INTERNATIONAL BUSINESS EXAMINATION QUESTIONS AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

INTERNATIONAL BUSINESS EXAMINATION QUESTIONS
AND CORRECT ANSWER WITH EXPLANATION GRADED
A+ STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
1. International business refers to:
A. Local trade only
B. Business activities conducted across national borders
C. Court systems
D. Police operations
Answer: B
Rationale: It involves cross-border trade and investment.

2. Globalization is:
A. Isolation of countries
B. Integration of world economies
C. Legal system
D. Crime control system
Answer: B
Rationale: It connects economies globally.

3. Exporting means:
A. Buying goods from abroad
B. Selling goods to foreign countries
C. Local selling
D. Court trading
Answer: B
Rationale: Goods sent out of a country.

4. Importing means:
A. Selling abroad
B. Buying goods from foreign countries
C. Local production
D. Legal transfer
Answer: B
Rationale: Goods brought into a country.

,5. Foreign direct investment (FDI) is:
A. Buying goods locally
B. Investing in business in another country with control
C. Court investment
D. Crime investment
Answer: B
Rationale: Ownership and control abroad.

6. Multinational corporation (MNC) is:
A. Local business
B. Company operating in multiple countries
C. Court company
D. Police firm
Answer: B
Rationale: Global operations.

7. Balance of trade is:
A. Crime balance
B. Difference between exports and imports
C. Court balance
D. HR balance
Answer: B
Rationale: Trade measurement.

8. Trade deficit occurs when:
A. Exports exceed imports
B. Imports exceed exports
C. No trade exists
D. Courts increase
Answer: B
Rationale: Negative trade balance.

9. Trade surplus occurs when:
A. Imports exceed exports
B. Exports exceed imports
C. No trade
D. Crime increase
Answer: B
Rationale: Positive trade balance.

, 10. International trade involves:
A. Local exchange
B. Exchange of goods/services across countries
C. Courts
D. Police work
Answer: B
Rationale: Cross-border trade.

11. Tariffs are:
A. Subsidies
B. Taxes on imports
C. Legal rules
D. Police laws
Answer: B
Rationale: Import taxation.

12. Quotas are:
A. Taxes
B. Limits on import quantity
C. Export rewards
D. Court rules
Answer: B
Rationale: Trade restriction.

13. Free trade means:
A. No trade
B. No restrictions on international trade
C. Only local trade
D. Court trade
Answer: B
Rationale: Open markets.

14. Protectionism is:
A. Free trade
B. Restricting imports to protect local industries
C. Globalization
D. Crime control
Answer: B
Rationale: Domestic protection.