International Business

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This is a sample practice test created by Maryland FBLA to help you study for your competitive event! It is merely to help you study, so take your time and feel free to take the test as many times as you want. Answers will be shown after you submit.

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Maryland FBLA

Capital resources are expensive and usually used over a period of several years.

1 point

True

False

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The first step of the decision-making process is to evaluate the alternatives.

1 point

True

False

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Business subcultures around the world have similar values, beliefs, and assumptions.

1 point

True

False

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One aspect of mobility is the willingness to relocate to another location for better employment.

1 point

True

False

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All countries welcome technology as a way of improving the standard of living.

1 point

True

False

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An example of exporting would be

1 point

products made and sold in Japan.

a European country’s tax on products made in other countries.

products that were made in Poland and bought by Polish consumers.

products sold by a company in Mexico for purchase by Italian consumers.

Clear selection

An example of a trade barrier would be

1 point

efforts by a government to encourage exporting among businesses in its country.

consumers who prefer to buy products from domestic companies rather than foreign companies.

a limit on the number of foreign automobiles a country allows to be imported.

a sales tax on products made and sold within a country.

Clear selection

A political factor affecting international business activities would be

1 point

the general education level of a country’s population.

religious beliefs.

the type of government.

a country’s commonly used language.

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Of the following characteristics, a less-developed country is least likely to have

1 point

low economic wealth

poor housing and health care.

a highly educated population.

an emphasis on agriculture and mining.

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Education, occupation, and income are factors that may determine

1 point

mobility

gender roles

class level

none of the above

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Protection from losses resulting from nonpayment for delivered goods is provided by

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credit risk insurance.

OPIC coverage.

inland marine insurance.

liability insurance.

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The Overseas Protection Investment Corporation covers financial losses resulting from

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fire damage to factories.

seizure of assets by a host government.

losses due to nonpayment for delivered goods.

goods lost or damaged during shipment on inland waterways.

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An exporting company wants to add fire coverage for a warehouse in Egypt. The certificate that would be needed to make this change to the insurance policy is called an

1 point

exclusion

endorsement

insurance certificate

equity clause

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All of the following are types of deposit-type financial institutions except

1 point

commercial banks.

mutual funds

credit unions.

savings and loan associations.

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All of the following are sources of equity capital except

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investments from owners.

mortgage loans on buildings.

profits that are put back into the business.

stock offerings that are sold to the public.

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A source of debt capital would be

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the sale of stock.

reinvested profits.

investments by owners.

the sale of bonds.

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All of the following could be used in an effective personal selling presentation except

1 point

offering a test drive of a new automobile to demonstrate its features.

presenting a chart listing well-known people who use the product.

demonstrating how to use the word processing software product to create a document.

advertising the product in a community newspaper.

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In ad advertising agency, the department that is the link between the agency and the client is the

1 point

research department.

creative department.

account services department.

media department.

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OPIC insurance can protect a company from a foreign government’s refusal to convert its currency to dollars.

1 point

True

False

Clear selection

The most expensive type of marine insurance is all-risk coverage.

1 point

True

False

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A country with high inflation would have a low economic risk.

1 point

True

False

Clear selection

Global mutual funds allow investors to own the stock of companies in many countries.

1 point

True

False

Clear selection

In less-developed countries with a low per capita income and literacy rate, direct mail advertising is probably more suitable than other communication methods for advertising.

1 point

True

False

Clear selection

The promotional mix may be different in different countries due to social, legal, and economic environments.

1 point

True

False

Clear selection

More money is spent on radio advertising than on any other advertising medium.

1 point

True

False

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A global dependency exists when

1 point

massive crop failures require buying food from another country.

a country buys tools from another country because it does not have the technology to make the tools.

doctors travel to another country to provide healthcare because there is a shortage of medically-trained professionals in that country.

all of the above

Clear selection

Historically, international business

1 point

is a relatively new concept made possible by communications technology.

probably occurred as long as 15,000 years ago.

declined when European countries created colonies on other continents.

none of the above

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All of the following are benefits of international business except

1 point

expanded business opportunities.

increased sources of raw materials.

decreased competition.

improved political relationships.

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A cultural factor affecting international business activities would be

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the availability of natural resources.

government policies toward business.

stability of the money supply.

family relationships.

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Per capita GDP is a better measure of a nation’s economic development than total GDP because

1 point

it shows how wealthy each person in the country is.

it gives a better comparison between countries of different population sizes.

it shows how the unemployment rate affects GDP.

none of the above

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