BUSA 4000 Midterm 1
1. Which of the following types of risk is also known as political risk?
o CORRECT ANSWER: Country Risk
2. Which of the following is NOT an example of a cross-cultural risk factor?
o CORRECT ANSWER: Costs of production
3. International business is defined as the performance of _______ activities by
firms across national borders.
o CORRECT ANSWER: Trade and Investments
4. Fluctuating exchange rates are an example of which of the following?
o CORRECT ANSWER: Currency risk
5. _____ refers to the transfer of assets to another country or the acquisition of
assets in that country.
o CORRECT ANSWER: International Investment
6. Business that directly initiate international business transactions are known
as ____
o CORRECT ANSWER: Focal firms
7. Which of the following has contributed to the rapid growth of trade among
nations EXCEPT ________
o CORRECT ANSWER: the increase in trade barriers
8. Which of the following would NOT be considered an example of foreign
direct investment (FDI)?
o CORRECT ANSWER: Cross-border purchase of stocks
9. Which of the following best characterizes the development of international
business?
o CORRECT ANSWER: It has existed in some form for centuries
10. _______ is the total value of products and services produced in a country over
the course of a year.
1. Which of the following types of risk is also known as political risk?
o CORRECT ANSWER: Country Risk
2. Which of the following is NOT an example of a cross-cultural risk factor?
o CORRECT ANSWER: Costs of production
3. International business is defined as the performance of _______ activities by
firms across national borders.
o CORRECT ANSWER: Trade and Investments
4. Fluctuating exchange rates are an example of which of the following?
o CORRECT ANSWER: Currency risk
5. _____ refers to the transfer of assets to another country or the acquisition of
assets in that country.
o CORRECT ANSWER: International Investment
6. Business that directly initiate international business transactions are known
as ____
o CORRECT ANSWER: Focal firms
7. Which of the following has contributed to the rapid growth of trade among
nations EXCEPT ________
o CORRECT ANSWER: the increase in trade barriers
8. Which of the following would NOT be considered an example of foreign
direct investment (FDI)?
o CORRECT ANSWER: Cross-border purchase of stocks
9. Which of the following best characterizes the development of international
business?
o CORRECT ANSWER: It has existed in some form for centuries
10. _______ is the total value of products and services produced in a country over
the course of a year.
