BUSA 4000 Final Exam Review Questions and Answers Solved Correctly
which of the following would NOT be considered an example of Foreign Direct Investment (FDI)?
a)cross-border purchase of stocks
b)purchase of foreign land for business operations
c)purchase of capital assets of a foreign company
d)a cross-border purchase of a textile plant - Answers cross-border purchase of stocks
international business is defined as the performance of __________ activities by firms across national
borders.
a)accounting and auditing
b)marketing and fiduciary
c)trade and investment
d)finance and operational - Answers trade and investment
_________ refers to the transfer of assets to another country or the acquisition of assets in that country
a)International risk
b)importing
c)exporting
d)international investment - Answers international investment
which of the following types of risk is also known as political risk?
a)commercial risk
b)cross-cultural risk
c)country risk
d)currency risk - Answers country risk
,Which of the following is NOT an example of cross-cultural risk factor?
a)costs of production
b)ethical practices
c)negotiation patterns
d)decision-making styles - Answers costs of production
which of the following has contributed to the rapid growth of trade among nations EXCEPT____
a)the increase in trade barriers
b)advances in information technology
c)the liberalization of markets
d)advances in the information technology - Answers the increase in trade barriers
______ is the total value of products and services produced in a country over the course of a year
a)CAD
b)PPP
c)GDP
d)FDI - Answers GDP
fluctuating exchange rates are an example of which of the following?
a)currency risk
b)cross-cultural risk
c)political risk
d)country risk - Answers currency risk
businesses that directly initiate international business transactions are known as____
, a)fiduciary trusts
b)business affiliates
c)focal firms
d)fiscal enterprises - Answers focal firms
which of the following best characterizes the development of international business?
a)it developed after the year 2000
b)it first started in Europe
c)its development has slowed in recent years
d)it has existed in some from for centuries - Answers it has existed in some from for centuries
in which of the following are substantial autonomy and decision-making authority delegated to a firm's
subsidiaries around the world?
a)global strategy
b)nationalization
c)transnational strategy
d)decentralized approach - Answers decentralized approach
which of the following is a disadvantage of a geographic area structure?
a)limited communications and coordination among the subsidiaries within each geographic region
b)minimal balance between global integration and local adaptation
c)decreased responsiveness to customer needs and wants in each region/local market
d)geographic area managers' lack of global orientation for developing and managing products - Answers
geographic area managers' lack of global orientation for developing and managing products
a firm would be compelled to seek global integration when it has to_________
which of the following would NOT be considered an example of Foreign Direct Investment (FDI)?
a)cross-border purchase of stocks
b)purchase of foreign land for business operations
c)purchase of capital assets of a foreign company
d)a cross-border purchase of a textile plant - Answers cross-border purchase of stocks
international business is defined as the performance of __________ activities by firms across national
borders.
a)accounting and auditing
b)marketing and fiduciary
c)trade and investment
d)finance and operational - Answers trade and investment
_________ refers to the transfer of assets to another country or the acquisition of assets in that country
a)International risk
b)importing
c)exporting
d)international investment - Answers international investment
which of the following types of risk is also known as political risk?
a)commercial risk
b)cross-cultural risk
c)country risk
d)currency risk - Answers country risk
,Which of the following is NOT an example of cross-cultural risk factor?
a)costs of production
b)ethical practices
c)negotiation patterns
d)decision-making styles - Answers costs of production
which of the following has contributed to the rapid growth of trade among nations EXCEPT____
a)the increase in trade barriers
b)advances in information technology
c)the liberalization of markets
d)advances in the information technology - Answers the increase in trade barriers
______ is the total value of products and services produced in a country over the course of a year
a)CAD
b)PPP
c)GDP
d)FDI - Answers GDP
fluctuating exchange rates are an example of which of the following?
a)currency risk
b)cross-cultural risk
c)political risk
d)country risk - Answers currency risk
businesses that directly initiate international business transactions are known as____
, a)fiduciary trusts
b)business affiliates
c)focal firms
d)fiscal enterprises - Answers focal firms
which of the following best characterizes the development of international business?
a)it developed after the year 2000
b)it first started in Europe
c)its development has slowed in recent years
d)it has existed in some from for centuries - Answers it has existed in some from for centuries
in which of the following are substantial autonomy and decision-making authority delegated to a firm's
subsidiaries around the world?
a)global strategy
b)nationalization
c)transnational strategy
d)decentralized approach - Answers decentralized approach
which of the following is a disadvantage of a geographic area structure?
a)limited communications and coordination among the subsidiaries within each geographic region
b)minimal balance between global integration and local adaptation
c)decreased responsiveness to customer needs and wants in each region/local market
d)geographic area managers' lack of global orientation for developing and managing products - Answers
geographic area managers' lack of global orientation for developing and managing products
a firm would be compelled to seek global integration when it has to_________
