GEB 3373
International Business
Finals Exam (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following trade theories emphasizes the
importance of relative productivity in determining comparative
advantage?
- A) Mercantilism
- B) Ricardian Theory
- C) Heckscher-Ohlin Theory
- D) New Trade Theory
Correct ANS: B) Ricardian Theory
Rationale: The Ricardian Theory of comparative advantage
focuses on differences in productivity between countries.
2. What is the primary goal of a multinational corporation
(MNC) in its global operations?
- A) To operate at the same level as local businesses
- B) To reduce risk by diversifying its operations
- C) To maximize market share in the host countries
- D) To maintain complete control over all subsidiaries
Correct ANS: B) To reduce risk by diversifying its operations
Rationale: MNCs aim to diversify their operations to mitigate
risks associated with economic fluctuations in any one market.
©2024/2025
,3. Which of the following agreements primarily aims to facilitate
trade and reduce tariffs among member countries?
- A) The Paris Agreement
- B) NAFTA (North America Free Trade Agreement)
- C) The Kyoto Protocol
- D) The GATT (General Agreement on Tariffs and Trade)
Correct ANS: B) NAFTA
Rationale: NAFTA was established to increase trade between
the U.S., Canada, and Mexico by reducing tariffs and trade
barriers.
4. What is the primary focus of Foreign Direct Investment
(FDI)?
- A) Capital transfers between countries
- B) Direct export of domestic goods
- C) Acquisition of a lasting interest in a foreign enterprise
- D) Short-term investments in foreign stocks
Correct ANS: C) Acquisition of a lasting interest in a foreign
enterprise
Rationale: FDI involves a long-term interest in and significant
control over a foreign business entity.
©2024/2025
, 5. In the context of international business, "dumping" refers to:
- A) Importing goods at a loss
- B) Selling products in a foreign market at lower prices than in
the domestic market
- C) Overproduction of goods causing market instability
- D) Disposing of leftover inventory in foreign markets
Correct ANS: B) Selling products in a foreign market at lower
prices than in the domestic market
Rationale: Dumping is seen as a way to gain market share by
underpricing competitors.
Fill-in-the-Blank Questions
6. The _______ theory explains that countries should specialize
in the production of goods they can produce most efficiently and
trade for others.
Correct ANS: comparative advantage
Rationale: The comparative advantage theory posits that
countries can benefit from specializing in and trading goods they
produce efficiently.
©2024/2025
International Business
Finals Exam (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following trade theories emphasizes the
importance of relative productivity in determining comparative
advantage?
- A) Mercantilism
- B) Ricardian Theory
- C) Heckscher-Ohlin Theory
- D) New Trade Theory
Correct ANS: B) Ricardian Theory
Rationale: The Ricardian Theory of comparative advantage
focuses on differences in productivity between countries.
2. What is the primary goal of a multinational corporation
(MNC) in its global operations?
- A) To operate at the same level as local businesses
- B) To reduce risk by diversifying its operations
- C) To maximize market share in the host countries
- D) To maintain complete control over all subsidiaries
Correct ANS: B) To reduce risk by diversifying its operations
Rationale: MNCs aim to diversify their operations to mitigate
risks associated with economic fluctuations in any one market.
©2024/2025
,3. Which of the following agreements primarily aims to facilitate
trade and reduce tariffs among member countries?
- A) The Paris Agreement
- B) NAFTA (North America Free Trade Agreement)
- C) The Kyoto Protocol
- D) The GATT (General Agreement on Tariffs and Trade)
Correct ANS: B) NAFTA
Rationale: NAFTA was established to increase trade between
the U.S., Canada, and Mexico by reducing tariffs and trade
barriers.
4. What is the primary focus of Foreign Direct Investment
(FDI)?
- A) Capital transfers between countries
- B) Direct export of domestic goods
- C) Acquisition of a lasting interest in a foreign enterprise
- D) Short-term investments in foreign stocks
Correct ANS: C) Acquisition of a lasting interest in a foreign
enterprise
Rationale: FDI involves a long-term interest in and significant
control over a foreign business entity.
©2024/2025
, 5. In the context of international business, "dumping" refers to:
- A) Importing goods at a loss
- B) Selling products in a foreign market at lower prices than in
the domestic market
- C) Overproduction of goods causing market instability
- D) Disposing of leftover inventory in foreign markets
Correct ANS: B) Selling products in a foreign market at lower
prices than in the domestic market
Rationale: Dumping is seen as a way to gain market share by
underpricing competitors.
Fill-in-the-Blank Questions
6. The _______ theory explains that countries should specialize
in the production of goods they can produce most efficiently and
trade for others.
Correct ANS: comparative advantage
Rationale: The comparative advantage theory posits that
countries can benefit from specializing in and trading goods they
produce efficiently.
©2024/2025
