,TESTBANK FOR International Business The New
Realities, 6th edition Cavusgil
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Test Bank
by Mike Casey
International Business
The New Realities
Sixth Edition
S. Tamer Cavusgil
Gary Knight
John R. Riesenberger
,This work is protected by United States copyright laws and is provided solely for the use of
instructors in teaching their courses and assessing student learning. Dissemination or sale of
any part of this work (including on the World Wide Web) will destroy the integrity of the work
and is not permitted. The work and materials from it should never be made available to
students except by instructors using the accompanying text in their classes. All recipients of
this work are expected to abide by these restrictions and to honor the intended pedagogical
purposes and the needs of other instructors who rely on these materials.
Copyright © 2025, 2020, 2017 by Pearson Education, Inc. or its affiliates. All Rights Reserved.
Manufactured in the United States of America. This publication is protected by copyright, and
permission should be obtained from the publisher prior to any prohibited reproduction, storage in a
retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise. For information regarding permissions, request forms, and the appropriate
contacts within the Pearson Education Global Rights and Permissions department, please visit
www.pearsoned.com/permissions/.
PEARSON and MYLAB are exclusive trademark owned by Pearson Education, Inc. or its affiliates in
the U.S. and/or other countries.
Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this
work are the property of their respective owners, and any references to third-party trademarks, logos,
icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not
intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’s products
by the owners of such marks, or any relationship between the owner and Pearson Education, Inc., or
its affiliates, authors, licensees, or distributors.
,International Business: The New Realities, 6e (Cavusgil)
Chapter 1 Introduction: What Is International Business?
1) International business is defined as the performance of ________ activities by firms across
national borders.
A) marketing and fiduciary
B) trade and investment
C) finance and operational
D) accounting and auditing
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
2) International business is also known as which of the following?
A) Born global business
B) Laissez-faire business
C) Cross-border business
D) Multi-hub business
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
3) Which of these is NOT one of the elements of international business?
A) Cross-border labor flows
B) Globalization of markets
C) Foreign market entry strategies
D) International investment
Answer: A
Diff: 2: Moderate
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
1
Copyright © 2025 Pearson Education, Inc.
,4) From 1960 to the present international trade has grown from $300 billion per year to
________ per year.
A) $750 billion
B) $22 trillion
C) $4.5 trillion
D) $15 trillion
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
5) Ramone purchased 1,000 shares of stock in a foreign company. What type of transaction did
Ramone make?
A) Capital investment
B) Foreign direct investment
C) International portfolio investment
D) Greenfield investment
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
6) Which of these countries is NOT in the top three nations when ranked by the total value of
exports?
A) China
B) United States
C) Germany
D) Canada
Answer: D
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
7) ________ refers to the transfer of assets to another country or the acquisition of assets in that
country.
A) International investment
B) International trade
C) Importing
D) Exporting
Answer: A
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
2
Copyright © 2025 Pearson Education, Inc.
,8) Which of these activities encompasses the widest range of international involvement?
A) Portfolio investment
B) Exporting
C) Foreign direct investment
D) Cross-border trade
Answer: C
Diff: 2: Moderate
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
9) Which of the following would NOT be considered an example of foreign direct investment
(FDI)?
A) Cross-border purchase of a textile plant
B) Cross-border purchase of stocks
C) Purchase of capital assets of a foreign company
D) Purchase of foreign land for business operations
Answer: B
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
10) ________ is the total value of products and services produced in a country over the course of
a year.
A) GDP
B) CAD
C) FDI
D) PPP
Answer: A
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
3
Copyright © 2025 Pearson Education, Inc.
,11) Which of the following best explains why export growth has outpaced the growth of
domestic production during the last few decades?
A) Both world exports and domestic production have grown significantly over the past 30 years.
B) The cost to import products is generally higher than the cost to produce domestic products.
C) Growth in gross domestic product in most countries has steadily increased since 1970.
D) Advanced economies now source many of their consumable products from low-cost
manufacturing nations.
Answer: D
Diff: 3: Challenging
Skill: Critical Thinking
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
12) One new development in the services sector is online peer-to-peer exchange of all types of
goods and services. This economic activity has been dubbed the ________.
A) underground economy
B) sharing economy
C) black market
D) intermediate depot
Answer: B
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
Use the following information to answer the following question(s).
Freehold Investment Corp. (Scenario)
Dan Freehold and his business partner, Bethany Quinn, are successful investors engaged in a
variety of domestic enterprises. Recently Dan and Bethany have decided to utilize their
collective knowledge and business to expand their foreign investing operations from purchasing
stock in foreign companies to investing in real assets. They held a meeting for individuals
interested in participating in certain overseas ventures.
13) What type of international investment has Freehold Investment Corp. engaged in up to this
time?
A) International portfolio investment
B) Foreign direct investment
C) Cross-border trade
D) Importing
Answer: A
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
4
Copyright © 2025 Pearson Education, Inc.
,14) Dan discusses an investment opportunity that involves buying a 30% ownership stake in a
manufacturing facility. This opportunity represents which type of international investment?
A) Indirect production
B) International portfolio
C) Foreign direct
D) Domestic securities
Answer: C
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
15) 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.
A) indirect
B) passive
C) short-term
D) active
Answer: D
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
16) Phillip Hardy, one of the potential investors, expresses the desire to invest in projects that
focus on the services sector. Which of the following investment opportunities would be most
suited for Mr. Hardy?
A) A venture that gives investors ownership of the equipment used by multiple South African
mining companies
B) An initiative to purchase the technology assets of an Indian consulting firm
C) A stake in a Vietnamese firm that uses a business model similar to Uber
D) An investment in a manufacturing plant that produces solar panels for electricity generation.
Answer: C
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
5
Copyright © 2025 Pearson Education, Inc.
, 17) Which of these economies received the largest amount of foreign direct investment in 2022?
A) Developed nations
B) Developing nations
C) South African nations
D) European nations
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
18) Which of these nations has the largest volume of services trade when expressed as a
percentage of GDP?
A) United States
B) Greece
C) Ireland
D) South Africa
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
19) Which of these companies is NOT considered to be a part of the sharing economy?
A) Uber
B) Microsoft
C) Airbnb
D) Streetbank
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
20) Which of these entities conducts most of the international banking activities?
A) National banks
B) Small domestic banks
C) Large banks
D) Local banks
Answer: C
Diff: 2: Moderate
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
6
Copyright © 2025 Pearson Education, Inc.
Realities, 6th edition Cavusgil
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Test Bank
by Mike Casey
International Business
The New Realities
Sixth Edition
S. Tamer Cavusgil
Gary Knight
John R. Riesenberger
,This work is protected by United States copyright laws and is provided solely for the use of
instructors in teaching their courses and assessing student learning. Dissemination or sale of
any part of this work (including on the World Wide Web) will destroy the integrity of the work
and is not permitted. The work and materials from it should never be made available to
students except by instructors using the accompanying text in their classes. All recipients of
this work are expected to abide by these restrictions and to honor the intended pedagogical
purposes and the needs of other instructors who rely on these materials.
Copyright © 2025, 2020, 2017 by Pearson Education, Inc. or its affiliates. All Rights Reserved.
Manufactured in the United States of America. This publication is protected by copyright, and
permission should be obtained from the publisher prior to any prohibited reproduction, storage in a
retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise. For information regarding permissions, request forms, and the appropriate
contacts within the Pearson Education Global Rights and Permissions department, please visit
www.pearsoned.com/permissions/.
PEARSON and MYLAB are exclusive trademark owned by Pearson Education, Inc. or its affiliates in
the U.S. and/or other countries.
Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this
work are the property of their respective owners, and any references to third-party trademarks, logos,
icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not
intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’s products
by the owners of such marks, or any relationship between the owner and Pearson Education, Inc., or
its affiliates, authors, licensees, or distributors.
,International Business: The New Realities, 6e (Cavusgil)
Chapter 1 Introduction: What Is International Business?
1) International business is defined as the performance of ________ activities by firms across
national borders.
A) marketing and fiduciary
B) trade and investment
C) finance and operational
D) accounting and auditing
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
2) International business is also known as which of the following?
A) Born global business
B) Laissez-faire business
C) Cross-border business
D) Multi-hub business
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
3) Which of these is NOT one of the elements of international business?
A) Cross-border labor flows
B) Globalization of markets
C) Foreign market entry strategies
D) International investment
Answer: A
Diff: 2: Moderate
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
1
Copyright © 2025 Pearson Education, Inc.
,4) From 1960 to the present international trade has grown from $300 billion per year to
________ per year.
A) $750 billion
B) $22 trillion
C) $4.5 trillion
D) $15 trillion
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
5) Ramone purchased 1,000 shares of stock in a foreign company. What type of transaction did
Ramone make?
A) Capital investment
B) Foreign direct investment
C) International portfolio investment
D) Greenfield investment
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
6) Which of these countries is NOT in the top three nations when ranked by the total value of
exports?
A) China
B) United States
C) Germany
D) Canada
Answer: D
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
7) ________ refers to the transfer of assets to another country or the acquisition of assets in that
country.
A) International investment
B) International trade
C) Importing
D) Exporting
Answer: A
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
2
Copyright © 2025 Pearson Education, Inc.
,8) Which of these activities encompasses the widest range of international involvement?
A) Portfolio investment
B) Exporting
C) Foreign direct investment
D) Cross-border trade
Answer: C
Diff: 2: Moderate
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
9) Which of the following would NOT be considered an example of foreign direct investment
(FDI)?
A) Cross-border purchase of a textile plant
B) Cross-border purchase of stocks
C) Purchase of capital assets of a foreign company
D) Purchase of foreign land for business operations
Answer: B
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
10) ________ is the total value of products and services produced in a country over the course of
a year.
A) GDP
B) CAD
C) FDI
D) PPP
Answer: A
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
3
Copyright © 2025 Pearson Education, Inc.
,11) Which of the following best explains why export growth has outpaced the growth of
domestic production during the last few decades?
A) Both world exports and domestic production have grown significantly over the past 30 years.
B) The cost to import products is generally higher than the cost to produce domestic products.
C) Growth in gross domestic product in most countries has steadily increased since 1970.
D) Advanced economies now source many of their consumable products from low-cost
manufacturing nations.
Answer: D
Diff: 3: Challenging
Skill: Critical Thinking
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
12) One new development in the services sector is online peer-to-peer exchange of all types of
goods and services. This economic activity has been dubbed the ________.
A) underground economy
B) sharing economy
C) black market
D) intermediate depot
Answer: B
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
Use the following information to answer the following question(s).
Freehold Investment Corp. (Scenario)
Dan Freehold and his business partner, Bethany Quinn, are successful investors engaged in a
variety of domestic enterprises. Recently Dan and Bethany have decided to utilize their
collective knowledge and business to expand their foreign investing operations from purchasing
stock in foreign companies to investing in real assets. They held a meeting for individuals
interested in participating in certain overseas ventures.
13) What type of international investment has Freehold Investment Corp. engaged in up to this
time?
A) International portfolio investment
B) Foreign direct investment
C) Cross-border trade
D) Importing
Answer: A
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
4
Copyright © 2025 Pearson Education, Inc.
,14) Dan discusses an investment opportunity that involves buying a 30% ownership stake in a
manufacturing facility. This opportunity represents which type of international investment?
A) Indirect production
B) International portfolio
C) Foreign direct
D) Domestic securities
Answer: C
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
15) 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.
A) indirect
B) passive
C) short-term
D) active
Answer: D
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
16) Phillip Hardy, one of the potential investors, expresses the desire to invest in projects that
focus on the services sector. Which of the following investment opportunities would be most
suited for Mr. Hardy?
A) A venture that gives investors ownership of the equipment used by multiple South African
mining companies
B) An initiative to purchase the technology assets of an Indian consulting firm
C) A stake in a Vietnamese firm that uses a business model similar to Uber
D) An investment in a manufacturing plant that produces solar panels for electricity generation.
Answer: C
Diff: 2: Moderate
Skill: Application
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
5
Copyright © 2025 Pearson Education, Inc.
, 17) Which of these economies received the largest amount of foreign direct investment in 2022?
A) Developed nations
B) Developing nations
C) South African nations
D) European nations
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
18) Which of these nations has the largest volume of services trade when expressed as a
percentage of GDP?
A) United States
B) Greece
C) Ireland
D) South Africa
Answer: C
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
19) Which of these companies is NOT considered to be a part of the sharing economy?
A) Uber
B) Microsoft
C) Airbnb
D) Streetbank
Answer: B
Diff: 1: Easy
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Analytical Thinking
20) Which of these entities conducts most of the international banking activities?
A) National banks
B) Small domestic banks
C) Large banks
D) Local banks
Answer: C
Diff: 2: Moderate
Skill: Concept
Objective: 1-1: Describe the key concepts in international business
AACSB: Application of Knowledge
6
Copyright © 2025 Pearson Education, Inc.
