Exam 1: Introduction: What Is International Business

For manufacturing companies, on a per-unit-of-output basis, high volumes of production are correlated with lower per-unit cost.

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

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. -LeShaun Golding researched the risks linked to establishing the plant in Country B. He cited government intervention, lack of local managerial talent, and unethical business practices as the most prominent risks for this location. LeShaun noted all of the following types of risks EXCEPT ________.

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

A U.S. shoe manufacturer is considering internationalizing to promote growth by diversifying its markets. Which of the following, if true, would most strongly support the claim that moving to France would help the company grow through market diversification?

Which of the following best explains why export growth has outpaced the growth of domestic production during the last few decades?

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?

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

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

International business is primarily the domain of large, resourceful firms.

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

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?

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

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

Which of the following is subject to importing and exporting?

Firms that do not export tend to create jobs more quickly than do exporting firms.

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.

Each of the following represents a factor of production EXCEPT ________.

Businesses that directly initiate and implement international business activity are known as ________.

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