CBA Ch. 1 LS

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________ business is business that is carried out across national borders.
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International
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_____ business denotes the operations of a company outside its home market.
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Foreign
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A company with operations in multiple nations is referred to as a(n):
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International Company
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International business differs from domestic because they must deal with the forces form which of the following environments?
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Foreign, Domestic, International
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Environments are classified as:
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Internal and external
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What are the external forces that management has no direct control over, although it can exert influence?
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Uncontrollable forces
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Internal forces are called ____ forces
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controllable
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The ___ environment is all the ___ forces originating in the home country that surround and influence the development of the company.
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domestic; uncontrollable
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The forces in the _____ environment are the same as those in the _____ environment except that they occur outside the firm’s home country
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foreign; domestic
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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
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all except “it consists of interactions between two or more domestic environmental forces”
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Which of the following adds complexity to foreign environments?
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unfamiliarity with other cultures
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What is the unconscious reference to your own values when judging behaviors of others in a new and different environment?
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self reference criterion
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Which one of the worst natural disasters in history is associated with international trade?
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the plague
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Which empire had the effect of raising the cost of asian trade for europeans and drove the search for sea routes to asia
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Ottoman
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Which of the following are trading firms was formed to carry out colonial activities in Asia and open ocean trade routes to the East?
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Dust East India Company
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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?
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Singer Sewing Machines
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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
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all except the first one “it is made up of only one entity in a foreign nation”
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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.
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True
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What term refers to direct investments in equipment, structures, and organizations in a foreign country at a level sufficient to obtain significant management control?
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Foreign Direct Investment
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True or False: Importing is the transportation of any domestic good to a destination outside a country.
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False
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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
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all but produces friction between nations
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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
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latin america and sub-saharan africa
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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
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all except “companies….another”
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The definition of International business include -foreign manufacturing -international trade -domestic trade -service industries
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all except domestic trade
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An ________ company is a company with operations in multiple nations.
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international
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Competitive
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kinds and numbers of competitors, their locations, and their activities
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Financial
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variables such as interest rates, inflation rates, and taxation
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Economic
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variables (such as gross national income, unit labor cost, and personal consumption expenditure) that influence a firm’s ability to do business
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Legal
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the many foreign and domestic laws governing how international firms must operate
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Political
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elements of nations’ political climates such as nationalism, forms of government, and international organizations
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Physical
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elements of nature such as topography, climate, and national resources
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The ____ environment is all the uncontrollable forces originating in the home country that surround and influence the development of the company
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domestic
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The ______ environment consists of interactions between the domestic environmental forces and the foreign environmental forces
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international
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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
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transnational
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The tendency toward international integration and interdependency of goods, technology, information, labor, and capital is called economic _______
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globalization
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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
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enhances socioeconomic development and promotes better and more jobs
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Free trade enhances _____ development
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socioeconomic
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T or F: The levels of foreign direct investment and exporting have been decreasing rapidly in recent years
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false; increasing
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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
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progressive and privatization
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Global communication networks that enable manufacturing workers to coordinate production and design functions worldwide is an example of a ____ driver
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technological
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Preferential trading arrangements such as NAFTA and the European Union would be considered _____ drivers
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political
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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
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all except “stifles”
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Which of the following is NOT considered a major driver of internationalization? -competitive -cultural -technological -market
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cultural
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Which of the following is true of a globalized product line? -reduces production cost -reduces gross national income -reduces development costs -reduces inventory costs
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all but gross national income
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New firms, mainly from newly industrialized countries, entering the world markets in computers and electronics is an example of a ______ driver
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competitive
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Decision making in the _____ environment is more complex than it is in a purely ______ environment
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international; domestic
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Companies internationalizing their operations to capture the supply of key raw materials is an example of a _____ driver
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competitive
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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
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market
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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
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all but “75% of total global output”
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Data suggests that the liberation of trade has improved: -life expectancy -poverty rate -education -health -crime rate
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all but crime
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T or F: Domestic forces do not affect foreign operations
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False
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A company investing in a downstream market as a way to protect its existing international business is an example of a ____ driver
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competitive
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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
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all but increase in infant mortality because it should be decrease
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Current trends indicate that the world’s economic center of gravity is shifting to _____
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Asia
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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
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all but “state-owned transnationals account for more than30%…”
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Which UN agency is in charge of all matters relating to FDA and international corporations
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United nations conference on trade and development
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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
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all but “change national culture”
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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
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all but “bound by interstate commerce”
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Which centuries have been termed the “age of mercantilism”
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17th and 18th
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_____ means to sell the same thing in the same way everywhere in the world
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globalization
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Which of the following sectors of human life were profoundly impacted by international trade? -politics -religion -agriculture -public health -arts
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all but religion
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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
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all but potential clients in us
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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:
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forces being interrelated
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____ have grown faster than world output in nearly each of the past 60 years
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merchandise exports
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Sanctions being placed on Russia and Russian companies in response to Russia’s actions in the Ukraine is an example of
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forces in the foreign environment having different values
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Which of the following foreign forces are especially difficult to access? -legal -physical -technology -political
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legal and political
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Which country was the world’s leading manufacturing country for about 1800 years until replaced by Britain in 1840
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china
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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
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all but “increase in environmental standards” because they decreased
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T or F: The vast proportion of most US companies’ potential customers are located within US
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false; We only have 5%
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The World Development Indicators form the World Bank show that the number of people in extreme poverty has _____
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declined

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