True/False Questions
- The most conspicuous aspect of international business is exporting.
(False)
- International business is primarily carried out by individual companies.
(True)
- International business today is predominantly the domain of large, multinational companies.
(False)
- Exporting is an entry strategy involving the sale of products or services to customers located abroad.
(True)
- The two primary types of international investment are portfolio investment and foreign direct investment.
(True)
- Over the last few decades, export activity by nations has grown more quickly than has domestic production.
(True)
- Most countries have a consistent degree of government intervention in commercial activities.
(False)
- Currency risk refers to the risk posed by adverse unexpected fluctuations in exchange rates.
(True)
- The opportunity to increase sales is typically the major motive for international expansion.
(True)
10. For manufacturing companies, on a per-unit-of-output basis, high volumes of production are correlated with lower per-unit cost.
(True)
Multiple-Choice Questions
11. International business involves the performance of ________ activities by firms across national borders. (b) trade and investment
12. Which of the following is another term for importing?
(c) Global sourcing
13. Which of the following are subject to importing and exporting?
(d)All of the above
14. ________ refers to the transfer of assets to another country or the acquisition of assets in that country.
(a)International investment
15. Each of the following represents a factor of production except ________.
(c) Hiring policies
16. Which of the following would not be considered an example of foreign direct investment (FDI)?
(b) cross-border purchase of stocks
17. Which of the following type of risk is also known as political risk?
(d) Country risk
18. Which of the following is not an example of a cross-cultural risk factor?
(c) Competitive intensity
19. Inflationary pricing is an example of which of the following?
(c) Currency Risk
20. Each of the following types of organizations can be active in international business except ________.
(c) RND
can you share any other questions related to this one?