Quiz on International Business

Multiple Choice

1. What is the main goal of International Business?

A. To maximize profits B. To increase global presence C. To reduce costs D. To increase market share

Answer: B. To increase global presence

1. What is the process of entering a new international market called?

A. Expansion B. Globalization C. Internationalization D. Market penetration

Answer: D. Market penetration

1. What is the process of setting up a business in a foreign country called?

A. Expansion B. Globalization C. Internationalization D. Market penetration

Answer: C. Internationalization

True or False

1. International business involves doing business across international borders.

Answer: True

1. International business is only conducted by large multinational corporations.

Answer: False

1. Cultural differences are not important in international business.

Answer: False

Fill-in-the-Blank

1. The ___________ of a country affects the way business is conducted in that country.

Answer: culture

1. Companies that operate in multiple countries are called ___________ corporations.

Answer: multinational

1. The ___________ of a country is the set of laws and regulations that govern business activities.

Answer: legal system

Short Answer

1. What is the difference between international business and global business?

Answer: International business involves conducting business across international borders, while global business involves conducting business on a global scale, such as in multiple countries or regions. Global business also involves strategies to increase the company's global presence, while international business is more focused on individual transactions and activities.

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International Business Practice Sheet

Introduction

International business is the process of conducting business between two or more countries. This can involve the exchange of goods and services, investments, and knowledge. It can also involve the coordination of activities between different countries. International business requires understanding of the different cultures, laws, and regulations that exist in different countries.

Vocabulary

1. Globalization: The process of increasing the interconnectedness of different countries and cultures.
2. Trade: The exchange of goods and services between two or more countries.
3. Tariff: A tax imposed on goods and services imported from another country.
4. Exchange rate: The rate at which one currency can be exchanged for another.
5. Foreign Direct Investment (FDI): An investment made by a company in a foreign country.

Practice Questions

1. What is the difference between globalization and international business?
2. What are the benefits of international trade?
3. What are the risks associated with foreign direct investment?
4. How does the exchange rate affect international business?

Answers

1. Globalization is the process of increasing the interconnectedness of different countries and cultures, while international business is the process of conducting business between two or more countries.
2. The benefits of international trade include increased competition, access to new markets, and increased efficiency.
3. The risks associated with foreign direct investment include currency exchange rate risks, political risks, and cultural risks.
4. The exchange rate affects international business by determining the cost of goods and services exchanged between two countries. A higher exchange rate means that goods and services from one country are more expensive in the other country.