BUSMHR 2000 - EXAM 1 QUESTIONS
AND ANSWERS
What is the LEAST likely motive for international expansion?
A. Gaining flexibility in product sourcing
B. Seeking growth opportunities through market diversification
C. Developing economies of scale in production and R&D
D. Learning about a new culture
E. Identifying innovative products and services - Correct Answers -D. Learning about a
new culture
Which of the following would be a cross-cultural risk in internationalization?
A. Mismanagement of the economy
B. Different international taxation
C. Different languages
D. Different protectionism laws
E. Poor execution of strategy - Correct Answers -C. Different languages
Why would firms internationalize to earn higher margins and profits?
A. Firms move to serve clients relocating for higher profits.
B. Market growth in mature countries is often flat, and foreign markets may be
underserved.
C. Firms can access labor and managerial talent at lower costs.
D. Unique foreign environments expose firms to new ideas for products.
E. Foreign markets can extend the marketable life of products that have reached
maturity at home - Correct Answers -B. Market growth in mature countries is often flat,
and foreign markets may be underserved
Companies primarily internationalize for the purpose of ________.
A. centralizing supply chain operations
B. decentralizing the corporate structure
C. downsizing the workforce
D. gaining a competitive advantage
, E. institutionalizing corporate processes - Correct Answers -D. gaining a competitive
advantage
In international business, cross-cultural risk can come from differences in language and
culture. Which statement best explains why language is an important aspect of culture?
A. Miscommunications are easily overcome in the business environment.
B. Cultural misunderstandings can be cleared up by using English for business
transactions.
C. Language facilitates communication and sheds light on people's value systems.
D. Culture can be easily modified by international businesses.
E. Laws and regulations can affect company operations. - Correct Answers -C.
Language facilitates communication and sheds light on people's value systems
A macro trend of intense economic interconnectedness among the nations of the world
is called ________.
A. collaboration
B. exporting
C. tourism
D. globalization
E. outsourcing - Correct Answers -D. globalization
[ ] refers to the performance of trade and investment activities by firms across national
borders.
A. International business
B. Foreign direct investment
C. International investment
D. Global sourcing
E. Exporting - Correct Answers -A. International business
Which of the following is NOT a reason to study international business?
A. Global markets are decreasing.
B. Global trade is a critical engine for job creation.
C. International business provides an opportunity to support sustainability.
D. International business is changing the world.
E. International business contributes to economic prosperity. - Correct Answers -A.
Global markets are decreasing
Yemna, a recent business school graduate, loves adventure, 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 the firm's exporting branch in Vietnam. What type of international business is
recruiting Yemna?
AND ANSWERS
What is the LEAST likely motive for international expansion?
A. Gaining flexibility in product sourcing
B. Seeking growth opportunities through market diversification
C. Developing economies of scale in production and R&D
D. Learning about a new culture
E. Identifying innovative products and services - Correct Answers -D. Learning about a
new culture
Which of the following would be a cross-cultural risk in internationalization?
A. Mismanagement of the economy
B. Different international taxation
C. Different languages
D. Different protectionism laws
E. Poor execution of strategy - Correct Answers -C. Different languages
Why would firms internationalize to earn higher margins and profits?
A. Firms move to serve clients relocating for higher profits.
B. Market growth in mature countries is often flat, and foreign markets may be
underserved.
C. Firms can access labor and managerial talent at lower costs.
D. Unique foreign environments expose firms to new ideas for products.
E. Foreign markets can extend the marketable life of products that have reached
maturity at home - Correct Answers -B. Market growth in mature countries is often flat,
and foreign markets may be underserved
Companies primarily internationalize for the purpose of ________.
A. centralizing supply chain operations
B. decentralizing the corporate structure
C. downsizing the workforce
D. gaining a competitive advantage
, E. institutionalizing corporate processes - Correct Answers -D. gaining a competitive
advantage
In international business, cross-cultural risk can come from differences in language and
culture. Which statement best explains why language is an important aspect of culture?
A. Miscommunications are easily overcome in the business environment.
B. Cultural misunderstandings can be cleared up by using English for business
transactions.
C. Language facilitates communication and sheds light on people's value systems.
D. Culture can be easily modified by international businesses.
E. Laws and regulations can affect company operations. - Correct Answers -C.
Language facilitates communication and sheds light on people's value systems
A macro trend of intense economic interconnectedness among the nations of the world
is called ________.
A. collaboration
B. exporting
C. tourism
D. globalization
E. outsourcing - Correct Answers -D. globalization
[ ] refers to the performance of trade and investment activities by firms across national
borders.
A. International business
B. Foreign direct investment
C. International investment
D. Global sourcing
E. Exporting - Correct Answers -A. International business
Which of the following is NOT a reason to study international business?
A. Global markets are decreasing.
B. Global trade is a critical engine for job creation.
C. International business provides an opportunity to support sustainability.
D. International business is changing the world.
E. International business contributes to economic prosperity. - Correct Answers -A.
Global markets are decreasing
Yemna, a recent business school graduate, loves adventure, 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 the firm's exporting branch in Vietnam. What type of international business is
recruiting Yemna?
