question

________ business is business that is carried out across national borders.

answer

International

question

_____ business denotes the operations of a company outside its home market.

answer

Foreign

question

A company with operations in multiple nations is referred to as a(n):

answer

International Company

question

International business differs from domestic because they must deal with the forces form which of the following environments?

answer

Foreign, Domestic, International

question

Environments are classified as:

answer

Internal and external

question

What are the external forces that management has no direct control over, although it can exert influence?

answer

Uncontrollable forces

question

Internal forces are called ____ forces

answer

controllable

question

The ___ environment is all the ___ forces originating in the home country that surround and influence the development of the company.

answer

domestic; uncontrollable

question

The forces in the _____ environment are the same as those in the _____ environment except that they occur outside the firm's home country

answer

foreign; domestic

question

Which of the following are true regarding the international environment? -it consists of interactions between two or more domestic environmental forces -it consists of the interactions between the domestic environmental forces and the foreign environmental forces -it involves the crossing of international borders -it consists of interactions between the foreign environmental forces of two countries

answer

all except "it consists of interactions between two or more domestic environmental forces"

question

Which of the following adds complexity to foreign environments?

answer

unfamiliarity with other cultures

question

What is the unconscious reference to your own values when judging behaviors of others in a new and different environment?

answer

self reference criterion

question

Which one of the worst natural disasters in history is associated with international trade?

answer

the plague

question

Which empire had the effect of raising the cost of asian trade for europeans and drove the search for sea routes to asia

answer

Ottoman

question

Which of the following are trading firms was formed to carry out colonial activities in Asia and open ocean trade routes to the East?

answer

Dust East India Company

question

Which of the following was one of the first US companies to own foreign production facilities, have worldwide distribution networks, and market its products under global brands?

answer

Singer Sewing Machines

question

Which of the following statements are true regarding a transnational corporation? -it is a made up of only one entity in a foreign nation -it operates under a decision making system that allows a common strategy -it is comprised of entities in more than one nation -it operates under a decision making system that allows coherent policies

answer

all except the first one "it is made up of only one entity in a foreign nation"

question

True or False: When nations and corporations are ranked by GNI and total sales respectively, 41 of the first 100 on the list are corporations.

answer

True

question

What term refers to direct investments in equipment, structures, and organizations in a foreign country at a level sufficient to obtain significant management control?

answer

Foreign Direct Investment

question

True or False: Importing is the transportation of any domestic good to a destination outside a country.

answer

False

question

Which of the following are typical arguments against globalization? -globalization has worsened labor standards -it produces friction between nations -it has been linked to a decline in environmental conditions -it produces uneven results across nations

answer

all but produces friction between nations

question

Which of the following regions have not experienced economic success despite efforts to liberalize and privative its economies? -asia -latin america -eastern europe -sub-saharan africa

answer

latin america and sub-saharan africa

question

Which of the following statements are true regarding the impact of globalization on labor? -us companies moving abroad to avoid unionization has risen -developing nations tend to have lower labor standards -companies are experiencing difficulties divesting their interest in one country and moving to another -jobs will migrate to developing nations where labor costs are lower

answer

all except "companies....another"

question

The definition of International business include -foreign manufacturing -international trade -domestic trade -service industries

answer

all except domestic trade

question

An ________ company is a company with operations in multiple nations.

answer

international

question

Competitive

answer

kinds and numbers of competitors, their locations, and their activities

question

Financial

answer

variables such as interest rates, inflation rates, and taxation

question

Economic

answer

variables (such as gross national income, unit labor cost, and personal consumption expenditure) that influence a firm's ability to do business

question

Legal

answer

the many foreign and domestic laws governing how international firms must operate

question

Political

answer

elements of nations' political climates such as nationalism, forms of government, and international organizations

question

Physical

answer

elements of nature such as topography, climate, and national resources

question

The ____ environment is all the uncontrollable forces originating in the home country that surround and influence the development of the company

answer

domestic

question

The ______ environment consists of interactions between the domestic environmental forces and the foreign environmental forces

answer

international

question

A ______ corporation is an enterprise made up of entities in more than one nation, operating under a decision making system that allows a common strategy and coherent policies

answer

transnational

question

The tendency toward international integration and interdependency of goods, technology, information, labor, and capital is called economic _______

answer

globalization

question

Which of the following are arguments supporting globalization -free trade eliminates poverty -free trade enhances socioeconomic development -free trade produces even results in every nation -free trade promotes better and more jobs

answer

enhances socioeconomic development and promotes better and more jobs

question

Free trade enhances _____ development

answer

socioeconomic

question

T or F: The levels of foreign direct investment and exporting have been decreasing rapidly in recent years

answer

false; increasing

question

Which of the following aspects are contributing to the globalization of business operations -progressive reduction of barriers to trade and foreign investment by governments -privatization of much of the industry in formerly communist nations -rapid increase of trade restrictions that limit foreign competition -increase int eh political barriers to entry in the form of quotas and tariffs

answer

progressive and privatization

question

Global communication networks that enable manufacturing workers to coordinate production and design functions worldwide is an example of a ____ driver

answer

technological

question

Preferential trading arrangements such as NAFTA and the European Union would be considered _____ drivers

answer

political

question

Which of the following statements are true regarding the link between free trade and jobs? -free trade can cause companies to go out of business -free trade promotes new, better jobs -free trade stifles economic growth and expansion -free trade promotes more jobs

answer

all except "stifles"

question

Which of the following is NOT considered a major driver of internationalization? -competitive -cultural -technological -market

answer

cultural

question

Which of the following is true of a globalized product line? -reduces production cost -reduces gross national income -reduces development costs -reduces inventory costs

answer

all but gross national income

question

New firms, mainly from newly industrialized countries, entering the world markets in computers and electronics is an example of a ______ driver

answer

competitive

question

Decision making in the _____ environment is more complex than it is in a purely ______ environment

answer

international; domestic

question

Companies internationalizing their operations to capture the supply of key raw materials is an example of a _____ driver

answer

competitive

question

An accounting firm establishing foreign operations in markets where their principal accounts are located to prevent competitors from gaining access is an example of a _____ driver

answer

market

question

Which of the following are true transnational corporations? -they account for about 75% of total global output -they account for about 2/3 of world trade -they collectively employe more than 78 million people -they have about 810,000 foreign affiliates

answer

all but "75% of total global output"

question

Data suggests that the liberation of trade has improved: -life expectancy -poverty rate -education -health -crime rate

answer

all but crime

question

T or F: Domestic forces do not affect foreign operations

answer

False

question

A company investing in a downstream market as a way to protect its existing international business is an example of a ____ driver

answer

competitive

question

Which of the following human conditions has been attributed to the liberation of trade -greater civil liberties -increase in infant mortality -increase spending on public education -increase in politic rights

answer

all but increase in infant mortality because it should be decrease

question

Current trends indicate that the world's economic center of gravity is shifting to _____

answer

Asia

question

Which of the following are true of state-owned transnational corporations -state-owned transnationals account for more than 30% of the world's foreign direct investments -state-owned transnationals collectively have assets exceeding $2 trillion -minimum of 550 state-owned transnationals -state-owned transnationals come from both developing and developed countries

answer

all but "state-owned transnationals account for more than30%..."

question

Which UN agency is in charge of all matters relating to FDA and international corporations

answer

United nations conference on trade and development

question

In international business, what are the three choices international manager have in deciding what to do with a concept employed in domestic operations -change the natural culture -adapt it to local conditions -not use it overseas -transfer it intact

answer

all but "change national culture"

question

Which of the following are international organizations whose actions affect the international market? -worldwide bodies -organizations bound by industry agreements -regional economic groupings of nations -organizations bound by interstate commerce

answer

all but "bound by interstate commerce"

question

Which centuries have been termed the "age of mercantilism"

answer

17th and 18th

question

_____ means to sell the same thing in the same way everywhere in the world

answer

globalization

question

Which of the following sectors of human life were profoundly impacted by international trade? -politics -religion -agriculture -public health -arts

answer

all but religion

question

Which of the following are trends in new markets abroad? -economies in some nations growing faster then the rate of the home country -developing markets with a rising gross domestic product per capita -vast proportion of potential customers are still located within us -there are developing markets with a rising population

answer

all but potential clients in us

question

Barriers to the free movement of a nation's people, such as mountain ranges, help maintain pockets of distinct cultures within a country, and thus effecting the decision making of a company is an example of:

answer

forces being interrelated

question

____ have grown faster than world output in nearly each of the past 60 years

answer

merchandise exports

question

Sanctions being placed on Russia and Russian companies in response to Russia's actions in the Ukraine is an example of

answer

forces in the foreign environment having different values

question

Which of the following foreign forces are especially difficult to access? -legal -physical -technology -political

answer

legal and political

question

Which country was the world's leading manufacturing country for about 1800 years until replaced by Britain in 1840

answer

china

question

Which of the following are some negative affects of the north american free trade agreement? -substantial increases in air pollution along US Mexico border -it increases ground water pollution across US Mexico border -it increases population along US Mexico border -it increases in environmental standards along US Mexico border

answer

all but "increase in environmental standards" because they decreased

question

T or F: The vast proportion of most US companies' potential customers are located within US

answer

false; We only have 5%

question

The World Development Indicators form the World Bank show that the number of people in extreme poverty has _____

answer

declined

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