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BUS 303 SAYLOR EXAMS 1 AND 2 (2
VERSIONS) 2024/2025 EACH EXAM
CONTAINS 100 QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+/ LATEST
BUS 303 EXAMS 2024 (2 VERSIONS)
BUS 303 EXAM 1
Companies can anticipate that the following development in a country's economic
environment will weaken the value of that country's currency. - ANSWER--Trade:
imports decrease, tourism decreases, exports increase, foreign earnings increase
-Inflation: Increases (import prices rise, exports heat up)
-Productivity: Decreases (exports compete on price)
-Interest rates: increase (inflation)
-Economic Growth: Export-led growth
According to the "income-demand pyramid," which needs/wants can a company expect to emerge last in a market as incomes increase? - ANSWER-customization would be the last need/want to arise in the market as income increases
What analytical tool should a company use to evaluate the impact that the existing structure of competition among firms in a market will have on its own ability to capture a share of the market for its own products? - ANSWER-Concentration Ratio (CR): CR5 =share of total market that's taken up by the top 5 competitors, these make up 75% of elevators in india
Which of the following developments would present an opportunity to expand internationally through the acquisition of firms in a target foreign country instead 1 / 4
pg. 2 of exporting products to that country? - ANSWER--established market position in new markets -brands (product portfolio) -new market segment -distribution(store sites, sales force) -technologies -local supply chains -manufactruing capacity
What analytical tool can be useful to identify the point at which foreign markets that have significant growth potential for sales of a company's product because of income elasticity of demand for the product? - ANSWER-- income elasticity of demand
- s-curve
The percentage of total global foreign direct investment that emerging and
transition economies absorbed in 2011 was about: - ANSWER-27%
The value of global trade flows in 2011 was about: - ANSWER-22.4 T (32% of
GDP)
The annual value of global foreign direct investment (FDI) is greater than global trade T/F). - ANSWER-False, global trade is $22.4 T, FDI is $1.5T
The value of world trade in services is larger than world trade in merchandise (T/F). - ANSWER-False
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pg. 3 Most foreign direct investment (FDI) made by developed countries in developing countries is acquisitions rather than greenfield investment (T/F). - ANSWER-False
Which of the following intergovernmental organizations represents the global business regime that establishes rules and regulations for the field of trade? -
ANSWER-WTO
Which adjective is LEAST descriptive of the international business environment? -
ANSWER-What is IB:
*IB consists of business activities that cross international borders, such as:
-Trade: export, import
-FDI -Manufacturing -Research and Development (R&D) -Logistics Financing (Trade & spend capital)
- IB is in the eye of the beholder
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-US is domestic for American Companies, but IB for non-American companies.*IB is...-Significant -Unavoidable -Complex and Risky -Rewarding -Enjoyable -volatile -opaque
pg. 4 During the current era of globalization, is most international trade regional or global? - ANSWER-regional
The most distinctive aspect of the current era of globalization, compared with earlier so-called "global" eras: - ANSWER-fragmentation of corporate value chains.
other differences include:
-Increased pace (speed) of change -Extended scope (geographic) -Increased depth (social penetration) -Geographic fragmentation of the corporate value chain
When a company is considering launching an innovative new product abroad, what cultural value dimension in potential target countries can be instrumental in assessing the receptivity of consumers to rapid adoption of the product? - ANSWER--low uncertainty avoidance
early market entry: market power with tech. leadership
Companies find it most useful to employ an expatriate manager in a foreign
subsidiary instead of local, host-country managers when: - ANSWER--they want
to maintain "foreign image" -maintain loyalty -they want greater control/coordination -easy assessment of qualifications
-Expatriates: Control subsidiary, launch a new venture, transfer skills (tech),
develop managers (locals: local knowledge, lower cost, develop locals)
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