GEB 3373 International Business LATEST FINAL EXAM REVIEW QUESTIONS & ANSWERS

GEB 3373 International Business LATEST FINAL EXAM REVIEW QUESTIONS & ANSWERS

1. Multiple Choice: Which theory explains the reasons why a
company may pursue international business?
 a) Modernization Theory
 b) Dependency Theory
 c) Internationalization Theory
 d) Hymer's Theory
 Correct Answer: c) Internationalization Theory
 Rationale: Internationalization Theory suggests that firms seek to
expand their operations internationally to increase their market
power and gain competitive advantages over their rivals.
2. Fill-in-the-Blank: The ________ model is used to analyze the
competitive advantage of nations.
 Correct Answer: Diamond
 Rationale: The Diamond model, proposed by Michael Porter, is
a framework that explains why certain industries within particular
nations are competitive internationally.
3. True/False: The eclectic paradigm states that ownership,
location, and internalization advantages must all be present for a
firm to invest overseas.

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