Business Studies Revision Quiz

Define the following: Importing

What are the common methods of conducting international business.

• Importing

• Exporting

• Direct foreign investment (DFI)

• Outsourcing

• Strategic alliances

What are the characteristics that the business should consider when engage with international business

• Culture

• Economic system

• Economic conditions

• Exchange rates

• Political risk and regulations

True or False: An important reason U.S. firms establish new businesses in less-developed countries is to capitalize on technological advantages.

• True

• False

True or False: One of the main motivations for U.S. companies to invest in emerging markets is to access lower labor costs.

• True

• False

Which of the following is a potential risk for U.S. firms operating in less-developed countries?

• Political instability

• High consumer demand

• Access to advanced technology

True or False: U.S. firms often seek to establish businesses in less-developed countries to diversify their market presence.

• True

• False

True or False: U.S. firms are motivated to enter less-developed countries primarily to take advantage of natural resources.

• True

• False

True or False: Establishing businesses in less-developed countries allows U.S. firms to benefit from favorable regulatory environments.

• True

• False

Which of the following is a common challenge faced by U.S. companies in less-developed countries?

• Infrastructure deficiencies

• High levels of competition

• Strong consumer protection laws