1. Which of the following is not a nation level explanation of why nations trade?

a. Mercantilism

b. Absolute advantage principle

c. International product life cycle theory

d. Competitive advantage of nations

2. Former developing economies that have achieved substantial industrialisation, modernisation and rapid economic growth since the 1980's are known as:

a. emerging markets

b. advanced economies

c. developing economies

d. transition economies

3. Since the 1950’s the number of regional economic integration blocs has been growing with many countries now a part of at least 1 form of regional integration. This phenomenon is part of which element of market globalisation?

a. Drivers of market globalisation  

b. Dimensions of market globalisation  

c. Societal consequences of market globalisation  

d. Firm level consequences of market globalisation  

4. Which of the following is not a strategy to minimise country risk.

a. Strict adherence to ethical standards

b. Alliances with qualified local partners

c. Proactive environmental scanning

d. Sanctions and embargoes

5. The use of subsidies encourages ________________ and therefore ___________ food prices, which makes agriculture imports from developing countries less competitive.

a. overproduction, lowers

b. underproduction, increases

c. overproduction, increases

d. underproduction, lowers

6. 'Inflation and other harmful economic conditions experienced in one country may have immediate consequences for exchange rates due to the growing inter-connectedness of nations' economies.' This is an example of.......

a. currency risk

b. cross-cultural risk

c. country risk

d. commercial risk

7. Which of the following is not considered a motive for government intervention in trade and investment activities?

a. Tariffs and other forms of intervention can generate substantial revenue for governments.

b. Intervention can ensure the safety, security and welfare of its citizens

c. Intervention is a means for governments to pursue economic, political or social objectives through policies that promote job growth and economic development

d. Intervention can help serve the interest of the nation's firms and industries better. Governments may devise regulations to constrict the development of home-grown industries.

8. Which of the following is not an element of country risk?

a. Harmful or unstable political systems

b. Government intervention, protectionism and barriers to trade and investment

c. Laws and regulations unfavorable to foreign firms

d. Competitive intensity

9. Which of the following theories is not a nation level explanation of how nations enhance their competitive advantage?  

a. Competitive advantage of nations

b. Michael Porter's diamond model

c. National industrial policy

d. New trade theory

10. Which of the following agreements is Australia a member of?

a. APEC

b. ASEAN

c. SAARC

d. MERCOSUR

11. ____________ arises with situations such as: making poor choices in business partners; timing of market entry; pricing; creation of product features; promotional themes.  

a. cross-cultural risk

b. country risk

c. currency risk

d. commerical risk

12. Which of the following is not a characteristic of national industrial policies designed to build new capacity and capabilities?

a. Tax incentives to encourage citizens to save and invest

b. Rigorous educational systems

c. A strong national infrastructure

d. Weak legal and regulatory systems

13. Miscommunication that is due to cultural differences which gives rise to inappropriate business strategies and ineffective relations with customers is an example of which of the following?

a. Cross-cultural risk

b. Country risk

c. Currency risk

d. Commercial risk

14. Which of the following is not an example of the dimensions of market globalisation?

a. Operations that uses company resources to integrate and coordinate the value chain activities across multiple countries.

b. Economic blocs where trade and investment flows are facilitated through reduced trade and investment barriers.

c. Professional buyers sourcing raw materials, parts and components that are increasingly standardised.

d. Technological advances assisting with cross-border trade and investment.

15. Exposure to potential loss or adverse effects on company operations and profitability caused by developments in a country's political, legal and/or economic environment, is known as which of the following?

a. Country risk

b. Commercial risk

c. Currency risk

d. Cross-cultural risk

16. The ____________ the supply of currency, the lower its price.

The ____________ the supply of currency, the higher its price.  

a. greater, lower

b. lower, greater

17. A strong Euro is _____________ for European exporters because it makes their products more ______________ to foreign importers.  

a. problematic, expensive  

b. problematic, inexpensive

c. beneficial, expensive

d. beneficial, inexpensive  

18. Emerging markets and developing economies benefit from technological advances, partly due to _____________.

a. technological leapfrogging

b. declining telecommunication trends

c. growing need for land lines

d. lack of infrastructure

19. Which of the following is not a drawback or ethical dilemma of regional integration?

a. Trade diversion

b. Loss of national identity

c. Failure of small or weak firms

d. Stronger defensive and political posture

20. An Australian manager visits Japan on a trade conference. During the trip the manager is very focused on getting a deal done with a Japanese counter part. The manager comes prepared with a contract and only needs to fill in the agreed sales price and customer details. After the second meeting with the Japanese counterpart the manager puts the contract on the table believing it was a good time to come to an agreement on the price and sign a contact. The Japanese counter part is quite affended by the move of the Australian manager. Which of the following dimensions of culture is this an example of?

a. Deal vs relationship orientation  

b. Perceptions of time

c. Values and attitudes  

d. Religion  

21. Choose 1 of the classical theories of intentional trade and describe how the theory explains why nations trade. 

22. Discuss the importance of the most recent phase of globalisation and why it is different to previous phases.  

23. Discuss the relevance of the political system in a country where an international business has an export market.

24. Identify the six key tasks that the manager should perform to define and pursue global market opportunities. Discuss in your own words, 2 of these tasks that you believe are the most important in this process, and explain why they are the most important.

25. Edward T Hall and Geert Hofstede both undertook extensive research to create separate interpretations of culture. Hall developed the high and low context interpretation and Hofstede developed the 6 dimensions of culture model. Using both these interpretations, explain why understanding different cultures in an international business is important. 

26. Compare two (2) drivers of market globalisation and discuss which one you think has had a more significant impact.