Q1. International business is defined as the performance of ________ activities by firms across national borders.

A) marketing and fiduciary B) trade and investment C) finance and operational D) manufacturing and sales

Q2. International business is also known as which of the following?

A) born global business B) laissez-faire business C) cross-border business D) multi-hub business

Q3. Which of the following best characterizes the development of international business?

A) It has existed in some form for centuries. B) It first started in Europe. C) It developed after the year 2000. D) Its development has slowed in recent years.

Q4. Globalization has helped increase all of the following except ________. A) the variety of capital flows across national borders

B) the economic isolation of developing countries C) the rate at which products are diffused worldwide D) the volume of cross-border transactions

Q5. ________ refers to the transfer of assets to another country or the acquisition of assets in that country.

A) International investment B) International trade C) Importing D) Exporting

Q6. Which of the following would not be considered an example of foreign direct investment (FDI)? A) cross-border purchase of a textile plant

B) cross-border purchase of stocks C) purchase of capital assets of a foreign company D) purchase of foreign land for business operations

Q7.________ is the total value of products and services produced in a country over the course of a year.

A) GDP B) CAD C) FDI D) PPP

Q8.Which of the following best explains why export growth has outpaced the growth of domestic production during the last few decades?

A) Both world exports and domestic production have grown significantly over the past 30 years. B) The cost to import products is generally higher than the cost to produce domestic products. C) Growth in gross domestic product in most countries has steadily increased since 1970. D) Advanced economies now source many of their consumable products from low-cost manufacturing nations.

Q9.Each of the following has contributed to the rapid integration of world economies except--- -----------

A) the growth of emerging market countries B) the increase in trade barriers C) advances in information technology D) the liberalization of markets

Q10.Which of the following types of risk is also known as political risk?

A) currency risk B) cross-cultural risk C) commercial risk D) country risk