Introduction to International Business Unit 1 Quiz
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Questions and Answers

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?

    <p>Exporting</p> Signup and view all the answers

    Who typically performs international business activities?

    <p>Specific firms, countries, and non-governmental organizations</p> Signup and view all the answers

    What does international trade involve?

    <p>Exporting &amp; importing products &amp; services across national borders</p> Signup and view all the answers

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

    <p>Inflation</p> Signup and view all the answers

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

    <p>Currency risk</p> Signup and view all the answers

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

    <p>Commercial risk</p> Signup and view all the answers

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

    <p>Choice of weak partners</p> Signup and view all the answers

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

    <p>Government intervention</p> Signup and view all the answers

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

    <p>Bribery</p> Signup and view all the answers

    What is the main purpose of MERCOSUR?

    <p>To promote economic growth and integration among South American countries</p> Signup and view all the answers

    How many full members are part of MERCOSUR?

    <p>4</p> Signup and view all the answers

    Which economic bloc is not mentioned in the text?

    <p>NAFTA</p> Signup and view all the answers

    What does MERCOSUR provide for its members?

    <p>Common external tariff and trade policy</p> Signup and view all the answers

    How does regional integration benefit companies within economic blocs?

    <p>By facilitating company operations and internationalization</p> Signup and view all the answers

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

    <p>Australia and New Zealand</p> Signup and view all the answers

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

    <p>Loss of national sovereignty</p> Signup and view all the answers

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

    <p>Expansion of national boundaries</p> Signup and view all the answers

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

    <p>Affecting national culture negatively</p> 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?

    <p>Activities of multinational enterprises</p> 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?

    <p>Walmart</p> Signup and view all the answers

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

    <p>It reduces the power of MNEs</p> Signup and view all the answers

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

    <p>International business is conducted across national borders.</p> Signup and view all the answers

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

    <p>Cross-cultural risk</p> Signup and view all the answers

    What is Foreign Direct Investment (FDI) primarily about?

    <p>Transferring assets to another country</p> Signup and view all the answers

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

    <p>China</p> Signup and view all the answers

    Which type of investment involves passive ownership of foreign securities?

    <p>International investment</p> Signup and view all the answers

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