International Business Exam Questions
and Answers Graded A+
Globalization - Correct answer-Broadening set of interdependent relationships
among people from different parts of the world divided into nations.
[interdependent relationship between different countries]
International Business - Correct answer-All commercial transactions between two
or more countries. Only exists when funds move across boarders. (ex) I bought my
plane ticket to Italy from American Airlines- this was NOT considered
international business because the funds went to the same country. If I bought my
ticket from a foreign country it would be considered international trade.
Two Types of International Business and Differences Between them - Correct
answer-Public = has shareholders
Private = does not have shareholders
In what ways does international business influence domestic operations? - Correct
answer-Physical
Societal
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,Competitive
(ex) banks- amount of public companies are changing
Fiat- biggest Italian car producer 10% owned by son 10% US stock and 80% Italy
Why engage in international business?
Why is it important to study? - Correct answer-Expand sales
Acquire Resources (better resources, services, products)
Minimize Risk (diversity among diff countries taking advantage of business cycle)
Important to study because = today global events affect almost all companies
everywhere.
Reasons for Growth in International Business/Globalization - Correct answer-1)
Technology- increase and expansion
2) Transportation- quicker and lower costs
3) Increased Global Competition
4) Communication- control from afar
5) Consumer Pressure
6) Liberal govt policies on trade
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,7) Development of institutions that support Int'l trade
*essay
Modes of International Business - Correct answer-Importing & Exporting = (trade)
merchandise is most common but services are also traded. (ex) merch: Italy exports
wine, the physical finished product, to the US. (ex) service: tourism and
transportation, turn key operations, licensing and franchising (bud wiser gave
peroni license to sell bud wiser in Italy (licensing)
Investments = factors of production can be a direct investment (control- joint
ventures) and portfolio investments (no control)
Two Types of Investments - Correct answer-Direct Investments (control) joint
ventures- new activity started by 2 or more partners
Portfolio Investments (no control) stocks
Example of a French export would be a visit by a - Correct answer-**US citizen to
Euro Disney in France
xxx French Citizen to Disneyland in the US
When one party allows another party the use of a trademark and assist that other
party on a regular basis the arrangement is known as a - Correct answer-Franchise
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, MNE - Correct answer-Multinational Enterprise is a global approach to markets
and production
Types of Ownership - Correct answer-Propritorship = one owner
Partnership = 2 or more owners
Cooperation
(all three of these could go global)
(ex) nestle chocolate brand is so globalized that you no longer associate it with one
country (switzerland)
Offshoring - Correct answer-transferring production abroad (seen as controversial)
Antiglobalists 3 thoughts on Globalization - Correct answer-1) threats to national
sovereignty
2) promotes growth that causes environmental stress
3) increase income unequally (skews income distribution)
Why is it important to understand cultural environments facing business? - Correct
answer-It is important for companies to unlearns and be sensitive to constantly
changing environments.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
and Answers Graded A+
Globalization - Correct answer-Broadening set of interdependent relationships
among people from different parts of the world divided into nations.
[interdependent relationship between different countries]
International Business - Correct answer-All commercial transactions between two
or more countries. Only exists when funds move across boarders. (ex) I bought my
plane ticket to Italy from American Airlines- this was NOT considered
international business because the funds went to the same country. If I bought my
ticket from a foreign country it would be considered international trade.
Two Types of International Business and Differences Between them - Correct
answer-Public = has shareholders
Private = does not have shareholders
In what ways does international business influence domestic operations? - Correct
answer-Physical
Societal
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Competitive
(ex) banks- amount of public companies are changing
Fiat- biggest Italian car producer 10% owned by son 10% US stock and 80% Italy
Why engage in international business?
Why is it important to study? - Correct answer-Expand sales
Acquire Resources (better resources, services, products)
Minimize Risk (diversity among diff countries taking advantage of business cycle)
Important to study because = today global events affect almost all companies
everywhere.
Reasons for Growth in International Business/Globalization - Correct answer-1)
Technology- increase and expansion
2) Transportation- quicker and lower costs
3) Increased Global Competition
4) Communication- control from afar
5) Consumer Pressure
6) Liberal govt policies on trade
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,7) Development of institutions that support Int'l trade
*essay
Modes of International Business - Correct answer-Importing & Exporting = (trade)
merchandise is most common but services are also traded. (ex) merch: Italy exports
wine, the physical finished product, to the US. (ex) service: tourism and
transportation, turn key operations, licensing and franchising (bud wiser gave
peroni license to sell bud wiser in Italy (licensing)
Investments = factors of production can be a direct investment (control- joint
ventures) and portfolio investments (no control)
Two Types of Investments - Correct answer-Direct Investments (control) joint
ventures- new activity started by 2 or more partners
Portfolio Investments (no control) stocks
Example of a French export would be a visit by a - Correct answer-**US citizen to
Euro Disney in France
xxx French Citizen to Disneyland in the US
When one party allows another party the use of a trademark and assist that other
party on a regular basis the arrangement is known as a - Correct answer-Franchise
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, MNE - Correct answer-Multinational Enterprise is a global approach to markets
and production
Types of Ownership - Correct answer-Propritorship = one owner
Partnership = 2 or more owners
Cooperation
(all three of these could go global)
(ex) nestle chocolate brand is so globalized that you no longer associate it with one
country (switzerland)
Offshoring - Correct answer-transferring production abroad (seen as controversial)
Antiglobalists 3 thoughts on Globalization - Correct answer-1) threats to national
sovereignty
2) promotes growth that causes environmental stress
3) increase income unequally (skews income distribution)
Why is it important to understand cultural environments facing business? - Correct
answer-It is important for companies to unlearns and be sensitive to constantly
changing environments.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
