BUSI 303
International Business
Comprehensive Midterms Exam (Qns & Ans)
2025
1. Which of the following is a primary reason companies engage
in international business?
- A. Decreasing operational costs
- B. Limiting market reach
- C. Accessing new markets and customers
- D. Reducing product quality
ANS: C. Accessing new markets and customers
©/2025
, Rationale: Companies engage in international business to
access new markets and customers, increasing their market reach
and potential revenue.
2. What is the primary focus of a multinational corporation
(MNC)?
- A. Operating in a single country
- B. Expanding operations across multiple countries
- C. Reducing international trade
- D. Limiting foreign investments
ANS: B. Expanding operations across multiple countries
Rationale: The primary focus of a multinational corporation
(MNC) is to expand operations across multiple countries,
leveraging global opportunities.
Fill-in-the-Blank Questions
3. The __________ exchange rate is the rate at which one
currency can be exchanged for another.
ANS: foreign
©/2025
, Rationale: The foreign exchange rate is the rate at which one
currency can be exchanged for another, impacting international
trade and investments.
4. __________ is the process of adapting a product or service to
meet the needs and preferences of different international markets.
ANS: Localization
Rationale: Localization involves adapting a product or
service to meet the needs and preferences of different
international markets, enhancing its relevance and appeal.
True/False Questions
5. True or False: Tariffs are taxes imposed on imported goods to
protect domestic industries and generate revenue for the
government.
ANS: True
Rationale: Tariffs are taxes imposed on imported goods to
protect domestic industries and generate revenue for the
government, influencing international trade dynamics.
©/2025
, 6. True or False: Globalization refers to the increasing
interconnectedness and interdependence of the world's economies,
cultures, and populations.
ANS: True
Rationale: Globalization refers to the increasing
interconnectedness and interdependence of the world's economies,
cultures, and populations, driven by advancements in technology
and trade.
Multiple Response Questions
7. Which of the following factors influence a company's
decision to enter an international market? (Select all that apply)
- A. Market potential
- B. Political stability
- C. Cultural differences
- D. Local competition
ANSs: A, B, C, D
Rationale: Factors influencing a company's decision to enter
an international market include market potential, political
stability, cultural differences, and local competition, affecting the
feasibility and success of international expansion.
©/2025
International Business
Comprehensive Midterms Exam (Qns & Ans)
2025
1. Which of the following is a primary reason companies engage
in international business?
- A. Decreasing operational costs
- B. Limiting market reach
- C. Accessing new markets and customers
- D. Reducing product quality
ANS: C. Accessing new markets and customers
©/2025
, Rationale: Companies engage in international business to
access new markets and customers, increasing their market reach
and potential revenue.
2. What is the primary focus of a multinational corporation
(MNC)?
- A. Operating in a single country
- B. Expanding operations across multiple countries
- C. Reducing international trade
- D. Limiting foreign investments
ANS: B. Expanding operations across multiple countries
Rationale: The primary focus of a multinational corporation
(MNC) is to expand operations across multiple countries,
leveraging global opportunities.
Fill-in-the-Blank Questions
3. The __________ exchange rate is the rate at which one
currency can be exchanged for another.
ANS: foreign
©/2025
, Rationale: The foreign exchange rate is the rate at which one
currency can be exchanged for another, impacting international
trade and investments.
4. __________ is the process of adapting a product or service to
meet the needs and preferences of different international markets.
ANS: Localization
Rationale: Localization involves adapting a product or
service to meet the needs and preferences of different
international markets, enhancing its relevance and appeal.
True/False Questions
5. True or False: Tariffs are taxes imposed on imported goods to
protect domestic industries and generate revenue for the
government.
ANS: True
Rationale: Tariffs are taxes imposed on imported goods to
protect domestic industries and generate revenue for the
government, influencing international trade dynamics.
©/2025
, 6. True or False: Globalization refers to the increasing
interconnectedness and interdependence of the world's economies,
cultures, and populations.
ANS: True
Rationale: Globalization refers to the increasing
interconnectedness and interdependence of the world's economies,
cultures, and populations, driven by advancements in technology
and trade.
Multiple Response Questions
7. Which of the following factors influence a company's
decision to enter an international market? (Select all that apply)
- A. Market potential
- B. Political stability
- C. Cultural differences
- D. Local competition
ANSs: A, B, C, D
Rationale: Factors influencing a company's decision to enter
an international market include market potential, political
stability, cultural differences, and local competition, affecting the
feasibility and success of international expansion.
©/2025
