IBT MIDTERM-FINALS REVIEWER 8.

Which of the following is an example of a

foreign subsidiary?
Module 5 a) A branch office established in another country
b) A joint venture with a local company in a
1. Which of the following is a characteristic of a foreign country
multinational corporation (MNC)? c) A wholly-owned company operating in a
a) Operates in multiple countries foreign country
b) Focuses only on domestic markets d) A partnership with another multinational
c) Is a non-profit organization corporation
d) Only has a local presence 9. What does the term "globalization" refer to in
2. Which of the following is an example of a the context of multinational corporations?
multinational corporation? a) The expansion of trade barriers
a) McDonald's b) The movement of goods, services, and capital
b) Ford Motor Company across borders
c) Coca-Cola c) The practice of isolating local businesses
d) All of the above d) The removal of foreign investments
3. What is the main reason multinational [Link] of the following is an example of a
corporations expand globally? foreign direct investment (FDI)?
a) To reduce competition in domestic markets a) A country exporting goods to another country
b) To increase profits by accessing new markets b) A multinational corporation establishing a
and resources factory in another country
c) To improve the standard of living in their home c) A company sending products to a foreign
country retailer
d) To limit their operations to the home country d) A foreign company importing goods into a
4. Which of the following is a major challenge for country
multinational corporations? [Link] of the following is a risk associated
a) Managing cultural differences with investing in foreign markets?
b) Setting uniform prices across countries a) Currency fluctuations
c)Understandinglocal regulations and policies b) Political instability
d) All of the above c) Regulatory changes
5. What type of organizational structure is most d) All of the above
common among multinational corporations? [Link] of the following is a strategy for
a) Centralized structure managing cultural differences in multinational
b) Decentralized structure corporations?
c) Matrix structure a) Standardizing the product offerings
d) Hierarchical structure b) Ignoring local customs
6. What is the term used for a company’s ability c) Implementing a centralized decision-making
to generate profits from its foreign investments? process
a) Foreign Direct Investment (FDI) d) Adapting business practices to local cultural
b) Corporate Social Responsibility (CSR) norms
c) Return on Investment (ROI) [Link] type of market entry strategy involves
d) Trade deficit creating a new business venture in a foreign
7. Which of the following is NOT a benefit of country?
multinational corporations to host countries? a) Exporting
a) Job creation b) Licensing
b) Technology transfer c) Foreign direct investment (FDI)
c) Cultural preservation d) Franchising
d) Infrastructure development
[Link] of the following is NOT an advantage b) Mergers and acquisitions
of multinational corporations to their home c) Deregulation of trade policies
country? d) All of the above
a) Increased access to new markets
b) Increased job creation in the home country
c) Transfer of technology and knowledge to Module 6
other countries
d) Increased competition with domestic firms 1. What is the foreign exchange market (Forex)?
[Link] of the following is an example of a a) A market for trading commodities
joint venture? b) A market for trading national currencies
a) A multinational company setting up a c) A market for trading stocks
subsidiary in another country d) A market for trading goods and services
b) Two companies from different countries 2. Which of the following is a primary function of
forming a new entity to share the Forex market?
resources a) To set interest rates
c) A company licensing its product to a foreign b) To facilitate international trade by enabling
firm currency exchange
d) A company selling its product directly in c) To provide a marketplace for stocks and
foreign markets bonds
[Link] of the following is the primary goal of d) To regulate international monetary policies
multinational corporations? 3. What does the term "exchange rate" refer to?
a) Maximizing profit a) The price of one country’s currency in terms
b) Promoting national welfare of another country’s currency
c) Promoting local culture b) The rate at which goods are exchanged
d) Increasing government taxes internationally
[Link] of the following best describes a c) The cost of importing goods from abroad
multinational corporation’s ability to operate d) The tax imposed on foreign transactions
across borders? 4. Which of the following is NOT a factor
a) They have local autonomy while still operating affecting exchange rates?
under global guidelines a) Interest rates
b) They are unable to adapt to local regulations b) Inflation rates
c) They only operate in their home country c) Currency reserves of a country
d) They only engage in domestic markets d) Stock market performance
[Link] is the impact of multinational 5. What is the main reason central banks
corporations on global trade? intervene in the foreign exchange market?
a) They increase the volume of global trade a) To stabilize the currency and control inflation
b) They create trade barriers b) To promote stock market growth
c) They promote national protectionism c) To control the price of oil
d) They reduce the need for trade agreements d) To monitor international trade flows
[Link] of the following is a key challenge for 6. A "strong" currency means that:
multinational corporations operating in a) The currency has a higher value compared to
developing countries? other currencies
a) High labor costs b) The currency is used more frequently in
b) Political and economic instability international trade
c) Cultural conformity c) The currency is not affected by inflation
d) Excessive regulation in the home country d) The currency has a lower interest rate
[Link] of the following is an example of an 7. Which type of exchange rate system is
international business strategy? determined by the market forces of supply and
a) Nationalization of industry demand?
a) Fixed exchange rate b) Decreased inflation
b) Floating exchange rate c) Increased foreign investments
c) Pegged exchange rate d) Higher domestic prices for imported goods
d) Managed float exchange rate [Link] is a spot transaction in Forex?
8. What is the primary risk involved in foreign a) A contract to exchange currency at a future
exchange trading? date
a) Stock market volatility b) A transaction for immediate currency
b) Currency exchange rate fluctuations exchange at the current market rate
c) Interest rate hikes c) A long-term contract between two countries
d) Changes in government policies d) A type of future derivative contract
9. Which of the following is an example of a [Link] of the following is a tool used by
currency pair in Forex trading? central banks to control exchange rates?
a) EUR/USD a) Monetary policy
b) USD/GBP b) Foreign exchange reserves
c) JPY/USD c) Interest rate changes
d) All of the above d) All of the above
[Link] of the following describes a "fixed" [Link] of the following best describes an
exchange rate system? appreciation in currency value?
a) The exchange rate is determined by market a) The currency becomes weaker compared to
forces other currencies
b) The government or central bank sets the b) The currency strengthens compared to other
exchange rate at a specific value currencies
c) The exchange rate fluctuates in a managed c) The currency remains stable
system d) The currency’s exchange rate fluctuates
d) The exchange rate is based on the price of a unpredictably
country's commodities [Link] is the role of Forex brokers?
[Link] is the purpose of a currency swap in the a) To set the global exchange rate
Forex market? b) To facilitate transactions between buyers and
a) To exchange currencies between two parties sellers in the foreign exchange market
at a predetermined rate c) To manage foreign exchange reserves for
b) To provide loans to governments countries
c) To speculate on future currency values d) To regulate exchange rate policies for
d) To set global interest rates governments
[Link] is a "currency peg"? [Link] is a forward contract in Forex trading?
a) A system where a country’s currency value is a) A contract to exchange currency at a future
fixed to another currency, usually the US dollar date, at an agreed-upon exchange rate
b) A mechanism for floating exchange rates b) A type of currency swap
c) A method used for managing trade deficits c) A contract to exchange currency immediately
d) A type of international trade agreement d) A regulation tool for government authorities
[Link] does "devaluation" refer to in the [Link] of the following factors can influence
context of currency exchange? exchange rates?
a) A country increasing the value of its currency a) Inflation rates
b) A country reducing the value of its currency b) Interest rates
c) A market-driven increase in exchange rates c) Political stability
d) A country setting the exchange rate at a fixed d) All of the above
level
[Link] of the following is a potential effect of Module 7
a country experiencing a currency depreciation?
a) Increased demand for exports 1. What is the main objective of IFRS?
a) To create local accounting standards a) IFRS allows leases to be off-balance-sheet
b)To standardize financial reporting globally for while GAAP requires them to be
comparability on-balance-sheet
c) To reduce tax rates for multinational b) IFRS requires lessees to report almost all
corporations leases on the balance sheet, while GAAP allows
d) To minimize financial reporting some leases to be off-balance-sheet
2. Which IFRS standard addresses revenue c) Both IFRS and GAAP do not require leases to
recognition? be recorded on the balance sheet
a) IFRS 9 d) There is no difference between IFRS and
b) IFRS 15 GAAP on the treatment of leases
c) IFRS 16 9. Which IFRS standard deals with the fair value
d) IFRS 13 measurement of assets and liabilities?
3. Which of the following countries has fully a) IFRS 16
adopted IFRS for public companies? b) IFRS 13
a) United States c) IFRS 9
b) Canada d) IFRS 15
c) India [Link] of the following is an advantage of
d) European Union IFRS adoption for multinational corporations
4. Under IFRS, how is goodwill tested for (MNCs)?
impairment? a) Reduced complexity in tax filings
a) Amortization is used to write off goodwill b) Enhanced comparability and transparency in
b) Goodwill is tested annually for impairment financial reporting across borders
c) Goodwill is not subject to impairment testing c) Lower cost of operations in local markets
d) Goodwill is written off if no profit is recorded d) Reduced regulatory scrutiny in host countries
5. IFRS 16 relates to which area of accounting? [Link] IFRS standard governs the recognition
a) Financial instruments and measurement of leases?
b) Leases a) IFRS 9
c) Revenue b) IFRS 13
d) Employee benefits c) IFRS 15
6. Which of the following is true about IFRS for d) IFRS 16
SMEs? [Link] does IFRS 9 address in relation to
a) It is a simplified version of full IFRS designed financial instruments?
for small and medium-sized companies a) Revenue recognition
b) It applies only to public companies with b) Employee benefits
assets over $10 million c) Classification, measurement, and impairment
c) It is identical to full IFRS but allows a few of financial instruments
exceptions for small firms d) Lease accounting
d) It is mandatory for all companies with fewer [Link] of the following is a challenge when
than 50 employees transitioning from local accounting standards to
7. Which IFRS standard governs the accounting IFRS?
for financial instruments? a) No change in financial reporting requirements
a) IFRS 9 b) Difficulty reconciling IFRS with local GAAP
b) IFRS 15 standards
c) IFRS 13 c) Lack of investment from multinational
d) IFRS 17 corporations
8. What is a key difference between IFRS and d) The simplicity of IFRS for SMEs
U.S. GAAP regarding leases? [Link] is a characteristic of IFRS 9 related to
financial instruments?
a) It allows companies to use historical cost for [Link] is a major factor in the global adoption
reporting of IFRS?
b) It provides detailed guidance for hedge a) The simplicity of its rules
accounting b) The need for global comparability in financial
c) It does not require impairment testing of reporting
financial assets c) Its ability to minimize taxes
d) It requires fair value accounting for certain d) Its focus on increasing government revenue
financial instruments
[Link] of the following best describes IFRS's Module 8
approach to the presentation of financial
statements? 1. Which of the following is NOT a key function
a) IFRS has a very flexible approach and allows of logistics in global supply chain management?
companies to present statements in any format a) Procurement
b) IFRS is highly prescriptive and dictates the b) Distribution
exact presentation format of statements c) Manufacturing
c) IFRS requires companies to present d) Inventory Management
statements in accordance with local accounting 2. What does "Just-in-Time" (JIT) inventory
rules management aim to achieve?
d) IFRS allows companies to exclude certain a) Minimize production time
financial details from public reports b) Ensure minimum stock levels are maintained
[Link] IFRS, how is the revenue from the c) Increase inventory levels
sale of goods generally recognized? d) Maximize customer orders
a) When cash is received 3. Which of the following is a primary challenge
b) When goods are shipped in global supply chain management?
c) When control of the goods transfers to the a) Language barriers
customer b) Managing local suppliers
d) When the customer makes the purchase c) Overcoming international transportation
[Link] of the following is required for the issues
adoption of IFRS in a country? d) Increased local competition
a) Elimination of all local tax laws 4. What is the purpose of a supply chain's
b) The harmonization of local financial "demand forecasting"?
regulations with IFRS standards a) To reduce production rates
c) Automatic removal of all existing regulations b) To estimate future customer demand
d) The company’s voluntary decision to adopt c) To increase product price
IFRS d) To measure supply chain efficiency
[Link] does IFRS 15 primarily address? 5. Which of the following is an example of a
a) Employee pensions "pull" system in logistics?
b) Revenue recognition from contracts with a) Production based on forecasted demand
customers b) Production based on actual customer orders
c) Financial instruments c) Stocking inventory for anticipated orders
d) Leases and operating expenses d) Filling inventory from the warehouse
[Link] of the following is a main benefit of 6. What role do distribution centers play in
IFRS adoption for investors? supply chain management?
a) It reduces the need for due diligence a) They focus on manufacturing products.
b) It increases the transparency and b) They store and distribute products to retail
comparability of financial statements outlets.
c) It guarantees higher returns on investments c) They focus on product development.
d) It eliminates market volatility d) They are responsible for sales activities.
7. Which of the following is the most common b) The forward transportation of goods from the
form of international shipping? manufacturer to the customer
a) Rail c) The storage of goods at a distribution center
b) Air freight d) The management of inventory at retail
c) Ocean freight locations
d) Trucking 15. What is a major advantage of using air
8. What does the term “nearshoring” refer to in freight for international logistics?
supply chain management? a) Lower shipping costs compared to ocean
a) Moving production to a country far away from freight
the home market b) Speed of delivery
b) Bringing production closer to home markets c) Better ability to handle large quantities of
c) Reducing reliance on suppliers goods
d) Outsourcing production to third-party logistics d) Reduced environmental impact
companies 16. Which of the following is a key strategy for
9. What does "supply chain resilience" refer to? minimizing the impact of supply chain
a) The ability to prevent supply chain disruptions disruptions?
b) The ability to recover quickly from disruptions a) Reducing inventory
c) The ability to create surplus inventory b) Diversifying suppliers and transportation
d) The ability to expand operations worldwide methods
10. Which factor is MOST important in choosing c) Reducing product variety
a logistics provider for global operations? d) Focusing on just-in-time production
a) Supplier's location 17. What is "demand variability" in the context of
b) Supplier’s customer service reputation supply chain management?
c) Supplier's ability to meet local regulations a) Fluctuations in demand that create challenges
d) The logistics provider’s ability to handle large for managing inventory and production
volumes and provide timely deliveries b) Changes in the price of raw materials
11. What is the primary benefit of "supply chain c) Variations in the number of logistics providers
visibility"? available
a) It reduces transportation costs d) The average order size from customers
b) It provides insight into supply chain 18. What is the key advantage of a global supply
operations for better decision-making chain management strategy?
c) It increases raw material costs a) Lower cost of materials from local suppliers
d) It enhances local market knowledge b) Greater flexibility and access to international
12. Which of the following is a key challenge markets
when managing global supply chains? c) Reduced quality control challenges
a) Domestic transportation regulations d) Minimizing the need for transportation
b) Local inventory tracking 19. In supply chain logistics, what does the term
c) Stocking inventory for anticipated orders "lead time" refer to?
d) Filling inventory from the warehouse a) The time taken to manufacture a product
13. What does a "3PL" (Third-Party Logistics) b)The total time taken from the order placement
provider typically handle? to the delivery of goods
a) The company’s core business operations c) The time spent waiting for customer orders
b) The procurement of raw materials d) The time needed to process inventory
c) Warehousing, transportation, and distribution 20. Which of the following is a common risk
d) The manufacturing of products associated with global supply chains?
14. What does “reverse logistics” refer to? a) Overordering raw materials
a) The process of returning goods from the b) Lack of transportation options
customer to the manufacturer c) Political instability in supplier countries
d) Overuse of technology
 7. Which of the following is an example of an
Module 9 ethical issue in international trade?
a) Reducing the price of a product to compete in
1. What is the primary goal of Corporate Social a global market
Responsibility (CSR) in international trade? b) Adopting sustainable agricultural practices
a) Maximize profits at all costs c) Exploiting child labor in developing countries
b) Minimize environmental impact d) Increasing efficiency in the production
c) Improve shareholder value process
d) Ensure the long-term welfare of all 8. Which of the following is a key challenge for
stakeholders multinational corporations in implementing
2. Which of the following is a key principle of sustainability?
ethical business practices in international trade? a) Expanding operations in the home country
a) Prioritize profit over environmental concerns b) Balancing profits with environmental and
b) Avoid social responsibility in global supply social responsibility
chains c) Reducing product prices to attract more
c) Fair treatment of workers and communities customers
d) Minimize compliance with international laws d) Hiring employees from only developed
3. The term “sustainable development” refers to: countries
a) Economic growth at the 9. What is the key concept behind the "Triple
expense of the environment Bottom Line" (TBL) approach in CSR?
b) Using resources to meet current needs a) Focusing only on profit maximization
without compromising future generations b) Focusing on economic, environmental, and
c) Profit maximization without environmental social impact
regulations c) Prioritizing environmental goals over social
d)Exploiting underdeveloped markets for responsibility
business expansion d) Creating a monopoly in international markets
4. Which international agreement promotes 10. Which of the following is an example of a
ethical labor practices across borders? sustainable practice in international trade?
a) The Paris Agreement a) Minimizing packaging waste and using
b) The General Agreement on Tariffs and Trade eco-friendly materials
(GATT) b) Focusing solely on profit margins regardless
c) The Universal Declaration of Human Rights of environmental impact
d) The Global Compact for Sustainable c) Ignoring international environmental
Development regulations
5. A company practicing CSR might engage in d) Using cheaper, non-renewable resources for
which of the following? manufacturing
a) Exploiting low-wage workers in developing 11. What is the primary aim of Fair Trade in
countries international business?
b) Investing in environmentally sustainable a) Lowering wages to stay competitive
production methods b) Ensuring that workers in developing countries
c) Disregarding labor laws to reduce costs receive fair wages and safe working conditions
d) Avoiding transparency in its operations c) Reducing production costs by ignoring safety
6. Which of the following is NOT typically regulations
considered a component of CSR in international d) Increasing consumer prices without improving
trade? quality
a) Environmental sustainability 12. Which international body sets global
b) Ethical labor standards standards for environmental sustainability and
c) Maximizing profit without regulation CSR?
d) Community development initiatives a) World Trade Organization (WTO)
b) International Labour Organization (ILO) 18. Which of the following is a major concern
c) United Nations Global Compact regarding ethical labor practices in international
d) International Monetary Fund (IMF) trade?
13. The practice of reducing carbon emissions a) Ensuring low prices for consumers
through technology and sustainable practices is b) Exploiting workers in countries with weak
an example of: labor laws
a) Ethical sourcing c) Increasing exports without regulations
b) Environmental sustainability d) Focusing on profits over environmental
c) Fair labor practices impact
d) Corporate governance 19. Which of the following is an example of a
14. How do companies benefit from practicing company practicing ethical labor standards?
Corporate Social Responsibility (CSR)? a) Outsourcing production to a country with poor
a) They avoid paying taxes in their host labor protections
countries b) Providing fair wages and safe working
b) They attract consumers who value ethical and conditions for workers globally
sustainable practices c) Cutting wages to reduce production costs
c) They reduce operational costs by outsourcing d) Ignoring environmental regulations in
labor to low-wage countries developing countries
d) They focus only on maximizing short-term 20. What role does transparency play in
profits corporate social responsibility (CSR)?
a) Reduces the effectiveness of CSR initiatives
15. The concept of "greenwashing" refers to: b) Increases consumer trust and enhances
a) Effectively implementing sustainable brand reputation
practices c) Promotes hidden costs in operations
b) Companies falsely claiming to be d) Minimizes regulatory scrutiny
environmentally friendly without making real
changes Module 10
c) Promoting fair trade without exploiting
workers 1. Which of the following is an example of
d) Investing in renewable energy sources political risk in international trade?
16. Which of the following is a characteristic of a) Fluctuation in interest rates
ethical sourcing in international trade? b) Changes in government policies affecting
a) Sourcing raw materials from countries with trade
weak labor laws c) Currency devaluation
b) Paying fair wages to workers and ensuring d) Unstable commodity prices
safe working conditions 2. What type of risk is associated with
c) Ignoring environmental regulations to cut fluctuations in exchange rates in international
costs trade?
d) Prioritizing profit over social impact a) Political risk
17. How does sustainability impact the b) Economic risk
competitive advantage of international c) Currency risk
businesses? d) Credit risk
a) By ignoring customer demand for ethical 3. Which of the following can be considered an
products economic risk in international trade?
b) By lowering production quality to save costs a) Expropriation of assets by the host country
c) By appealing to socially and environmentally b) Currency devaluation in the importing country
conscious consumers c) A new government policy in the exporting
d) By focusing on price reductions at the country
expense of quality d) Product failure in the target market
4. What is the primary purpose of trade credit d) Political risk
insurance? 11. Which financial tool is commonly used to
a) To protect against currency fluctuations protect against changes in currency exchange
b) To protect the seller from the risk of rates?
non-payment by the buyer a) Hedging
c) To mitigate the political risk in the exporting b) Insurance
country c) Factoring
d) To guarantee returns on foreign investments d) Letter of Credit
5. Which of the following is a common method 12. What is the primary advantage of using a
for mitigating exchange rate risk? letter of credit (LC) in international trade?
a) Hedging with foreign exchange contracts a) It guarantees that the goods are delivered on
b) Using trade credit insurance time
c) Acquiring political risk insurance b) It guarantees payment to the seller after
d) Diversifying suppliers delivery
6. What does the term "country risk" generally c) It mitigates political risks
refer to in international trade? d) It ensures product quality
a) The risk of natural disasters 13. Which of the following describes the risk of a
b) The risk of non-payment by customers company being unable to fulfill its financial
c) Political, economic, and social risks in a obligations due to economic conditions in the
country international market?
d) The risk of product failure in a foreign market a) Political risk
7. Which of the following risks is associated with b) Credit risk
the possibility of a government expropriating c) Economic risk
foreign-owned assets? d) Currency risk
a) Currency risk 14. Which of the following strategies helps
b) Credit risk businesses manage political risk?
c) Political risk a) Market diversification
d) Operational risk b) Hedging against currency fluctuations
8. A business faces the risk of non-payment c) Political risk insurance
from an overseas buyer. Which financial d) Export subsidies
instrument could the business use to mitigate 15. What is the main disadvantage of using
this risk? hedging to mitigate currency risk?
a) Hedging a) It requires a large initial investment
b) Letter of Credit b) It might not fully offset potential currency
c) Trade Credit Insurance losses
d) All of the above c) It has high transaction costs
9. What type of risk involves the possibility that a d) It is difficult to implement in emerging markets
business may not receive payment for goods or 16. What is the primary concern of a business
services provided? when dealing with political instability in an
a) Political risk international market?
b) Credit risk a) Currency devaluation
c) Currency risk b) Legal changes affecting business operations
d) Economic risk c) Global supply chain disruptions
10. Which of the following is a risk of engaging d) Reduced product demand
in international trade when there is a lack of 17. Which of the following would most likely be a
stable currency exchange rates? factor contributing to economic risk in
a) Operational risk international trade?
b) Currency risk a) Labor strikes in the importing country
c) Credit risk b) Change in the foreign country's interest rates
c) Natural disasters affecting the supply chain 4. What is one of the main advantages of
d) Political corruption in the importing country Regional Trade Agreements for member
18. What is the purpose of export credit countries?
agencies (ECAs) in international trade? a) The reduction of global trade competition
a) To guarantee loans to exporters b) The creation of a unified currency for the
b) To finance the production of goods for export region
c) To provide insurance for political risk c) The promotion of economic integration and
d) To offer trade finance and mitigate the risk of trade liberalization
non-payment d) The elimination of all external tariffs
19. Which of the following would be considered 5. What is a key difference between a Free
an operational risk in international trade? Trade Area (FTA) and a Customs Union?
a) A buyer defaulting on payment a) An FTA allows for the free movement of labor,
b) A supplier failing to meet production while a Customs Union does not
deadlines b) A Customs Union has common external
c) A government imposing new tariffs tariffs, while an FTA does not
d) A sudden devaluation of the currency c) An FTA allows member countries to have
20. Which type of risk arises from the potential independent trade policies with non-
impact of global economic changes on a members, while a Customs Union does not
company's trade operations? d) An FTA mandates economic integration, while
a) Economic risk a Customs Union does not
b) Political risk 6. What is the main function of the World Trade
c) Currency risk Organization (WTO) in relation to RTAs?
d) Country risk a) To promote the creation of regional trade
agreements
Module 11 b) To regulate and ensure that RTAs are
compatible with global trade rules
1. Which of the following is the main objective of c) To supervise the internal policies of regional
a Free Trade Area (FTA)? trade blocks
a) Establishing a common currency among d) To facilitate trade between countries outside
member countries of RTAs
b) Removing tariffs and quotas between member 7. Which of the following best describes the term
countries "trade diversion"?
c) Adopting a common external trade policy a) The shift of trade from non-member countries
d) Allowing free movement of capital and labor to member countries due to an RTA
between member countries b) The reduction in tariffs between countries
2. Which of the following is an example of a within an RTA
customs union? c) The elimination of non-tariff barriers within an
a) European Union (EU) RTA
b) North American Free Trade Agreement d) The increase in global trade due to economic
(NAFTA) cooperation
c) Association of Southeast Asian Nations 8. The North American Free Trade Agreement
(ASEAN) (NAFTA) was replaced by which agreement in
d) World Trade Organization (WTO) 2020?
3. The European Union (EU) is an example of a) Trans-Pacific Partnership (TPP)
which type of Regional Trade Agreement? b) European Economic Area (EEA)
a) Free Trade Area c) United States-Mexico-Canada Agreement
b) Customs Union (USMCA)
c) Common Market d) African Continental Free Trade Area
d) Economic Union (AfCFTA)
9. Which of the following is a disadvantage of d) Higher costs of doing business across
Regional Trade Agreements? borders
a) Decreased international competition 16. Which organization monitors compliance
b) Uneven benefits across member countries with the rules governing Regional Trade
c) Increased complexity in global trade Agreements?
negotiations a) United Nations
d) Reduced investment in developing countries b) World Trade Organization (WTO)
10. What is a common characteristic of c) International Monetary Fund (IMF)
Economic Unions? d) World Bank
a) Shared legal frameworks and currency 17. Which of the following is an example of a
b) Independent trade policies between member Common Market in a regional trade agreement?
countries a) ASEAN
c) Elimination of all non-tariff barriers b) European Union (EU)
d) No common customs duties c) Mercosur
11. MERCOSUR is an example of a regional d) North American Free Trade Agreement
trade agreement in which region? (NAFTA)
a) Asia 18. The trade-off between trade creation and
b) Europe trade diversion is most commonly associated
c) South America with which type of trade agreement?
d) Africa a) Customs Union
12. The Trans-Pacific Partnership (TPP) aimed b) Free Trade Area
to establish trade agreements among countries c) Economic Union
in which region? d) Common Market
a) Africa 19. Which of the following is a potential outcome
b) The Pacific Rim of trade diversion in regional trade agreements?
c) The European Union a) Increased global trade
d) The Middle East b) Increased trade with non-member countries
13. Which of the following is NOT a feature of a c) Economic inefficiencies and higher costs
Customs Union? d) Decreased regional cooperation
a) Elimination of internal tariffs 20. Which agreement established a Free Trade
b) Common external tariffs Area between the United States, Mexico, and
c) Freedom of movement of labor and capital Canada?
d) Independent trade policies for each member a) MERCOSUR
country b) Trans-Pacific Partnership (TPP)
14. What is the primary goal of a Common c) North American Free Trade Agreement
Market in a Regional Trade Agreement? (NAFTA)
a) To create a unified political system d) European Union (EU)
b) To allow the free movement of goods,
services, capital, and labor
c) To establish a common external tariff M5
d) To reduce non-tariff barriers only Identification Questions
15. Which of the following is a benefit for 1. What is a multinational corporation (MNC)?
businesses in countries that are part of a
Regional Trade Agreement? 2. What is Foreign Direct Investment (FDI)?.
a) Higher tariffs on imported goods
b) Lower barriers to entry in new markets within 3. What is a joint venture?
the region
c) Increased competition from non-member 4. What is the main advantage of multinational
countries corporations to host countries?
 3. Name a key difference between IFRS and
5. What does "globalization" refer to in U.S. GAAP regarding goodwill.
international business?
4. What is the objective of IFRS 9?
6. What is a subsidiary in the context of
multinational corporations? 5. Identify the key benefit of IFRS adoption for
multinational corporations.
7. What is the role of the multinational
corporation in international trade? 6. What is the IFRS for SMEs?
8. What is the main disadvantage of
operating as an MNC? 7. What does IFRS 15 address?

9. What is a franchise in the context of 8. Which IFRS standard addresses fair value
multinational business? measurement?

[Link] is a risk associated with multinational 9. What is the main challenge faced by countries
corporations? adopting IFRS?

M6 [Link] a key IFRS standard that governs

Identification Questions financial instruments.
1. What is the foreign exchange market (Forex)?

2. What does the term "exchange rate" mean? M8

Identification Questions
3. What is a currency swap? Provide the term or concept related to the
description given.
4. What is a fixed exchange rate? 1. The process of managing and overseeing the
flow of goods and services from suppliers to
5. What is currency devaluaion?. customers.

6. What is the role of central banks in Forex 2. This is the movement of goods from one
markets? location to another using various transportation
methods such as ships, trucks, planes, and
7. What is a spot transaction in Forex? trains.

8. What is a forward contract in Forex? 3. This refers to the ability to respond quickly
and effectively to changes, disruptions, and risks
9. What is currency appreciation? in the supply chain.

[Link] is a pegged exchange rate? 4. The strategy of obtaining goods and services
from a supplier outside the company's home
M7 country.
Identification Questions
1. Define International Financial Reporting 5. This term refers to the practice of managing
Standards (IFRS).. inventory so that products are available just in
time for production or customer demand,
2. What is IFRS 16?. minimizing storage costs.
6. A contract between two companies where one 6. A company’s initiative to reduce its negative
party provides logistics services on behalf of the impact on the environment by adopting
other. eco-friendly practices.

7. The process of tracking and monitoring 7. The process of avoiding environmental

products as they move through the supply chain responsibility while falsely advertising
to ensure efficiency and visibility. environmentally friendly practices.

8. A type of logistics that involves moving goods 8. A type of trade that emphasizes the rights of
from the customer back to the supplier or workers, environmental protection, and fair trade
manufacturer, typically for returns or recycling. practices.

9. The management of the flow of goods and 9. The practice of involving in social and
services and their associated information across environmental causes that benefit communities,
international borders. often as part of a business's overall strategy.

10. The amount of time that elapses between 10. The agreement to treat employees and local
the initiation of an order and its final delivery to communities with respect, ensuring their
the customer. well-being and livelihood.

M10
M9 Identification Questions
Identification Questions (10 items) Provide the correct term or concept based on
Provide the correct term or concept based on the given description.
the given description.
1. A risk that arises from changes in government
1. The practice of conducting business in a way policies, regulations, or political instability in the
that is ethically responsible and sustainable for host country.
future generations.
2. A strategy that involves making financial
2. The practice of ensuring fair wages, safe arrangements to reduce the potential loss from
working conditions, and rights for workers in fluctuations in exchange rates.
global supply chains.
3. The risk of a company failing to receive
3. The initiative where businesses and payment from an international buyer.
organizations align their operations with
universal human rights, labor standards, and 4. A financial instrument that guarantees
environmental protection . payment to a seller by a bank, contingent on the
terms of the contract being met.
4. The practice of sourcing goods or services
from suppliers that follow ethical guidelines and 5. A situation where a country's currency value
provide fair wages. drops significantly, making imports more
expensive.
5. A framework for measuring the social,
environmental, and financial performance of an 6. The process of transferring some of the risks
organization. associated with international trade to a third
party, such as an insurance company.
7. A formal agreement between the buyer and 6. A regional trade agreement formed between
seller that the seller will be paid after shipment, countries in South America to promote economic
often backed by a bank. integration and cooperation.

8. A type of risk involving fluctuations in interest 7. An agreement that involves a collection of

rates, inflation, and overall market conditions in countries from the Pacific Rim that focused on
foreign countries. economic integration and free trade.

9. A type of financial product that protects 8. The World Trade Organization's role in
exporters against the risk of non-payment by ensuring that regional trade agreements are
international buyers. consistent with global trade rules and do not
discriminate against non-members.
10. A situation where a company is unable to
fulfill its obligations due to external factors, such 9. A trade agreement involving countries within
as geopolitical or economic instability. the Asian region, such as Indonesia, Malaysia,
Thailand, and the Philippines, aimed at
increasing trade and economic collaboration.
M11 .
Identification Questions 10. The practice of shifting trade away from
Provide the correct term or concept based on more efficient producers outside a regional trade
the given description. agreement to less efficient producers within the
agreement.
1. An agreement between countries that allows
for the elimination of tariffs and other trade
barriers between them, but each country
maintains its own trade policies with
non-members.

2. A type of trade agreement in which member

countries have a common external tariff but
retain the ability to negotiate their own trade
policies.

3. A regional trade agreement that allows for the

free movement of goods, services, capital, and
labor among member countries.

4. The transition from trading with non-members

to trading more frequently with RTA members,
leading to greater trade among member
countries.

5. An agreement that combines economic

cooperation, common policies, and shared legal
and regulatory frameworks, such as the
European Union.