream value-chain activities in the target market.
What is company-owned foreign subsidary? - ANSWER>>Similar to direct exporting,
except the exporter owns the foreign intermediation operation; the most advanced
option.
What is offshoring? - ANSWER>>The relocation of processes or functions from a
"home" country to another country. MNEs shift to enhance their competitive
,advantages.
What is a greenfield investment? - ANSWER>>Foreign direct investment whereby a
new facility is constructed abroad
What is a merger? - ANSWER>>the combination of two companies (usually
corporations) to form a new larger company
What is acquisition? - ANSWER>>Direct investment or purchase of an existing
company or facility. The focal firm can expand its market access through existing
distribution networks.
What is vertical integration? - ANSWER>>The firm owns, or seeks to own, multiple
stages of a value chain for producing, selling, and delivering a product.
Horizontal integration What is horizontal integration? ANSWER>>Arrangement whereby
the firm owns, or seeks to own, the activities involved in a single stage of its value chain.
Licensing What is licensing? ANSWER>>An arrangement in which the owner of
intellectual property grants another firm the right to use that property for a specified
period of time in exchange for royalties or other compensation.
What is franchising? - ANSWER>>Arrangement in which the firm allows another the
right to use an entire business system in exchange for fees, royalties or other
compensation.
What is a royalty? - ANSWER>>A fee paid periodically to compensate a licensor for the
temporary use of its intellectual property, often based on a percentage of gross sales
generated from the use of the licensed asset.
What is a patent? - ANSWER>>the right to prevent others from using an invention for a
fixed period. It is granted to anyone who invents a new process, product or useful
improvement.
, What is a trademark? - ANSWER>>distinctive design or symbol that identifies a
product or service. Ex: Nike swoosh
What is copyright? - ANSWER>> protects original works of authorship. Generally
covers works of music, art, literature, movies, or software.
What is protectionism? - ANSWER>> the theory or practice of shielding a country's
domestic industries from foreign competition by taxing imports.
What is customs? - ANSWER>>The checkpoint at national ports of entry where officials
inspect imported goods and levy tariffs.
What is a nontariff trade barrier? - ANSWER>>a government policy, regulation, or
procedure that impedes trade through means other than explicit tariffs
What is a quota? - ANSWER>>A limit on the number of goods that can be imported
What is investment barriers? - ANSWER>>Rules or laws that hinder foreign direct
investment
What is foreign direct investment? - ANSWER>>Investment made by a foreign
company in the economy of another country.
What is currency control? - ANSWER>>Restrictions on the outflow of hard currency
from a country or on the inflow of foreign currencies.
What is local content requirement? - ANSWER>>Requirement that firms include a
minimum percent of locally sourced inputs in the production of given products or
services.
ANSWERS (100% CORRECT ANSWERS)/ALREADY GRADED A+ 2025-2026!!
International Business - ANSWER>>refers to the trade and investment activities by
companies across national borders
Globalization of Markets - ANSWER>>Refers to ongoing economic integration and
growing interdependency of countries worldwide
What is visionary leadership? - ANSWER>>A quality of senior management that
provides superior strategic guidance for managing efficiency, flexibility, and learning
What is global team? - ANSWER>>an internationally distributed group of employees
charged with a specific problem solving mandate that affects the whole firm.
What is global integration? - ANSWER>>Coordination of the firm's value-chain
activities across multiple countries to achieve worldwide efficiency, synergy and
cross-fertilization, to take advantage of similarities between countries.
What is local responsiveness? - ANSWER>>meeting the specific needs of buyers in
individual countries
What is a centralized approach? - ANSWER>>headquarters has considerable authority
and control over the firm's activities worldwide. EX: global integration
What is a decentralized approach? - ANSWER>>significant autonomy and freedom to
act are transferred to the company's subsidiaries overseas. EX: local responsiveness
What is a global market opportunity? - ANSWER>>conditions, places, or
circumstances especially fitted or prepared for the commercial transaction of
exporting, investing, sourcing, or partnering abroad.
,What are the 6 tasks of global market opportunity assessment? -
ANSWER>>Organizational readiness, suitability, country screening, assess the industry
market, choose business partners, and estimate target market sales
What is organizational readiness? - ANSWER>>Analyze organizational readiness to
internationalize to provide an objective assessment of the firm's preparedness to
engage in international business.
What is product suitability? - ANSWER>>Assess suitability of the firm's products and
services for foreign markets by conducting a systematic assessment of company
offerings for international customers. Assess the fit between the offerings and foreign
customer needs.
What is country screening? - ANSWER>>Screen countries to identify target markets.
Narrow the number of countries that merit detailed investigation as potential target
markets to a manageable few.
2 ways to screen potential country markets: - ANSWER>>gradual elimination and
indexing and ranking
What is indirect exporting? - ANSWER>>Contracting with an intermediary in the firm's
home country to perform all export functions, often an export management or trading
company.
What is direct exporting? - ANSWER>>Contracting with intermediaries in the foreign
market, such as distributors or agents, to perform export functions. They perform
downstream value-chain activities in the target market.
What is company-owned foreign subsidary? - ANSWER>>Similar to direct exporting,
except the exporter owns the foreign intermediation operation; the most advanced
option.
What is offshoring? - ANSWER>>The relocation of processes or functions from a
"home" country to another country. MNEs shift to enhance their competitive
,advantages.
What is a greenfield investment? - ANSWER>>Foreign direct investment whereby a
new facility is constructed abroad
What is a merger? - ANSWER>>the combination of two companies (usually
corporations) to form a new larger company
What is acquisition? - ANSWER>>Direct investment or purchase of an existing
company or facility. The focal firm can expand its market access through existing
distribution networks.
What is vertical integration? - ANSWER>>The firm owns, or seeks to own, multiple
stages of a value chain for producing, selling, and delivering a product.
Horizontal integration What is horizontal integration? ANSWER>>Arrangement whereby
the firm owns, or seeks to own, the activities involved in a single stage of its value chain.
Licensing What is licensing? ANSWER>>An arrangement in which the owner of
intellectual property grants another firm the right to use that property for a specified
period of time in exchange for royalties or other compensation.
What is franchising? - ANSWER>>Arrangement in which the firm allows another the
right to use an entire business system in exchange for fees, royalties or other
compensation.
What is a royalty? - ANSWER>>A fee paid periodically to compensate a licensor for the
temporary use of its intellectual property, often based on a percentage of gross sales
generated from the use of the licensed asset.
What is a patent? - ANSWER>>the right to prevent others from using an invention for a
fixed period. It is granted to anyone who invents a new process, product or useful
improvement.
, What is a trademark? - ANSWER>>distinctive design or symbol that identifies a
product or service. Ex: Nike swoosh
What is copyright? - ANSWER>> protects original works of authorship. Generally
covers works of music, art, literature, movies, or software.
What is protectionism? - ANSWER>> the theory or practice of shielding a country's
domestic industries from foreign competition by taxing imports.
What is customs? - ANSWER>>The checkpoint at national ports of entry where officials
inspect imported goods and levy tariffs.
What is a nontariff trade barrier? - ANSWER>>a government policy, regulation, or
procedure that impedes trade through means other than explicit tariffs
What is a quota? - ANSWER>>A limit on the number of goods that can be imported
What is investment barriers? - ANSWER>>Rules or laws that hinder foreign direct
investment
What is foreign direct investment? - ANSWER>>Investment made by a foreign
company in the economy of another country.
What is currency control? - ANSWER>>Restrictions on the outflow of hard currency
from a country or on the inflow of foreign currencies.
What is local content requirement? - ANSWER>>Requirement that firms include a
minimum percent of locally sourced inputs in the production of given products or
services.
