Exam 1: Introduction: What Is International Business

Each of the following has contributed to the rapid growth of trade among nations EXCEPT ________.

Which of the following countries hosts the greatest number of MNEs?

In a short essay, identify three sectors in the service industry that are internationalizing rapidly. Explain the types of activities conducted within each sector, and provide examples of three companies that operate in each.

Exporting is an entry strategy involving the sale of products or services to customers located abroad.

A country's economic assets are also known as factors of production.

Which of the following types of risk is also known as political risk?

Which of the following is NOT an example of a cross-cultural risk factor?

China has the second most MNEs.

Over the last few decades, export activity by nations has grown more quickly than has domestic production.

The two primary types of international investment are portfolio investment and foreign direct investment.

The process of targeting and serving markets outside the home country is known as ________.

Sterling Auto International (Scenario) Sterling Auto International is a successful car manufacturing company headquartered in Detroit, Michigan. Over the past year, the company implemented multiple efforts to expand its overseas operations. At a recent shareholder's meeting, attendees questioned the CEO's motivations for authorizing certain aspects of the expansion efforts. -One shareholder questioned the CEO's rationale for beginning an exploratory effort to establish a new manufacturing plant in India. The CEO responded by explaining that India was an untapped market with a high demand for products such as those produced by Sterling. His rationale represented an example of which of the following reasons for international expansion?

What are the main differences between products and services? In a short essay, explain the difference between the two and provide three examples of each. Which sector has seen the greatest growth in international trade in recent years?

Businesses that directly initiate international business transactions are known as ________.

What is a born global firm? Explain one strategic or reactive reason why an SME might choose to start as a born global.

The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide.

The level of government intervention in commercial activities is similar across most countries.

In the past, international trade and investment activities were mainly conducted by companies that sold services.

Fluctuating exchange rates are an example of which of the following?

Overseas Expansion (Scenario) Whittaker Semiconductors has recently decided to expand its operations overseas. Amanda Quan, Vice President of International Business, assigned a team of investigators to analyze the risks faced by the company in making this move. Of particular interest were the risks that might affect the success of a new production plant to be located in one of three potential countries. -Rosa Suarez reported on her analysis of cross-cultural risks involved with establishing the plant in Country C. Each of the following was most likely discussed in her report EXCEPT ________.