IBA final exam
Yemna, a recent business schoolgraduate, lovesadventure, so she is seeking a job in a foreign
country to expand her sense of the world of business. She is being recruited by a company that
has 50 employees and is looking to hire additional personnel to oversee thefirm's exporting
branch in Vietnam. What type of international business is recruitingYemna? - ANS-Small
enterprise
In internationalbusiness, cross-cultural risk can come from differences in language and culture.
Which statement best explains why language is an important aspect ofculture? -
ANS-Language facilitates communication and sheds light onpeople's value systems.
When companies systematically engage in increasing the international dimension of their
business activities it is known as________ - ANS-Internationalization
Why would firms internationalize to earn higher margins andprofits? - ANS-Market growth in
mature countries is oftenflat, and foreign markets may be underserved.
Starbucks sells coffee from a nonprofit organization that promotes the interests of the coffee
growers. Why is this example important to you as a student of internationalbusiness? - ANS-It
demonstrates social responsibility and good environmental practices.
Which type of investment is the passive ownership of foreign securities for the purpose of
generating financialreturns? - ANS-International portfolio investment
When Nissan opened its first factory in the UnitedKingdom, many Japanese auto parts
suppliersfollowed, establishing their own operations there. This is an example of________. -
ANS-better serving clients that have moved into foreign markets
Companies primarily internationalize for the purpose of________. - ANS-Gaining a competitive
advantage
What is the LEAST likely motive for internationalexpansion? - ANS-Learning about a new
culture
Which of the following would be across-cultural risk ininternationalization? - ANS-Different
languages
A focal firm is a company that________. - ANS-initiates international business transactions
Faced with declining sales in theU.S, what strategy has Harley Davidsonadopted? - ANS-A
focus on foreign markets
,Education and healthcare are two examples of_________ in international business. -
ANS-Nongovernmental organizations
A U.S. mining operation opens a mine in Canada. The owner knows that it is easier and less
expensive to acquire mining equipment in theKlondike, an area ofCanada, than elsewhere.
The owner of the mine goes to the Klondike and meets locals who offer to partner with him. Why
is this miner seeking internationalbusiness, and what type of risk is hetaking? - ANS-To gain
access to less costly factors ofproduction; commercial risk
A macro trend of intense economic interconnectedness among the nations of the world is called
________. - ANS-Globalization
CustomCars, a painting and auto modificationcompany, has expanded operations into South
America. The first problem Custom Cars encountered was determining the applicable laws in
the new country.Next, Custom Cars was informed by the local mayor that the firm will be shut
down if it does not prepay its taxes in cash. Which risk in international business is Custom Cars
encountering? - ANS-Country risk
A business student in Texas is considering learning a foreign language. Why might she benefit
from studying a language such as Russian orChinese? - ANS-Both Russia and China feature
fast-growing economies.
India is entering the global age and has a growing middle class. An Indian car manufacturer
wants to offer a car for the average citizen ofIndia, but does not have the technology available
to create an inexpensive car that meets the laws that the Indian government is considering
imposing. The company sets out to find a U.S. hybrid and electric car manufacturer that is
willing to work with them. Why would a U.S. firm most likelyagree? - ANS-To develop a network
of people and increase business in the future
Which of the following is NOT a reason to study internationalbusiness? - ANS-Global markets
are decreasing
_______refers to the performance of trade and investment activities by firms across national
_
borders. - ANS-International business
________ include businesses, institutions, and governments. - ANS-Organizational buyers
If a firm is operating in a foreigncountry, what type of risk does it face from thecountry's
political,legal, and economicenvironment? - ANS-Country risk
Carol wants to expand her recycled toy business abroad because demand for recycled products
is much higher in Europe and Asia than in the United States. She locates three suppliers in
Europe and three inAsia, and creates one factory in Germany and one in Singapore. She seeks
, ways to advance her machinery to meet the needs of her production as well as hereco-friendly
business model. In what type of international business has Carolengaged? - ANS-Foreign
direct investment
Which of the following is a critical employabilityskill? - ANS-Cultural awareness
Pioneer Systems is a young entrepreneurial company that has engaged in international
business from the day it opened its doors. Pioneer is categorized as a________. - ANS-born
global firm
Which of the following is NOT an economic integrationbloc? - ANS-World Trade Organization
(WTO)
What is one reason companies use social media such as Snapchat andTwitter? - ANS-To
communicate with connected individuals in new markets
In SouthCarolina, JacksonMills, a longstanding textileplant, shut down and thousands of
workers lost their jobs. Jackson Mills learned that it could source textiles of equal quality at a
lower price from suppliers in Asia. This is an example of________. - ANS-relocating
value-adding activities to achieve cost advantages
InAfrica, the majority of people live on less than$5 a day. According to the author of thetext,
what is one of the most effective ways to reduce Africanpoverty? - ANS-Develop more
business-based models of development
Why can many global products and services bestandardized? - ANS-There is a convergence of
consumer lifestyles and preferences worldwide.
What is one of the most typical reason for locatingvalue-chain activitiesabroad? - ANS-To
reduce the costs ofR&D and production
There have been five phases of globalization since the 1800s. The most current phase was
triggered by________. - ANS-the rise of digital technologies
________ have opened upone-third of the world to increased internationaltrade, including
many Asian economies such as India and South Korea. - ANS-Free market reforms
Globalization of services can be seen in the international expansion of________. - ANS-the
banking, hospitality, and retailing industries
Advances in________ have resulted in an expansion of the global marketplace forsmall- and
medium-sized enterprises(SMEs). - ANS-communication technologies
Yemna, a recent business schoolgraduate, lovesadventure, so she is seeking a job in a foreign
country to expand her sense of the world of business. She is being recruited by a company that
has 50 employees and is looking to hire additional personnel to oversee thefirm's exporting
branch in Vietnam. What type of international business is recruitingYemna? - ANS-Small
enterprise
In internationalbusiness, cross-cultural risk can come from differences in language and culture.
Which statement best explains why language is an important aspect ofculture? -
ANS-Language facilitates communication and sheds light onpeople's value systems.
When companies systematically engage in increasing the international dimension of their
business activities it is known as________ - ANS-Internationalization
Why would firms internationalize to earn higher margins andprofits? - ANS-Market growth in
mature countries is oftenflat, and foreign markets may be underserved.
Starbucks sells coffee from a nonprofit organization that promotes the interests of the coffee
growers. Why is this example important to you as a student of internationalbusiness? - ANS-It
demonstrates social responsibility and good environmental practices.
Which type of investment is the passive ownership of foreign securities for the purpose of
generating financialreturns? - ANS-International portfolio investment
When Nissan opened its first factory in the UnitedKingdom, many Japanese auto parts
suppliersfollowed, establishing their own operations there. This is an example of________. -
ANS-better serving clients that have moved into foreign markets
Companies primarily internationalize for the purpose of________. - ANS-Gaining a competitive
advantage
What is the LEAST likely motive for internationalexpansion? - ANS-Learning about a new
culture
Which of the following would be across-cultural risk ininternationalization? - ANS-Different
languages
A focal firm is a company that________. - ANS-initiates international business transactions
Faced with declining sales in theU.S, what strategy has Harley Davidsonadopted? - ANS-A
focus on foreign markets
,Education and healthcare are two examples of_________ in international business. -
ANS-Nongovernmental organizations
A U.S. mining operation opens a mine in Canada. The owner knows that it is easier and less
expensive to acquire mining equipment in theKlondike, an area ofCanada, than elsewhere.
The owner of the mine goes to the Klondike and meets locals who offer to partner with him. Why
is this miner seeking internationalbusiness, and what type of risk is hetaking? - ANS-To gain
access to less costly factors ofproduction; commercial risk
A macro trend of intense economic interconnectedness among the nations of the world is called
________. - ANS-Globalization
CustomCars, a painting and auto modificationcompany, has expanded operations into South
America. The first problem Custom Cars encountered was determining the applicable laws in
the new country.Next, Custom Cars was informed by the local mayor that the firm will be shut
down if it does not prepay its taxes in cash. Which risk in international business is Custom Cars
encountering? - ANS-Country risk
A business student in Texas is considering learning a foreign language. Why might she benefit
from studying a language such as Russian orChinese? - ANS-Both Russia and China feature
fast-growing economies.
India is entering the global age and has a growing middle class. An Indian car manufacturer
wants to offer a car for the average citizen ofIndia, but does not have the technology available
to create an inexpensive car that meets the laws that the Indian government is considering
imposing. The company sets out to find a U.S. hybrid and electric car manufacturer that is
willing to work with them. Why would a U.S. firm most likelyagree? - ANS-To develop a network
of people and increase business in the future
Which of the following is NOT a reason to study internationalbusiness? - ANS-Global markets
are decreasing
_______refers to the performance of trade and investment activities by firms across national
_
borders. - ANS-International business
________ include businesses, institutions, and governments. - ANS-Organizational buyers
If a firm is operating in a foreigncountry, what type of risk does it face from thecountry's
political,legal, and economicenvironment? - ANS-Country risk
Carol wants to expand her recycled toy business abroad because demand for recycled products
is much higher in Europe and Asia than in the United States. She locates three suppliers in
Europe and three inAsia, and creates one factory in Germany and one in Singapore. She seeks
, ways to advance her machinery to meet the needs of her production as well as hereco-friendly
business model. In what type of international business has Carolengaged? - ANS-Foreign
direct investment
Which of the following is a critical employabilityskill? - ANS-Cultural awareness
Pioneer Systems is a young entrepreneurial company that has engaged in international
business from the day it opened its doors. Pioneer is categorized as a________. - ANS-born
global firm
Which of the following is NOT an economic integrationbloc? - ANS-World Trade Organization
(WTO)
What is one reason companies use social media such as Snapchat andTwitter? - ANS-To
communicate with connected individuals in new markets
In SouthCarolina, JacksonMills, a longstanding textileplant, shut down and thousands of
workers lost their jobs. Jackson Mills learned that it could source textiles of equal quality at a
lower price from suppliers in Asia. This is an example of________. - ANS-relocating
value-adding activities to achieve cost advantages
InAfrica, the majority of people live on less than$5 a day. According to the author of thetext,
what is one of the most effective ways to reduce Africanpoverty? - ANS-Develop more
business-based models of development
Why can many global products and services bestandardized? - ANS-There is a convergence of
consumer lifestyles and preferences worldwide.
What is one of the most typical reason for locatingvalue-chain activitiesabroad? - ANS-To
reduce the costs ofR&D and production
There have been five phases of globalization since the 1800s. The most current phase was
triggered by________. - ANS-the rise of digital technologies
________ have opened upone-third of the world to increased internationaltrade, including
many Asian economies such as India and South Korea. - ANS-Free market reforms
Globalization of services can be seen in the international expansion of________. - ANS-the
banking, hospitality, and retailing industries
Advances in________ have resulted in an expansion of the global marketplace forsmall- and
medium-sized enterprises(SMEs). - ANS-communication technologies
