BUSA 4000 Exam 1l
International business is defined as the performance of ____ activities by firms across national
borders. - CORRECT ANSWER-trade and Investment
___ refers to the transfer of assets to another country or the acquisition of assets in that country -
CORRECT ANSWER-International investment
Which of the following types of risk is also known as political risk? - CORRECT ANSWER-
Country risk
Which of the following best characterizes the development of international business? -
CORRECT ANSWER-It has existed in some form for centuries
Fluctuating exchange rates are an example of which of the following? - CORRECT ANSWER-
Currency risk
Which of the following has contributed to the rapid growth of trade among nations EXCEPT -
CORRECT ANSWER-The increase in trade barriers
___ is the total value of products and services produced in a country over the course of a year -
CORRECT ANSWER-GDP
Businesses that directly initiate international business transactions are known as - CORRECT
ANSWER-Focal firms
Which of the following is NOT an example of a cross-cultural risk factor? - CORRECT
ANSWER-cost of production
Which of the following would NOT be considered an example of foreign direct investment
(FDI)? - CORRECT ANSWER-cross-border purchase of stocks
Firms that emphasize global integration make and sell - CORRECT ANSWER-Products that
require minimal adaptation
GramTech Solutions is a software development firm based in the United States. The firm's CEO,
David Ghaster, wants to open an outlet in India. Being a visionary leader, he would - CORRECT
ANSWER-acquire managers with an international mind-set, showing an openness to and
awareness of diversity across cultures.
International business is defined as the performance of ____ activities by firms across national
borders. - CORRECT ANSWER-trade and Investment
___ refers to the transfer of assets to another country or the acquisition of assets in that country -
CORRECT ANSWER-International investment
Which of the following types of risk is also known as political risk? - CORRECT ANSWER-
Country risk
Which of the following best characterizes the development of international business? -
CORRECT ANSWER-It has existed in some form for centuries
Fluctuating exchange rates are an example of which of the following? - CORRECT ANSWER-
Currency risk
Which of the following has contributed to the rapid growth of trade among nations EXCEPT -
CORRECT ANSWER-The increase in trade barriers
___ is the total value of products and services produced in a country over the course of a year -
CORRECT ANSWER-GDP
Businesses that directly initiate international business transactions are known as - CORRECT
ANSWER-Focal firms
Which of the following is NOT an example of a cross-cultural risk factor? - CORRECT
ANSWER-cost of production
Which of the following would NOT be considered an example of foreign direct investment
(FDI)? - CORRECT ANSWER-cross-border purchase of stocks
Firms that emphasize global integration make and sell - CORRECT ANSWER-Products that
require minimal adaptation
GramTech Solutions is a software development firm based in the United States. The firm's CEO,
David Ghaster, wants to open an outlet in India. Being a visionary leader, he would - CORRECT
ANSWER-acquire managers with an international mind-set, showing an openness to and
awareness of diversity across cultures.
