International Business Chapter 1

What is the main focus of International Business?

• To carry out transactions across national borders

• To limit economic transactions within a country

• To carry out transactions within the same country

• To satisfy the objectives of individuals within the same country

In International Business, where do the buyer and seller belong?

• Both belong to the same country

• Buyer belongs to a region, seller belongs to a country

• Both belong to different countries

• Buyer belongs to a country, seller belongs to a region

What is the main difference between Domestic Business and International Business in terms of currency?

• Domestic business deals with different currencies, International business deals with the same currency

• Domestic business deals with the same currency, International business deals with different currencies

• Both deal with different currencies

• Both deal with the same currency

What is one of the reasons to study International Business?

• To limit competition

• To avoid cultural diversity

• To focus only on domestic markets

• To keep track of the latest business instruments

Which of the following is NOT an International Business activity?

• Exporting and Importing

• Licensing and Franchising

• International Investment

• Domestic Manufacturing

What are the factors that have contributed to the growth of International Business?

• Market Expansion, Resource Acquisition, Technological changes

• Government restrictions, Market contraction, Technological advancements

• Resource Limitation, Technological stagnation, Social changes

• Resource wastage, Social isolation, Market saturation

Which of the following is NOT one of the Four Asian Tigers known for high economic growth?

• Hong Kong

• Taiwan

• Japan

• South Korea

What is the main concept behind Globalization of Markets?

• Imposing trade barriers

• Promoting local products only

• Merging separate national markets into a global market

• Creating distinct national markets

What is the purpose of PESTEL analysis in International Business?

• To analyze the internal factors of a firm

• To focus on technological advancements only

• To evaluate the political environment only

• To understand the external factors that influence a firm's decisions

Which of the following is NOT a factor considered in PESTEL analysis?

• Political

• Technological

• Economic

• Social