MBS INT BUS S1 Introduction to International Business

Why is studying international business important in today’s world?

• To focus only on domestic competition

• To adapt to a fast-evolving global environment

• To avoid foreign market involvement

What key factor is transforming global markets?

• Local trade practices

• Digital integration and emerging technologies

• Traditional manufacturing methods

How does AI contribute to international business?

• Reducing the number of competitors

• Increasing shipping costs

• Enabling data-driven decision-making

What is a significant difference between domestic and international business?

• International business has fewer legal requirements

• International business deals with currency fluctuations

• Domestic business requires more complex market entry strategies

Which of the following is a market entry strategy in international business?

• Franchising

• Contracting

• Outsourcing

What is a key economic factor that impacts global trade?

• Exchange rates

• Government taxes

• Legal disputes

What is the theory of Comparative Advantage?

• A country’s ability to produce goods more cheaply than its competitors

• A country’s ability to specialize in producing goods more efficiently than others

• A country’s focus on importing more goods than exporting

How does Porter’s Diamond Model contribute to international business?

• It explains why certain nations excel in specific industries

• It focuses on the relationship between exchange rates

• It predicts stock market trends

What role does the WTO play in international business?

• Facilitating trade agreements and resolving disputes

• Monitoring the stock market

• Ensuring cultural alignment in business

What is the primary function of the IMF?

• Overseeing product quality in global markets

• Organizing international trade conferences

• Supporting countries during economic crises