International Business

20) _________________ developed the absolute advantage trade theory as a repudiation of the mercantilism theory that was prevalent in his day.

Adam Smith

An affluent individual who provides business funds is an _________________________.

Angel Investor

Being made the host for the 2014 FIFA World Cup highlighted that the country of _________ had become an emerging market for potential business investment and economic growth.

Brazil

Products with high-linguistic content can be affected by ___________________ distance.

Cultural

___________________can create a sense of superiority for one's culture over others.

Ethnocentrism

___________________ provide not only funds but expertise to new business ventures.

Venture Capitalist

A disruption targeting noncustomers is called a a. Hybrid-disruption b. New-market disruption c. Low-end disruption d. Non-customer disruption

b. New-market disruption

Carlos is from a traditional area of Latin America. Which of the following greetings would be most typical for him, when he greets long-term business partners? a.A bow b.A friendly hug and a handshake c.A wave d.A formal handshake

b.A friendly hug and a handshake

The opposite of __________________ is restraint.

indulgent

Which of the following is characteristic of having a long-term orientation? a.A culture prioritizes punctuality over relationships. b.A culture values persistence, perseverance, and thriftiness, or not. c.A culture prefers following strict schedules. d.A culture prefers multitasking over single tasking.

.A culture values persistence, perseverance, and thriftiness, or not.

To analyze different types of distance, the _________________________ should be used.

CAGE analysis/CAGE Framework

The use of ransomware is just one type of __________________ a business may face.

Cyberterrorism

Previous technologies can be made obsolete by ___________________________.

Disruptive Technology

_____________-driven economies compete on production processes and product quality.

Efficiency

A __________________ extends its industry across borders from its inception.

Global start-up

19.The _____________________ is a summary composite index that measures a country's average achievements in three basic areas- health, knowledge, and standard of living.

Human development index (HDI)

________________________ refers to the practice of taking some business function out of the company's home country to be performed in another country at a lower cost.

Offshoring

3) Political extremes, such as pure anarchism or totalitarianism, are unlikely. Instead, nations are likely to embrace some form of _________.

Pluralism

Political extremes, such as pure anarchism or totalitarianism, are unlikely. Instead, nations are likely to embrace some form of _________.

Pluralism

To analyze possible events and potential outcomes, _______________ should be used.

Scenario Planning

7) A trade _____ occurs when the value of exports exceeds the value of imports.

Surplus

A predictable problem faced by a business may also be considered a ______________.

Trend

How many key parts are there in the entrepreneurial process? a. 3 b. 4 c. 2 d. 5

a. 3

Which of the following best defines scenario planning? a. A process of analyzing possible future events by considering possible outcomes. b. The correct prediction of trends which will have an impact on business operations. c. The creation of a document outlining an organizational reaction to a crisis. d. The adoption of technologies and processes designed to protect networks.

a. A process of analyzing possible future events by considering possible outcomes.

Which of the following is NOT one of the parts of the entrepreneurial process? a. Identifying a technology/process that can render prior technologies/processes obsolete b. Resourcing the venture and taking action c. Identifying entrepreneurial opportunities d. Planning and preparing the venture

a. Identifying a technology/process that can render prior technologies/processes obsolete

An evolving and improving industrial sector, with increasing variety and sophistication, is indicative of which kind of economy according to the GCI? a. Innovation-driven b. Labor-driven c. Factor-driven d. Efficiency-driven

a. Innovation-driven

The World Economic Forum and the Global Competitiveness Index place a nation's economy into one of three groups based on its development, which of the following is NOT one of those groups? a. Labor-driven b. Innovation-driven c. Efficiency-driven d. Factor-driven

a. Labor-driven

What entity determines whether a country is developed or developing? a. The country itself b. World Trade Organization c. European Union d. Goldman Sachs

a. The country itself

Which of the following best defines the Leontief Paradox? a. When the reverse of the factor proportions theory occurs. b. When countries produce goods that utilize plentiful resources within their borders. c. When a country has an absolute advantage in the production of a particular good. d. When a country possesses fewer gold and silver stocks than another country but is somehow more economically powerful.

a. When the reverse of the factor proportions theory occurs.

Which of the following best defines an emerging market? a.A country evolving into a market-oriented economy, with growing integration into the global marketplace, an expanding middle class, and improved social stability. b.An economy with high per capita incomes, competitive industries, transparent legal and regulatory systems, and well-developed commercial infrastructures. c.A country adopting a central-planning economy, with government planners q making decisions regarding industrial, agricultural, and commercial production. d.An economy focused on one or more key industries, with poor commercial infrastructure, and non-transparent business/regulatory environments.

a.A country evolving into a market-oriented economy, with growing integration into the global marketplace, an expanding middle class, and improved social stability.

Which of these in an example of "dumping?" a. A foreign company selling its products below market price to increase its market share. b. Subsidizing sales of domestic products in order to increase local demand. c. Reducing tariffs and/or quotas in order to spur domestic demand. d. Providing tax breaks to help offset the high price of politically desirable goods.

a.A foreign company selling its products below market price to increase its market share.

Which of the following best defines guanxi? a.Chinese term for connection in a culture of values working with in-group members. b.Chinese term for the unique character of an organization and its context. c.Chinese term implying people prefer their culture over other cultures. d.Chinese term for something that they prefer over something else.

a.Chinese term for connection in a culture of values working with in-group members.

17.Which of the following social systems has impeded India's economic development? a.Hindu caste system b.Zaibatsu c.Apartheid d.Jim Crow

a.Hindu caste system

Even after _____________________ ended, South Africa continues to struggle with its negative history of racial segregation and inequality.

apartheid

Maria is starting a firm that seeks to tackle the problems of drug use and unemployment among disaffected young adults in her city. What could she be classified as? a. An entrepreneur b. A social entrepreneur c. An intrapreneur d. A venture capitalist

b. A social entrepreneur

Sasha is tasked with spending part of her workday on her own innovative projects, as long as those projects are intended to provide some benefit to her firm or its customers. What kind of employee is Sasha? a. An entrepreneur b. An intrapreneur c. A development specialist d. A market analyst

b. An intrapreneur

1.A company wants to launch a new business in an emerging market. Which of the following countries should they select? a. Japan b. Brazil c. Germany d. Finland

b. Brazil

_________________ generally refers to the contracting of a firm's payroll, human resources, accounting, and customer relations to a third-party provider. a. International outsourcing b. Business-process outsourcing c. Outsourcing d. Offshoring

b. Business-process outsourcing

What country is behind the BRI (Belt and Road Initiative)? a. India b. China c. Japan d. Brazil

b. China

Which of these is a relevant question for Economic portion of the PESTEL Analysis? a. What are the country's foreign trade and capital flow regulations? b. What is the current level of inflation in the local market? c. What is the country's distribution of education and income? d. Are there relevant consumer protection laws?

b. What is the current level of inflation in the local market?

Which of the following best defines "value?" a.That people prefer parts of their culture over similar parts in other cultures. b.A behavior or something tangible that people prefer over something else. c.Understanding that those from other cultures possess a common set of shared values, experiences, and attitudes. d.The unique character of an organization and the context for its action.

b.A behavior or something tangible that people prefer over something else.

Which of the following best defines a specific tariff? a.Calculated as a percentage of the value of the good or service. b.A flat amount, regardless of the value of the good or service. c.Calculated on the increase of the value of a good as it moves through the supply chain. d.Applied in order to benefit a specific producer in the home country.

b.A flat amount, regardless of the value of the good or service.

Which of the following best defines a trend? a.Defining and detailing areas of the greatest uncertainty affecting your business. b.A force for change whose direction, and sometimes timing, can be predicted. c.Identifying signals which indicate that a particular scenario could be unfolding. d.Analyzing the development of certain specialized intermediaries within a given market.

b.A force for change whose direction, and sometimes timing, can be predicted.

A company has prided itself on its low environmental impact. As they consider locations for expansion, which of these would they be certain to ask during the PESTEL Analysis? a.Are there relevant consumer laws and regulations? b.Are there environmental-protection laws and regulations? c.What current or future legislation or regulation could affect corporate social policies? d.What are the country's current and projected labor and social-welfare policies?

b.Are there environmental-protection laws and regulations?

Cara carefully thinks through statements before she makes them to say exactly what she means without any misunderstanding. What type of culture is Cara likely from? a. Nonverbal b. Proxemic c. Low-context d. High-context

c. Low-context

The organization Southwest Airlines began by using what disruption model? a. High-end b. New-market c. Low-end d. Hybrid-disruption

c. Low-end

_____________ is the contracting of a third-party to perform certain functions of a firm, while ____________ takes these operations out of the firm's home country to reduce costs. a. International outsourcing/ exporting b. Offshorin/ outsourcing c. Outsourcing/ offshoring d. Exporting/ international outsourcing

c. Outsourcing/ offshoring

Which of these is NOT a specialized intermediary for markets for products? a. Certification agencies b. Consumer reports c. Private equity providers d. Regulatory authorities

c. Private equity providers

16) Which of the following best defines the phrase barriers to entry? a. High research and development costs when attempting to create a new product line. b. The lack of stable and predictable intellectual property rights. c. The obstacles a firm faces when attempting to join an industry or new market. d. Being unable to access local market resources and capabilities.

c. The obstacles a firm faces when attempting to join an industry or new market.

Which of the following best defines protectionism? a. When the value of exports exceeds the value of imports. b. Local consumers do not produce enough demand for locally produced products. c. The practice of restricting imports to support domestic industries. d. When the value of imports exceeds the value of exports

c. The practice of restricting imports to support domestic industries.

A firm with an in-house organization that seeks to systematically promote intrapreneurial spirit, either within the whole firm or specific parts of it, utilizes a/an a. entrepreneurial organization b. market developing organization c. intrapreneurial organization d. venture capitalist organization

c. intrapreneurial organization

The entrepreneurial process is shaped like a ________, so that resourcing the venture and taking action naturally lead back to identifying and investigation for new opportunities. a. square b. cube c. triangle d. Circle

c. triangle

Which of the following defines an MNC? a. A corporation engaging in trade across a variety of goods and services. b. A corporation producing a variety of goods, all confined within a single industry. c. A corporation operating in more than one country. d. A corporation operating in more than one industry.

c.A corporation operating in more than one country.

Which of the following best define a monochronic culture? a.A culture in which people can do several tasks at the same time. b.A culture which emphasizes relationships over schedules. c.A culture in which people prefer to focus on one task at a time. d.A culture which emphasizes multitasking.

c.A culture in which people prefer to focus on one task at a time.

8.Which of the following is NOT a way for governments to increase FDI? a.Provide financial incentives to foreign entities looking to invest in the country. b.Improving domestic infrastructure. c.Increase value-added taxes or consumption taxes on domestically produced goods. d.Investing in education to improve domestic workforce quality.

c.Increase value-added taxes or consumption taxes on domestically produced goods.

Darcy tends to prefer an egalitarian organizational structure. Darcy is likely from which type of culture? a.High-context b.High power distance c.Low power distance d.Low-context

c.Low power distance

Beliefs, values, mindsets, and practices are all a part of __________.

culture

Blue Ocean Strategy and Managing Effectively Through Tough Times identify how many elements associated with a valuable business opportunity? a. 2 b. 6 c. 3 d. 5

d. 5

5) Which of these is NOT a part of Porter's National Competitive Advantage Theory? a. Firm characteristics b. Suppliers and complementary industries c. Market demand conditions d. Barriers to entry

d. Barriers to entry

A disruption targeting existing customers rather than new customers is called a. Non-customer disruption b. New-market disruption c. Hybrid-disruption d. Low-end disruption

d. Low-end disruption

__________________________ can be defined as a person's identity and characteristics.

personality

___________________ is the study of how people use physical space and boundaries.

proxemics

The key factor in a country's ability to attract foreign investment is the nation's political ___________.

stability

Hofstede's framework for understanding culture revolves around six _________________.

value dimensions

2._________________involves the process of stripping currency of its value.

Demonetization

Geographical and political boundaries help to define cultures of __________________.

Nationality

Which of these is NOT a common mistake companies make when entering a new market? a. Analyzing the needs of local suppliers b. Not understanding the competition in the new market c. Not offering a value proposition for buyers in the new market d. Not doing enough research prior to entering the new market

a. Analyzing the needs of local suppliers

Rankings that indicate the ease of starting a business in a specific location are provided in which of the following reports? a. Doing Business Report b. Global Entrepreneurship Monitor c. Global Competitiveness Index d. Factor Driven Assessment

a. Doing Business Report

According to the GCI, an economy in which of the following categories tends to focus on developing according to economies of scale? a. Efficiency-driven b. Innovation-driven c. Labor-driven d. Factor-driven

a. Efficiency-driven

Which of the following best defines the product life cycle theory? a. Products have a distinctive life cycle/ new product stage, maturing product stage, and standardized product stage. b. Trade between two or more countries tends to result in similar, standardized products. c. Product sales decline if producers cannot maintain marketplace competitiveness. d. New products will only be created if local suppliers and complementary industries are available in either the local country or as stable trade partners.

a. Products have a distinctive life cycle/ new product stage, maturing product stage, and standardized product stage.

A wealthy individual who provides financial capital for a business start-up is called a. Financial investor b. Strategic investor c. Angel investor d. Venture capitalist

c. Angel investor

Which of the following best defines an institutional void? a.The lack of third-party providers capable of handling secondary business functions. b.The lack of knowledge of future interest and currency exchange rates. c.The absence of key specialized intermediaries found particular markets. d.The lack of stable and predictable government policy and regulatory development.

c.The absence of key specialized intermediaries found particular markets.

Which of the following best defines crisis planning? a.Analyzing forces for change whose direction and pace are largely unknown. b.Developing a diversified and corporate-wide IT strategy to deal with cyber threats. c.The development of a document which outlines an organizational reaction to a crisis. d.The analysis of and planning for events which intend to cause harm to your business.

c.The development of a document which outlines an organizational reaction to a crisis.

3.Which of the following best defines brownfield FDI? a. A company investing to provide input into its own, core operations. b. A company opening in a new foreign market which is like its domestic market. c. A company investing in production capabilities from scratch in a foreign country. d. A company investing in already existing production facilities in a foreign country.

d. A company investing in already existing production facilities in a foreign country.

Maria has identified a problem with her business environment that she believes cannot be completely planned for, measured, nor anticipated as to when the problem may suddenly intensify. What has Maria discovered? a. A cyber security threat b. A crisis c. A trend d. An uncertainty

d. An uncertainty

13) Which of the following best defines common law? a. It is based on the decisions and rulings of those in the government. b. It is based upon religious guidelines, sometimes overseen by religious magistrates. c. It is based on a detailed code of laws and focuses on how the law applies to facts. d. It is based on tradition and legal precedence.

d. It is based on tradition and legal precedence.

Which of the following is NOT a consideration when expanding internationally? a. Existing capabilities in relation to dynamics of the industry b. Regional differences within markets c. Needs of local customers d. Needs of current employees and managers

d. Needs of current employees and managers

6) Which of the following best defines the term political system? a. Appointed members of government boards, agencies, and task forces. b. Elected members of government. c. Forms of government which derive their power from the people. d. System of politics and governance, including rules, regulations, institutions, attitudes.

d. System of politics and governance, including rules, regulations, institutions, attitudes.

7.Which of the following best defines vertical FDI? a.A company investing in already existing production facilities in a foreign country. b.A company opening in a new foreign market which is like its domestic market. c.A company investing in production capabilities from scratch in a foreign country. d.A company investing to provide input into its own, core operations.

d.A company investing to provide input into its own, core operations.

18.Which of the following best defines horizontal FDI? a.A company investing to provide input into its own, core operations. b.A company investing in production capabilities from scratch in a foreign country. c.A company investing in already existing production facilities in a foreign country. d.A company opening in a new foreign market which is like its domestic market.

d.A company opening in a new foreign market which is like its domestic market.

Which of the following is the best definition for cross-cultural understanding? a.That people prefer parts of their culture over similar counterparts in other cultures. b.The understanding of where people fit, as individuals, within a subculture. c.Understanding that those from other cultures possess the same set of shared values, experiences, and attitudes. d.That people reorient their mindsets and expectations to accurately interpret the actions and words of people from other cultures.

d.That people reorient their mindsets and expectations to accurately interpret the actions and words of people from other cultures.

Which of the following best defines ringi seido? a.The formal Chinese method of analyzing problems. b.The informal Chinese process of reaching consensus in decision-making processes. c.The informal Japanese method of consensus building. d.The formal Japanese review and decision-making process.

d.The formal Japanese review and decision-making process.

The absence of regulatory authorities in markets may lead to ______________________.

institutional voids

________________________ includes factors such as how people act and treat others in the workplace, as well as things like workplace attire.

organizational culture

Which of the following is NOT considered part of a comprehensive business plan? a. Company description b. Hiring plan c. Products/services d. Proprietary position

b. Hiring plan

Which of these is NOT a category of globalization factors? a. Competition b. Technology c. Costs d. Governments

b. Technology

Entrepreneur is a French word meaning a. To solve b. To undertake c. To succeed d. To experiment

b. To undertake

___________________________distance can be affected by an absence of colonial ties.

Administrative

____________________ refers to how people interact within hierarchies or whether they prefer not to have hierarchies at all

Power distance

1) ____________ is used as an effort to increase national wealth, improve the balance of trade, and to protect domestic industries/workers by imposing restrictions on imports.

Protectionism

_________________________ seek to innovate for large-scale societal change.

Social entrepreneurs

A trade _____ occurs when the value of exports exceeds the value of imports.

Surplus

____________________________ involves exploiting a new venture with limited funds.

Bootstrapping

_________________-driven economies compete around business sophistication.

Innovation

15) Sharia law prohibits the charging of _________, resulting in unique financial products that are Islamic-compliant while allowing lending institutions to still earn a profit.

Interest

Sharia law prohibits the charging of _________, resulting in unique financial products that are Islamic-compliant while allowing lending institutions to still earn a profit.

Interest

9) Under __________________, countries try to amass as much silver and gold as possible to increase national wealth.

Mercantilism

_____________________________ involves contracting with a third party to do some of the company's work on its behalf.

Outsourcing

What were the six value dimensions presented by Geert Hofstede? a. Power distance, individualism, masculinity, uncertainty avoidance, indulgence, and long-term orientation. b. Power distance, uncertainty avoidance, indulgence, space, time, and context. c. Individualism, masculinity, time orientation, high context, low context, and proxemics. d. High context, low context, space, time, proxemics, and individualism.

a. Power distance, individualism, masculinity, uncertainty avoidance, indulgence, and long-term orientation.

11) Which of the following best defines absolute advantage theory? a. The ability of a country to produce a good more efficiently than other countries. b. The ability of a country to produce one good more efficiently than another good. c. The condition of a country having cheaper productive resources than another country. d. When a country possesses extensive capital but exports labor-intensive products.

a. The ability of a country to produce a good more efficiently than other countries.

10) Which of the following best defines the economic system of a planned economy? a. The means of production are publicly owned and controlled by the government. b. The means of production are privately owned, but decisions are made by the government. c. The means of production are privately owned and controlled. d. The means derives its power from the people.

a. The means of production are publicly owned and controlled by the government.

14) A trade deficit is defined as ______________. a. The value of imports is greater than the value of exports. b. The practice of restricting exports and supporting domestic consumers. c. The difference in the value of natural resources between two countries. d. The value of exports is greater than the value of imports.

a. The value of imports is greater than the value of exports.

A trade deficit is defined as ______________. a. The value of imports is greater than the value of exports. b. The practice of restricting exports and supporting domestic consumers. c. The difference in the value of natural resources between two countries. d. The value of exports is greater than the value of imports.

a. The value of imports is greater than the value of exports.

A person/entity that makes an investment of both financial capital and expertise is called a. Venture capitalist b. Angel investor c. Strategic investor d. Financial investor

a. Venture capitalist

8) Which of the following best defines the Leontief Paradox? a. When the reverse of the factor proportions theory occurs. b. When countries produce goods that utilize plentiful resources within their borders. c. When a country has an absolute advantage in the production of a particular good. d. When a country possesses fewer gold and silver stocks than another country but is somehow more economically powerful.

a. When the reverse of the factor proportions theory occurs.

Which of the following best defines country similarity theory? a. Countries with similar levels of overall development and culture are likely to engage in trade of similar products. b. Countries with similar levels of overall development and culture are likely to establish barriers to trade with each other in order to support their own, domestic industries. c. Countries with similar levels of overall development and culture are likely to develop similar products and services. d. Countries with similar levels of overall development and culture are likely to develop standardized products for each other.

a.Countries with similar levels of overall development and culture are likely to engage in trade of similar products.

Which of the following best defines the value dimension of masculinity? a.How a society views traits that are typically considered masculine or feminine. b.How quickly, or slowly, the people of a society routinely reach consensus. c.How a society does, or does not, accept hierarchies differences between people. d.How society views quick decision making as opposed to consensus building.

a.How a society views traits that are typically considered masculine or feminine.

Which of the following best defines HPI? a.Index that examines the most basic dimensions of deprivation within a population. b.Index that examines gender-based inequality for economic opportunity and development, in a population. c.Measure that examines the income inequality within a country. d.Measure that adjusts the exchange rate between countries to ensure a good is purchased for the same price in the same currency.

a.Index that examines the most basic dimensions of deprivation within a population.

Which of the following best defines common law? a.It is based on tradition and legal precedence. b.It is based on a detailed code of laws and focuses on how the law applies to facts. c.It is based upon religious guidelines, sometimes overseen by religious magistrates. d.It is based on the decisions and rulings of those in the government.

a.It is based on tradition and legal precedence

Which of the following best defines religious law? a. It is based upon religious guidelines, sometimes overseen by religious magistrates. b. It is based on the decisions and rulings of those in the government. c. It is based on tradition and legal precedence.

a.It is based upon religious guidelines, sometimes overseen by religious magistrates.

Ashley never arrives late to a meeting or appointment and expects such events to start and end precisely on time. What kind of culture does Ashley probably belong to? a.Monochronic b.Polychronic c.High-context d.Low-context

a.Monochronic

Which of the following best defines nemawashi? a.The Japanese term for consensus building. b.The Chinese term for eliminating uncertainty from decision making. c.The Chinese term for reaching consensus in the decision-making process. d.The Japanese term for reviewing an organization's decision-making processes.

a.The Japanese term for consensus building.

Which of the following best defines the phrase barriers to entry? a. The obstacles a firm faces when attempting to join an industry or new market. b. Being unable to access local market resources and capabilities. c. High research and development costs when attempting to create a new product line. d. The lack of stable and predictable intellectual property rights.

a.The obstacles a firm faces when attempting to join an industry or new market.

Which of the following best defines the value dimension of individualism? a.The tendency to take care of one's immediate circle of family and friends. b.How a society views traits that are typically perceived as masculine. c.How a society does, or does not, accept hierarchy differences between people. d.How much uncertainty a society is willing to accept.

a.The tendency to take care of one's immediate circle of family and friends.

Which of these is NOT a specialized intermediary for markets of managerial talent? a. Certification agencies b. Corporate governance c. Headhunting firms d. Relocation agencies

b. Corporate governance

Which of the following best defines corporate fit? a. Understanding a firm's human resource capacity, tolerance for risk and uncertainty, and other, internal corporate resources. b. Degree to which a company's practices, resources, and capabilities fit a new market. c. Understanding how a company fits with a new market, its potential for growth in that market, the presence and strength of competitors, and potential regulatory hurdles. d. Understanding how a company fits with a nation's governmental, legal, infrastructure, and cultural frameworks.

b. Degree to which a company's practices, resources, and capabilities fit a new market.

Which of the following is NOT a question for Phase 1 of a Global Start-Up Assessment? a. Do I need financial capital from other countries for my company to succeed? b. Do I have strong intangible assets? c. Can I put international management and structure in place faster than competitors? d. Do I need human capital from other countries for my company to succeed?

b. Do I have strong intangible assets?

Maria is tasked with analyzing a variety of ways in which her company could be impacted by developments in a foreign market. What kind of analysis should she do? a. CAGE b. PESTEL c. Scenario Planning d. Crisis Planning

b. PESTEL

The components of a PESTEL Analysis are a. Political, Educational, Sociocultural, Technological, Ethical, and Legal b. Political, Economic, Sociocultural, Technological, Environmental, and Legal c. Political, Educational, Sociocultural, Technological, Environmental, and Legal d. Political, Economic, Sociocultural, Technological, Ethical, and Legal

b. Political, Economic, Sociocultural, Technological, Environmental, and Legal

China has implemented which of the following, which causes human rights concerns? a. Caste system b. Social credit system c. Zaibatsu d. Apartheid

b. Social credit system

A person who founds an organization, for-profit or nonprofit, whose focus is to implement innovative solutions to social problems can be called a a. Social developer b. Social entrepreneur c. Social leader d. Intrapreneur

b. Social entrepreneur

18) Which of the following best defines the economic system of capitalism? a. The means of production are publicly owned and controlled, by the government. b. The means of production are privately owned and controlled. c. It that derives its power from the people. d. The means of production are privately owned but decisions are made by the public.

b. The means of production are privately owned and controlled.

Which of these is a relevant question for the Political portion of the PESTEL Analysis? a. How is intellectual property treated in the local market? b. What are the local taxation policies? c. What are the local attitudes towards work and leisure? d. What are current and forecast interest rates and exchange rates for major currencies?

b. What are the local taxation policies?

Which of the following best defines the value dimension of power distance? a.How a society views traits that are typically perceived as masculine. b.How a society does, or does not, accept hierarchy differences between people. c.How quickly, or slowly, the people of a society routinely reach consensus. d.The tendency to take care of one's immediate circle of family and friends.

b.How a society does, or does not, accept hierarchy differences between people.

Which of the following best illustrates the Foreign Corrupt Practices Act? a.It prohibits the expansion of corrupt business operations in the United States. b.It restricts foreign companies operating in the US from participating in bribery. c.It requires certain organizational principles for companies operating in the US. d.It presents various ethical guidelines for both American and foreign companies.

b.It restricts foreign companies operating in the US from participating in bribery.

12.Which of the following best defines HDI? a.Measure that adjusts the exchange rate between countries to ensure a good is purchased for the same price in the same currency. b.Measure of a country's average achievements across basic areas of development. c.Measure that examines the income inequality within a country. d.Value of all goods and services produced within a country in a single year, after accounting for the value of foreign investments for that same year.

b.Measure of a country's average achievements across basic areas of development.

16.Which of the following best defines PPP? a.Value of GDP as adjusted by purchasing power. b.Measure that adjusts the exchange rate between countries to ensure that a good is purchased for the same price in the same currency. c.Value of GDP divided by population. d.Measure of a country's average achievements across basic areas of development.

b.Measure that adjusts the exchange rate between countries to ensure that a good is purchased for the same price in the same currency.

Miguel runs late to meetings, but no one, even his supervisor, has ever said anything about it. Morgan, his coworkers, and supervisor likely belongs to what kind of culture? a.High-context b.Polychronic c.Monochronic d.Low-context

b.Polychronic

Which of these countries is considered a high-context communication country? a.The United States b.South Korea c.Germany d.Great Britain

b.South Korea

Which of the following is NOT a component of the CAGE Framework? a.Geographic Distance b.Technological Distance c.Administrative Distance d.Economic Distance

b.Technological Distance

11.Which of the following countries is NOT a member of CIVETS? a.Egypt b.Thailand c.Vietnam d.South Africa

b.Thailand

15.Which of the following is a social reason why a government may want to limit FDI? a.To increase the likelihood of running national trade surpluses. b.To preserve the national and/or local culture. c.To encourage citizens to invest in their local markets. d.To increase domestic consumption of domestically produced goods and services.

b.To preserve the national and/or local culture.

Which of the following best defines intraindustry trade? a. Trade that occurs in a single country between producers working in the same industry. b. Trade between two countries for goods produced in the same industry. c. Trade which occurs within a single country between two or more industries. d. Trade that occurs when one country is more efficient at producing a good over another.

b.Trade between two countries for goods produced in the same industry.

5.Which of the following best defines GDP per person on a PPP basis? a.Measure that adjusts the exchange rate between countries to ensure that a good is purchased for the same price in the same currency. b.Value of GDP per capita as adjusted by purchasing power. c.Value of GDP divided by the population of the country. d.Measure of a country's average achievements across basic areas of development.

b.Value of GDP per capita as adjusted by purchasing power.

14.Which of the following best defines GDP? a.Measure of a country's average achievements across basic areas of development. b.Value of all goods and services produced within a country in a single year. c.Measure that adjusts the exchange rate between countries to ensure a good is purchased for the same price in the same currency. d.Value of all goods and services produced within a country in a single year, after accounting for the value of foreign investments for that same year.

b.Value of all goods and services produced within a country in a single year.

12) Which of the following best defines mercantilism? a. When the value of imports is greater than the value of exports. b. The practice of restricting imports and supporting domestic industries. c. A country's wealth is determined by its holdings of gold and silver. d. The ability of a country to more efficiently produce than another country can.

c. A country's wealth is determined by its holdings of gold and silver.

Anita is tasked with developing a company's plan for expanding into a particular foreign market. She decides to analyze cultural, administrative, geographic, and economic distances from both her current position and that of the corporate headquarters. What kind of analysis is Anita engaging in? a. Crisis planning b. PESTEL analysis c. CAGE analysis d. Scenario planning

c. CAGE analysis

Which element of the Blue Ocean Strategy framework deals with examining the factors that could be created or added to what an industry currently offers? a. Raise b. Kept the same c. Create/add d. Reduce

c. Create/add

Which of the following is unlikely to affect the political stability of a country? a. The ranking of a country on the democracy index. b. Political activism about human rights violations. c. Elections for new officials in a democratic government. d. Arbitrary interpretation of laws.

c. Elections for new officials in a democratic government.

____________ risk losing their paycheck if their idea fails, while ___________ tend to have significant financial and logistical support behind them. a. Market developers/ product developers b. Intrapreneurs/ entrepreneurs c. Entrepreneurs/ intrapreneurs d. Product developers/ market developers

c. Entrepreneurs/ intrapreneurs

Martin's new firm seeks to immediately begin selling its products in a variety of national markets, both in the developed and developing world. What kind of firm is this? a. Blue ocean b. Transnational corporation c. Global start-up d. Red ocean

c. Global start-up

Manish has invented a water purification method that allows individuals to purify water on the go, in immediately drinkable quantities. This method is extremely cost-effective and it produces no long-lasting waste. The qualities draw both new customers and existing customers in the water purification market. What kind of disruptive technology is this? a. High-end disruption b. Low-end disruption c. Hybrid-disruption d. New-market disruption

c. Hybrid-disruption

Which of the following is NOT an identified bootstrapping strategy? a. Sweat equity b. Personal debt c. Venture capital d. Subsidy financing

c. Venture capital

A company that frequently develops new technology is considering several locations for international expansion. Which of these questions may be most important to them when assessing the Technological portion of the PESTEL Analysis? a. What are regulations regarding waste disposal and energy consumption? b. How predictable are the political decisions and policy making procedures? c. What is the status of intellectual property issues in the local environment? d. Does intellectual property have specific, legal protections?

c. What is the status of intellectual property issues in the local environment?

Which of the following best defines demonetization? a. Stripping a company of its assets and turning them over to the state. b. Issuing new types of currency units, to replace the old currency units. c. Stripping a currency unit of its status as legal tender. d. Issuing new types of currency units, to be used in parallel with old currency units.

c.Stripping a currency unit of its status as legal tender.

Which of these countries is considered a low-context communication country? a.Venezuela b.Romania c.The United States d.Russia

c.The United States

10.Which of the following is NOT a factor that would typically influence a business's decision to engage in foreign direct investment? a.Local incentives to engage in investment. b.The cost of producing goods in various locations. c.The difficulty of the local language. d.The ease of taking profits to repatriate them.

c.The difficulty of the local language.

Which of the following best defines "organizational culture?" a.Understanding those within an organization possess a common set of shared values, experiences, and attitudes with their national culture. b.That people prefer parts of organization over similar parts in other organizations. c.The set of beliefs, values, norms, symbols, and attitudes that represent the unique character of an organization while providing context for action in the organization. d.That people prefer something within their organization over that same thing in another different organization, whether it is a behavior or something tangible.

c.The set of beliefs, values, norms, symbols, and attitudes that represent the unique character of an organization while providing context for action in the organization.

Which of the following best defines ethnocentrism? a.The view that moral judgments differ across cultures and people. b.The unacknowledged or inappropriate adoption of customs, practices, ideas, or objects of one culture by members of another culture. c.The view that a person's own culture is central and that all other cultures are measured in relation to it. d.The view that a person's beliefs, values, and practices should be understood based on standard criteria applied to all cultures.

c.The view that a person's own culture is central and that all other cultures are measured in relation to it.

20.Which of the following best defines GDP per capita? a.Measure of a country's average achievements across basic areas of development. b.Value of GDP as adjusted by purchasing power. c.Value of GDP divided by the population of the country. d.Measure that adjusts the exchange rate between countries to ensure a good is purchased for the same price in the same currency.

c.Value of GDP divided by the population of the country.

Maria wants to assess a new international market for expansion. Which of the following would she ask to complete the Sociocultural portion of a PESTEL Analysis? a.What are the country's labor and social welfare policies? b.What are the relevant employment, health/safety, and product safety laws/regulations? c.What are the local lifestyle trends? d.What are local employment statistics, and how are they changing?

c.What are the local lifestyle trends?

China and Russia have systems of government and economics considered by economists to be a _____________.

capitalist autocracy

6.Which of the following countries is NOT a member of BRICS? a.Russia b.China c.India d.Sudan

d.Sudan

Which of the following best defines greenfield FDI? a. A company investing to provide input into its own, core operations. b. A company investing in already existing production facilities in a foreign country. c. A company opening in a new foreign market which is like its domestic market. d. A company investing in production capabilities from scratch in a foreign country.

d. A company investing in production capabilities from scratch in a foreign country.

Which of these is NOT a part of Porter's National Competitive Advantage Theory? a. Firm characteristics b. Suppliers and complementary industries c. Market demand conditions d. Barriers to entry

d. Barriers to entry

4) Which of the following best defines an ad valorem tariff? a. A flat amount, regardless of the value of the good or service. b. Applied in order to benefit a specific producer in the home country. c. Calculated on the increase of the value of a good as it moves through the supply chain. d. Calculated as a percentage of the value of the good or service.

d. Calculated as a percentage of the value of the good or service.

Eliza has developed a novel method for storing large quantities of electrical energy in a bid to shift power generation to more renewable forms. What element of the Blue Ocean Strategy framework did she address? a. Eliminate b. Raise c. Reduce d. Create/add

d. Create/add

Michael was asked to develop a corporate-wide IT policy, educate managers on the policy, interact with relevant risk management departments, and isolate high-risk, critical network segments and their related business functions. What task is he engaged with? a. Investigating cyber terrorism b. Scenario planning c. Crisis planning d. Cyber security planning

d. Cyber security planning

Which of these is a relevant question for the Legal portion of the PESTEL Analysis? a. What are the local environmental issues? b. What is the status of intellectual property issues in the local environment? c. How stable is the political environment in the prospective country? d. Does intellectual property have legal protections?

d. Does intellectual property have legal protections?

An economy that is reliant on extractive industries, or a large, but unvaried agriculture sector, is in which category according to the GCI? a. Innovation-driven b. Labor-driven c. Efficiency-driven d. Factor-driven

d. Factor-driven

JCPenney and Carrefour failed in their attempts to enter the Chilean retail market. Which of the following was the primary error that led to this failure? a. Misunderstanding the local regulatory environment. b. Overestimating their firms corporate fit within the market. c. Language barriers d. General lack of due diligence.

d. General lack of due diligence.

2) Which of these is NOT normally considered a barrier to entry? a. Being unable to access specific business practices, processes, methods, or expertise. b. High research and development costs. c. The inability to access certain intellectual property. d. Having investors who will provide private funds.

d. Having investors who will provide private funds.

19) Which of the following best defines the ideology of pluralism? a. It asserts individual autonomy should be circumvented by a strong central government in order to improve the society as a whole. b. It asserts the government's power is derived by the people. c. It asserts uniform rules, regulations, institutions, and public attitudes are necessary to a well-functioning society. d. It asserts public and private groups are essential in a well-functioning political system.

d. It asserts public and private groups are essential in a well-functioning political system.

Which of the following best defines the ideology of pluralism? a. It asserts individual autonomy should be circumvented by a strong central government in order to improve the society as a whole. b. It asserts the government's power is derived by the people. c. It asserts uniform rules, regulations, institutions, and public attitudes are necessary to a well-functioning society. d. It asserts public and private groups are essential in a well-functioning political system.

d. It asserts public and private groups are essential in a well-functioning political system.

17) Which of the following best defines the legal system of civil law? a. It is based upon religious guidelines, sometimes overseen by religious magistrates. b. It is based on the decisions and rulings of those in the government. c. It is based on tradition and legal precedence. d. It is based on a detailed code of laws and focuses on how the law applies to facts.

d. It is based on a detailed code of laws and focuses on how the law applies to facts.

Which of the following best defines the legal system of civil law? a. It is based upon religious guidelines, sometimes overseen by religious magistrates. b. It is based on the decisions and rulings of those in the government. c. It is based on tradition and legal precedence. d. It is based on a detailed code of laws and focuses on how the law applies to facts.

d. It is based on a detailed code of laws and focuses on how the law applies to facts.

Which of the following is NOT a reason a company would expand its operations? a. To follow global customers b. To expand into new markets in search of new customers c. To improve operating cost-effectiveness d. To expend capital

d. To expend capital

Those engaged with _______________ have an objective to cause harm through the use of the Internet or via remote control, while those engaged with ______________ prevent it. a. cyber security, cyber terrorism b. crisis actions/ cyber security c. security analysis/ cyber terrorism d. cyber terrorism/ cyber security

d. cyber terrorism/ cyber security

Which of the following best defines what a polychronic culture is? a.A culture which emphasizes multitasking. b.A culture in which people prefer to focus on one task at a time. c.A culture which emphasizes single-tasking. d.A culture in which people prefer to do several things at the same time.

d.A culture in which people prefer to do several things at the same time.

Who was Edward T. Hall? a.British social psychologist who studied the interactions between national and organizational cultures. b.American linguist who studied historical connections between languages and cultures. c.British sociologist who studied intercultural communication and organization theory. d.American anthropologist who studied cultures and intercultural communication.

d.American anthropologist who studied cultures and intercultural communication.

Which of the following best defines international market due diligence? a.Analyzing issues surrounding the cultural, administrative, geographic, and economic distance of a new market compared to the firm's headquarters. b.Analyzing markets in terms of the current and future political, economic, sociocultural, technological, environmental, and legal environments. c.Analyzing market forces to assess the feasibility of contracting out secondary business operations to a third-party provider. d.Analyzing markets for size, accessibility, cost of operations, and buyer practices.

d.Analyzing markets for size, accessibility, cost of operations, and buyer practices.

Which of the following best defines ethics? a.Branch of philosophy examining how knowledge is gained and transmitted. b.Branch of philosophy examining how power is exercised among and between people. c.Branch of philosophy that explains how truth and morality exist in relation to culture, society, and historical context. d.Branch of philosophy seeking morality/ examining "right" and "wrong" behavior.

d.Branch of philosophy seeking morality/ examining "right" and "wrong" behavior.

___________________ is an act intended to gain a business advantage, while ___________________ is often a cultural practice intended to display respect. a.Corruption/ bribery b.Bribery/ corruption c.Gift giving/ bribery d.Bribery gift giving

d.Bribery/ gift giving

What country has the highest GDP (when accounting for Purchasing Power Parity)? a. Japan b. U.S. c. Germany d. China

d.China

13.Kristen wants to start a business in a county where residents have plenty of discretionary income. Which statistic should she consider? a.Human Poverty Index b.Gross Domestic Product c.GDP per capita d.GDP per person on a PPP basis

d.GDP per person on a PPP basis

9.If Hanta wants to start a new business in a country with more gender equality, which of these statistics would NOT provide that information? a.GDI b.GII c.GEM d.HDI

d.HDI

Which of the following best defines low-context communication? a.The emphasis is on written word in email communication. b.People tend to be indirect and the physical context of a message carries significance. c.The emphasis is on the punctuality of the communication. d.People tend to be direct in their communication to minimize misunderstandings.

d.People tend to be direct in their communication to minimize misunderstandings.

Which of the following best defines high-context communication? a.The emphasis is on the punctuality of the communication. b.People tend to be direct in their communication to minimize misunderstandings. c.The emphasis is on written word in email communication. d.People tend to be indirect and the physical context of a message carries significance.

d.People tend to be indirect and the physical context of a message carries significance.

4.Which of the following best defines apartheid? a.The official policy of social class segregation that was practiced in China for much of the first half of the twentieth century. b.The official policy of gender segregation that was practiced in Ghana for much of the first half of the twentieth century. c.The official policy of racial segregation that was practiced in India for much of the second half of the twentieth century. d.The official policy of racial segregation that was practiced in South Africa for much of the twentieth century.

d.The official policy of racial segregation that was practiced in South Africa for much of the twentieth century.

Which of the following is the best definition for Hall's principal category of space? a.The study of how individuals communicate ideas across distance. b.The study of how organizations form a unique culture. c.The study of how individuals orient themselves in time. d.The study of physical regions, distance, and people/ referred to as proxemics.

d.The study of physical regions, distance, and people; referred to as proxemics.

A trade ___________ occurs when the value of imports exceeds the value of exports.

deficit

Porter's National Competitive Advantage Theory argues that a nation's competitiveness is tied to its capacity to

innovate

A business that seeks to promote innovation from within might be called a(n) ___________________________________.

intrapreneurial organization

Institutional voids occur when there is an absence of __________________________.

specialized intermediaries