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Module 01 The Challenging Context of International Business Answer
Key
True / False Questions
1.
All managers need to have a basic knowledge of international business.
2.
International experience is valuable for mid-career individuals who aspire to higher
positions and greater responsibility, but not for students seeking their first job beyond
university.
3.
Only a company that has foreign operations needs to be aware of what is occurring
globally in its markets and in its industry.
4.
The operations of a company outside its home or domestic market are known as foreign
business.
5.
Foreign business refers to the operations of a company between its home market and
markets elsewhere in the world.
6.
An international company (IC) is a company headquartered in another nation.
7.
International business differs from domestic business in that a firm operating across
borders must deal with the forces of three kinds of environments—domestic, foreign, and
global.
8.
As used in the text, the term
environment
means all the forces influencing the life and
development of the firm.
9.
The external forces are commonly called
uncontrollable
forces
, which are the external
forces that management has no direct control over, although it can exert influence.
10.
The internal forces, such as the factors of production and the activities of the organization,
are called the
uncontrollable
forces
.
11.
The domestic environment is all the controllable forces originating in the home country
that surround and influence the life and development of the firm.
12.
The international environment refers to all the uncontrollable forces originating outside
the home country that surround and influence the firm.
13.
When an affiliate in one country does business with customers in another, it is operating
in the foreign environment.
14.
Those who work in the international environment find that decision making is more
complex than it is in a purely domestic environment.
15.
Unconscious reference to your own cultural values when judging behaviors of others in a
new and different environment is known as the self-reference criterion.
16.
While international business as a discipline is relatively new, international business as a
business practice is not.
17.
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.
18.
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.
19.
International trade has historically had a major influence on industry, agriculture, and the
economy of nations, but not on public health or politics.
20.
The 17th and 18th centuries have frequently been termed the
age
of
mercantilism
because
the power of nations depended directly on the sponsorship and control of merchant
capital, which expanded under the direct subsidization and protection of national
governments.
21.
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.
22.
Rapid urbanization of populations combined with industrialization in the emerging markets
is quickly shifting the world's economic center of gravity from Europe and the Americas
and back to Asia.
23.
Transnational corporations account for approximately 25 percent of total global output and
nearly 50 percent of world trade.
24.
Although they represent less than 1 percent of all transnational corporations, state-owned
transnationals account for more than 11 percent of the world's foreign direct investment.
25.
The five major kinds of drivers, all based on changes that are leading international firms to
the globalization of their operations, include political, sociocultural, technological, market,
and competitive drivers.
26.
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.
27.
Supporters of globalization generally argue that it is the best strategy for advancing the
world's economic development.
28.
Expanded international trade is linked with the creation of more and better jobs.
29.
Globalization has produced uneven results across nations and people.
1-14
30.
Opponents of free trade point out that globalization has contributed to a decline in
environmental and health conditions.
Multiple Choice Questions
31.
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
32.
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
33.
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 all of the following except
34.
A survey of CEOs of the 162 largest firms on
Fortune
's list of the 500 largest American
corporations found that for developing international skills, respondents believed that a
number of courses in the international business curriculum are relevant to their
companies, including courses on topics related to:
35.
As mentioned in the text, managers in companies with no foreign operations of any kind
still need a global perspective, for all of the following reasons except
36.
According to the text, you can improve your chances for obtaining an overseas post by
doing all of the following except
