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118.
The forces in the foreign environment are ________ as those in the domestic environment
except that they occur outside the firm's home country.
119.
The __________ environment consists of the interactions between the domestic
environmental forces and the foreign environmental forces, as well as interactions
between the foreign environmental forces of two countries.
120.
When an affiliate in one country does business with customers in another, it is operating
in the ____________ environment.
121.
A classic example of diametrically opposed ______-force values and the bewilderment they
create for multinational managers is the sanctions placed on Russia and selected Russian
companies in response to Russia's actions in the Ukraine in 2014.
122.
If Xiaomi's China operations export smartphones to another country such as India, then
the sales manager is affected by forces of both the domestic environment of China and
the foreign environment of India and therefore is working in the ______ environment.
123.
Those who work in the international environment find that decision making is _______
complex than it is in a purely domestic environment.
124.
Unconscious reference to your own cultural values when judging behaviors of others in a
new and different environment is known as the ________ criterion.
125.
The __________ is probably the biggest cause of international business blunders.
126.
In international business, the international manager has three choices in deciding what to
do with a concept or a technique employed in domestic operations: (1) transfer it intact,
(2) adapt it to local conditions, or (3) ___________.
Learning Objective: 01-01 Show how international business differs from domestic business.
Topic: Why Study International Business?
127.
China was the world's leading manufacturing country for about 1,800 years, until it was
replaced by _____ about 1840.
128.
The _______ Empire's powerful location raised the cost of Asian trade for the Europeans
and resulted in a search for sea routes to Asia.
129.
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.
130.
UNCTAD, the United Nations agency in charge of all matters relating to FDI and
international corporations, estimates there are 82,000 transnational corporations with
international production activities and that these transnationals account for approximately
_____ percent of total global output.
131.
Although they represent fewer than 1 percent of all transnational corporations, ________
transnationals account for more than 11 percent of the world's foreign direct investment.
132.
The expanding importance of foreign-owned firms in local economies has been viewed by
a number of governments as a threat to their autonomy. However, there has been a
marked _______ of government policies and attitudes toward foreign investment in both
developed and developing nations in recent years.
133.
_________ refers to direct investments in equipment, structures, and organizations in a
foreign country at a level sufficient to obtain significant management control.
134.
________ is the transportation of any domestic good or service to a destination outside a
country or region.
135.
__________ is the transportation of any good or service into a country or region, from a
foreign origination point.
Learning Objective: 01-03 Discuss the dramatic internationalization of business.
Topic: The Changing Nature of the Global Economy
136.
Although merchandise exports have grown faster than world output in nearly every year
since 1980, the level of ________ exports worldwide has grown even more rapidly during
this time.
137.
According to the text, there are _____ major kinds of drivers, all based on changes that are
leading international firms to the globalization of their operations.
138.
According to the text, preferential trading agreements are examples of ________ drivers of
globalization.
139.
Two political drivers contributing to the globalization of business operations, as mentioned
in the text, include: (1) the progressive ________ of barriers to trade and foreign
investment by most governments, which is hastening the opening of new markets by
international firms that are both exporting to them and building production facilities in
them, and (2) the privatization of much of the industry in formerly communist nations and
the opening of their economies to global competition.
140.
Advances in computers, including the Internet and network computing, are examples of
_____ drivers contributing to the globalization of business operations.
141.
The United States has only about ______ percent of the world's population, so the vast
proportion of most companies' potential customers are located elsewhere.
142.
A ______ driving force for globalization is the fact that companies are defending their home
markets from competitors by entering the competitors' home markets to distract them.
143.
That ______ trade is the best strategy for advancing the world's economic development is
one of the few propositions on which almost all economists agree.
144.
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
___________.
145.
A one percentage point increase in ______ on average reduces poverty by more than 1.5
percent each year.
146.
Within a generation's time, there has been an enormous improvement in the human
condition, and every one of the development success stories was based on export-led
growth facilitated by the _________ of trade.
147.
Expanded trade is also linked with the creation of more and _________ jobs.
148.
Many opponents of globalization have claimed that there is a huge gap between the
world's rich and poor and that _____ has caused that gap to increase.
149.
Opponents of free trade point out that globalization has contributed to a _______ in
environmental and health conditions.
150.
The term "Bottom of the ________," popularized by the late Professor C. K. Prahalad, refers
to the approximately 3 billion of the world's poorest inhabitants who survive on less than
$2 per day.
Essay Questions
151.
Discuss the three environments in which an international company operates.
152.
Identify and discuss the five major kinds of drivers that are leading international firms to
the globalization of their operations.
153.
Discuss the arguments supporting and opposing globalization of trade and investment.
