IB test bank.pdf

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 All information provided for reference only Join us on Facebook.com/thetopgrades International Business: The New Realities , 2e (Cavusgil/Knight/Riesenberger) Chapter 1 Introduction: What Is International Business? 1) International business is primarily carried out by individual companies. Answer: TRUE Diff: 1 Page Ref: 4 Skill: Concept Objective: 1-1 AACSB: Dynamics of the global economy 2) The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide. Answer: FALSE Diff: 2 Page Ref: 4 Skill: Concept Objective: 1-1 AACSB: Dynamics of the global economy 3) International business today is predominantly the domain of large, multinational companies. Answer: FALSE Diff: 2 Page Ref: 13 Skill: Concept Objective: 1-4 AACSB: Dynamics of the global economy 4) Exporting is an entry strategy involving the sale of products or services to customers located abroad. Answer: TRUE Diff: 1 Page Ref: 5 Skill: Concept Objective: 1-2 AACSB: Dynamics of the global economy 5) A country's economic assets are also known as factors of production. Answer: TRUE Diff: 2 Page Ref: 5 Skill: Concept Objective: 1-2 AACSB: Dynamics of the global economy 6) The two primary types of international investment are portfolio investment and foreign direct investment. Answer: TRUE Diff: 1 Page Ref: 5 Skill: Concept Objective: 1-2 AACSB: Dynamics of the global economy
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 All information provided for reference only Join us on Facebook.com/thetopgrades 7) Over the last few decades, export activity by nations has grown more quickly than has domestic production. Answer: TRUE Diff: 2 Page Ref: 5 Skill: Concept Objective: 1-2 AACSB: Dynamics of the global economy 8) In the past, international trade and investment activities were mainly conducted by companies that sold services. Answer: FALSE Diff: 1 Page Ref: 4 Skill: Concept Objective: 1-1 AACSB: Dynamics of the global economy 9) Services are the fastest growing sector in international trade. Answer: TRUE Diff: 2 Page Ref: 8 Skill: Concept Objective: 1-2 AACSB: Dynamics of the global economy 10) The level of government intervention in commercial activities is similar across most countries. Answer: FALSE Diff: 2 Page Ref: 11 Skill: Concept Objective: 1-3 AACSB: Dynamics of the global economy 11) Currency risk refers to the risk posed by adverse fluctuations in exchange rates. Answer: TRUE Diff: 1 Page Ref: 11 Skill: Concept Objective: 1-3 AACSB: Dynamics of the global economy 12) For internationalizing firms, the consequences of poor business management decisions are usually more costly when mistakes occur abroad than when they occur at home. Answer: TRUE Diff: 1 Page Ref: 12 Skill: Concept Objective: 1-3 AACSB: Dynamics of the global economy
Image of page 2
3 All information provided for reference only Join us on Facebook.com/thetopgrades 13) MNEs with extensive international operations tend to focus mainly on downstream activities such as marketing in foreign countries.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern