International Business Quiz

Which of the following is a political risk associated with international expansion?

• Exchange rate fluctuations

• Trade embargoes

• Cultural misunderstandings

• Labor productivity

What does cross-cultural management primarily focus on?

• Improving product quality

• Managing diverse teams effectively

• Reducing supply chain costs

• Increasing stock market performance

Which market entry strategy involves a company fully owning its operations in a foreign country?

• Licensing

• Exporting

• Foreign direct investment (FDI)

• Joint venture

What is a key economic risk when expanding internationally?

• Cultural integration issues

• Inflation and currency instability

• Employee dissatisfaction

• Supply chain disruptions

Which legal factor could affect a company's international expansion?

• Patent laws and intellectual property rights

• Workforce diversity

• Market size

• Customer preferences

What does the term 'supply chain management' refer to?

• Managing a company's financial risks

• Coordinating production, storage, and distribution of goods

• Hiring culturally diverse employees

• Conducting international market analysis

Which financial concept is used to evaluate potential returns in international expansion?

• Net present value (NPV)

• Customer retention rate

• Product development lifecycle

• Cultural assimilation index

What is an example of a cultural risk in international business?

• Tariff increases

• Miscommunication due to language barriers

• Fluctuations in commodity prices

• Supply chain disruptions

What is a tariff?

• A tax on imports or exports

• A legal document for international contracts

• A cultural integration policy

• A supply chain management tool

What is the primary purpose of trade policies?

• To control the movement of goods and services across borders

• To promote cultural diversity

• To minimize supply chain costs

• To create job opportunities in local markets