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BUSE 608 INTERNATIONL BUSINESS

1. a. b. c. d. 2. a. b. c. d. 3. a. b. c. d. 4. a. b. c. d. 5. a. b. c. d. 6. a. b. c. d. 7. a. b. c. d. 8. a. b. c. International Business (IB) consists of: Transactions carried out across national borders to satisfy the objectives of business organization Transactions carried within national borders to satisfy the objectives of business organization Transferring money across national borders to satisfy the objectives of business organization Transferring money within borders to satisfy the objectives of business organization International Business (IB) activity takes several forms including: Transporting, exporting & investment Trading, contacting & investment Developing, IT & studying All of the above International Business concerned in: Trading & learning sector Manufacturing sector only Manufacturing & services sectors ICT sector only _____ are considered in international business: Time & regulation Culture & costs Markets & customers Costs & risks The objective of international expansion is/are: Expanding the potential market Achieving a satisfactory return on investment Obtaining location advantages All of the above Globalization has several facets, the significant one (s) including: The globalization of production The globalization of markets The globalization of culture a&b The key drivers of change in the trend toward greater business globalization is/are: Increasing in population ICT & transportation Advances Declining trade & investment barriers b&c _____ Responsible for reduction of trade and investment barriers: GATT & WTO IMF & WTO GATT & ITU

d. 9. a. b. c. d. 10. a. b. c. d. 11. a. b. c. d. 12. a. b. c. d. 13. a. b. c. d. 14. a. b. c. d. 15. a. b. c. d. 16. a. b. c. d. 17. a. b. c. d.

IMF only ICT advances help business to: Facilitate contacting Expand their global presence at lower cost Selling products None of the above Technological innovations have facilitated the globalization of markets through: Reduction of delivery time Reduction of regulations Reduction of transportation & communication cost Reduction of production cost International competition can facilitate by: Price regulation Tax regulation Deregulation of markets All of the above _____ affecting the international business: Political trends Economics trends Social trends a&b Newly Industrial Economies (NIEs)relatively will: Have free market Be politically stable Have contract and property protection laws All of the above Less Developed Countries (LDCs)are more likely to be: Politically stable Politically unstable With contract and property protection laws With free market systems LDCs and NIEs can be categorized in international business by: Cultural stability/instability Economic prudence/mismanagement Social networks R&D centers _____ are promoting the economic growth: Spread of democracy & open markets Spread of capitalism & open markets Spread of republic & restricted markets Spread of Socialism & restricted markets Globalization: Increases unemployment Stimulates economic growth Raises the income of consumers b&c

18. Human Development Index (HDI) measures a nations level of economic and social development through: a. Life expectancy b. Educational standards c. Income relative to purchasing power parity d. All of the above 19. In international businesses the political and economic risk are linked because: a. Economics is always controlled by politics b. Economic and legal systems are a function of political ideology c. Political risk is the only cause for economic risk d. Political and economic risk are the same 20. The two dimensions where ____________ can be assessed are the degree to which they emphasise collectivism as opposed to individualism and the degree to which they are totalitarian or democratic. a. Political risk b. Economic systems c. Political systems d. Economic Risk 21. The form of government in which one political party exercises absolute control and opposing political parties are prohibited is called: a. Individualistic b. Collectivist c. Democratic d. Totalitarian 22. a. b. c. d. Which of the following is true about political systems: Collectivist societies operate under totalitarian regimes Individualistic societies operate under totalitarian regimes Collectivist societies operate under a system of democratic government None of the above

23. Individualistic societies operate under a system of democratic government, although this roll not applied on: a. United States b. Germany c. Russia d. England 24. The main reason(s) for the governments trend towards individualism and democracy is(are): a. Totalitarian regimes have failed economically b. IT communications developments have lessened the ability of governments to control information available to their domestic citizens c. Emerging middle-classes have pressed for democratic reforms d. All the above

25. Protecting jobs and (infant) industries, protecting consumers and national security are some reasons for way many countries __________ a. Blocks international trade and investment b. Intervene in international trade and investment c. Open market for international trade and investment d. Starts international trade and investment 26. a. b. c. d. 27. a. b. c. d. 28. a. b. c. d. Which of the following is an example for government Intervention? Tariffs Import Quotas Subsidies All the above The term Anti-Dumping Policies means: Impose limits on exports from a particular country restrict the amount of goods which can be imported Prevent products to be sold at below production costs in other markets Make it difficult for imports to enter a country One of the following is not a critical aspects of politico-legal risk: Individualistic societies Contract Law Product Safety and Product Liability Protection Protection or non-protection of Property Rights

29. Economic risks are categorized, which one of the following is an economic risks category (categories): a. Foreign exchange risks b. Costs not present in domestic business c. Operations risks d. All the above 30. a. b. c. d. When goes international, a firm should expect: Increasing profit due to lowering costs Same types of risks they used to have before going international new types of costs and risks Less total return

31. Although there are many international restaurants in the kingdom of Saudi Arabia, none of them sell pork meat. Why do you think they do not? a. Local market considerations b. No demand for such product c. Lack of supply d. Political considerations 32. a. b. The following types of risks face the international business: Political Risks Legal risks

c. d. 33. a. b. c. d. 34. a. b. c. d.

Economic risks All the above The single European Market was established in: 2009 1992 2002 2000 The single European Market was established with the following forecast benefits: lowering the cost of doing business in Europe Giving European firms the opportunity to gain economies of scale Increasing competition, and therefore benefitting the consumer All the above

35. Unifying the European currency has a major impact in the economic. One of the main impact is : a. Increasing the exchange risks within European union b. Greater price transparency c. Lower competition d. All the above 36. Unifying the European currency has removed the currency risks within European Union. What about the impact on such risks externally? : a. also, removed b. remain prevail c. reduced to large extent d. None of the above 37. The process the countries follow in its endeavor to move towards democratic political systems and free market economies has involved: a. Internal economic liberalization abolition of price controls and scaling down of subsidies b. Introduction of competition through deregulation and privatization, and allowing inward FDI c. Establishment of the rule of law property protection and contract enforcement d. All the above 38. Prior to conducting business transactions with other countries, international businesses should thoroughly: a. assess the political and economic risks which exist in these markets b. assess the economic risks only which exist in these markets c. assess the size of the targeted markets and should not consider risks assessment in this early stages d. study the history of the targeted countries

39. Franklin R Root, in Entry Strategies for International Markets provides a model by which international managers may evaluate the political and economic _________ in individual countries. a. future b. risks c. history d. advances 40. ----------------, in Entry Strategies for International Markets provides a model by which international managers may evaluate the political and economic risks in individual countries. a. Franklin R Root b. Joseph Eugene c. Milton Friedman d. Adam Smith 41. System of values and norms that are shared amongst a group of people and that when taken together constitute a design for living is : a. Personal ambition b. Culture c. Business Ethics d. Values 42. a. b. c. d. 43. a. b. c. d. Abstract ideas about which a group believes to be good, right and desirable are : Personal ambition Culture Norms Values Culture may be: National Sub-national Supra-national All of the above

44. Reflect a societys decision on the key issue of totalitarianism vs democracy. This will determine the extent of individual freedoms and rights: a. Political Philosophy b. Economic Philosophy c. Social Structure d. Education

45. Reflection of the Political Philosophy of a particular society, and will be manifested in the decision to practice either a free-market or centrally planned economy : a. Political Philosophy

b. c. d. 46. a. b. c. d.

Economic Philosophy Social Structure Education Which of the following is True: Culture may be national Culture may be regional or based on ethnic groupings Culture may be supra-national All of the above are true

47. Reflects decisions as to whether societies operate on the basis of catering for individual aspirations or meeting group goals : a. Individualism vs. Groupism b. Stratification vs. mobility c. Social Structure d. Education

48. Reflects decisions as to whether societies permit individuals to move upwards within a social hierarchy, or are forced to remain in a particular social grouping: a. Individualism vs. Groupism b. Stratification vs. mobility c. Social Structure d. Education 49. Social Structure has main determinants : a. Individualism vs. Groupism b. Stratification vs. mobility c. A and B d. None of above

50. of: a. b. c. d.

Culture, as values (what we believe in) and norms (the way we behave) is a function Political Philosophy Social Structure Religion All of the above

51. a. b. c. d.

Which of the following is True: Religion may have a significant impact on a societys attitude to business only Religion may have a significant impact on a societys attitude to foreigners only Religion may have a significant impact on a societys attitude to business, and to foreigners All of the above are true

52. a. b. c. d.

All the following are true Except: Values are abstract ideals about what a society believes to be good Values are abstract ideals about what a society believes to right Values are abstract ideals about what a society believes to not right Values are abstract ideals about what a society believes to be desirable

53. a. b. c. d. 54. a. b. c. d.

The central components of a culture are : Values and norms Values only Norms only None of the above Extent to which ties between individuals in a society are strong or loose is: Personal Freedoms vs. Group Loyalty High (Individualism) Low (Groupism) None of the above

55. Individual achievement is respected; there is minimal mutual obligation; leadership is clearly defined and authoritative is : a. Personal Freedoms vs. Group Loyalty b. High (Individualism) c. Low (Groupism) d. None of the above 56. a. b. c. d. Success is collective; group goals take priority; leaders are facilitators is: Personal Freedoms vs. Group Loyalty High (Individualism) Low (Groupism) None of the above

57. Achievement motivation through pay and promotion; delineation between gender roles in society and the workplace is : a. Femininity b. Masculinity c. Quality of life d. Caring for others 58. Relationship motivation with accord and harmony the prevalent values; gender equality in society and the workplace is : a. Femininity b. Masculinity c. Quality of life

d. Caring for others 59. The accepted principles of right or wrong governing the conduct of business managers, and significant ethical issues arise in the operation of international businesses is : a. Culture b. Business Ethics c. Quality of life d. Caring for others

60.

Example of Ethical Issues in International Business : a. Employment Practices b. Wage levels c. Number of working hours d. All of the above