Introduction to International Business Unit 1 Quiz

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What is the main focus in international business?

Domestic operations

Value-adding activities on an international scale (correct)

Global market domination

Foreign product development

What is one of the key differences between international business and domestic business?

Customer base

Legal regulations

National boundaries (correct)

Motivation

What does globalization of markets refer to?

National self-sufficiency

Decreasing interdependency of countries worldwide

Limited economic integration

The ongoing process of economic integration & growing interdependency of countries worldwide (correct)

Which activity involves the exchange of products & services across national borders?

Exporting (B) Signup and view all the answers

Who typically performs international business activities?

Specific firms, countries, and non-governmental organizations (D) Signup and view all the answers

What does international trade involve?

Exporting & importing products & services across national borders (B) Signup and view all the answers

Which factor can complicate business planning and pricing of inputs and finished goods in many countries?

Inflation (D) Signup and view all the answers

What risk involves the general risk of unfavorable exchange rate fluctuations?

Currency risk (B) Signup and view all the answers

Which factor can be reduced by improving business strategy and tactics according to the text?

Commercial risk (C) Signup and view all the answers

What should be avoided to reduce commercial risk according to the text?

Choice of weak partners (B) Signup and view all the answers

Which factor involves the lack of legal safeguards for intellectual property rights?

Government intervention (B) Signup and view all the answers

What is relatively acceptable in some African countries but generally unacceptable in Sweden?

Bribery (A) Signup and view all the answers

What is the main purpose of MERCOSUR?

To promote economic growth and integration among South American countries (B) Signup and view all the answers

How many full members are part of MERCOSUR?

4 (D) Signup and view all the answers

Which economic bloc is not mentioned in the text?

NAFTA (D) Signup and view all the answers

What does MERCOSUR provide for its members?

Common external tariff and trade policy (C) Signup and view all the answers

How does regional integration benefit companies within economic blocs?

By facilitating company operations and internationalization (A) Signup and view all the answers

Which two countries are a part of the Closer Economic Relations Agreement (CER)?

Australia and New Zealand (C) Signup and view all the answers

What is one of the societal consequences of market globalization mentioned in the text?

Loss of national sovereignty (B) Signup and view all the answers

Which factor is not mentioned as a driver of market globalization in the text?

Expansion of national boundaries (A) Signup and view all the answers

How can market globalization impact national culture according to the text?

Affecting national culture negatively (B) Signup and view all the answers

What may interfere with governments' control over their own economies and social-political systems, as mentioned in the text?

Activities of multinational enterprises (C) Signup and view all the answers

Which company is cited as an example of being bigger than the economies of many nations in the text?

Walmart (D) Signup and view all the answers

How does global competition impact multinational enterprises (MNEs) according to the text?

It reduces the power of MNEs (C) Signup and view all the answers

What is a key difference between international business and domestic business?

International business is conducted across national borders. (A) Signup and view all the answers

What is the major risk arising from differences in language, lifestyle, attitudes, customs, and religion in international business?

Cross-cultural risk (C) Signup and view all the answers

What is Foreign Direct Investment (FDI) primarily about?

Transferring assets to another country (D) Signup and view all the answers

Where does Toyota source many parts for its cars from when manufacturing in Japan?

China (A) Signup and view all the answers

Which type of investment involves passive ownership of foreign securities?

International investment (C) Signup and view all the answers