Global Business Midterm

Which of the following has contributed to the rapid growth of trade among nations EXCEPT

The increase in trade barriers

_ is the total value of products and services produced in a country over the course of a year

GDP

Which of the following is NOT an example of a cross-cultural risk factor

Costs of production

Business that directly initiate international business transactions are known as

Focal firms

Which of the following best characterizes the development of international business

It has existed in some form for centuries

Which of the following would NOT be considered an example of foreign direct investment (FDI)

Cross-border purchase of stocks

Fluctuating exchange rates are an example of which of the following

Currency risk

_ refers to the transfer of assets to another country or the acquisition of assets in that country

International investment

Which of the following types of risk is also known as political risk

Country risk

International business is defined as the performance of _ activities by firms across national borders

Trade and investment

The size and growth rate of a country’s middle class is termed as

Market consumption capacity

The estimate of the share of annual industry sales the firm expects to generate in a particular target market is known as

Company sales potential

_ is used by some firms to gauge long-term sales potential without fully committing to a foreign market

Test marketing

According to the Market Potential Indicators Index, _ is an indicator of market size

Urban population and electricity consumption

Trade audits may provide managers insight regarding

Competitors offerings and pricing

Advances in communications and transportation technology have changed the internationalization tendencies of firms by

Reducing the risk and difficulty of doing business in markets with unfamiliar cultures

Which of the following tasks should a shoe manufacturing company perform first if it needs to assess the global market opportunity

Analyze the firms readiness to internationalize

Which of the following should be done by a company planning to internationalize when it assesses market industry potential

Develop a 3-5 year forecast of industry sales for each target market

In order to estimate industry market potential managers most likely require

Market size and growth rates specific to the industry

When using the process of gradual elimination to screen potential country markets a researcher should first

Obtain general info on macro level indicators such as population, income, and economic growth

What best describes Alpha Testing in Testing

Internal evaluation by the development team it closely involved stakeholders

What best describes initial public offering in ipo

First public sale of company shares

Which entity provides loans and insurance to U.S. exporters

EXIM Bank

What does the Minimum Viable Product(MVP) primarily with in international entrepreneurial

Early validation of product-market fit

What distinguishes a prototype from the minimum viable product (mvp)

MVP is used to gather real user feedback

Which of the following is a disadvantage of equity funding

Loss of ownership and control

Which of the following is NOT a component of Cultural Intelligence (CG)

Strategic CQ

What best describes Loan in Financing

Borrowed money with repayment and interest

What is the primary purpose of beta testing

Gather real-world feedback

What best describes Incremental Innovation in Innovation Type

Small continuous improvement

Firms use foreign trade zones to

Assemble foreign dutiable materials and components into finished products which are then re-exported

Financing or other resources that a government grants to a firm or group of firms to ensure their survival or success is referred to as a

Subsidy

Governments impose defensive barriers to

All of the these

On what basis is the U.S. trying to ban or limit TikTok’s operations in the U.S.

National Security

A quantitative restriction on specific imports from a specific country for a set period of time is referred to as

quota

What is the primary purpose of the European Unions Carbon Border Adjustment Mechanism (CBAM)

To ensure importer good reflect their carbon emissions and prevent carbon leakage

_ is (are) at odds with free trade, the unrestricted flow of products, services, and capital across national borders

Government intervention

_ are checkpoints at the ports of entry in each country where government officials inspect import products and levy tariffs

Customs

Which of the following is an example of nontariff trade barrier

The U.S. Department of Commerce announced that white sugar imports will be limited to 7500 million tons

Governments impose export controls for the purpose of

Preventing the export of certain products to certain countries