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International business refers to commercial transactions that occur across national borders. It encompasses a wide range of activities including importing and exporting goods and services, foreign investments, global supply chains, and international marketing.
International business involves commercial transactions conducted across national borders, including trade in goods, services, and investments. It spans activities like exporting, importing, foreign direct investment, and global supply chain management. Companies engage in international business to explore new markets, source resources, and leverage global opportunities for growth and efficiency. Success in this field demands navigating diverse cultural norms, economic systems, and regulatory frameworks. By understanding these complexities, businesses can enhance their competitive edge and achieve strategic objectives in the global marketplace.
Enroll Here : International Business Professional Certification
1.
What is the primary goal of international business?
A) To expand domestic markets
B) To increase local competition
C) To engage in trade and investment across borders
D) To limit foreign investment
2.
Which of the following is NOT a mode of entry into international markets?
A) Exporting
B) Franchising
C) Joint Ventures
D) Domestic sales
3.
Which organization promotes international trade by reducing tariffs and other trade barriers?
A) World Health Organization (WHO)
B) International Monetary Fund (IMF)
C) World Trade Organization (WTO)
D) United Nations (UN)
4.
What is the term for a company’s investment in operations abroad?
A) Direct Foreign Investment
B) Domestic Investment
C) Portfolio Investment
D) Local Investment
5.
What is the primary purpose of a Free Trade Agreement (FTA)?
A) To establish tariffs on imports
B) To eliminate trade barriers among member countries
C) To restrict foreign competition
D) To control foreign exchange rates
6.
Which of the following is a common risk associated with international business?
A) Currency fluctuations
B) Local market trends
C) Domestic regulations
D) Local labor laws
7.
Which term describes the practice of customizing a product to suit local tastes and preferences in international markets?
A) Standardization
B) Adaptation
C) Globalization
D) Localization
8.
What does the term “glocalization” refer to?
A) Standardizing products for all markets
B) Adapting global products to local markets
C) Outsourcing all production
D) Focusing only on local markets
9.
Which of the following is an example of a trade barrier?
A) Trade tariffs
B) Free trade agreements
C) International joint ventures
D) Foreign direct investment
10.
What does “ethnocentric” mean in the context of international business?
A) Focusing only on global markets
B) Believing one’s own culture is superior to others
C) Standardizing products for all markets
D) Ignoring international trends
11.
Which type of international strategy involves offering the same products in all markets?
A) Global strategy
B) Multi-domestic strategy
C) Regional strategy
D) Local strategy
12.
Which term describes the practice of partnering with local firms to enter foreign markets?
A) Franchising
B) Licensing
C) Joint Venture
D) Exporting
13.
Which of the following is NOT a benefit of entering international markets?
A) Access to new customers
B) Increased market share
C) Reduced competition
D) Diversification of risk
14.
Which entity provides financial aid to developing countries for economic development?
A) World Trade Organization (WTO)
B) International Monetary Fund (IMF)
C) United Nations (UN)
D) World Bank
15.
Which document typically outlines the terms of trade between international partners?
A) Sales receipt
B) Business plan
C) Trade agreement
D) Market research report
16.
What is a key characteristic of a multinational corporation (MNC)?
A) It operates exclusively in one country.
B) It has operations in multiple countries.
C) It focuses only on domestic markets.
D) It avoids foreign investments.
17.
Which term refers to the practice of a company outsourcing production to lower-cost countries?
A) Offshoring
B) Nearshoring
C) Reshoring
D) Insourcing
18.
What does “import substitution” refer to in international trade policy?
A) Reducing tariffs to increase imports
B) Encouraging domestic production by restricting imports
C) Encouraging international investments
D) Freeing up foreign trade barriers
19.
Which factor is most likely to influence the decision of a company to enter a foreign market?
A) Local tax rates
B) International labor laws
C) Foreign exchange rates
D) Domestic competition
20.
Which international organization is known for its role in fostering global economic cooperation and development?
A) International Chamber of Commerce (ICC)
B) World Economic Forum (WEF)
C) International Monetary Fund (IMF)
D) Organization for Economic Cooperation and Development (OECD)
