International Business Exam #1
Questions with Verified Answers
Understanding things like how people communicate, lead, make decisions or value
time are critical to avoid which risk of international business? - ANSWER-cross-
cultural risk
This type of risk can be caused by developments in political, legal, and economic
environment of a foreign country. - ANSWER-country/political risk
The following is an example of what type risk caused by international business?
"Rising value of the US dollar during 2015 and 2016 relative to most currencies cut
into revenues of US MNEs, such as Apple, Caterpillar, and Pfizer" - ANSWER-
currency risk
Business partner risk, pricing, product features, and promotional themes can all
cause which type of international business risk? - ANSWER-commercial risk
This type of international business risk includes the possibility of foreign government
intervention in a firms' business activities. - ANSWER-country/political risk
What are the five reasons that firms internationalize? - ANSWER-1. Seek
opportunities for growth through market diversification
2. Earn higher margins and profits
3. Gain new ideas about products, services, and business methods
4. Serve key customers better that have relocated abroad
5. Be closer to supply sources, benefit from global sourcing advantages, or gain
flexibility in product sourcing
What three ways to firms internationalize in order to achieve objectives? - ANSWER-
1. external factors
2. management activities
3. objectives
What are four external factors that managers must manage in order to achieve
objectives? - ANSWER-1. political
2. economic
3. socio-cultural
4. technological
The external factors that firm's try to avoid in order to achieve objectives are also
known as what? - ANSWER-risks
We can do a _____ and _____ analysis to determine how to manage strategic
_____. - ANSWER-objectives
,What management activities aid in achieving objectives (6)? - ANSWER-1. strategy
2. structure
3. marketing
4. human resources
5. supply-chain & operations
6. finance & accounting
What three objectives do firm's often internationalize to achieve? - ANSWER-1.
increase sales
2. new resources & knowledge
3. reduce risk
Once a company decides to enter a foreign market, one of its first management
decision is choosing the best method for _____ that market. - ANSWER-entering
Firm can use one of six modes in order to enter a market. What are these six
modes? - ANSWER-1. exporting/importing
2. turnkey projects
3. licensing
4. franchising
5. establishing joint ventures
6. setting up a new, wholly owned subsidiary
This type of model provides a relatively straightforward way to scan, monitor, and
evaluate important external factors and trends that may impinge upon a firm when it
engages in international business. - ANSWER-PESTEL
Why study international business (4)? - ANSWER-1. facilitator of the global economy
and interconnectedness
2. contributor to national economic well-being
3. a competitive advantage for you
4. an opportunity to support ethics, sustainability, and corporate citizenship
The tendency of companies to deepen their international business activities
systematically is to _____ firms. - ANSWER-internationalize
What are the five phases of globalization? - ANSWER-1. first phase
2. second phase
3. third phase
4. fourth phase
5. fifth phase
This phase of globalization occurred in 1948 to the 1970s. - ANSWER-third phase
This phase of globalization occurred in 2007 to the present. - ANSWER-fifth phase
This phase of globalization occurred in 1900 to 1930. - ANSWER-second phase
This phase of globalization occurred in the 1980s to 2006. - ANSWER-fourth phase
, This phase of globalization occurred in 1830 to the late 1800s. - ANSWER-first
phase
This phase peaked in 1880. - ANSWER-first phase
Which phase of globalization included the rise of electricity and steel production? -
ANSWER-second phase
Which phase of globalization privatized state enterprise in transition economies? -
ANSWER-fourth phase
Which phase of globalization included a revolution of information, communication,
and transportation technologies? - ANSWER-fourth phase
Which phase of globalization did the industrializing Western countries focus on
reducing trade barriers? - ANSWER-third phase
Which phase of globalization introduced railroads and ocean transport? - ANSWER-
first phase
Which phase of globalization saw the emergence and dominance of early MNEs -
mainly from Europe and North America - in manufacturing, extractive, and
agricultural industries? - ANSWER-second phase
Which phase of globalization saw a rise in global technologies, and other new
technologies, which are boosting manufactur9ng productivity and the efficiency of
international trade in service? - ANSWER-fifth phase
Which phase of globalization did we see a remarkable growth of emerging markets?
- ANSWER-fourth phase
Which phase of globalization saw a rise in manufacturing cross-border trade
commodities, largely by trading companies? - ANSWER-first phase
Which phase of globalization did we see a rise in MNEs from Japan? - ANSWER-
third phase
Which phase of globalization did we see the formation of the General Agreement on
Tariffs and Trade? - ANSWER-third phase
Which phase of globalization occurred during the conclusion of WWII and the
formation of the Marshall Plan to reconstruct Europe? - ANSWER-third phase
Which phase of globalization was leveraging technology used to facilitate trade and
local production? - ANSWER-fifth phase
Which phase of globalization was there rapid growth in cross-border trade of
products, services, and capital? - ANSWER-fourth phase
Questions with Verified Answers
Understanding things like how people communicate, lead, make decisions or value
time are critical to avoid which risk of international business? - ANSWER-cross-
cultural risk
This type of risk can be caused by developments in political, legal, and economic
environment of a foreign country. - ANSWER-country/political risk
The following is an example of what type risk caused by international business?
"Rising value of the US dollar during 2015 and 2016 relative to most currencies cut
into revenues of US MNEs, such as Apple, Caterpillar, and Pfizer" - ANSWER-
currency risk
Business partner risk, pricing, product features, and promotional themes can all
cause which type of international business risk? - ANSWER-commercial risk
This type of international business risk includes the possibility of foreign government
intervention in a firms' business activities. - ANSWER-country/political risk
What are the five reasons that firms internationalize? - ANSWER-1. Seek
opportunities for growth through market diversification
2. Earn higher margins and profits
3. Gain new ideas about products, services, and business methods
4. Serve key customers better that have relocated abroad
5. Be closer to supply sources, benefit from global sourcing advantages, or gain
flexibility in product sourcing
What three ways to firms internationalize in order to achieve objectives? - ANSWER-
1. external factors
2. management activities
3. objectives
What are four external factors that managers must manage in order to achieve
objectives? - ANSWER-1. political
2. economic
3. socio-cultural
4. technological
The external factors that firm's try to avoid in order to achieve objectives are also
known as what? - ANSWER-risks
We can do a _____ and _____ analysis to determine how to manage strategic
_____. - ANSWER-objectives
,What management activities aid in achieving objectives (6)? - ANSWER-1. strategy
2. structure
3. marketing
4. human resources
5. supply-chain & operations
6. finance & accounting
What three objectives do firm's often internationalize to achieve? - ANSWER-1.
increase sales
2. new resources & knowledge
3. reduce risk
Once a company decides to enter a foreign market, one of its first management
decision is choosing the best method for _____ that market. - ANSWER-entering
Firm can use one of six modes in order to enter a market. What are these six
modes? - ANSWER-1. exporting/importing
2. turnkey projects
3. licensing
4. franchising
5. establishing joint ventures
6. setting up a new, wholly owned subsidiary
This type of model provides a relatively straightforward way to scan, monitor, and
evaluate important external factors and trends that may impinge upon a firm when it
engages in international business. - ANSWER-PESTEL
Why study international business (4)? - ANSWER-1. facilitator of the global economy
and interconnectedness
2. contributor to national economic well-being
3. a competitive advantage for you
4. an opportunity to support ethics, sustainability, and corporate citizenship
The tendency of companies to deepen their international business activities
systematically is to _____ firms. - ANSWER-internationalize
What are the five phases of globalization? - ANSWER-1. first phase
2. second phase
3. third phase
4. fourth phase
5. fifth phase
This phase of globalization occurred in 1948 to the 1970s. - ANSWER-third phase
This phase of globalization occurred in 2007 to the present. - ANSWER-fifth phase
This phase of globalization occurred in 1900 to 1930. - ANSWER-second phase
This phase of globalization occurred in the 1980s to 2006. - ANSWER-fourth phase
, This phase of globalization occurred in 1830 to the late 1800s. - ANSWER-first
phase
This phase peaked in 1880. - ANSWER-first phase
Which phase of globalization included the rise of electricity and steel production? -
ANSWER-second phase
Which phase of globalization privatized state enterprise in transition economies? -
ANSWER-fourth phase
Which phase of globalization included a revolution of information, communication,
and transportation technologies? - ANSWER-fourth phase
Which phase of globalization did the industrializing Western countries focus on
reducing trade barriers? - ANSWER-third phase
Which phase of globalization introduced railroads and ocean transport? - ANSWER-
first phase
Which phase of globalization saw the emergence and dominance of early MNEs -
mainly from Europe and North America - in manufacturing, extractive, and
agricultural industries? - ANSWER-second phase
Which phase of globalization saw a rise in global technologies, and other new
technologies, which are boosting manufactur9ng productivity and the efficiency of
international trade in service? - ANSWER-fifth phase
Which phase of globalization did we see a remarkable growth of emerging markets?
- ANSWER-fourth phase
Which phase of globalization saw a rise in manufacturing cross-border trade
commodities, largely by trading companies? - ANSWER-first phase
Which phase of globalization did we see a rise in MNEs from Japan? - ANSWER-
third phase
Which phase of globalization did we see the formation of the General Agreement on
Tariffs and Trade? - ANSWER-third phase
Which phase of globalization occurred during the conclusion of WWII and the
formation of the Marshall Plan to reconstruct Europe? - ANSWER-third phase
Which phase of globalization was leveraging technology used to facilitate trade and
local production? - ANSWER-fifth phase
Which phase of globalization was there rapid growth in cross-border trade of
products, services, and capital? - ANSWER-fourth phase
