Ch 1: challenges of Inat

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

forces in the foreign environment having different values.

Which environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm?

foreign

The forces in the ____________________ environment that occur outside a firm's home country are the same as those in the __________________ environment (that is, the environment of the home country).

foreign domestic

What commonly used variable measures where and how fast internationalization is taking place?

foreign direct investment

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

foreign direct investment

According to Theodore Levitt, ______ means selling the same thing in the same way everywhere in the world.

globilization

Economic globalization refers to the tendency toward an international integration and independency of which of the following? (Select all that apply.)

information technology labor capital goods

A(n) ______ company is a company with operations in multiple nations.

international

A company with operations in multiple nations is referred to as a(n): domestic company foreign business intranational company international company

international company

The forces in the foreign environments are often ______; that is, they are connected to one another.

interrelated

Which of the following foreign forces are especially difficult to assess? (check all that apply)

legal political

A supplier that moves locations to be closer to an original equipment manufacturer is an example of a _____ driver.

market

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

market

Which of the following markets are appealing to managers who face a mature, saturated market at home? (Check all that apply.)

markets with a rising population markets with a rising gross domestic product per capita markets whose economies are growing rapidly

Preferential trading arrangements such as NAFTA and the European Union are ______ drivers.

political

The trend toward the unification and socialization of the global community is considered a ______ driver.

political

Which of the following are contributing to the shift of the world's economic center of gravity back to Asia? (Check all that apply.)

rapid urbanization of populations industrialization in the emerging markets

Political

Elements of nations' climates such as nationalism and forms of government

Physical

Elements of nature such as topography, climate, and natural resources

Which of the following are benefits of a globalized product line? (Check all that apply.)

reduced production costs reduced inventory costs reduced development costs

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

self-reference criterion

The definition of international business includes: (check all that apply)

service industries international trade foreign manufacturing

Which of the following regions have not experienced economic success despite efforts to liberalize and privatize their economies? (Check all that apply.)

sub-Saharan Africa Latin America

Cable and satellite TV systems in Europe and Asia that allow an advertiser to reach numerous countries is an example of a _______ driver.

technological

A vast expansion of agricultural and industrial production in _____ stimulated the emergence of an internationally integrated trading system stretching from Asia to the Mediterranean and Africa.

China

Which country was the world's leading manufacturing country for about 1800 years until Britain became dominant in 1840?

China

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

Competitive

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.

transnational

The external forces are commonly called _________________ forces.

uncontrollable

Management has no direct control over _______, although it can exert influence over them.

uncontrollable forces

Foreign business denotes the operations of a company ________.

within a foreign country

True or false: A nation's GNI and a company's sales are directly comparable.

False

True or false: Domestic firms are entirely free from foreign or international environmental forces.

False

True or false: The vast proportion of most U.S. companies' potential customers are located within the United States.

False

How does the foreign environment operate differently than the domestic environment? (check all that apply)

Forces in the foreign environment have different values. Forces in the foreign environment are difficult to assess. Forces in the foreign environment are interrelated

Which one of the following was a multinational company by the 1920s? Microsoft Pillsbury Baking Ford Motor Winchester Repeating Arms Company

Ford Motor

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

Foreign

______ is the best strategy for advancing the world's economic development.

Free trade

Which of the following statements are true regarding the link between free trade and jobs? (Check all that apply.)

Free trade promotes more jobs. Free trade promotes new, better jobs. Free trade can cause companies to go out of business.

Which of the following statements reflect workers' fears regarding the impact of globalization on labor? (Check all that apply.)

Globalization reduces wages in the United States. U.S. companies have moved abroad to avoid unionization. Jobs migrate to developing nations where labor costs are lower.

Which of the following statements is true regarding gross national income?

Gross national income is a measure of value added, not sales.

Which of the following are negative affects of the North American Free Trade Agreement? (Check all that apply.)

Substantial increases in air pollution along the U.S.-Mexican border Substantial increases in ground water pollution along the U.S.-Mexican border Substantial increases in population along the U.S.-Mexican border

Which of following are considered external forces? (check all that apply) Technological Economic Distributive Physical Competitive Production

Technological Economic Distributive Physical Competitive

Which of the following are regional economic groupings of nations? (Check all that apply.) The North American Free Trade Agreement Mercosur OPEC The European Union The World Bank

The North American Free Trade Agreement Mercosur The European Union

Which of the following statements are true regarding the Ottoman Empire? (Check all that apply.) The empire spanned Europe, North Africa, and the Middle East. The empire influenced the emerging trade routes for people, goods, and money that spanned from England to China. Its central location had the effect of lowering the cost of Asian trade for European countries. The empire drove the search for sea routes to Asia, including the expeditions that discovered the Americas.

The empire spanned Europe, North Africa, and the Middle East. The empire influenced the emerging trade routes for people, goods, and money that spanned from England to China. The empire drove the search for sea routes to Asia, including the expeditions that discovered the Americas.

Leagal

The many foreign and domestic laws governing business operations

Which of the following factors are contributing to the globalization of business operations? (Check all that apply.)

The privatization of much of the industry in formerly communist nations The progressive reduction of barriers to trade and foreign investment by governments

Which of the following are true of state-owned transnational corporations? (Check all that apply.)

There is a minimum of 650 state-owned transnationals. State-owned transnationals come from both developing and developed countries. State-owned transnationals collectively have assets exceeding $2 trillion.

Choices that international managers have in deciding what to do with a concept employed in domestic operations:

Transfer it intact. Do not use it overseas. Adapt it to local conditions.

Which of the following statements are true of transnational corporations? (Check all that apply.)

Transnationals account for about half of world trade. Transnationals collectively account for 10% of world gross domestic product. Transnationals have approximately 900,000 foreign affiliates.

To ensure a continuous supply of raw materials, industrialized companies are sometimes forced to invest in the developing nations where most new deposits are being discovered.

True

Economic

Variables such as gross national income, unit labor cost, and personal consumption expenditure

Financial

Variables such as interest rates, inflation rates, and taxation

The liberalization of trade has been responsible for ________. (Check all that apply.)

an increase in political rights increased spending on public education greater civil liberties

Foreign forces are frequently difficult to ______.

assess

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

competitive

What are the five major drivers of internationalization listed in the text? (Check all that apply.)

competitive political cost market technological

Internal forces are also called ____________________ forces.

controllable

Production, finance, and marketing are all examples of ______ forces.

controllable

Management moving production or other parts of the company's value chain to countries where wages are lower is an example of ______ drivers.

cost

Which of the following statements reflects Theodore Levitt's definition of globalization? (Check all that apply.) creating worldwide markets for standardized products selling the same things in the same way everywhere adopting strategies that operate as if the entire world is a single entity catering and tailoring a product to local differences in taste

creating worldwide markets for standardized products selling the same things in the same way everywhere adopting strategies that operate as if the entire world is a single entity

Which of the following is NOT a major driver of internationalization?

cultural drivers

The world development indicators from the World Bank show that the number of people living in extreme poverty has _______.

declines

The ___________________________ environment is all the _____________________ forces originating in the home country that surround and influence the development of the company. Listen to the complete question

domestic controllable

International businesses differ from domestic businesses in that international businesses must deal with the forces from which three of the following environments? (Check all that apply)

domestic foreign international

A company's managers tend to be most familiar with the forces in the _______.

domestic environment

Free trade enhances ______ development.

economic

The term _____________________ means all the forces influencing the life and development of the firm.

environment

The forces influencing the life and development of the firm are classified into which two categories?

external internal

True or false: Domestic forces do not affect foreign operations.

false

Which of the following sectors of human life were profoundly impacted by international trade? (Check all that apply.) Agriculture Public health Arts Politics Ethnocentrism

Agriculture Public health Arts Politics

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

Black Death

Which of the following trading firms were established in the 1600s? (Check all that apply.)

British East India Company Dutch East India Company

Between 1992 and 2018, the United States saw an increase of nearly _____ in nonfarm jobs.

40%

Despite globalization, the number of people living in poverty in sub-Saharan Africa rose _____ between 1990 and 2013.

43%

Which of the following is an example of a domestic force affecting foreign operations?

A home country suffers a shortage of foreign currency, so its government restricts overseas investment. A union decides to call a strike at a domestic company, and the strike causes disruptions in the supply of parts to a company in another country

Which one of the following trading firms was formed to carry out colonial activities in Asia and to open ocean trade routes to the East? Ottoman Trading Company Dutch East India Company British East India Company Roman East Trading Company

Dutch East India Company

Which of the following statements are true regarding the growth in exports? (Check all that apply.)

In 2017, the total value of exported services was $5.3 trillion. Merchandise exports have grown faster than world output in nearly each of the past 60 years. Exports in 2017 were nine times larger than they were in 1980.

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

International

Which of the following statements are true regarding the international environment? (Check all that apply) It consists of interactions between the foreign environmental forces of two countries. It consists of the interactions between the domestic environmental forces and the foreign environmental forces. It consists of interactions between two or more domestic environmental forces. It involves only those activities that take place within a nation's borders.

It consists of interactions between the foreign environmental forces of two countries . It consists of the interactions between the domestic environmental forces and the foreign environmental forces

Which of the following statements are true regarding a transnational corporation? (Check all that apply)

It is composed of entities in more than one nation. It operates under a decision making system that allows coherent policies. It operates under a decision making system that allows a common strategy.

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

Singer Sewing Machine

Competitive

Kinds and number of competitors and their activities

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

Merchandise exports

Which empire raised the cost of Asian trade for Europeans and drove the search for sea routes to Asia?

Ottoman

Which of the following are political drivers that are leading firms to internationalize their operations? (Check all that apply.)

Preferential trade agreements like NAFTA The formation of the European Union

Which of the following international organizations affect the international market? (check all that apply) Commerce Bank World Bank European Union OPEC

World Bank European Union OPEC

Barriers to the free movement of a nation's people, such as mountain ranges, help maintain pockets of distinct cultures within a country, thus affecting a company's decision making. This scenario is an example of foreign forces _______.

being interrelated