Busa 3000 Exam Questions With Correct
Answers 2025 New Update A+ Pass
Which of the following statements is true about the firm-level consequences of market
globalization?
A) The globalization of markets has narrowed down new business opportunities for
internationalizing firms.
B) Globalization drives firms to relocate key value-adding activities to the most
advantageous locations around the world.
C) A firm's value chain is not subject to internationalization.
D) Through offshoring, a firm relocates a major value-chain activity by establishing a
factory or subsidiary in the home market. - Answers - ✔✔B
Which of the following, if true, would most strongly support the claim that national
prosperity is increased by participation in international business?
A) Countries that participate in international trade have higher GDPs than non-
participating countries.
B) Individuals in advanced economies tend to set purchasing trends for consumers
worldwide.
C) For most countries, levels of international trade have increased significantly in recent
decades.
D) National literacy levels are strongly correlated with a country's degree of political
freedom. - Answers - ✔✔A
_______ are moral principles and values that govern the behavior of people, firms, and
governments, regarding right and wrong. - Answers - ✔✔C) Ethics
In terms of international business, market globalization can be viewed as a ________.
A) consequence of a strong emphasis on traditional values worldwide
B) consequence of the loss of national sovereignty
C) driver and consequence of firm-level internationalization
D) prime cause of rising diseconomies of scale in emerging economies - Answers -
✔✔C
Each of the following has contributed to the rapid growth of trade among nations
EXCEPT _____.
A. the increase in trade barriers
B. The growth of emerging market countries
C. Advances in information technology
D. The liberalization of markets - Answers - ✔✔A
Jordan is employed in an American investment firm and is currently working with some
Japanese clients on a new project. He uses a lot of hand gestures during meetings
which his clients find very distracting and rude. This has also led to many
,misunderstandings between Jordan and his Japanese clients in the recent past. Which
of the following best describes such a situation?
A) risk aversion
B) organizational anarchy
C) cross-cultural risk
D) acculturation
C) cross-cultural risk - Answers - ✔✔C
In his International Product Life Cycle (IPLC) Theory, Raymond Vernon observed that
each product and its manufacturing technologies go through three stages of evolution:
introduction, maturity, and _______.
A. decline
B. standardization
C. growth
D. diversification
B - Answers - ✔✔B
________ refers to ideas or works created by individuals or firms and includes a variety
of proprietary, intangible assets: discoveries and inventions; artistic, musical, and
literary works; and words, phrases, symbols, and designs
A. Constant Capital
B. Corporate governance
C. Global sourcing
D. Intellectual property - Answers - ✔✔D.
While a degree of cultural imperialism may be at work, it is offset by the countertrend of
________.
A) offshoring
B) McDonaldization
C) privatization
D) local nationalism - Answers - ✔✔D. Local nationlism
Which of the following approaches to ethical standards for corporate governance
reflects the view that the best action treats everyone equally and in a just manner?
A. rights approach
B. Virtue approach
C. utilitarian approach
D. Fairness approach - Answers - ✔✔D. Fairness approach
, In which of the following stages of the internationalization process is a firm preoccupied
with business in its home market?
A. Experimental involvement
B. Pre-Export
C. Active involvement
D. Domestic focus - Answers - ✔✔D
The process of targeting and serving markets outside the home country is known as
...........
A. Market Diversification
B. Competition Intensity
C. Reactive Internationalization
D. Trade Protectionism - Answers - ✔✔A
A U.S. shoe manufacturer is considering internationalizing to promote growth by
diversifying its markets. Which of the following, if true, would most strongly support the
claim that moving to France would help the company grow through market
diversification?
A. Many of the company's U.S customers have moved overseas to Europe
B. French consumers represent a sizable
C. French women tend to purchase shoes more frequently than do French men
D. Doing Business in France would likely expose the company to new ideas for product
innovation - Answers - ✔✔B
Which of the following, if true, would most strongly support the claim that national
prosperity is increased by participation in international business?A. Individuals in
advanced economies tend to set purchasing trends for consumers worldwide.
B. For most countries, levels of international trade have increased significantly in recent
decades.
C.National literacy levels are strongly correlated with a country's degree of political
freedom
D. Countries that participate in international trade have higher GDP per capita than non-
participating countries. - Answers - ✔✔D
Philip Baxter reported on the risks associated with establishing the plant in Country A.
The most significant risk, in his view, was posed by the government's complex
bureaucratic structure. Philip reported the likelihood of significant administrative delays
in opening the plant.
The risk identified by Philip is an example of which of the following?
A. Currency Risk
B. Cross-Cultural risk
C. Commercial Risk
D. Country Risk - Answers - ✔✔D
Which of the following contributes LEAST to increasing a company's profit margins?
Answers 2025 New Update A+ Pass
Which of the following statements is true about the firm-level consequences of market
globalization?
A) The globalization of markets has narrowed down new business opportunities for
internationalizing firms.
B) Globalization drives firms to relocate key value-adding activities to the most
advantageous locations around the world.
C) A firm's value chain is not subject to internationalization.
D) Through offshoring, a firm relocates a major value-chain activity by establishing a
factory or subsidiary in the home market. - Answers - ✔✔B
Which of the following, if true, would most strongly support the claim that national
prosperity is increased by participation in international business?
A) Countries that participate in international trade have higher GDPs than non-
participating countries.
B) Individuals in advanced economies tend to set purchasing trends for consumers
worldwide.
C) For most countries, levels of international trade have increased significantly in recent
decades.
D) National literacy levels are strongly correlated with a country's degree of political
freedom. - Answers - ✔✔A
_______ are moral principles and values that govern the behavior of people, firms, and
governments, regarding right and wrong. - Answers - ✔✔C) Ethics
In terms of international business, market globalization can be viewed as a ________.
A) consequence of a strong emphasis on traditional values worldwide
B) consequence of the loss of national sovereignty
C) driver and consequence of firm-level internationalization
D) prime cause of rising diseconomies of scale in emerging economies - Answers -
✔✔C
Each of the following has contributed to the rapid growth of trade among nations
EXCEPT _____.
A. the increase in trade barriers
B. The growth of emerging market countries
C. Advances in information technology
D. The liberalization of markets - Answers - ✔✔A
Jordan is employed in an American investment firm and is currently working with some
Japanese clients on a new project. He uses a lot of hand gestures during meetings
which his clients find very distracting and rude. This has also led to many
,misunderstandings between Jordan and his Japanese clients in the recent past. Which
of the following best describes such a situation?
A) risk aversion
B) organizational anarchy
C) cross-cultural risk
D) acculturation
C) cross-cultural risk - Answers - ✔✔C
In his International Product Life Cycle (IPLC) Theory, Raymond Vernon observed that
each product and its manufacturing technologies go through three stages of evolution:
introduction, maturity, and _______.
A. decline
B. standardization
C. growth
D. diversification
B - Answers - ✔✔B
________ refers to ideas or works created by individuals or firms and includes a variety
of proprietary, intangible assets: discoveries and inventions; artistic, musical, and
literary works; and words, phrases, symbols, and designs
A. Constant Capital
B. Corporate governance
C. Global sourcing
D. Intellectual property - Answers - ✔✔D.
While a degree of cultural imperialism may be at work, it is offset by the countertrend of
________.
A) offshoring
B) McDonaldization
C) privatization
D) local nationalism - Answers - ✔✔D. Local nationlism
Which of the following approaches to ethical standards for corporate governance
reflects the view that the best action treats everyone equally and in a just manner?
A. rights approach
B. Virtue approach
C. utilitarian approach
D. Fairness approach - Answers - ✔✔D. Fairness approach
, In which of the following stages of the internationalization process is a firm preoccupied
with business in its home market?
A. Experimental involvement
B. Pre-Export
C. Active involvement
D. Domestic focus - Answers - ✔✔D
The process of targeting and serving markets outside the home country is known as
...........
A. Market Diversification
B. Competition Intensity
C. Reactive Internationalization
D. Trade Protectionism - Answers - ✔✔A
A U.S. shoe manufacturer is considering internationalizing to promote growth by
diversifying its markets. Which of the following, if true, would most strongly support the
claim that moving to France would help the company grow through market
diversification?
A. Many of the company's U.S customers have moved overseas to Europe
B. French consumers represent a sizable
C. French women tend to purchase shoes more frequently than do French men
D. Doing Business in France would likely expose the company to new ideas for product
innovation - Answers - ✔✔B
Which of the following, if true, would most strongly support the claim that national
prosperity is increased by participation in international business?A. Individuals in
advanced economies tend to set purchasing trends for consumers worldwide.
B. For most countries, levels of international trade have increased significantly in recent
decades.
C.National literacy levels are strongly correlated with a country's degree of political
freedom
D. Countries that participate in international trade have higher GDP per capita than non-
participating countries. - Answers - ✔✔D
Philip Baxter reported on the risks associated with establishing the plant in Country A.
The most significant risk, in his view, was posed by the government's complex
bureaucratic structure. Philip reported the likelihood of significant administrative delays
in opening the plant.
The risk identified by Philip is an example of which of the following?
A. Currency Risk
B. Cross-Cultural risk
C. Commercial Risk
D. Country Risk - Answers - ✔✔D
Which of the following contributes LEAST to increasing a company's profit margins?
