BUSA 4000 Final Exam Review
1. International business is defined as the performance of _____ activities by
firms across national borders
o CORRECT ANSWER: Trade and Investment
2. Which of the following best characterizes the development of international
business?
o CORRECT ANSWER: It has existed in some form for centuries
3. _____ refers to the transfer of assets to another country or the acquisition of
assets in that country
o CORRECT ANSWER: International Investment
4. Which of the following would NOT be considered an example of foreign
direct investment (FDI)?
o CORRECT ANSWER: Cross-border purchase of stocks
5. ____ is the total value of products and services produced in a country over
the course of a year
o CORRECT ANSWER: GDP
6. Which of the following has contributed to the rapid growth of trade among
nations EXCEPT
o CORRECT ANSWER: The increase in trade barriers
7. Which of the following types of risk is also known as political risk?
o CORRECT ANSWER: Country Risk
8. Which of the following is NOT an example of a cross-cultural risk factor?
o CORRECT ANSWER: Cost of production
9. Fluctuating exchange rates are an example of which of the following?
o CORRECT ANSWER: Currency Risk
10. Businesses that directly initiate international business transactions are
known as
, o CORRECT ANSWER: Focal firms
11. Firms that emphasize global integration make and sell
o CORRECT ANSWER: Products that require minimal adaptation
12. Graham Technologies is a UK-based consumer electronics manufacturer. The
company markets netbooks, smartphones, laptops, and desktops in the
international market, and each product division operates as a stand-alone
profit center with substantial autonomy. This is an example of a
o CORRECT ANSWER: Product structure
13. Which of the following is necessary for local responsiveness to effectively
increase a firm's competitiveness?
o CORRECT ANSWER: Local managers need to be able to make
decisions based on local needs
14. Which of the following is a disadvantage of a geographic area structure?
o CORRECT ANSWER: Geographic area managers' potential lack of
global orientation for developing and managing products
15. Which of the following activities would be considered last by a manager
while developing strategies?
o CORRECT ANSWER: Deciding how best to contend with competitors
16. A _____ strategy is characterized by substantial control over country
operations by headquarters in order to increase efficiency and integration
o CORRECT ANSWER: Global
17. In which of the following are substantial autonomy and decision-making
authority delegated to a firm's subsidiaries around the world?
o CORRECT ANSWER: Decentralized Approach
18. GramTech Solutions is a software development firm based in the US. The
firm's CEO, David Ghaster, wants to open an outlet in India. Being a
visionary leader, he would
o CORRECT ANSWER: Acquire managers with an international mind-set,
showing an openness to and awareness of diversity across cultures
1. International business is defined as the performance of _____ activities by
firms across national borders
o CORRECT ANSWER: Trade and Investment
2. Which of the following best characterizes the development of international
business?
o CORRECT ANSWER: It has existed in some form for centuries
3. _____ refers to the transfer of assets to another country or the acquisition of
assets in that country
o CORRECT ANSWER: International Investment
4. Which of the following would NOT be considered an example of foreign
direct investment (FDI)?
o CORRECT ANSWER: Cross-border purchase of stocks
5. ____ is the total value of products and services produced in a country over
the course of a year
o CORRECT ANSWER: GDP
6. Which of the following has contributed to the rapid growth of trade among
nations EXCEPT
o CORRECT ANSWER: The increase in trade barriers
7. Which of the following types of risk is also known as political risk?
o CORRECT ANSWER: Country Risk
8. Which of the following is NOT an example of a cross-cultural risk factor?
o CORRECT ANSWER: Cost of production
9. Fluctuating exchange rates are an example of which of the following?
o CORRECT ANSWER: Currency Risk
10. Businesses that directly initiate international business transactions are
known as
, o CORRECT ANSWER: Focal firms
11. Firms that emphasize global integration make and sell
o CORRECT ANSWER: Products that require minimal adaptation
12. Graham Technologies is a UK-based consumer electronics manufacturer. The
company markets netbooks, smartphones, laptops, and desktops in the
international market, and each product division operates as a stand-alone
profit center with substantial autonomy. This is an example of a
o CORRECT ANSWER: Product structure
13. Which of the following is necessary for local responsiveness to effectively
increase a firm's competitiveness?
o CORRECT ANSWER: Local managers need to be able to make
decisions based on local needs
14. Which of the following is a disadvantage of a geographic area structure?
o CORRECT ANSWER: Geographic area managers' potential lack of
global orientation for developing and managing products
15. Which of the following activities would be considered last by a manager
while developing strategies?
o CORRECT ANSWER: Deciding how best to contend with competitors
16. A _____ strategy is characterized by substantial control over country
operations by headquarters in order to increase efficiency and integration
o CORRECT ANSWER: Global
17. In which of the following are substantial autonomy and decision-making
authority delegated to a firm's subsidiaries around the world?
o CORRECT ANSWER: Decentralized Approach
18. GramTech Solutions is a software development firm based in the US. The
firm's CEO, David Ghaster, wants to open an outlet in India. Being a
visionary leader, he would
o CORRECT ANSWER: Acquire managers with an international mind-set,
showing an openness to and awareness of diversity across cultures
