GEB 3373
International Business
LATEST FINAL EXAM REVIEW
Q&S
©2024/2025
,1. Multiple Choice: Which theory explains the reasons why a
company may pursue international business?
a) Modernization Theory
b) Dependency Theory
c) Internationalization Theory
d) Hymer's Theory
Correct Answer: c) Internationalization Theory
Rationale: Internationalization Theory suggests that firms seek to
expand their operations internationally to increase their market
power and gain competitive advantages over their rivals.
2. Fill-in-the-Blank: The ________ model is used to analyze the
competitive advantage of nations.
Correct Answer: Diamond
Rationale: The Diamond model, proposed by Michael Porter, is
a framework that explains why certain industries within particular
nations are competitive internationally.
3. True/False: The eclectic paradigm states that ownership,
location, and internalization advantages must all be present for a
firm to invest overseas.
©2024/2025
, Correct Answer: True
Rationale: The eclectic paradigm, also known as OLI framework,
posits that a combination of ownership, location, and
internalization advantages are necessary for a company to engage in
foreign direct investment.
4. Multiple Response: Which of the following are considered as
barriers to international trade? (Select all that apply)
a) Tariffs
b) Subsidies
c) Import Quotas
d) Cultural Differences
Correct Answers: a) Tariffs, b) Subsidies, c) Import Quotas
Rationale: Tariffs, subsidies, and import quotas are regulatory
measures that countries use to control the amount and quality of
foreign goods entering their markets. Cultural differences, while
significant, are not regulatory trade barriers.
5. Multiple Choice: What is the main purpose of the World Trade
Organization (WTO)?
a) To enforce global financial regulations
b) To facilitate international trade negotiations
c) To provide aid to developing countries
©2024/2025
International Business
LATEST FINAL EXAM REVIEW
Q&S
©2024/2025
,1. Multiple Choice: Which theory explains the reasons why a
company may pursue international business?
a) Modernization Theory
b) Dependency Theory
c) Internationalization Theory
d) Hymer's Theory
Correct Answer: c) Internationalization Theory
Rationale: Internationalization Theory suggests that firms seek to
expand their operations internationally to increase their market
power and gain competitive advantages over their rivals.
2. Fill-in-the-Blank: The ________ model is used to analyze the
competitive advantage of nations.
Correct Answer: Diamond
Rationale: The Diamond model, proposed by Michael Porter, is
a framework that explains why certain industries within particular
nations are competitive internationally.
3. True/False: The eclectic paradigm states that ownership,
location, and internalization advantages must all be present for a
firm to invest overseas.
©2024/2025
, Correct Answer: True
Rationale: The eclectic paradigm, also known as OLI framework,
posits that a combination of ownership, location, and
internalization advantages are necessary for a company to engage in
foreign direct investment.
4. Multiple Response: Which of the following are considered as
barriers to international trade? (Select all that apply)
a) Tariffs
b) Subsidies
c) Import Quotas
d) Cultural Differences
Correct Answers: a) Tariffs, b) Subsidies, c) Import Quotas
Rationale: Tariffs, subsidies, and import quotas are regulatory
measures that countries use to control the amount and quality of
foreign goods entering their markets. Cultural differences, while
significant, are not regulatory trade barriers.
5. Multiple Choice: What is the main purpose of the World Trade
Organization (WTO)?
a) To enforce global financial regulations
b) To facilitate international trade negotiations
c) To provide aid to developing countries
©2024/2025
