Question 1

In international operations,the economic environment includes:
A) shared knowledge,beliefs and values.
B) political risks.
C) social organizations.
D) infrastructure.
E) tariffs,quotas,and taxes.

Accepted Answer

The answer of In international operations,the economic environment includes:
A) shared...

Question 2

Access to natural resource,infrastructure,exchange rates all describe which dimension in the international environment
A) Economic
B) Legal
C) Political
D) Sociocultural
E) Technological

Accepted Answer

Access to natural resources, infrastructure, and exchange rates are all related to the economic dimension of the international environment. This dimension includes factors related to economic systems, trade policies, and access to resources, which can have a significant impact on the success of businesses operating in foreign markets.

Question 3

A company's risk of loss of assets,of reduced earning power and of losing managerial control because of adverse events and actions taken by a host government is referred to as:
A) GDP
B) Political risk.
C) Tariffs.
D) Duties.
E) Quotas.

Accepted Answer

Political risk refers to the potential for loss or decreased earnings due to government action or instability in a given country. This can include nationalization of assets, regulatory changes, political violence, or other government actions that negatively impact a company's operations. GDP, tariffs, duties, and quotas are all related to trade or economic factors, but do not directly relate to the risk posed by a government's actions.

Question 4

The management of business conducted in more than one country is called:
A) global management.
B) international business management.
C) outsourcing management.
D) planning management.
E) domestic management.

Accepted Answer

International business management refers to the management of business conducted in more than one country. Global management may refer to the management of business that operates globally or across borders, but it can also include business that operates solely within a particular country or region. Outsourcing management refers specifically to the management of contracted services, while planning management refers to the process of formulating and implementing plans for a company's operations. Domestic management refers to the management of business conducted within a single country.

Question 5

A country's physical facilities that support its economic activities such as ports make up its _____.
A) resource markets
B) infrastructure
C) physical markets
D) product markets
E) plants and equipment

Accepted Answer

Infrastructure refers to a country's physical facilities such as ports, highways, airports, and telecommunications systems that support its economic activities. Resource markets refer to markets where resources such as labor, land, and capital are bought and sold. Physical markets refer to markets where finished goods are sold to consumers. Plants and equipment refer to the physical assets of a business.

Question 6

_____ is a social measure used to classify countries as developed countries or emerging countries.
A) Exchange rates
B) Interest rates
C) Gross national product
D) Per capita income
E) Inflation rates

Accepted Answer

Per capita income is a social measure used to classify countries as developed or emerging. Developed countries have high per capita income while emerging countries have low per capita income.

Question 7

Which of the following pairs of alternatives closely resemble each other in the amount of ownership,control and risk in international business
A) Foreign direct investment / reselling
B) Wholly owned foreign affiliate / countertrade
C) Export / Import
D) Franchising //licensing
E) All of these

Accepted Answer

Franchising and licensing closely resemble each other in the amount of ownership, control, and risk in international business. In both cases, the foreign company (franchisee or licensee) uses the intellectual property and business model of the parent company (franchisor or licensor), but has limited control over the operations and is subject to certain rules and regulations set by the parent company. The risks are also similar, as the success of the business depends on various factors beyond the foreign company's control, such as market conditions and competition.

Question 8

Language,values,religion,education,culture all describe which dimension in the international business environment
A) Economic
B) Legal
C) Political
D) Sociocultural
E) Technological

Accepted Answer

Language, values, religion, education, and culture all describe the sociocultural dimension of the international business environment. This dimension focuses on the social and cultural factors that influence business operations and behavior in different countries. It includes factors such as communication styles, religious beliefs, educational systems, and attitudes towards work and leisure. Understanding the sociocultural dimension is essential for businesses to succeed in global markets.

Question 9

The legal-political environment in international business includes which of the following
A) Shared knowledge,beliefs and values
B) Political risks
C) Social organizations
D) Infrastructure
E) None of these

Accepted Answer

The legal-political environment includes political risks, such as changes in government, regulations, or policies that may affect international business operations. Shared knowledge, beliefs, and values (A) pertain to the cultural environment, social organizations (C) pertain to the social-cultural environment, and infrastructure (D) pertains to the economic environment. Therefore, B is the best choice for this question.

Question 10

Which of the following is NOT a legal-political factor in the international environment
A) Laws and regulations
B) Language
C) Tariffs,quotas,taxes
D) Political risk
E) Government expropriations

Accepted Answer

Language is not a legal-political factor, but rather a cultural factor in the international environment. The other choices (A, C, D, and E) are all legal-political factors.

Question 11

A supermarket is having trouble getting the local farmers to supply it with fresh produce.This is a problem with the:
A) metal market.
B) natural resource market.
C) infrastructure.
D) economy.
E) power dimensions.

Accepted Answer

The issue at hand is the supply of fresh produce from local farmers, which falls under the natural resource market. Farmers are the primary source of fresh produce and if they are not willing or able to supply the supermarket, it could be due to factors such as weather conditions or pricing disputes, which are all related to the natural resource market.

Question 12

If a company was having difficulty distributing products by truck to customers because of a poor road system,the problem would be related to:
A) an inadequate infrastructure.
B) an economy incapable of supporting growth.
C) a poor resource market.
D) a poor product market.
E) none of these.

Accepted Answer

An inadequate infrastructure refers to the lack of necessary physical systems, such as roads, which are essential for the distribution of products.

Question 13

In international business,the economic environment represents all of the following factors EXCEPT:
A) infrastructure.
B) resource and product markets.
C) laws and regulations.
D) inflation.
E) exchange rates.

Accepted Answer

The answer of In international business,the economic environment represents all...

Question 14

Which of the following is a sociocultural factor in the international business environment
A) Language
B) Exchange rates
C) Tariffs,taxes,and quotas
D) Per capita income
E) Infrastructure

Accepted Answer

Language is a sociocultural factor because it refers to the way people communicate and the cultural nuances that affect communication. Language differences can impact business transactions and relationships in international markets.

Question 15

A foreign subsidiary over which an organization has complete control is called a:
A) joint venture.
B) licensing agreement.
C) franchise.
D) wholly owned foreign subsidiary.
E) foreign venture.

Accepted Answer

A wholly owned foreign subsidiary is a company located in a foreign country that is entirely owned by its parent company. This means that the parent company has complete control over the subsidiary and can make decisions without the need to consult with any other organization.

Question 16

A company wants to reduce shipping costs by producing goods closer to their customers in foreign countries.This strategy would reduce transportation costs and storage costs.The company is engaging in which strategy
A) Franchising
B) Exporting
C) Foreign direct investment
D) Barter agreement
E) Licensing

Accepted Answer

The strategy described in the scenario is known as foreign direct investment, where a company establishes operations (such as factories or warehouses) in a foreign country to produce goods closer to their customers, reducing transportation and storage costs. Franchising, exporting, licensing, and barter agreements do not necessarily involve physically producing goods in a foreign country.

Question 17

When making foreign direct investments,companies that purchase insurance against the possible expropriation of their assets by host governments is an example of which sector of the international business environment
A) Political and legal
B) Sociocultural
C) Technological
D) Economic
E) Infrastructure

Accepted Answer

Purchasing insurance against possible expropriation by host governments is an example of a company taking measures to manage political and legal risks in the international business environment.

Question 18

Exchange rates are included in which of the following international environments
A) The legal-political sector
B) The economic environment
C) The sociocultural environment
D) The barter system environment
E) The government sector

Accepted Answer

Exchange rates are primarily included in the economic environment, as they relate to the valuation of currencies and foreign trade. While they may be influenced by factors in other international environments (such as government policies and sociocultural attitudes), they are not inherently included in those environments. The barter system environment is not relevant to exchange rates, as it does not involve currency or monetary exchange.

Question 19

Political risk is defined as an organization's risk of _____ because of adverse events and actions taken by host governments against it.
A) Loss of assets
B) Losing managerial control
C) Reduced earning power
D) All of the above three choices
E) Gaining managerial control and earning power

Accepted Answer

Political risk refers to the risk faced by a business when there is a possibility of loss of assets, losing managerial control, and reduced earning power due to the actions taken by host governments. It includes expropriation, confiscation of property, contract repudiation, and currency inconvertibility. Therefore, all of the above three options are correct. Gaining managerial control and earning power is not a political risk, but rather a possible positive outcome for the organization.

Question 20

Which aspect of business management would not change when doing business internationally
A) Planning
B) Organizing
C) Controlling
D) Leading
E) All of these

Accepted Answer

All aspects of business management, including planning, organizing, controlling, and leading, would need to be adjusted when doing business internationally. Factors such as cultural differences, language barriers, and legal requirements all come into play when conducting business in a foreign country. Therefore, all aspects of business management would need to be adapted to the specific international market.

Quiz 5: Managing in a Global Environment

In international operations,the economic environment includes:

Access to natural resource,infrastructure,exchange rates all describe which dimension in the international environment

A company's risk of loss of assets,of reduced earning power and of losing managerial control because of adverse events and actions taken by a host government is referred to as:

The management of business conducted in more than one country is called:

A country's physical facilities that support its economic activities such as ports make up its _____.

_____ is a social measure used to classify countries as developed countries or emerging countries.

Which of the following pairs of alternatives closely resemble each other in the amount of ownership,control and risk in international business

Language,values,religion,education,culture all describe which dimension in the international business environment

The legal-political environment in international business includes which of the following

Which of the following is NOT a legal-political factor in the international environment

A supermarket is having trouble getting the local farmers to supply it with fresh produce.This is a problem with the:

If a company was having difficulty distributing products by truck to customers because of a poor road system,the problem would be related to:

In international business,the economic environment represents all of the following factors EXCEPT:

Which of the following is a sociocultural factor in the international business environment

A foreign subsidiary over which an organization has complete control is called a:

A company wants to reduce shipping costs by producing goods closer to their customers in foreign countries.This strategy would reduce transportation costs and storage costs.The company is engaging in which strategy

When making foreign direct investments,companies that purchase insurance against the possible expropriation of their assets by host governments is an example of which sector of the international business environment

Exchange rates are included in which of the following international environments

Political risk is defined as an organization's risk of _____ because of adverse events and actions taken by host governments against it.

Which aspect of business management would not change when doing business internationally