1) Which of the following best defines international business?

A) It includes all economic flows between two or more countries.

B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries.
D) It includes all business transactions in countries other than your home country.

2) In terms of international business, it is most accurate to say that ________.

A) there is a universal "best way" to conduct business

B) global competition affects large companies but not small ones
C) most firms depend either on foreign markets and supplies or compete against companies that do
D) government regulation of international business has little effect on a company's profits

3) Which of the following has NOT been a major force increasing globalization in recent decades?

A) liberalization of cross-border trade

B) increase in and expansion of technology
C) growing pressure from consumers
D) decreasing prices of natural resources.

4) Which of the following best defines foreign business?

A) It includes all economic flows between two or more countries.

B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries.
D) It includes all business transactions in countries other than your home country.

5) Which of the following best defines multi-domestic company?

A) any business that operates across international borders

B) operations of a country outside its home or domestic market
C) transactions involving two or more countries
D) organization with multi-country operations that control their own business strategy

6) Which of the following best defines global company?

A) organization that standardizes its worldwide operations

B) transactions involving two or more countries
C) private economic flows between two or more countries
D) organization with multi-country operations that control their own business strategy

7) Which of the environments associated with a company refers to the forces originating outside the
home country?

A) foreign environment
B) domestic environment
C) international environment
D) economic environment

8) Which of the environments associated with a company refers to the forces originating in the
company’s home country?
A) foreign environment
B) domestic environment
C) international environment
D) economic environment

9) Which of the environments associated with a company refers to the interaction between domestic
and foreign forces?

A) foreign environment
B) domestic environment
C) international environment
D) economic environment

10) Which of the following refers to the goods/services produced in one country yet supplied to
consumers in another?

A) exports
B) imports
C) trade surplus
D) trade deficit

11) Which of the following refers to the goods/services purchased by consumers from overseas
producers?

A) exports
B) imports
C) trade surplus
D) trade deficit

12) Which of the following refers to the value of a country's exports minus the value of all its imports?

A) balance of payment
B) balance of trade
C) trade surplus
D) trade deficit

13) What happens when export is greater than import?

A) balance of payment
B) balance of trade
C) trade surplus
D) trade deficit

14) What happens when a country has a higher level of imports than exports?

A) balance of payment
B) balance of trade
C) trade surplus
D) trade deficit

15) Which of the following refers to the difference between all money flowing into the country in a
particular period of time and the outflow of money to the rest of the world?

A) balance of payment
B) balance of trade
C) trade surplus
D) trade deficit
16) Which of the following refers to the exchange rate system where a currency's value is matched to
the value of another single currency?

A) exchange rate system

B) managed exchange rate
C) fixed exchange rate
D) floating exchange rate

17) In a fixed exchange rate system, who actually decides the value and then maintains it?

A) people
B) private entities
C) government
D) supply and demand

18) Which of the following refers to the limit on the quantity of a good that can be imported within a
certain time period?

A) Tariffs
B) Quotas
C) Export restraint agreements
D) “Buy National” Laws

19) Which of the following refers to the taxes placed on imported goods and are the most common form
of trade protection?

A) Tariffs
B) Quotas
C) Export restraint agreements
D) “Buy National” Laws

20) Which of the following refers to the trade relations between countries that can either help or
hinder international business?

A) Economic communities
B) Member nations
C) Socio-economic integration
D) International communities