BUSA 4000 Midterm 1 Exam Questions and Answers Solved Correctly Rated A+
Which of the following types of risk is also known as political risk? - Answers Country Risk
Which of the following is NOT an example of a cross-cultural risk factor? - Answers Costs of production
International business is defined as the performance of _______ activities by firms across national
borders. - Answers Trade and Investments
Fluctuating exchange rates are an example of which of the following? - Answers Currency risk
_____ refers to the transfer of assets to another country or the acquisition of assets in that country. -
Answers International Investment
Business that directly initiate international business transactions are known as ____ - Answers Focal
firms
Which of the following has contributed to the rapid growth of trade among nations EXCEPT ________ -
Answers the increase in trade barriers
Which of the following would NOT be considered an example of foreign direct investment (FDI)? -
Answers Cross- border purchase of stocks
Which of the following best characterizes the development of international business? - Answers It has
existed in some form for centuries
_______ is the total value of products and services produced in a country over the course of a year. -
Answers GDP
Which of the following is provided by the licensor in a licensing agreement? - Answers a combination of
intellectual property and technical information and assistance.
How does the acquisition of a foreign company most likely benefit a focal firm in the foreign market ? -
Answers The focal firm can extend its market reach through readily available distribution networks.
Which of the following represents an infrastructural factor that firms must consider when selecting FDI
location? - Answers Availability and quality of local manufacturing
Which if the following is an advantage of exporting? - Answers It increases overall sales volume,
improves market share, and reduces per-unit costs of manufacturing and can potentially generate profit
margins that are often more favorable than in the domestic market.
The strategic view of global sourcing suggests that _____ - Answers just as firms achieve gains in
efficiency, productivity, quality and revenues by leveraging offshore talent, they also obtain the means
to turn around failing businesses, speed up innovation, restructure operations and fund otherwise-
unaffordable development projects.
Which of the following types of risk is also known as political risk? - Answers Country Risk
Which of the following is NOT an example of a cross-cultural risk factor? - Answers Costs of production
International business is defined as the performance of _______ activities by firms across national
borders. - Answers Trade and Investments
Fluctuating exchange rates are an example of which of the following? - Answers Currency risk
_____ refers to the transfer of assets to another country or the acquisition of assets in that country. -
Answers International Investment
Business that directly initiate international business transactions are known as ____ - Answers Focal
firms
Which of the following has contributed to the rapid growth of trade among nations EXCEPT ________ -
Answers the increase in trade barriers
Which of the following would NOT be considered an example of foreign direct investment (FDI)? -
Answers Cross- border purchase of stocks
Which of the following best characterizes the development of international business? - Answers It has
existed in some form for centuries
_______ is the total value of products and services produced in a country over the course of a year. -
Answers GDP
Which of the following is provided by the licensor in a licensing agreement? - Answers a combination of
intellectual property and technical information and assistance.
How does the acquisition of a foreign company most likely benefit a focal firm in the foreign market ? -
Answers The focal firm can extend its market reach through readily available distribution networks.
Which of the following represents an infrastructural factor that firms must consider when selecting FDI
location? - Answers Availability and quality of local manufacturing
Which if the following is an advantage of exporting? - Answers It increases overall sales volume,
improves market share, and reduces per-unit costs of manufacturing and can potentially generate profit
margins that are often more favorable than in the domestic market.
The strategic view of global sourcing suggests that _____ - Answers just as firms achieve gains in
efficiency, productivity, quality and revenues by leveraging offshore talent, they also obtain the means
to turn around failing businesses, speed up innovation, restructure operations and fund otherwise-
unaffordable development projects.
