question

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

answer

controllable or uncontrollable. internal or external.

question

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

answer

True

question

The term international company refers to both global and multidomestic companies. True or False

answer

True

question

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

answer

False, 2/3rds of world trade

question

Historically, international business:

answer

existed before the time of Christ. was influenced by the rise of the Ottoman Empire.

question

The magnitude of international trade and how it has grown are reflected in the fact that one-fourth of everything grown or made in the world is now exported. True or False

answer

True

question

Record levels of American outward foreign direct investment from 2000 to 2009, totaling more than $2 trillion, caused U.S. exports to decline during this time period.

answer

False, American outward FDI reached a record $1.20 trillion from 2006 to 2009. These figures represent more than 1.3 times the U.S. average a decade before, from 1996 to 1999. Yet the overall level of American exports of goods and services increased from $1.1 trillion in 2000 to $1.8 trillion in 2010, an increase of 64 percent in a decade.

question

The theory of overlapping demand:

answer

explains how international trade in manufactured goods will be linked to gross national income. states that a nation will trade goods that can be produced with the production factor that is most abundant. explains why companies will add excess capacity to their production systems. two of the above. None of A B and C is correct none of A, B, or C.

question

The three nations that exported the largest amount of goods to the United States in 2010 were:

answer

Canada, Mexico, and China.

question

Approximately 70 percent of the exports from developed countries go to developed countries. True or False

answer

True

question

International business managers need to be able to communicate across cultural borders, even if they don't speak foreign languages. True or False

answer

True

question

When we use cultural frameworks to build our understanding of another culture, we use our own culture as an implicit reference point. True or False

answer

True

question

Hofstede's long-term orientation tends to be found in

answer

Asian and Brazillian cultures

question

Facebook is an example of a social institution based on free association. True or False

answer

True

question

A culture's aesthetics is a sense of moral behavior to the young.

answer

False

question

Proximity is a factor in explaining

answer

the number of a nation's political and trade relationships

question

Porter suggests that adverse conditions can motivate innovation, which may lead to the development of a competitive advantage. True or False

answer

True

question

The three characteristics of evolving sustainable business practices are

answer

limits, interdependence, and equity.

question

Mountain barriers found in the area of Pakistan-Afghanistan border impede travel and separate populations. True or False

answer

True

question

Production managers have discovered that their introduction of new production methods across cultures is affected by varying attitudes toward

answer

change

question

_____ is concerned with the way firms make fundamental choices about developing and deploying scarce resources globally.

answer

International Strategy

question

Without a _____, the management cannot formulate the production, financial, and procurement plans.

answer

Sales Forecast

question

Strategic planning is done in seclusion and only by the company's most senior executives.

answer

False

question

Companies controlled by other companies through ownership of enough voting stock to elect board-of-directors majorities are called _____.

answer

Subsidiaries

question

In a joint venture, the headquarters will almost never have as much freedom of action and flexibility as it has with subsidiaries that are 100 percent owned. True or False

answer

True

question

In a letter of credit transaction:

answer

the bank acts as an intermediary between the buyer and seller.

question

The areas that hinder managers in developing exporting capability include financing procedures. True or False

answer

False

question

The export marketing plan:

answer

should not lock the firm into specific markets

question

The term _____ is commonly used for a company's decision to relocate activities to foreign locations

answer

offshoring

question

_____ refers to managerial functions associated with the movement of materials such as raw materials, work in progress, or finished goods.

answer

Logistics

question

Policy continuity and government stability are more important to a business than the type of political system. True or False

answer

True

question

The only reason firms are nationalized is to spread a socialist-communist ideology True or False

answer

False

question

Unlike quotas, voluntary export restraints (VERs) are imposed by the:

answer

exporting country's government.

question

Tariff barriers may be used to protect domestic industry from foreign, lower priced producers. True or False

answer

True

question

International business can be a powerful political force, in part because

answer

about half the world's 100 largest economic units are firms

question

The degree to which a country's legal system is based on the rule of law makes no difference; it is personal relationships that matter in foreign environments. True or False

answer

False

question

Arbitration is a private solution that is

answer

often preferred by foreign litigants because it is perceived as fairer, faster, cheaper, and more confidential than are the courts

question

If you are a Westerner and become victim of a miscellaneous law in a foreign country, all you have to do is call your embassy and you'll be released to your government.

answer

False

question

Subsidies are problematic because they:

answer

aid export businesses or protect domestic businesses from imports.

question

Patents are government grants that give the owner:

answer

exclusive rights to use, sell, manufacture, or commercialize the invention or process. grants protection from copying and is exclusive to the inventor.

IB 315 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards