WorksheetsMBS INT BUS S1 Introduction to International Business
Total questions: 20
Worksheet time: 10mins
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
How does the EU’s Single Market benefit businesses?
By limiting access to foreign goods
By promoting the free flow of goods and services
By encouraging higher trade tariffs
What is Foreign Direct Investment (FDI)?
Investing in foreign markets by establishing operations or acquiring businesses
Donating money to international charities
Supporting domestic market expansion
What is one key risk of FDI?
Lack of access to international markets
Over-reliance on domestic sales
Political instability and regulation
Why are emerging markets attractive for FDI?
They have stable legal systems
They are only suitable for small businesses
They offer growth opportunities despite infrastructure challenges
What is a driving trend in global business strategies?
Decreased interest in foreign markets
Focus on single-market dominance
Digital transformation and sustainability
How has e-commerce impacted global market entry?
It has limited the number of market entry options
It has reduced the need for international business
It allows market entry without a physical presence
What is a challenge companies face when entering international markets?
Adapting to local cultures
Lack of local business regulations
Low competition from domestic businesses
What political risk must businesses navigate in global markets?
Increase in product innovation
Protectionist policies
Free trade agreements
How did Starbucks adapt its global expansion in China?
By maintaining its standard product offerings
By adjusting its menu to local tastes
By avoiding any form of product localization
Why is navigating regulatory environments critical for international businesses?
To ensure compliance with trade and legal systems
To avoid adapting products to local markets
To minimize communication with local governments
