International Business Exam Questions with Answers
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Course
International Business
Institution
International Business
International Business Exam Questions with Answers
A consumer surplus can be best described as - Answer-What the consumer has left over after a purchase
___ imply hat when a firm already has significant value built into its product offering, increasing value by a relatively small amount requ...
international business exam questions with answers
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International Business Exam Questions
with Answers
A consumer surplus can be best described as - Answer-What the consumer has left
over after a purchase
___ imply hat when a firm already has significant value built into its product offering,
increasing value by a relatively small amount requires significant additional costs -
Answer-Diminishing returns
Activities are basically concerned with creating the product marketing and delivering the
product to buyers and providing support and after sales service - Answer-Primary
Which is an example of a primary activity in a firms value chain - Answer-Research and
development
____ refers to systematic reductions in production costs that have been observed to
occur over the life of a product - Answer-Experience Curve
Responding to pressure for ___ requires that a firm differentiate its product offering and
marketing strategy from country to country - Answer-being locally responsive
When a firm has a strategic goal of pursuing a low cost strategy on a worldwide scale,
the firm should follow an ____ strategy - Answer-global standardization
T/F
a firms organizational culture refers to the formal organization structure of the company
the control systems and incentives in place, and the human resources component -
Answer-True
T/F
A firm pursuing a localization strategy will have a strong incentive to centralize decision
making - Answer-True
T/F
in a worldwide area structure each area tends to be self contained largely autonomous
entity with its own set of value creation activities - Answer-True
T/F
personal control is a type of control that tends to be most widely used in large firms -
Answer-False
, T/F
The rate at which one currency is converted into another is known as the fluctuation rate
- Answer-False
T/F
When a tourist goes to a bank in a foreign country to convert money into local currency,
the exchange rate used is the forward rate - Answer-False
T/F
An inefficient market is one in which prices do not reflect all available information -
Answer-True
The _____ States that in competitive markets free of transportation costs and barriers to
trade, identical products sold in different countries must sell for the same price when
their price is expressed in terms of the same currency - Answer-Law of one price
The short term movement of funds from one currency to another in the hopes of
profiting from shifts in the exchange rates is known as - Answer-Currency speculation
The ____ suggests that given relatively efficient markets, the price of a "basket of
goods" should be roughly equivalent in each country - Answer-Purchasing power parity
theory
Which occurs when the quantity of money in circulation in a country rises faster than the
countrys stock of goods and services - Answer-Inflation
Which occurs when traders start moving as a herd in the same direction at the same
time - Answer-Bandwagon effect
_______ uses price and volume data to determine past trends, which are expected to
continue into the future - Answer-Technical analysis
A currency is said to be freely convertible when - Answer-both residents & non residents
are allowed to purchase unlimited amounts of a foreign currency with it
_______ refers to a range of barter like agreements by which goods and services can
be traded for other goods and services - Answer-countertrade
The extent to which the income from individual transactions is affected by fluctuations in
the exchange values is known as - Answer-Transaction exposure
T/F
The international monetary system refers to the institutional arrangements that govern
exchange rates - Answer-True
T/F
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