Unit #1 � Test Review by XNWk4d6R


									                                   International Business - BBB4M
                                    Unit #3 Test Review Questions
                                        (Chapters 6,7,8,10,11)

1. What are imports? What are the three primary reasons why a country would get involved in importing?
2. Identify the four main activities typically involved in becoming an importer
3. What are exports? What is the difference between direct and indirect exporting?
4. What are the five steps typically involved in becoming an exporter?
5. List some of the hurdles that must be avoided in export activities
6. A major portion of exports involve the sale of intangible items. What are such services that are currently in high
    demand internationally?
7. What is the difference between a country's exports and imports known as?
8. Explain what is meant by a nation’s positive and negative balance of payments. Define the term trade deficit
9. What was the creation of the General Agreement on Tariffs and Trade (GATT) in 1948 intended to achieve?
    What was GATT replaced by in 1995?
10. What is a common market? List some examples of such economic communities
11. Define the term direct barter? What is countertrade?
12. An area designated by a government for duty-free entry of non-prohibited goods is known as a __________
    __________ __________
13. Distinguish between a domestic and an international market
14. List and define the three major factors that affect the degree of competition amongst international businesses
15. What does the term industry refer to? What are the four major competitive situations that may be present in a
    country's economy?

16. List the five characteristics that something to be used as money must possess
17. Identify the three main purposes that money serves
18. What is foreign exchange rate? List the three items that can affect a country’s currency exchange rate
19. Differentiate between a soft and a hard currency
20. Most countries use a system of floating exchange rates. What is this?
21. What is a foreign exchange market? What is a currency future?
22. What are exchange controls? What are they intended to accomplish?
23. List and explain the two international agencies that work to maintain a stable system of foreign exchange
24. Identify the three main payment methods used in international business
25. A major portion of transacting business involves credit, commonly known as __________
26. Buying and selling on account is called trade credit. What are the two forms that trade credit comes in?
27. What are capital projects? What are the two ways companies typically pay for these projects?
28. List and define five other methods of payment and financial documents that are commonly used in international
    financial transactions

29. List and explain the three main legal systems around the world
30. What is liability? What is product liability?
31. What is property? What are real property, personal property and property rights?
32. Define intellectual property
33. What is the Intellectual Property Organization (WIPO)? What specifically was it designed to protect?
34. Explain the difference between an implied and an expressed contract?
35. List and explain the four components that a contract must possess in order to be considered valid
36. When resolving legal differences without court action, what are the two major means of alternative dispute
    settlement? Explain these settlement options
37. If ultimately necessary, how would legal differences be resolved using court action?
38. Who are managers?
39. Identify the three main abilities that successful managers possess. List the skills and personal characteristics
    support these abilities
40. List and define the three types of management styles
41. Identify and explain the culturally-based patterns of behaviour that exist and need to be considered by
    international managers when managing people abroad
42. List and define the four major components of the management process
43. What does an organization chart indicate?
44. Businesses are commonly organized by either __________, __________, or __________
45. Define the terms span of control and line of authority
46. Distinguish the operational differences between front-line managers; middle managers, and senior managers
47. What is the difference between centralization and decentralization as they relate to how much authority and
    responsibility managers choose to delegate to others?
48. As a business transitions from a domestic company into a global corporation, managing becomes more complex
    and demanding. Explain the typical series of stages that occur during this evolution

49. Identify some of the factors that might explain why human resource management in the global environment is
    more complicated than in the domestic
50. What are the four components that may exist in the international labour market?
51. List and define the four basic human resource management approaches that most global businesses adopt
52. How is employment forecasting and supply analysis used to access international staffing needs?
53. What information is typically included in a job description document?
54. Identify the recruitment methods employed to locate qualified personnel for international positions
55. When selecting potential employees, what are the three major qualities that employers usually look for in a
56. Once hired, what types of additional training and development do managers working for an international
    company need?
57. List the reasons why global employees sometimes fail despite a multinational company’s best efforts to
    provide their parent-country nationals with relevant training and development. What steps can be taken to
    reduce the possibility of such failure?
58. Why is it that effective strategies used to motivate a worker to perform well in one culture may have little or no
    effect in another culture?
59. Explain why local culturally accepted standards should be taken into consideration when devising appropriate
    employee compensation systems
60. When are the three primary factors that can influence an international employee’s performance?
61. __________ is the process a person goes through when returning home and getting settled after having worked

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