International Business Concepts Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of the World Trade Organization (WTO)?

To set global trade quotas for major export commodities.

To impose trade sanctions on countries violating trade agreements.

To promote international trade and resolve trade disagreements. (correct)

To implement protectionist policies for developing nations.

Which of the following best describes a 'foreign subsidiary'?

A business that has exclusive distribution rights in a foreign country.

An independent business that sources goods from global suppliers.

A branch of a company that is owned by a parent company in another country. (correct)

A company that licenses its brand and operations to another business abroad.

When a country's imports exceed its exports, it experiences a:

Trade surplus

Interdependence

Trade deficit (correct)

Balance of trade

What is the key characteristic of 'competitive advantage' in business?

Being able to produce goods or services at a lower cost than competitors. Signup and view all the answers

Which of the following best defines the Human Development Index (HDI)?

A measure of a country's quality of life, incorporating health, education, and income. Signup and view all the answers

Which activity involves investing in foreign stocks and bonds?

Portfolio investment Signup and view all the answers

What is the primary goal of a business?

To achieve profit by selling goods or services Signup and view all the answers

What does 'value-added' refer to in a business context?

The increase in a product's worth at every stage of production. Signup and view all the answers

What is a tax on imported goods referred to as?

Tariff Signup and view all the answers

A contract allowing the use of a company's brand or technology is a:

Licensing agreement Signup and view all the answers

Which term describes an exchange rate that fluctuates based on market forces?

Floating rate Signup and view all the answers

What is the result when a country reduces the value of its currency relative to other currencies?

Currency devaluation Signup and view all the answers

Which term describes the increase in prices over time, which reduces the buying power of money?

Inflation Signup and view all the answers

Which term describes the capability to effectively adapt, relate, and work across different cultures?

Cultural Intelligence Signup and view all the answers

In the context of time management, which concept refers to the preference for completing one task at a time?

Monochronic Signup and view all the answers

What is the term for a group within a larger culture, distinguished by factors like class, religion, or lifestyle?

Subculture Signup and view all the answers

Which of these best describes a basic good or raw material that can be bought and sold?

Commodity Signup and view all the answers

A system of government where one person holds absolute power is known as:

Autocracy Signup and view all the answers

What is the term used to describe government decisions on taxation to control the macroeconomy?

Fiscal Policy Signup and view all the answers

What economic concept describes the ability to produce something at a lower opportunity cost than others?

Comparative Advantage Signup and view all the answers

Which model illustrates the flow of money, goods, services, and resources between households, businesses, and governments in an economy?

Circular Flow Model Signup and view all the answers

Which economic system is characterized by minimal government involvement in business operations?

Market Economy Signup and view all the answers

What is the primary function of a central bank when using monetary policy?

To manage the supply of money and interest rates Signup and view all the answers

What does the concept of 'opportunity cost' primarily refer to?

The value of the best alternative foregone when making a choice. Signup and view all the answers

A group of countries agreeing to control oil prices is an example of what?

A cartel. Signup and view all the answers

What is the main purpose of the Paris Agreement?

To reduce greenhouse gas emissions. Signup and view all the answers

What best describes a situation where a company is facing an 'ethical dilemma'?

When a company must choose between two actions that challenge ethical standards. Signup and view all the answers

What does corporate social responsibility (CSR) primarily focus on?

A company's efforts to positively impact society and the environment. Signup and view all the answers

What is the term for the practice of selling goods in a foreign market at unfairly low prices, often to drive out competition?

Dumping. Signup and view all the answers

What is the primary aim of penetration pricing as a marketing strategy?

To rapidly gain market share by attracting a large customer base. Signup and view all the answers

Which of the following best defines 'discretionary income'?

The income that remains after all essential expenses are covered. Signup and view all the answers

What is a key characteristic of a centralized marketing strategy?

Marketing decisions are made by a central team or authority. Signup and view all the answers

What is the primary focus of collecting 'clickstream data'?

To track the websites and pages a user visits online. Signup and view all the answers

According to the provided content, what is the main goal of implementing an acquisition strategy?

To achieve growth by purchasing other companies. Signup and view all the answers

What does 'economies of scale' refer to regarding cost advantages for a company?

The cost advantages gained when a company produces more, reducing the cost per unit. Signup and view all the answers

Which of the following marketing activities is NOT among the 'Four P's of Marketing'?

Packaging Signup and view all the answers

What type of research involves the analysis of data that already exists?

Secondary Research Signup and view all the answers

Study Notes

Unit 1: Need to Study

Balance of trade: Difference between a country's exports and imports.
Globalization: Growing connections between economies, cultures, and global trade.
Trade deficit: Importing more than exporting.
Trade surplus: Exporting more than importing.
Populism: Political focus on ordinary people's needs and concerns.
Portfolio investment: Investment in foreign stocks, bonds, or other financial assets.
Business: Profit-oriented activities involving selling goods or services.
Branch plant: Foreign-owned factory or office in another country.
Domestic business: Business operating within its home country.
Domestic market: Customers and businesses buying goods/services within a country.
Exports: Goods/services sold to other countries.
Foreign direct investment (FDI): Company investment and ownership of businesses in another country.
Foreign markets: International locations for buying/selling goods/services.
Imports: Goods/services bought from other countries.
Interdependence: Countries relying on each other for goods, services, or resources.
International business: Trade/business between different countries.
Tariff: Tax on imported goods.
Trade: Exchange of goods/services between people or countries.
Trading partner: Country/entity trading with another.
Transaction: Exchange of goods, services or money.

Unit 2: Licensing, Floating Rates, and Currency

Licensing agreement: Contract allowing use of a company's brand or technology.
Floating rate: Exchange rate changing based on market supply and demand.
Currency devaluation: Lowering a currency's value compared to others.
Currency speculation: Trading currency based on predicted value changes (Forex).
Exchange rate: Value of one currency relative to another.
Hard currencies: Stable, widely accepted currencies (e.g., USD, Euro).
Inflation: Increase in prices over time reducing money's purchasing power.
Trade embargo: Banning trade with a specific country.
Trade quota: Limit on the amount of a good that can be imported/exported.
Trade sanctions: Penalties imposed on a country's trade to enforce policies.
World Trade Organization (WTO): Organization promoting global trade and resolving disputes.

Unit 3: Competitive Advantage, Capital Markets, and Human Development

Competitive advantage: Making a product cheaper than others.
Capital markets: Places for buying/selling financial assets (e.g., stocks, bonds).
Human Development Index (HDI): Measuring a country's quality of life (e.g., health, education, income).
Productivity: Efficiency of producing goods/services.
Telecommuting: Working remotely, usually from home.

Unit 4: Commodities, Counter Cultures, and Cultural Dimensions

Commodity: Basic good or raw material (e.g., agricultural product).
Counter culture: Group opposing mainstream culture's norms.
Cultural dimension: Comparing cultural differences across various cultures.
Cultural intelligence: Adaptability to work across cultures.
Cultural norm: Shared expectation of behaviour in a culture.
Culture: Shared values, beliefs, customs of a group of people.

Unit 5: Absolute Advantage, Economic Systems, and Fiscal Policies

Absolute advantage: Ability to produce more of a good or service.
Autocracy: One-person government with absolute power.
Business Cycle: Economy's growth/decline patterns (e.g., peak, recession, depression, recovery).
Centrally planned economy: Government controls economic decisions (e.g., Communism).
Circular flow model: Diagram showing money, goods, services, and resources flow in an economy.
Comparative advantage: Ability to produce a good or service at a lower opportunity cost.
Democracy: Power to the people (voting).
Developed economies: High per capita income/strong GDP.
Developing economies: Economies transitioning from Communism to Capitalism.
Economic system: How a society organizes production and distribution of goods/services.
Economies in Transition: Movement to market-oriented systems from Communist systems.
Fiscal policy: Government decisions on taxation to manage the economy.
Gross Domestic Product (GDP): Total value of all goods/services produced in a country.
Lobbying: Influencing policymakers or legislation.
Market economy: Capitalism; private sector dominates economic activity.
Mixed economy: Combination of capitalism and communism.
Monetary policy: Actions of a central bank controlling money supply and interest rates.
Opportunity cost: Value of the next best alternative forgone.

Unit 6: Trade Organizations, Agreements, and Ethical Considerations

Cartel: Businesses/countries cooperating to control prices/production.
Euro: Single currency of many European Union countries.
Paris Agreement: Global treaty to reduce greenhouse gas emissions.
Trade organizations: Groups promoting and regulating international trade.
TFWP (Temporary Foreign Worker Program): Allowing temporary labor shortages.
Trade agreements: Treaties reducing trade barriers.
Business ethics: Principles governing right/wrong behavior in business.
Corporate corruption: Illegal/unethical actions by companies for profit.
Corporate social responsibility (CSR): Company efforts for positive social and environmental impact.
Cultural relativism: Ethics based on cultural norms.
Dumping: Selling goods below cost in foreign markets.
Ethical dilemma: Situation where choosing between two options challenges ethical principles.
Ethical imperialism: Imposing one's own ethical standards on other cultures.
Microcredit: Small loans to low-income individuals.
NGO (Non-governmental organization): Independent groups for social/environmental causes.
Pollution: Release of harmful substances into the environment.
Predatory dumping: Eliminating competition through extremely low pricing.
Resource depletion: Overuse of natural resources.
Stakeholder: Anyone affected by a company's actions (e.g., employees, customers).
Subsidizing: Government financial support, reducing costs.
Sweatshops: Workplaces with poor conditions, low wages, and exploitative practices.

Unit 7: Acquisition Strategy and B2B/B2C Transactions

Acquisition strategy: Plan for company growth via buying other companies.
Business to business (B2B): Transactions between businesses.
Business to consumer (B2C): Transactions between businesses and consumers.

Unit 8: Marketing Strategies, Data, and Customers

Centralized marketing strategy: Marketing decisions by a central team.
Clickstream data: Tracking online user activity.
Decentralized marketing strategy: Local or regional marketing teams.
Demographics: Statistical information about a population (e.g., age, income).
Discount pricing: Lower than usual prices to attract customers.
Discretionary income: Money left after essential expenses.
E-business: Online business activities.
Economies of scale: Cost advantages from increased production.
Ethnocentrism: Belief in one's own culture's superiority.
Four Ps of marketing: Product, price, place, and promotion.
Influencers: People with large online followings promoting products.
Market research: Gathering and analyzing data about markets and customers.
Marketing: Activities promoting/selling goods/services.
Mark-up: Difference between product cost and selling price.
Maslow's hierarchy of needs: Theory of human needs (basic needs first).
Penetration pricing: Low initial price to gain market share.
Premium pricing: High price reflecting quality/exclusivity.
Price skimming: High initial price, then gradually lowered to attract more customers.
Primary research: Collecting original data.
Psychological pricing: Using numbers to influence customer perception (e.g., $9.99).
Secondary research: Analyzing existing data.
Target market: Specific group of customers a company aims for.
Thorndike's law of effect: Behavior followed by satisfying results is repeated.
Trade show: Event showcasing products/services.
Two C's of marketing: Customer and cost considerations.
Vending machine: Automated product dispensing system.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on key international business concepts with this quiz. Topics include the World Trade Organization, competitive advantage, foreign subsidiaries, and economic indicators like the Human Development Index. Challenge yourself and see how well you understand global economic principles!