MBA International Business — practice questions
120 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice MBA International Business in the app →Business transactions taking place within the boundaries of one nation are called:Manufacturing and trade beyond the boundaries of one's own country is:Besides goods and services, international business also moves capital, personnel, technology and:International business is broader than international trade because it also covers:The fundamental reason for international business is that countries cannot produce equally well or cheaply:The result of countries producing what they are best suited for is called:Which Indian state is cited as specialising in jute products?Labour-abundant developing countries typically export garments and import:In international business, buyers and sellers differ in language, attitudes and customs because they differ inLabour and capital move less freely between countries than within one country. This difference concerns:Differences in tastes, beliefs and buying habits across countries create:People in China are said to prefer bicycles, while the Japanese like to ride:Indians drive right-hand driven cars while Americans have the steering on the:Political factors such as government type, party system and political risk have a profound impact on:In 1991 India approached which body for funds during its balance of payment crisis?The IMF agreed to lend to India on condition that India would undergo:Which organisation, along with government reforms, increased business relations among nations?Because national economies are becoming borderless, the world is described as a:Consumers in most developing African and Asian countries are described as:Consumers in Japan, the United States and Switzerland show a marked preference for products that are:Consumers in the United States replace TVs and bikes typically within:To succeed overseas, firms must adapt product, pricing, promotion and:The ability to spot international opportunities and threats and adjust to them is called:Selling goods made at home to buyers in another country is:The difference between the value of a country's exports and its imports is the:A country imports more than it exports. The result is a:A country exports more than it imports. The result is a:A summary of all of a country's international financial transactions is its:A country that can make and sell a product at a lower cost than anyone else has:The idea that each country should specialise where it is relatively most efficient is the principle of:A tax imposed on imported goods is a:A tariff set lower for some nations than for others is called:A limit on the quantity of a certain good that may be brought in is an:A total ban on imports or exports of a product is an:Shielding home industries from outside competition with artificial barriers is:Letting people and businesses buy and sell where they please without barriers is:Selling a product abroad at a lower price than at home is called:Lowering the value of a nation's currency against other currencies is:A system where currency prices move up and down with demand and supply uses:A firm lets another company use its manufacturing process for a fee. This is:A foreign firm makes private-label goods under contract for a domestic company. This is:A domestic firm buys part of a foreign firm and shares the risks. This is a:Active ownership of a foreign company or of plants abroad is:Part or all of the payment for goods is made in other goods rather than cash. This is:The Dutch social scientist whose model of cultural differences is widely used is:His original survey covered more than how many employees?Those employees came from how many countries?That original survey revealed how many major cultural dimensions?The degree to which a society accepts differences in power is called:The dimension contrasting the individual's ties to the group is:How comfortable people are with risk and unpredictable situations is measured by:Societies scoring high on that dimension tend to want:The dimension covering emphasis on advancement and earnings is:The second major cultural framework, from a large leadership research project, is called:How many cultural dimensions did the researchers behind that second framework uncover?Both frameworks group countries into:An employee sent to work in another country for their firm is an:Training given before an employee leaves for a foreign posting is called:Training given once the employee has arrived abroad is called:One stated goal of any cross-cultural training is to raise an employee's:A study of 114 expatriates found that both kinds of training had:The movement of people from their home country to other countries is called:Growing movement of people is said to make company workforces increasingly:Managers use these frameworks mainly to understand and prepare for:Cultural intelligence is described as the capability to function and manage effectively in settings that are:Taking cross-cultural classes in a programme is described as one basic way to acquire:A minister lists the three main forms protectionism takes. Along with import quotas and nontariff barriers, thA government charges a tax on goods and services arriving from abroad. That tax is a:Instead of taxing imports, a country caps the quantity that may enter each year. That cap is an:A trade policy is designed to keep domestic producers and workers safe from foreign competition. That policy iConsumers in a protected market pay more at the till, and no money passes through the treasury. That makes thePart of the higher price consumers pay for a protected good buys nothing at all for anyone. Economists call thA country that shuts out imports gives up the gains from specialisation, learning and scale. It also gives up Protection saves jobs in the industry it covers. In the industries it does not cover, it tends to:A foreign firm sells its goods abroad for less than they cost to produce. That practice is:A country meets such below-cost imports with tariffs that push the price back up to cost. Those rules are:Bhutan wants a computer industry but has no firm able to compete on price or quality yet. The case for protectA minister argues the country must not depend on others for oil or security-critical technology. That is the:That security argument is often used to hand protection to particular firms who lobbied for it. It has become One country blocks a foreign food product on the grounds that buyers could be harmed by it. That is the:Many countries came together in 1947 to set up a treaty on trade barriers. That agreement was the:The body that superseded that 1947 agreement now has a membership of about:A North American trade agreement was signed by President Clinton and came into force in:From July 2020 that North American agreement was replaced by one named for its three members. That agreement iA trade official notes that countries need not choose between the world body and their regional pacts. Most beHigh-income countries together hand their own farmers support worth roughly:Campaigners fear firms will move to whichever country has the weakest environmental rules, dragging standards Researchers looked for foreign firms pricing low to drive out rivals and then raising prices. Such evidence isTwo countries make the same good, and one of them simply makes more of it. That country holds the:A country produces more than its neighbour because it has richer soil and better machines. Those are sources oA country can make a good while giving up less of other goods than its trading partner would. That is a:An economics student asks which advantage actually explains why countries trade. The answer is:A member of the British Parliament set out this idea in a treatise in 1817. He was:That 1817 treatise argued free trade helps every partner, even the relatively inefficient ones, provided each When each country specialises in its comparative advantage and trades, the world's total production is expecteA student of Ricardo sums up what trade really is, in three words. Trade is mutually:Gains from international trade come from following comparative advantage and producing at the lower:Canada gives up less to produce lumber than its partner does. Canada should therefore specialise in:In that same pairing, the partner with the lower opportunity cost in oil should specialise in oil. That partneProducing one ton of copper means giving up two bushels of corn. Those two bushels are the copper's:A phone is designed in one country, built from Korean parts, assembled in China and marketed back home. EconomA country exports cars and imports cars in the same year. Trade inside one industry like this is called:Roughly what share of United States trade and of European trade is trade within the same industry?Similar countries still gain from trading with each other for two reasons. One is economies of scale; the otheInternational trade lets firms reach the low average costs of large-scale output while buyers still get competA body founded to bring trade barriers down brings the world's nations together to negotiate. That body is theThose negotiations run in a distinctive rhythm, one agreement at a time with breaks between. Each cycle is calTraditionally a tariff was reached for less as an economic tool than as a way to protect vested interests. ThaIn the standard two-country example, the only resource available in either country is:Brazil can produce more beef than its partner, while the partner can produce more autos. Each country there hoTeams in five countries exchange information and work together on one platform. That platform is the backbone A multinational coordinates production, distribution and logistics across borders through one system. That proHead office wants the same workflow followed in every country office. Global systems support that through:Standardising processes across locations is meant to hold quality, performance and one more thing steady. ThatA global platform offers multilingual support, internationalisation and one feature aimed straight at money. TAn online store keeps taking orders through the night because buyers sit in other regions. It is trading arounA global system raises awareness of international issues and helps staff understand each other's cultures. ThaA company must decide whether to build its global system in house or bring one in from outside. That second roSensitive records must be protected and the firm must respect laws about where data may live. Those are laws oWorking across countries means handling communication styles, language barriers and the uneven spread of techn