question

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

answer

true

question

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

answer

false

question

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

answer

false

question

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

answer

true

question

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

answer

true

question

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

answer

false

question

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.

answer

false

question

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

answer

false

question

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

answer

true

question

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

answer

true

question

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

answer

false

question

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

answer

true

question

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

answer

false

question

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

answer

false

question

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

answer

true

question

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

answer

false

question

According to the text, environmental elements over which management does have some control—including competitive, labor, and financial forces—are called internal forces.

answer

false

question

External environmental forces are commonly referred to as controllable.

answer

false

question

Internal environmental forces are commonly referred to as controllable.

answer

true

question

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

answer

false

question

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

answer

false

question

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.

answer

true

question

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

answer

false

question

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

answer

false

question

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

answer

false

question

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

answer

true

question

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.

answer

false

question

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.

answer

true

question

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.

answer

true

question

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

answer

false

question

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

answer

false

question

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

answer

true

question

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.

answer

true

question

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

answer

true

question

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

answer

false

question

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.

answer

true

question

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

answer

true

question

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.

answer

false

question

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.

answer

true

question

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

answer

true

question

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

answer

true

question

Globalization has produced uneven results across nations and people

answer

true

question

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

answer

false

question

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

answer

true

question

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.

answer

false

question

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.

answer

false

question

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

answer

true

question

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

answer

true

question

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

answer

false

question

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.

answer

true

question

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:

answer

A. an international orientation should be an important part of college business education. C. the importance of international business skills and knowledge for promotion to senior executive positions was higher for companies anticipating an increased level of importance of international activities in the next five years.

question

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:

answer

A. an introduction to international business. B. international strategy and competitiveness. C. international legal and political issues.

question

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

answer

A. all managers

question

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

answer

A. making your boss and the human resource management department personnel aware of your interest. B. meeting people in the home office who work with the company's foreign subsidiaries. C. taking additional international business courses and making sure that people in your company know what you are doing.

question

As stated in the text, an international business is:

answer

A. a business whose activities involve crossing national borders.

question

Foreign business denotes

answer

B. the domestic operations within a foreign country.

question

A multidomestic company is

answer

D. an organization with multicountry affiliates.

question

A global company is:

answer

D. an organization that attempts to standardize operations worldwide.

question

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

answer

A. global companies. B. multidomestic firms.

question

An international company is:

answer

A. a global company. B. amultidomestic company.

question

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

answer

C. the foreign environment. D. the international environment. E. the domestic environment.

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

A. controllable or uncontrollable. C. internal or external.

question

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

answer

A. heavy promotion of new products to change cultural attitudes. C. lobbying.

question

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

answer

A. competitive. B. technological.

question

The forces over which management does have some command are called:

answer

A. internal. B. controllable.

question

The domestic environment is composed of all the uncontrollable forces originating in the __________ that surround and influence the life and development of the firm.

answer

C. home country

question

Foreign environmental forces often operate differently than domestic environmental forces because:

answer

B. force values are different. C. changes are difficult to assess.

question

The kinds of forces in the foreign environment are __________ those in the domestic environment except that they occur in foreign nations.

answer

B. the same as

question

International business differs from domestic business in that a firm operating across borders must deal with what environmental forces?

answer

A. International B. Foreign

question

Environmental forces can be classified as:

answer

B. external. C. uncontrollable. D. internal.

question

The international environment is the interactions between:

answer

A. the domestic environmental forces and the foreign environmental forces. C. the foreign environmental forces of two countries when an affiliate in one country does business in another country.

question

According to the text, personnel working in a foreign subsidiary are working in the international environment

answer

B. if they are responsible for the subsidiary's exports. C. if they are also responsible for the management of another foreign subsidiary.

question

Decision making in the international environment is __________ it is in a purely domestic environment

answer

C. more complex than

question

Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called:

answer

C. self-reference criterion.

question

Historically, international business

answer

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

question

__________ was the world's leading manufacturing country for about 1,800 years, until it was replaced by Britain in about 1840.

answer

E. none of the above.

question

International business really began:

answer

C. before the time of Christ.

question

UNCTAD, an agency of the United Nations, estimates there are __________ international firms in the world.

answer

D. 82,000

question

Due to the expanding importance of foreign-owned firms in local economies, host governments have made their policies toward these companies:

answer

B. more liberal.

question

Foreign subsidiaries must obey the local laws. If they don't, according to the text they are subject to

answer

A. legal action by the host country. C. seizure by the host government.

question

The worldwide stock of outward FDI is estimated to have increased _______ between 1990 and 2010.

answer

C. 9-fold

question

_______ refers to the transportation of any domestic good or service to a destination outside a country or region.

answer

C. Exporting

question

The level of service exports worldwide increased more than _______ between 1980 and 2010

answer

C. 10-fold

question

According to the text, the tendency toward an international integration of goods, technology, information, labor, and capital, or the process of making this integration happen, is called:

answer

C. economic globalization.

question

According to the text, political drivers of globalization include

answer

A. preferential trading agreements. B. reduction of barriers to trade and foreign investment.

question

Which of the following are identified in the text as being drivers of globalization?

answer

A. Technological

question

The major globalization drivers include all of the following except:

answer

B. social.

question

The major globalization drivers include all of the following except:

answer

B. cultural.

question

According to supporters of the globalization of trade and investment, free trade

answer

A. creates more and better jobs.

question

Opponents of globalization argue that globalization has produced

answer

B. deleterious effects on labor and labor standards. C. uneven results across nations and people.

question

According to opponents of the globalization of trade and investment

answer

A. globalization has produced uneven results across nations and people. B. globalization has had harmful effects on labor and labor standards. C. globalization has contributed to a decline in environmental and health conditions.

question

According to the text, the reasons international firms enter foreign markets are linked to:

answer

A. the desire to increase profits and sales. C. the desire to protect profits and sales from being eroded by competitors.

question

Reasons for international firms to enter into foreign markets are linked to which of the following desires

answer

A. Increased sales and reduced costs B. Protecting sales and profits from being eroded by competitors C. Creation of new markets.

question

According to the text, the dimensions along which management can globalize (standardize) their company's international activities include

answer

A. markets. B. competitive strategy.

question

The international business manager can choose to

answer

A. transfer a management practice intact. B. transfer and adjust a management practice. C. not transfer a management practice at all.

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