MCQs - International Business

What does International Business primarily involve?

• Local market sales

• Trade within a region

• Cross-border trade of goods, services, and capital

• Internet marketing

Which of the following is not a characteristic of international business?

• Deals with multiple currencies

• Operates within one country's borders

• Involves cultural diversity

• Subject to international laws

Globalization leads to:

• Decreased communication

• Isolation of countries

• Removal of trade barriers

• Higher local employment only

One major reason companies enter international markets is to:

• Increase domestic competition

• Decrease global profits

• Access new markets and customers

• Avoid foreign trade

Foreign Direct Investment (FDI) means:

• Sending tourists abroad

• Investing in domestic businesses only

• Investing directly in foreign business operations

• Purchasing imports

Which is a mode of entering international business?

• Import substitution

• Exporting

• Local licensing

• Domestic franchising

A joint venture is:

• 100% foreign-owned firm

• Collaboration between two or more firms for a project

• Selling products online

• A type of tariff

A major benefit of international business is:

• Decreased market reach

• Higher local taxes

• Access to global talent and resources

• Cultural uniformity

Currency exchange is important in international business because:

• It makes products cheaper

• It simplifies domestic sales

• Businesses deal with multiple currencies

• It removes the need for trade

WTO stands for:

• World Trade Office

• Western Trade Organization

• World Tax Organization

• World Trade Organization