International Business Exam 2

Corporate Social Responsibility is:

• a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.

• the process of maximizing profits without regard for social or environmental impact.

• a government regulation that all companies must follow strictly.

• an advertising strategy to increase product sales only.

Which of the following lists THREE entry strategies in Global Business?

• Exporting, Joint Ventures, Franchising

• Licensing, Outsourcing, Importing

• Mergers, Acquisitions, Offshoring

• Direct Investment, Bartering, Crowdfunding

The difference between export departments and international divisions is:

• Export departments handle overseas sales, while international divisions manage all international operations.

• Export departments manage domestic sales, while international divisions handle only exports.

• Export departments focus on marketing, while international divisions focus on production.

• Export departments are larger than international divisions.

What is outsourcing in the context of business functions?

• Outsourcing refers to the practice of contracting specific business functions or tasks to external service providers, which could be located domestically or internationally.

• Outsourcing refers to hiring only internal employees for all business functions.

• Outsourcing means automating all business processes using technology.

• Outsourcing is the process of merging with another company to expand business functions.

What is the main difference between outsourcing and offshoring?

• Outsourcing involves contracting tasks to external providers, while offshoring involves relocating business processes or production to a foreign country to reduce labor costs.

• Outsourcing is only used for manufacturing, while offshoring is only used for services.

• Outsourcing always results in higher costs, while offshoring always results in lower costs.

• Outsourcing and offshoring are two terms for the exact same business practice.

Explain the difference between standardization and adaptation in international marketing.

• Standardization involves offering the same product or service in multiple countries without significant modifications, while adaptation involves tailoring products, services, and marketing strategies to suit the specific needs and preferences of individual markets.

• Standardization means changing products for each market, while adaptation means keeping products the same everywhere.

• Standardization and adaptation both require creating entirely new products for every market.

• Standardization focuses only on pricing strategies, while adaptation focuses only on advertising methods.

Which of the following is NOT a major purpose of supply chain management?

• Improving Efficiency

• Enhancing Customer Service

• Increasing Marketing Budget

• Managing Risks

List two major purposes of supply chain management.

• Improving efficiency and enhancing customer service.

• Increasing product prices and reducing quality.

• Limiting supplier relationships and increasing inventory costs.

• Focusing only on marketing and ignoring logistics.

Name one source of finance for international trade and investment.

• Export financing, foreign direct investment (FDI), or international capital markets.

• Local grocery store sales

• Personal savings for household expenses

• Domestic retail banking for local shopping

Offshoring always results in higher costs for companies.

• True

• False