International Business A Managerial Perspective, 9
International Business A Managerial Perspective, 9
Exam (elaborations)
International Business A Managerial Perspective 9th Edition By Ricky Griffin, Michael Pustay (Test Bank)
5 views 0 purchase
Course
International Business A Managerial Perspective, 9
Institution
International Business A Managerial Perspective, 9
International Business A Managerial Perspective, 9e Ricky Griffin, Michael Pustay (Test Bank)
International Business A Managerial Perspective, 9e Ricky Griffin, Michael Pustay (Test Bank)
International Business, 9e (Griffin/Pustay)
Chapter 1 An Overview of International Business
1) Which of the following would be considered an international business transaction?
A) purchasing products in one country and assembling them in the same country
B) recruiting employees internationally
C) borrowing money from a major bank to finance capital improvements
D) shipping finished products from one country to another for retail sale
Answer: D
Diff: 2
Skill: Concept
LO: 1.1: Discuss the meaning of international business.
AACSB: Analytical Thinking
2) Trade between nations can be traced back as far as ________.
A) 2000 BC
B) 500 BC
C) 1200
D) 1600
Answer: A
Diff: 2
Skill: Concept
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
3) Which country was a significant focal point for international business during the Middle
Ages?
A) China
B) England
C) Italy
D) Russia
Answer: C
Diff: 2
Skill: Concept
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
,5) A boundary less economy is one in which ________.
A) exported goods are predominant
B) regional borders are significant
C) trade laws are strictly enforced
D) national borders are irrelevant
Answer: D
Diff: 2
Skill: Concept
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
6) Business transactions between parties from more than one country are known as international
business.
Answer: TRUE
Diff: 1
Skill: Concept
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
7) International business is more complex than domestic business.
Answer: TRUE
Diff: 2
Skill: Concept
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
8) Small businesses are usually not involved in international business given the cost restrictions.
Answer: FALSE
Diff: 2
Skill: Concept
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
9) The growth of FDI and MNCs first started during the American colonial period.
Answer: TRUE
Diff: 2
Skill: Concept
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
,10) How are the Olympic Games symbolic of international business?
Answer: The Olympics reflect an intense version of international business. Cities compete with
each other to host the games because hosting the Olympics brings recognition and publicity to
the city just as it does to a company brand name. In addition, the city benefits from increased
travel, tourism, and investment by businesses supporting the Olympic games.
Diff: 3
Skill: Critical Thinking
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
11) How does international business differ from domestic business? Why is it important for
business students to learn about international business?
Answer: Domestic business involves transactions that occur within a single country, while
international business involves transactions that cross national borders. Students should learn
about IB because most large firms have global operations and many small firms are expanding
into the international arena.
Diff: 3
Skill: Synthesis
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
12) International business differs from domestic business in several ways. Identify at least three
of these differences and describe their implications for companies.
Answer: The countries involved may use different currencies, requiring currency conversion and
introducing exchange rate risk. Because the legal systems are different, one or more parties must
adjust their practices to comply with local laws. Cultural differences and the availability of
resources affects production of various items and production methods.
Diff: 3
Skill: Synthesis
LO: 1.1: Discuss the meaning of international business.
AACSB: Application of Knowledge
13) The Internet has helped small businesses compete in global markets because it ________.
A) allows them to establish a physical presence in each country
B) avoids transactions involving foreign exchange
C) eliminates price controls
D) reduces entry costs
Answer: D
Diff: 2
Skill: Concept
LO: 1.2: Explain the importance of understanding international business.
AACSB: Application of Knowledge
, 14) According to the CAGE Model, which of the following refers to the physical,
communications, and transportation links between countries?
A) cultural distance
B) administrative distance
C) geographic distance
D) economic distance
Answer: C
Diff: 2
Skill: Concept
LO: 1.2: Explain the importance of understanding international business.
AACSB: Application of Knowledge
15) Individuals should most likely study international business to ________.
A) comply with graduate school certification requirements
B) ensure that an employer has a global online presence
C) remain current on the latest business methods
D) obtain bilingual business experience
Answer: C
Diff: 2
Skill: Concept
LO: 1.2: Explain the importance of understanding international business.
AACSB: Application of Knowledge
16) Which of the following has most likely triggered the increase of small businesses involved in
international business?
A) e-commerce
B) economic recession
C) foreign-made materials
D) increased cultural literacy
Answer: A
Diff: 2
Skill: Concept
LO: 1.2: Explain the importance of understanding international business.
AACSB: Application of Knowledge
17) Just-in-time systems were created in ________.
A) the United States
B) Japan
C) Germany
D) China
Answer: B
Diff: 1
Skill: Concept
LO: 1.2: Explain the importance of understanding international business.
AACSB: Application of Knowledge
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tutorsection. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
