Question 1

All managers need to have a basic knowledge of international business.

Accepted Answer

TRUE

Question 2

As the term is used in the text, foreign business is business whose activities are carried out across national borders.

Accepted Answer

FALSE

Question 3

An international company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences.

Accepted Answer

FALSE

Question 4

A business whose activities are carried out across national borders is known as an international business.

Accepted Answer

TRUE

Question 5

Foreign business refers to the operations of a company outside its home or domestic market

Accepted Answer

TRUE

Question 6

A company headquartered in another country is known as a foreign business.

Accepted Answer

FALSE

Question 7

The term international business is used to describe an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences.

Accepted Answer

FALSE

Question 8

A multidomestic company is an organization that attempts to standardize and integrate operations worldwide in all functional areas.

Accepted Answer

FALSE

Question 9

The term international company refers to both global and multidomestic companies

Accepted Answer

TRUE

Question 10

A global company is an organization that attempts to standardize and integrate operations worldwide in most or all functional areas.

Accepted Answer

TRUE

Question 11

According to the definitions in the text, a multidomestic firm is an organization that attempts to standardize operations worldwide in all functional areas.

Accepted Answer

FALSE

Question 12

The United Nations uses the term transnational to describe an enterprise doing business in more than one country.

Accepted Answer

TRUE

Question 13

Only those companies that have foreign operations need to be aware of what is occurring globally in foreign markets and their industry.

Accepted Answer

FALSE

Question 14

International business differs from domestic business in that a firm operating across borders must deal with the forces of two kinds of environmentsâdomestic and foreign.

Accepted Answer

FALSE

Question 15

External forces in the international business environment are commonly called uncontrollable forces.

Accepted Answer

TRUE

Question 16

Uncontrollable forces are external forces over which management cannot exert any influence.

Accepted Answer

FALSE

Question 17

According to the text, environmental elements over which management does have some controlâincluding competitive, labor, and financial forcesâare called internal forces.

Accepted Answer

FALSE

Question 18

External environmental forces are commonly referred to as controllable.

Accepted Answer

FALSE

Question 19

Internal environmental forces are commonly referred to as controllable.

Accepted Answer

TRUE

Question 20

The international environment is composed of all the uncontrollable forces that surround and influence the firm\'s life and development.

Accepted Answer

FALSE

Question 21

According to the text, the international environment is all of the uncontrollable forces originating outside the home country that surround and influence the firm.

Accepted Answer

FALSE

Question 22

According to the text, the domestic environment is all of the uncontrollable forces originating in the home country that surround and influence the firm\'s life and development.

Accepted Answer

TRUE

Question 23

The forces in the international environment are the same as those in the domestic environment except that they occur in foreign nations.

Accepted Answer

FALSE

Question 24

A common cause of the added complexity of foreign environments is managers\' unfamiliarity with other cultures and is called self-reference syndrome.

Accepted Answer

FALSE

Question 25

According to the text, the self-absorption criterion is probably the biggest cause of international business blunders

Accepted Answer

FALSE

Question 26

While international business as a discipline is relatively new, international business as a business practice is not.

Accepted Answer

TRUE

Question 27

Britain was the world\'s leading manufacturing country for about 1,800 years, until it was replaced by the United States at the end of the 1800s.

Accepted Answer

FALSE

Question 28

The Ottoman Empire\'s powerful location raised the cost of Asian trade for the Europeans and resulted in a search for sea routes to Asia.

Accepted Answer

TRUE

Question 29

According to the text, the level of intracompany trade of multinationals in 1930, as a percentage of world trade, may have exceeded the proportion at the end of the 20th century.

Accepted Answer

TRUE

Question 30

Transnational corporations account for approximately 25 percent of total global output and nearly 50 percent of world trade.

Accepted Answer

FALSE

Question 31

Critics of large global firms compare these firms\' sales with nations\' total sales to illustrate the tremendous size of these firms.

Accepted Answer

FALSE

Question 32

One variable commonly used to measure where and how fast internationalization takes place is the increase in total foreign direct investment.

Accepted Answer

TRUE

Question 33

The world stock of outward foreign direct investment was $19 trillion at the beginning of 2010, which was more than nine times what it was in 1990.

Accepted Answer

TRUE

Question 34

Importing refers to the transportation of any good or service to a destination into a country or region, from a foreign origination point.

Accepted Answer

TRUE

Question 35

Exporting refers to the transportation of any good or service to a destination inside a country or region.

Accepted Answer

FALSE

Question 36

The tendency toward an international integration of goods, technology, information, labor, and capital, or the process of making this integration happen, is referred to as economic globalization.

Accepted Answer

TRUE

Question 37

There are five major kinds of globalization drivers, all based on changes that are leading international firms to the globalization of their operations.

Accepted Answer

TRUE

Question 38

The United States has only about 10 percent of the world\'s population, so the vast proportion of most companies\' potential customers are located elsewhere.

Accepted Answer

FALSE

Question 39

That free trade is the best strategy for advancing the world\'s economic development is one of the few propositions on which almost all economists agree.

Accepted Answer

TRUE

Question 40

Supporters of globalization generally argue that it is the best strategy for advancing the world\'s economic development.

Accepted Answer

TRUE

Question 41

Expanded international trade is linked with the creation of more and better jobs.

Accepted Answer

TRUE

Question 42

Globalization has produced uneven results across nations and people.

Accepted Answer

TRUE

Question 43

Opponents of globalization argue that globalization has contributed to an improvement in environmental and health conditions.

Accepted Answer

FALSE

Question 44

Opponents of free trade point out that globalization has contributed to a decline in environmental and health conditions.

Accepted Answer

TRUE

Question 45

The reasons international firms enter foreign markets are all linked to either (1) the desire to increase profits or (2) the desire to increase sales.

Accepted Answer

FALSE

Question 46

An examination of the 2009 Human Development Report shows that only 23 of the 182 countries for which data were available had average annual GDP per capita growth rates that were higher than the U.S. growth rate for the period 1990-2007.

Accepted Answer

FALSE

Question 47

Greater profits may be obtained by either increasing total revenue or decreasing the cost of goods sold.

Accepted Answer

TRUE

Question 48

Changing the method of going abroad from exporting to overseas production is often necessary to protect foreign markets.

Accepted Answer

TRUE

Question 49

In organizing their international activities, there are five dimensions along which management can globalize or standardize these activities.

Accepted Answer

FALSE

Question 50

There are many outstanding international career opportunities for people with desirable interpersonal and language skills that are not in mainstream business but may require basic business expertise.

Accepted Answer

TRUE

Question 51

A survey of CEOs of the 162 largest firms on Fortune\'s list of the 500 largest American corporations found that the CEOs strongly believed that:

Accepted Answer

E. two of A, B, and C.

Question 52

A survey of CEOs of the 162 largest firms on Fortune\'s list of the 500 largest American corporations found that the internationally oriented courses that were viewed as being the most important for early career positions included topics related to:

Accepted Answer

D. all of the above.

Question 53

The increased internationalization of business requires __________ to have a basic knowledge of international business.

Accepted Answer

A. all managers

Question 54

If you already have a job, you can enhance your opportunities for international experience by:

Accepted Answer

D. all of the above.

Question 55

As stated in the text, an international business is:

Accepted Answer

A. a business whose activities involve crossing national borders.

Question 56

Foreign business denotes:

Accepted Answer

B. the domestic operations within a foreign country.

Question 57

A multidomestic company is:

Accepted Answer

D. an organization with multicountry affiliates.

Question 58

A global company is:

Accepted Answer

D. an organization that attempts to standardize operations worldwide.

Question 59

Firms that have substantial operations in more than one country are called:

Accepted Answer

E. two of A, B, and C.

Question 60

An international company is:

Accepted Answer

E. two of A, B, and C.

Question 61

International business differs from domestic business in that a firm operating across borders must deal with:

Accepted Answer

A. all of C, D, and E.

Question 62

Environment as used in the textbook is the forces surrounding and influencing the life and development of the firm and is classified as:

Accepted Answer

E. A and C.

Question 63

Management has no direct control over the external environment of the firm but can exert influence by:

Accepted Answer

E. two of A, B, and C.

Question 64

Examples of the kinds of uncontrollable forces listed in the text are:

Accepted Answer

D. two of the above.

Chapter 1 – International Business – Flashcards

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