International Business

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MCQ Lecture 1-3

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joseph hanany

Netherlands

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International Business


International BusinessVersion en ligne MCQ Lecture 1-3 par joseph hanany 1 The widening set of interdependent relationships among people from different parts of the world is known as ________. a globalization b offshoring c franchising d outsourcing 2 Which of the following best defines international business? a It includes all economic flows between two or more countries. b It includes all private economic flows between two or more countries. c It includes all business transactions involving two or more countries. d It includes all business transactions in countries other than your home country. 3 Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities; however, Devon would most likely benefit from studying international business issues so that he can ________. a conduct better job interviews b better understand how foreign operations affect the company's competitive position c supervise and evaluate subordinates who have global assignments d understand the legalities of importing and exporting products overseas 4 Which of the following has NOT been a major force increasing globalization in recent decades? a liberalization of cross-border trade b increase in and expansion of technology c growing pressure from consumers d decreasing prices of natural resources 5 Political, legal, economic, monetary, and institutional forces comprise the ________ of international business and influence managers' actions. a environment b competition c culture d threat 6 ________ is the framework that managers apply to determine the competitive moves and business approaches that run the company. a Competition b Growth c Strategy d Vision 7 Rather than an inspirational statement, a(n) ________ statement is meant to motivate people to act and specify the objectives that the firm needs to attain. a mission b vision c expectation d strategy 8 A ________ is a special outlook, skill, capability, or technology that runs through the firm's operations, weaving together all value activities into an integrated value chain. a core competency b value proposition c mission statement d learning curve 9 Which of the following is the purpose of a company's value proposition? a to exceed customers' expectations b to force competitors into a price war c to identify consumers for whom the company creates products d to explain why a consumer should buy the company's products 10 A strategy that focuses on lowering operating costs is referred to as a ________ strategy. a differentiation b cost leadership c niche market d diversification 11 ________ are the two basic strategies for creating value and attaining a competitive advantage in an industry. a Diversification and niche marketing b Industry leadership and market dominance c Customer satisfaction and product innovation d Cost leadership and differentiation 12 A company that employs a(n) ________ strategy creates value by generating customer insights and translating those insights into innovations. a differentiation b diversification c cost leadership d innovation 13 Comparing countries in international business is LEAST useful for determining the ________. a best location for sales and production b sequence of entering different countries c amount of resources to allocate in each country d selection of which managers to send to which countries 14 A differentiation strategy works well when ________. a a company designs a universal product for a broad market b buyers believe minor product differences are irrelevant to price c buyers are highly sensitive to price shifts and quality control d a company can continually develop products that have unique features 15 Executives at Wilson Enterprises need to determine how to leverage and improve the firm's existing competencies on a global basis. What are the two most basic questions that they must answer? a Which markets should we serve and where should production be located to serve those markets? b What are the short-term competitive advantages of the project and what is the return on investment? c What is the total investment required and what are the managerial resources needed to supervise the investment? d What is the availability of land and what is the cost of labor? 16 ) Which of the following most accurately compares the techniques of scanning versus detailed analysis of countries? a Scanning is used for planning and detailed analysis is used for control. b Detailed analysis is used to consider countries overlooked in the scanning process. c Scanning considers a large number of countries so that only the most promising ones undergo a detailed analysis. d Scanning compares one country to another, whereas detailed analysis compares regions within a single country. 17 Opal Computers is considering international production expansion. After scanning to decide on a few countries to consider more closely, Opal managers will most likely need to ________. a identify firms with which to form joint ventures b add some more countries for closer consideration c travel to the locations to analyze and collect specific data d make final decisions by expanding in locations near their rivals 18 Which of the following has the greatest potential to transform an industry's structure? a a change in a competitor's management b a change in a competitor's pricing structure c the expansion of a distribution channel d the exit of a competitor from the industry 19 Which of the following transactions refers to the sale of goods or services produced by a company based in one country to customers that reside in a different country? a importing b countertrading c exporting d freight forwarding 20 ________ are among the fastest-growing economic activities in the world. a Global manufacturing and supply-chain management b Accounting and taxation c Finance and human resources d Exporting and importing 21 Which of the following is NOT an example of a service export? a a management firm providing advice to a foreign client b an investment bank arranging financing for a foreign firm c a coffee chain opening a new store in a foreign country d an engineering firm building roads in a foreign country 22 This spring break you are planning to leave the United States and visit London, where you will stay in a hotel for 10 days. The London hotel will be performing a(n) ________. a indirect merchandise export b merchandise export c service export d service import 23 Companies are likely to export products abroad in all of the following situations EXCEPT ________. a when their average cost per unit of home country production declines substantially by increasing output b when they want to use the riskiest but most profitable method to engage international trade c when they aim to increase degree of market diversification d when they are new to international business 24 Boyce Dynamics, a U.S. maker of LED flashlights, fills unsolicited orders from foreign buyers. It has not proactively investigated international trade options. Boyce Dynamics is best categorized as a ________. a regular exporter b non-exporter c sporadic exporter d domestic exporter 25 A U.S. firm plans to shift from exporting to production in China to serve the Chinese market. Which of the following statements would best explain this decision? a China's currency is appreciating relative to the U.S. dollar. b The firm is nearing capacity utilization in its U.S. plant. c The company need not alter its products for the Chinese market. d Transportation costs have become low relative to production costs. 26 Coca-Cola collaborates extensively abroad, but it refuses collaboration that might imperil control of its core competency. As a result, which of the following is NOT one of its international collaborative forms? a sharing ownership in the production of its secret formula concentrate b using franchisers to bottle, sell, and deliver Coke beverages c licensing Coke's trademark for use on products in which it lacks skills d forming joint ventures with companies that provide supplies for Coke products 27 Small economies are sometimes less successful than large countries in attracting FDI by raising import restrictions. What is the most likely reason for this? a Large economies impose higher trade restrictions. b Transportation costs are generally higher in small economies. c People in small economies are more nationalistic in their purchases. d Small economies frequently lack sufficient markets for large-scale production. 28 A U.S. firm owns 100% of its production facility in Brazil; thus it is most likely using a(n) ________ strategy. a comprehensive ownership b vertical integration c appropriability d internalization 29 A company that makes a foreign investment largely to acquire knowledge is most likely to use ________ as a means of expansion. a a greenfield investment b internalization c an acquisition d a licensing agreement

International Business

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International BusinessVersion en ligne

par joseph hanany

The widening set of interdependent relationships among people from different parts of the world is known as ________.

Which of the following best defines international business?

Devon, an accounts manager at a large electronics firm, does not have any direct international responsibilities; however, Devon would most likely benefit from studying international business issues so that he can ________.

Which of the following has NOT been a major force increasing globalization in recent decades?

Political, legal, economic, monetary, and institutional forces comprise the ________ of international business and influence managers' actions.

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.

Rather than an inspirational statement, a(n) ________ statement is meant to motivate people to act and specify the objectives that the firm needs to attain.

A ________ is a special outlook, skill, capability, or technology that runs through the firm's operations, weaving together all value activities into an integrated value chain.

Which of the following is the purpose of a company's value proposition?

A strategy that focuses on lowering operating costs is referred to as a ________ strategy.

________ are the two basic strategies for creating value and attaining a competitive advantage in an industry.

A company that employs a(n) ________ strategy creates value by generating customer insights and translating those insights into innovations.

Comparing countries in international business is LEAST useful for determining the ________.

A differentiation strategy works well when ________.

Executives at Wilson Enterprises need to determine how to leverage and improve the firm's existing competencies on a global basis. What are the two most basic questions that they must answer?

) Which of the following most accurately compares the techniques of scanning versus detailed analysis of countries?

Opal Computers is considering international production expansion. After scanning to decide on a few countries to consider more closely, Opal managers will most likely need to ________.

Which of the following has the greatest potential to transform an industry's structure?

Which of the following transactions refers to the sale of goods or services produced by a company based in one country to customers that reside in a different country?

________ are among the fastest-growing economic activities in the world.

Which of the following is NOT an example of a service export?

This spring break you are planning to leave the United States and visit London, where you will stay in a hotel for 10 days. The London hotel will be performing a(n) ________.

Companies are likely to export products abroad in all of the following situations EXCEPT ________.

Boyce Dynamics, a U.S. maker of LED flashlights, fills unsolicited orders from foreign buyers. It has not proactively investigated international trade options. Boyce Dynamics is best categorized as a ________.

A U.S. firm plans to shift from exporting to production in China to serve the Chinese market. Which of the following statements would best explain this decision?

Coca-Cola collaborates extensively abroad, but it refuses collaboration that might imperil control of its core competency. As a result, which of the following is NOT one of its international collaborative forms?

Small economies are sometimes less successful than large countries in attracting FDI by raising import restrictions. What is the most likely reason for this?

A U.S. firm owns 100% of its production facility in Brazil; thus it is most likely using a(n) ________ strategy.

A company that makes a foreign investment largely to acquire knowledge is most likely to use ________ as a means of expansion.