BUSMHR 2000 MIDTERM (INTERNATIONAL
BUSINESS)
When companies systematically engage in increasing the international dimension of
their business activities it is known as ________. - Answer -internationalization
________refers to the performance of trade and investment activities by firms across
national borders. - Answer -International business
Which type of investment is the passive ownership of foreign securities for the purpose
of generating financial returns? - Answer -International portfolio investment
Carol wants to expand her recycled toy business abroad because demand for recycled
products is much higher in Europe and Asia than in the United States. She locates three
suppliers in Europe and three in Asia, and creates one factory in Germany and one in
Singapore. She seeks ways to advance her machinery to meet the needs of her
production as well as her eco-friendly business model. In what type of international
business has Carol engaged? - Answer -Foreign direct investment
A macro trend of intense economic interconnectedness among the nations of the world
is called ________. - Answer -globalization
Which of the following would be a cross-cultural risk in internationalization? - Answer -
Different languages
If a firm is operating in a foreign country, what type of risk does it face from the country's
political, legal, and economic environment? - Answer -Country risk
In international business, cross-cultural risk can come from differences in language and
culture. Which statement best explains why language is an important aspect of culture?
- Answer -Language facilitates communication and sheds light on people's value
systems.
Companies primarily internationalize for the purpose of ________. - Answer -gaining a
competitive advantage
What is the LEAST likely motive for international expansion? - Answer -Learning about
a new culture
When Nissan opened its first factory in the United Kingdom, many Japanese auto parts
suppliers followed, establishing their own operations there. This is an example of
________. - Answer -better serving clients that have moved into foreign markets
, A business student in Texas is considering learning a foreign language. Why might she
benefit from studying a language such as Russian or Chinese? - Answer -Both Russia
and China feature fast-growing economies.
Which of the following is NOT a reason to study international business? - Answer -
Global markets are decreasing.
Starbucks sells coffee from a nonprofit organization that promotes the interests of the
coffee growers. Why is this example important to you as a student of international
business? - Answer -It demonstrates social responsibility and good environmental
practices.
Which of the following is a critical employability skill? - Answer -Cultural awareness
Faced with declining sales in the U.S, what strategy has Harley Davidson adopted? -
Answer -A focus on foreign markets.
There have been five phases of globalization since the 1800s. The most current phase
was triggered by ________. - Answer -the rise of digital technologies
________ refers to the gradual integration and growing interdependence of national
economies. - Answer -Globalization of markets
Which of the following is a societal consequence of globalization? - Answer -Offshoring
and the flight of jobs
________ is the sequence of value-adding activities performed to develop, produce,
market, and service a product. - Answer -A value chain
Which of the following is a likely cause of globalization? - Answer -Many emerging
markets are now value-adding producers.
Custom Cars, a painting and auto modification company, has expanded operations into
South America. The first problem Custom Cars encountered was determining the
applicable laws in the new country. Next, Custom Cars was informed by the local mayor
that the firm will be shut down if it does not prepay its taxes in cash. Which risk in
international business is Custom Cars encountering? - Answer -Country risk
A U.S. mining operation opens a mine in Canada. The owner knows that it is easier and
less expensive to acquire mining equipment in the Klondike, an area of Canada, than
elsewhere. The owner of the mine goes to the Klondike and meets locals who offer to
partner with him. Why is this miner seeking international business, and what type of risk
is he taking? - Answer -To gain access to less costly factors of production; commercial
risk
BUSINESS)
When companies systematically engage in increasing the international dimension of
their business activities it is known as ________. - Answer -internationalization
________refers to the performance of trade and investment activities by firms across
national borders. - Answer -International business
Which type of investment is the passive ownership of foreign securities for the purpose
of generating financial returns? - Answer -International portfolio investment
Carol wants to expand her recycled toy business abroad because demand for recycled
products is much higher in Europe and Asia than in the United States. She locates three
suppliers in Europe and three in Asia, and creates one factory in Germany and one in
Singapore. She seeks ways to advance her machinery to meet the needs of her
production as well as her eco-friendly business model. In what type of international
business has Carol engaged? - Answer -Foreign direct investment
A macro trend of intense economic interconnectedness among the nations of the world
is called ________. - Answer -globalization
Which of the following would be a cross-cultural risk in internationalization? - Answer -
Different languages
If a firm is operating in a foreign country, what type of risk does it face from the country's
political, legal, and economic environment? - Answer -Country risk
In international business, cross-cultural risk can come from differences in language and
culture. Which statement best explains why language is an important aspect of culture?
- Answer -Language facilitates communication and sheds light on people's value
systems.
Companies primarily internationalize for the purpose of ________. - Answer -gaining a
competitive advantage
What is the LEAST likely motive for international expansion? - Answer -Learning about
a new culture
When Nissan opened its first factory in the United Kingdom, many Japanese auto parts
suppliers followed, establishing their own operations there. This is an example of
________. - Answer -better serving clients that have moved into foreign markets
, A business student in Texas is considering learning a foreign language. Why might she
benefit from studying a language such as Russian or Chinese? - Answer -Both Russia
and China feature fast-growing economies.
Which of the following is NOT a reason to study international business? - Answer -
Global markets are decreasing.
Starbucks sells coffee from a nonprofit organization that promotes the interests of the
coffee growers. Why is this example important to you as a student of international
business? - Answer -It demonstrates social responsibility and good environmental
practices.
Which of the following is a critical employability skill? - Answer -Cultural awareness
Faced with declining sales in the U.S, what strategy has Harley Davidson adopted? -
Answer -A focus on foreign markets.
There have been five phases of globalization since the 1800s. The most current phase
was triggered by ________. - Answer -the rise of digital technologies
________ refers to the gradual integration and growing interdependence of national
economies. - Answer -Globalization of markets
Which of the following is a societal consequence of globalization? - Answer -Offshoring
and the flight of jobs
________ is the sequence of value-adding activities performed to develop, produce,
market, and service a product. - Answer -A value chain
Which of the following is a likely cause of globalization? - Answer -Many emerging
markets are now value-adding producers.
Custom Cars, a painting and auto modification company, has expanded operations into
South America. The first problem Custom Cars encountered was determining the
applicable laws in the new country. Next, Custom Cars was informed by the local mayor
that the firm will be shut down if it does not prepay its taxes in cash. Which risk in
international business is Custom Cars encountering? - Answer -Country risk
A U.S. mining operation opens a mine in Canada. The owner knows that it is easier and
less expensive to acquire mining equipment in the Klondike, an area of Canada, than
elsewhere. The owner of the mine goes to the Klondike and meets locals who offer to
partner with him. Why is this miner seeking international business, and what type of risk
is he taking? - Answer -To gain access to less costly factors of production; commercial
risk
