International Economics
Exam Materials
Course Introduction
International Economics explores the fundamental principles governing economic interactions between nations. The course covers topics such as international trade theory, trade policy, the balance of payments, exchange rates, and the effects of globalization on economies. Students will analyze the causes and consequences of international economic integration and evaluate the impact of government policies, international organizations, and economic unions on trade and investment flows. Through theoretical frameworks and real-world case studies, the course equips students with the analytical tools to understand and assess contemporary issues in global economic relations.
Recommended Textbook
International Business Competing in the Global Market Place 9th editon by Charles W. L. Hill
Available Study Resources on Quizplus
20 Chapters
2022 Verified Questions
2022 Flashcards
Source URL: https://quizplus.com/study-set/3070
Page 2
Chapter 1: Globalization
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60913
Sample Questions
Q1) The Uruguay Round,finalized in December 1993,reduced protection for patents,trademarks,and copyrights.
A)True
B)False
Answer: False
Q2) What is the total cumulative value of foreign investments best referred to as?
A) Accumulation of foreign shares
B) Portfolio investments
C) Stock of foreign direct investments
D) Stock market investments
Answer: C
Q3) Recent evidence indicates that the solution to the problem of stagnant incomes among the unskilled is to be found in increasing government regulation of markets.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: National Differences in Political Economy
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/60912
Sample Questions
Q1) What are the factors that contribute to the attractiveness of a country as a market or investment site?
Answer: The political,economic,and legal environments of a country clearly influence the attractiveness of that country as a market or investment site.The benefits,costs,and risks associated with doing business in a country are a function of that country's political,economic,and legal systems.The overall attractiveness of a country as a market or investment site depends on balancing the likely long-term benefits of doing business in that country against the likely costs and risks.
Q2) Which of the following philosophies can be traced back to the ancient Greek philosopher Aristotle?
A) Socialism
B) Individualism
C) Collectivism
D) Anarchism
Answer: B
Q3) Most modern democratic states practice representative democracy.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Political Economy and Economic Development
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60911
Sample Questions
Q1) Why does education lead to economic development?
Answer: Nations that invest more in education will have higher growth rates because an educated population is a more productive population.A survey of 14 statistical studies that looked at the relationship between a country's investment in education and its subsequent growth rates concluded investment in education did have a positive and statistically significant impact on a country's rate of economic growth.
Q2) Political scientist Samuel Huntington predicts that there will be a more harmonious world dominated by a universal civilization characterized by democratic regimes and free market capitalism.
A)True
B)False
Answer: False
Q3) In all of the following scenarios,the costs of doing business in a country tend to be greater,EXCEPT where:
A) political payoffs are required to gain market access.
B) supporting infrastructure is lacking.
C) local laws set strict standards with regard to environmental pollution.
D) there is limits or caps on damage awards.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Differences in Culture
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/60910
Sample Questions
Q1) Culture is not static.
A)True
B)False
Q2) Under the mudarabah banking system,when an Islamic bank lends money to a business:
A) it charges that business interest on the loan.
B) the business needs to pay back the loan with an additional markup.
C) it has to donate the interest received on the loan to a charitable trust.
D) it takes a share in the profits that are derived from the investment.
Q3) Unspoken language refers to nonverbal communication.
A)True
B)False
Q4) Discuss the relationship between society and the nation-state.
Q5) In countries where the value of group identification is considered to be primary,managers and workers are discouraged from moving from company to company.
A)True
B)False
Q6) Discuss Confucian dynamism.Explore the debate over whether Confucian dynamism is good for an economy.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Ethics in International Business
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60909
Sample Questions
Q1) Explain the Friedman doctrine.Who developed the philosophy? How well does this approach hold up ethically?
Q2) According to the Friedman doctrine:
A) ethics are nothing more than the reflection of culture.
B) a multinational's home-country standards of ethics are inappropriate to follow in foreign countries.
C) businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business.
D) if a manager of a multinational sees that firms from other nations are not following environmental legislation in a host nation,that manager should not either.
Q3) What is the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions?
Q4) According to the righteous moralist,if a manager of a multinational sees that firms from other nations are not following ethical norms in a host nation,that manager should not either.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: International Trade Theory
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/60908
Sample Questions
Q1) Which of the following is the main principle of mercantilism?
A) Protection of domestic industries is not essential for a nation's welfare.
B) Government intervention is not required in global trade.
C) Countries should encourage absolute free trade.
D) It is in a country's best interests to maintain a trade surplus.
Q2) Explain the dynamic gains that are generated by opening an economy to trade.
Q3) Factor endowments refer to the extent to which a country is gifted with such resources as land,labor,and capital.
A)True
B)False
Q4) Porter's theory of national competitive advantage recommends unrestricted free trade between countries.
A)True
B)False
Q5) The product life-cycle theory argues that a large proportion of the world's new products had been developed by U.S.firms.
A)True
B)False
Q6) Identify a major disadvantage of the product life-cycle theory.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: The Political Economy of International Trade
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60907
Sample Questions
Q1) The World Trade Organization was created as part of the Uruguay Round.
A)True
B)False
Q2) Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries,chemicals,plastics,and machinery and electrical equipment.
A)True
B)False
Q3) By lowering production costs,_____ help domestic producers compete against foreign imports.
A) subsidies
B) duties
C) quotas
D) tariffs
Q4) The WTO has the ability to force any member nation to take an action to which it is opposed.
A)True
B)False
Q5) Why are tariff rates on agricultural products generally higher than tariff rates on manufactured products or services?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Foreign Direct Investment
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60906
Sample Questions
Q1) In practice only a few countries country have adopted the free market view in its pure form.
A)True
B)False
Q2) Which of the following arises when a country is importing more goods and services than it is exporting?
A) Current account surplus
B) Trade deficit
C) Trade surplus
D) Trade balance
Q3) Which of the following best describes an industry composed of a limited number of large firms?
A) An oligopoly
B) A monopoly
C) An oligarchy
D) A perfectly competitive market
Q4) What are the possible adverse effects of FDI on a host country's balance-of-payments position?
Q5) Discuss why firms selling products with low value-to-weight ratios choose FDI over exporting.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Regional Economic Integration
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60905
Sample Questions
Q1) Describe the disadvantages of economic integration for international businesses.How can firms protect themselves from these threats?
Q2) Which feature of a customs union differentiates it from a free trade area?
A) Harmonization of members' tax rates
B) A common currency
C) A common external trade policy toward nonmembers
D) Ability of factors of production to move freely between members
Q3) What is ASEAN? What is its basic goal? How successful is ASEAN?
Q4) The establishment of the euro required participating countries to give up their monetary policy.
A)True
B)False
Q5) The movement toward regional economic integration been most successful in Asia.
A)True
B)False
Q6) Which feature of a common market differentiates it from a customs union?
A) Harmonization of members' tax rates
B) A common currency
C) A common external trade policy toward nonmembers
Page 11
D) Ability of factors of production to move freely between members
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: The Foreign Exchange Market
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60904
Sample Questions
Q1) What are the two main functions of the foreign exchange market?
A) Trading of equities of foreign companies and currency conversion
B) Reducing currency volatility and setting interest rates
C) Insuring companies against interest rate risk and enabling imports and exports
D) Currency conversion and providing some insurance against foreign exchange risk
Q2) The risk that arises from volatile changes in exchange rates is known as foreign exchange risk.
A)True
B)False
Q3) _____ are exchange rates governing some specific future date foreign exchange transactions.
A) Spot exchange rates
B) Forward exchange rates
C) Future exchange rates
D) Currency swaps
Q4) Where is the foreign exchange market located? What is the nature of the market? Is the market growing or shrinking on a global basis?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: The International Monetary System
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60903
Sample Questions
Q1) Firms should not utilize the forward exchange market when they are faced with uncertainty about the future value of currencies.
A)True
B)False
Q2) With the help of an example,explain how balance-of-trade equilibrium is maintained under the gold standard.
Q3) A pegged exchange rate means that the value of a currency is _____.
A) fixed against other currencies based on an agreement
B) not determined by free market forces
C) fixed relative to a reference currency
D) independent of the valuations of other currencies
Q4) Adopting a pegged exchange rate regime increases the inflationary pressures in a country.
A)True
B)False
Q5) Describe the different exchange rate policies that are in practice today.
Q6) How does a fixed exchange rate system work?
Q7) What is international monetary system? What are the major trading currencies?
Q8) Discuss the criticism that IMF is exacerbating a problem called moral hazard.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: The Global Capital Market
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60902
Sample Questions
Q1) A _____ brings together those who want to invest money and those who want to borrow money.
A) consumer market
B) value chain
C) supply chain
D) capital market
Q2) A capital market brings together those who want to invest money and those who want to borrow money.
A)True
B)False
Q3) When using the Euromarkets,companies _____.
A) have funds that lack liquidity
B) pay less for the loans
C) attract low interest rates
D) are secured from foreign exchange risks
Q4) A Chinese firm borrows 1 million U.S.dollars from an American bank.The cost of this loan will be less if U.S.dollar appreciates against the Chinese currency.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: The Strategy of International Business
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60901
Sample Questions
Q1) When the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness,the ideal strategy to follow is the transnational strategy.
A)True
B)False
Q2) When companies disperse different stages of the value chain to those locations around the world where perceived value is maximized or where the costs of value creation are minimized,companies create:
A) a differentiated organization.
B) a location economy curve.
C) economies of scale.
D) a global web of value creation activities.
Q3) Which of the following is less likely to add to the pressure for a firm to be locally responsive?
A) National differences in consumer tastes and preferences
B) Differences in infrastructure and traditional practices
C) Switching costs for consumers
D) Host-government demands
Q4) How can a firm increase its profitability?
Q5) Describe localization strategy.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: The Organization of International Business
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60900
Sample Questions
Q1) _____ control is achieved by comparing actual performance against targets and intervening selectively to take corrective action.
A) Personal
B) Output
C) Bureaucratic
D) Cultural
Q2) What are the formal integrating mechanisms used to integrate subunits?
Q3) National regulations including local content rules and policies pertaining to layoffs might act as a source of inertia.
A)True
B)False
Q4) Firms pursuing a global standardization strategy must cope with a higher level of performance ambiguity,and this raises their costs of control.
A)True
B)False
Q5) Discuss the issues involved in refreezing an organization.
Q6) Describe the situation where an international division makes sense.How common is this structure? What are the disadvantages of the structure?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Entry Strategy and Strategic Alliances
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/60899
Sample Questions
Q1) A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary.
A)True
B)False
Q2) Cross-licensing agreements are increasingly common in the _____ industries.
A) transportation
B) high-technology
C) construction
D) consumer durables
Q3) A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption,scale economies,and switching costs.
A)True
B)False
Q4) Unlike joint ventures,strategic alliances require the firm to bear all the costs and risks of foreign expansion.
A)True
B)False
Q5) How can a firm increase the probability of selecting a good partner?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Exporting, Importing, and Countertrade
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60898
Sample Questions
Q1) The term switch trading refers to the use of a specialized third-party trading house in a countertrade arrangement.
A)True
B)False
Q2) Foreign Credit Insurance Association is a part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.
A)True
B)False
Q3) _____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.
A) Counterpurchase
B) Barter
C) Offset
D) Switch trading
Q4) A _____ allows for a delay in payment.
A) bill of lading
B) time draft
C) sight draft
D) letter of credit
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Global Production, Outsourcing, and Logistics
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60897
Sample Questions
Q1) Global learning refers to the idea that valuable knowledge does not reside just in a firm's domestic operations.
A)True
B)False
Q2) Maintaining high minimum efficient scale allows a firm to hedge against currency risks.
A)True
B)False
Q3) Logistics is the activity that controls the _____.
A) transmission of physical materials through the value chain
B) customer contact points of a business
C) activities involved in creating a product
D) information exchange between a business and its customers
Q4) Just-in-time systems are used to economize on inventory holding costs by having materials arrive at a manufacturing plant just in time to enter the production process and not before.
A)True
B)False
Q5) Discuss the effect of country factors on the decision of where to locate production?
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Global Marketing and RD
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/60896
Sample Questions
Q1) Differences in technical standards constrain the globalization of markets.
A)True
B)False
Q2) Many firms pursuing a(n)____ pricing strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible,even if this means taking large losses initially.
A) multipoint
B) experience curve
C) predatory
D) competitive
Q3) The "Swiss Made" label has leveraged several watch-making companies (for example,TAG Heuer)for decades now.This is an example of a ____ effect.
A) linguistic
B) country of origin
C) noise
D) cultural
Q4) New-product development has a high failure rate.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Global Human Resource Management
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60895
Sample Questions
Q1) Discuss the concerns of organized labor.
Q2) Cultural toughness refers to the relationship between the country of assignment and how well an expatriate adjusts to a particular posting.
A)True
B)False
Q3) An expatriate needs to have language fluency to show willingness to communicate.
A)True
B)False
Q4) Cultural myopia refers to a firm's failure to:
A) adapt to certain ethnocentric cultures.
B) act confidently in host-countries.
C) understand host-country cultural differences.
D) prevent gender discrimination within the firm
Q5) Which of the following is the most common approach to expatriate pay?
A) Balance sheet approach
B) Net-to-net approach
C) Host-country approach
D) Cost-based approach
Q6) Discuss the reasons why expatriate managers fail to complete their foreign assignment.Do
Page 21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Accounting and Finance in the International Business
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/60894
Sample Questions
Q1) Capital budgeting is the technique financial managers use to try to quantify the benefits,costs,and risks of an investment.
A)True
B)False
Q2) The _____ writes the generally accepted accounting principles (GAAP)that govern the financial statements of U.S.firms.
A) US Securities and Exchange Commission
B) Office of Economic Analysis
C) International Accounting Standards Board
D) Financial Accounting Standards Board
Q3) A German firm raising capital by selling stock through the London Stock Exchange is an example of _____.
A) transnational financing
B) service export
C) indirect financing
D) transnational investment
Q4) Explain the impact of transaction costs in international business.
Q5) How is a country's accounting system affected by the providers of capital? Explain with the help of suitable examples.
To view all questions and flashcards with answers, click on the resource link above. Page 22