Exam 1: Introduction: What Is International Business

International Trade Summit (Scenario) An international trade summit is held in Geneva, Switzerland. The purpose of the summit is to cooperatively develop policies that promote international trade. Representatives from 50 different countries attend the summit. -One summit attendee pointed out that the total value of her country's products trade typically accounted for more than 100 percent of her nation's GDP. This attendee most likely represents ________.

Which of the following best characterizes the development of international business?

Which of the following contributes LEAST to increasing a company's profit margins?

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. -Philip Baxter reported on the risks associated with establishing the plant in Country A. The most significant risk, in his view, was posed by the government's complex bureaucratic structure. Philip reported the likelihood of significant administrative delays in opening the plant. The risk identified by Philip is an example of which of the following?

Although services trade is growing rapidly, the value of merchandise trade is still much larger.

Currency risk refers to the risk posed by adverse fluctuations in exchange rates.

A few decades ago, international business was largely the domain of ________.

All of the following are reasons to study international business EXCEPT ________.

International Trade Summit (Scenario) An international trade summit is held in Geneva, Switzerland. The purpose of the summit is to cooperatively develop policies that promote international trade. Representatives from 50 different countries attend the summit. -One of the attendees represents a leading nation in the international merchandise trade. This attendee is most likely from which of the following countries?

Freehold Investment Corp. (Scenario) Dan Freehold and his business partner, Bethany Quinn, are successful investors engaged in a variety of enterprises. Recently Dan and Bethany have decided to expand their foreign investing operations. They hold a meeting for individuals interested in participating in certain overseas ventures. -At the meeting, Dan explains to the attendees that Freehold direct investment projects differ from international trade in that ________.

What is meant by the term "entrepôt economies"? In a short essay, explain the concept and provide an example.

Since the 1980s, emerging market countries have experienced substantial market liberalization and privatization.

The Coca-Cola Company is an example of a(n) ________.

In a short essay, explain the main differences between international portfolio investment and foreign direct investment.

International business is defined as the performance of ________ activities by firms across national borders.

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. -The CEO introduced another overseas effort by noting that it represented an attempt to confront an international competitor. The CEO was most likely referring to which of the following efforts?

Freehold Investment Corp. (Scenario) Dan Freehold and his business partner, Bethany Quinn, are successful investors engaged in a variety of enterprises. Recently Dan and Bethany have decided to expand their foreign investing operations. They hold a meeting for individuals interested in participating in certain overseas ventures. -Bethany presents another opportunity that involves the purchase of a manufacturing plant in South Korea. She explains that this type of strategy will involve ________ ownership on the part of the firm.

________ refers to the transfer of assets to another country or the acquisition of assets in that country.

In a short essay, explain the four trends that provide evidence for the globalization of markets. Provide an example to illustrate one of the trends.

Which of the following, if TRUE, would most strongly support the claim that national prosperity is increased by participation in international business?