International Business Quiz

<p>To generate financial returns by passively owning foreign securities like stocks and bonds. (B)</p> Signup and view all the answers

<p>Technological advancements in infrastructure (B)</p> Signup and view all the answers

<p>FDI involves establishing a physical presence in a foreign country, while portfolio investment does not. (D)</p> Signup and view all the answers

<p>It can increase uncertainty and complexity in international business transactions (B)</p> Signup and view all the answers

<p>China (D)</p> Signup and view all the answers

<p>They protect innovations and provide legal recourse against infringement (C)</p> Signup and view all the answers

<p>Government policies and actions can significantly influence country risk (D)</p> Signup and view all the answers

<p>United Nations (UN) (D)</p> Signup and view all the answers

<p>Increased competition among nations. (D)</p> Signup and view all the answers

<p>Ethical practices can vary significantly depending on the culture (C)</p> Signup and view all the answers

<p>$22 trillion (B)</p> Signup and view all the answers

<p>USA (C)</p> Signup and view all the answers

<p>International business is more complex and requires considerations for different cultures, legal systems, and economic environments. (D)</p> Signup and view all the answers

<p>The decline of tariffs and trade barriers. (C)</p> Signup and view all the answers

<p>Typically the richest countries (D)</p> Signup and view all the answers

<p>Domestic market share analysis (B)</p> Signup and view all the answers

<p>To expand their market reach and tap into new customer bases. (B)</p> Signup and view all the answers

<p>Developing economies (D)</p> Signup and view all the answers

<p>Becoming an expert in domestic market analysis and local business regulations. (A)</p> Signup and view all the answers

<p>Emerging market economies (B)</p> Signup and view all the answers

<p>Technological advancements and increased globalization are facilitating the exchange of services. (A)</p> Signup and view all the answers

<p>A weak partner (D)</p> Signup and view all the answers

<p>Non-governmental organizations, state agencies and state-owned companies (A)</p> Signup and view all the answers

<p>To access new markets and resources (B)</p> Signup and view all the answers

<p>Technology risk (D)</p> Signup and view all the answers

<p>International trade, foreign direct investment, and portfolio investment (A)</p> Signup and view all the answers

<p>Logistics and shipping firms (C)</p> Signup and view all the answers

<p>Increased competition in the domestic market (C)</p> Signup and view all the answers

<p>Commercial risk, currency risk, country risk, and political risk (C)</p> Signup and view all the answers

<p>To gain access to new markets and potential customers (D)</p> Signup and view all the answers

<p>Gaining access to lower-cost labor and resources in foreign markets (B)</p> Signup and view all the answers

<p>To acquire new knowledge and ideas for products and services (A)</p> Signup and view all the answers

<p>To limit their exposure to global market fluctuations (B)</p> Signup and view all the answers

<p>By gaining access to new resources and expertise (C)</p> Signup and view all the answers

<p>A clothing retailer establishing a branch in another country where its primary customers have relocated (D)</p> Signup and view all the answers

<p>To increase its reliance on a single source of revenue (D)</p> Signup and view all the answers

<p>Expanding opportunities for growth and profitability (B)</p> Signup and view all the answers

<p>The currency of Country B fluctuates significantly, affecting the value of Company C's assets in that country. (D)</p> Signup and view all the answers

<p>Social and political unrest, and unstable political environments. (D)</p> Signup and view all the answers

<p>Microsoft's search engine Bing would likely experience a significant increase in market share in China. (B), Google's departure would likely have a minimal impact on Microsoft's position in the Chinese market. (D)</p> Signup and view all the answers

<p>Fluctuations in exchange rates can negatively impact the value of a company’s assets. (D)</p> Signup and view all the answers

<p>The fluctuations of the Japanese yen in recent years. (A)</p> Signup and view all the answers

<p>It might be difficult to predict and adjust prices for inputs and finished goods. (C)</p> Signup and view all the answers

<p>A strong legal framework that protects intellectual property rights. (C)</p> Signup and view all the answers

<p>It can hinder the export capabilities of American firms. (B)</p> Signup and view all the answers

The process of importing parts or materials from other countries for production.

Investment where a firm establishes a physical presence in another country.

Ownership of foreign securities like stocks and bonds for financial returns.

The country that exported the most goods, surpassing others.

The country that imported the most goods in the world market.

The rapid increase in global trade value over decades, now totaling $22 trillion annually.

Multilateral regulatory agencies that promote international trade and financial cooperation.

Complex systems that facilitate international trade and investments between countries.

Trade that involves the exchange of services across borders.

The share of international trade that services represent, compared to goods.

Countries that have the highest total annual value of international services trade.

The richest countries with developed industries and high living standards.

Formerly developing countries that have made significant economic progress.

Low-income countries with limited industrialization and slow economic growth.

The process by which firms expand their operations beyond domestic markets.

International business involves cross-border transactions, unlike domestic which operates within a country.

The risk arising from cultural differences that impact communication and business practices.

Variations in language, customs, attitudes, and lifestyle that influence business interactions.

The potential for losses due to political instability or unfavorable regulations in a country.

The approach individuals take in negotiations that varies by culture (e.g., direct vs. friendly).

Examples include corruption, tariffs, and censorship affecting foreign businesses.

Legal protections that ensure intellectual property rights are enforced.

Different approaches to making decisions influenced by cultural factors (e.g., quick vs. deliberative).

Standards of behavior that can differ significantly across nations, affecting business operations.

Poor management or policies leading to a country's economic decline.

The potential for financial loss due to fluctuations in exchange rates.

The potential for loss that a business faces due to political factors in a foreign country.

Actions by a government that can affect trade and investment through policies and regulations.

High inflation alters pricing and complicates business planning.

Google faced challenges in China due to hacking and censorship.

Economic policy of restraining trade between nations through tariffs and restrictions.

Skype was blocked in the UAE, limiting communication options.

Non-profit groups that engage in cross-border activities addressing social issues.

An NGO that funds health research and works with businesses in developing areas.

Firms engage in international business to seek growth, profit, and market diversification.

The strategy of entering new markets to reduce risk and enhance growth.

Cost advantages gained when production increases and costs decrease per unit.

Benefits gained from sourcing materials globally for flexibility and cost-effectiveness.

Gaining new ideas for products/services through international exposure and collaboration.

Firms confront global competitors through international strategies and operations.

The possibility of losing money due to business factors like weak partners or poor strategy execution.

Commercial, currency, country, and operational risks that affect global business.

Companies that operate in multiple countries, engaging in international business.

Businesses with fewer employees and revenue than larger firms, participating in international trade.

Companies that start international operations from their inception, not transitioning from domestic.

The level of competition in an industry, affecting business risks.

Challenges that disrupt a company's ability to deliver products or services effectively.