IB - Chapter 1

What is a key concept in international business related to procurement?

• Exporting

• Importing or global sourcing

• Domestic sales

• Local manufacturing

What is a key feature of globalization of markets?

• Decrease in international trade

• Isolation of national economies

• Growth of international trade

• Reduction in technology exchange

Which factor is most influential in the globalization of production?

• Limited access to global markets

• Strict international regulations

• Advancements in transportation and communication technology

• High local labor costs

What is a significant challenge faced by companies in international business?

• Stable political environments

• Consistent consumer preferences worldwide

• Currency exchange rate fluctuations

• Uniform global regulations

What is a common strategy for companies to enter foreign markets?

• Focusing solely on domestic markets

• Establishing joint ventures

• Reducing product quality

• Ignoring local customs

​________ involves the allocation of assets to another country or the attainment of assets in that particular country.

• International Investment

• Globaliztion of markets

• Importing

• Exporting

• Global sourcing

A key effect of globalization on businesses is:

• Decreased competition

• Increased barriers to entry in most industries

• Access to a broader customer base

• A shift towards localized, rather than global, supply chains

​Lifestyles, customs, and religion have a potential for causing which type of international business​ risk?

• Currency

• Cross-cultural

• Commercial

• Country

• Profit

​________ risk represents possible losses or failures as a result of poorly developed or implemented business​ strategies, tactics, or procedures.

A company with​ ________ or fewer employees is defined as an SME.

• 2,500

• 1,000

• 500

• 2,000

• 1,500