Quiz On International Business: Trivia!

10 Questions | By Deep.msd | Updated: Mar 22, 2022 | Attempts: 345

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Quiz On International Business: Trivia! - Quiz

Quiz on international business: trivia! A successful international business recognizes the diversity of the world marketplace, the risk as well as uncertainties of operating such a market. There are different businesses that have made a name for themselves using different techniques to expend their businesses in foreign countries. Do take the quiz and get to see how much you know about these types of businesses and markets within it.

Questions and Answers

1.

The factor endowment theory suggests that
- A.
  
  Resources are the foundation of firm’s competitive advantages
- B.
  
  National resource endowments are the foundation for comparative advantages in international trade
- C.
  
  Many factors contribute to explaining the emergence of comparative advantages
- D.
  
  Scarce resources are the foundation for comparative trade advantages
2.

Which of the following is not considered a ‘modern’ trade theory?
- A.
  
  Factor endowment theory
- B.
  
  Product life cycle theory
- C.
  
  National competitive advantage (‘diamond model’)
- D.
  
  All are modern trade theories
3.

Which of the following is not related to Porter’s Diamond Model?
- A.
  
  Demand condition
- B.
  
  Related and supporting industries
- C.
  
  Industry strategy, structure and rivalry
- D.
  
  Factor conditions
4.

McDonald’s, KFC, and Subway are examples of which of the following entry modes?
- A.
  
  International leasing
- B.
  
  International licensing
- C.
  
  International franchising
- D.
  
  Turnkey project
5.

A reciprocal licensing agreement in which intangible property is transferred between two parties is known as a(n)
- A.
  
  Non-exclusive license
- B.
  
  Cross license
- C.
  
  Exclusive license
- D.
  
  Transfer of license
6.

The Leontief paradox stated that
- A.
  
  USA’s exports were labour-intensive and imports were capital-intensive
- B.
  
  USA’s exports and imports both were labour-intensive
- C.
  
  USA’s exports were capital-intensive and imports were labour-intensive
- D.
  
  USA’s exports and imports both were capital-intensive
7.

NAFTA is an example of a(n)
- A.
  
  Common market
- B.
  
  FTA
- C.
  
  Customs union
- D.
  
  Economic union
8.

Which of the following is one of the implications of the New Trade Theory?
- A.
  
  Countries as a whole must gain from trade.
- B.
  
  A country can only hurt itself by using government policies to promote exports.
- C.
  
  Consumers gain from the increased variety of products
- D.
  
  A tariff to protect an industry in a small country hurts demanders more than it helps suppliers.
9.

A common or single market will have all of the following features except:
- A.
  
  No internal trade barriers
- B.
  
  Common external tariff
- C.
  
  Factor and Asset mobility
- D.
  
  A common currency
10.

The theory of "absolute advantage"
- A.
  
  Best describes a situation where there are 2 countries, A and B, and potentially two goods which can be traded, which are X and Y. A is absolutely better at producing X and B is absolutely better at producing Y, and so if A specializes in producing X and B in Y, and they trade together then both countries will gain.
- B.
  
  Best describes the global strategy of business who always seek to gain an absolute advantage over their rivals.
- C.
  
  Explains why developed countries have a competitive advantage over poorer countries.
- D.
  
  Best describes a situation where there are 2 countries, A and B, and potentially two goods which can be traded, which are X and Y. If A was absolutely better at producing both X and Y compared to B then there would be no advantage in A trading with B