IBUS 401 EXAM 1, INTERNATIONAL BUSINESS EXAM, IBUS 401 QUESTIONS AND ANSWERS, GLOBAL STRATEGY TEST, IBUS FINAL, BUSINESS EXAM PREP

IBUS 401 EXAM 1, INTERNATIONAL BUSINESS EXAM, IBUS 401 QUESTIONS AND ANSWERS, GLOBAL STRATEGY TEST, IBUS FINAL, BUSINESS EXAM PREP
Question : Assume that an American firm wants to engage in
international business without major investment in the
foreign country. Which method is least appropriate for this
situation?
(a) International Trade
(b) Licensing
(c) Franchising
(d) Direct foreign investment
Correct answer: D.
Question : Saller Co. has a subsidiary in Mexico. The
expected cash flows in pesos to be received in the future
from this subsidiary have not changed since last month, but
the valuation of Saller Co. has declined since last month.
What could've caused this decline in value?
(a) A weaker Mexican economy
(b) Lower Mexican interest rates
(c) Depreciation of the Mexican peso
(d) Appreciation of the Mexican peso
Correct answer: C.
Question : Recently, the US experienced an annual balance
of trade representing a ________.
(a) large surplus (exceeding $100 billion)
(b) small surplus
(c) level of zero
(d) deficit
Correct answer: D.

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