Int Mgmt 3150: Chapter 1
Which of the following BEST describes the difference between a multinational corporation and a multinational organization?
A multinational organization is an organization that has involvement in multiple countries and may be for-profit or not-for-profit; a multinational corporation is a for-profit organization that has involvement in multiple countries.
Which of the following describes a difference between international and domestic business?
Domestic business involves transactions that use one currency; international business involves transactions that use multiple currencies.
Which of the following is a type of international investment that involves the purchase of foreign financial assets for a purpose other than control?
Foreign portfolio investment
Walmart is based in the United States. Walmart opens a store in Alberta, Canada. Which of the following best describes Canada's relationship with Walmart?
Host country
Jose's company agrees to operate facilities for a firm in another country for an agreed-upon fee. This is an example of which of the following?
International management contract
A core competency is a(n) ________.
distinctive strength or advantage that is central to a firm's operations
The purchase of all the common stock of the UK's Cadbury PLC by Kraft is an example of _____________________.
foreign direct investment
International trade and investment declined throughout the 1930s as a result of _______________.
increased tariffs and quotas
What are the BRIC countries?
Brazil, Russia, India, and China
A country whose recent growth or prospects for future growth exceed that of traditional markets is known as which of the following?
Emerging market
During the Cold War between the United States and the Soviet Union, many scholars divided the world into three regions. Which of the following BEST describes the difference between a First World nation and a Third World nation?
First World nations were wealthy and usually had political and economic ties to the United States; Third World nations were poor and were primarily located in Africa, Asia, and Latin America.
ABC Medical Products acquires 51 percent of XYZ Productos Medicos, a Mexican corporation. Which of the following is this an example of?
Foreign direct investment (FDI)
Buying products made in other countries for use or resale in one's own country is known as which of the following?
Importing
Which of the following is TRUE regarding international business expansion?
International business expansion has led to an expansion of business activity into new markets previously insulated from the international marketplace.
Jamal's company sells the rights to use its logo to a foreign company. This is an example of which of the following?
International licensing
Which of the following describes a primary difference between international licensing and international franchising?
International licensing involves only intellectual property such as patents, trademarks, brand names, and copyrights; international franchising involves operating systems as well.
The firms in which country pioneered just-in-time inventory management techniques?
Japan
Which is NOT one of the elements of the model developed by Pankaj Ghemawat, of IESE Business School in Barcelona, as a useful framework for understanding the operating challenges facing international businesses because of national differences?
Labor distance
Melanie works in the United States selling computer hardware to a company in Germany. This is known as which of the following?
Merchandise export
Which of the following BEST describes the difference between merchandise import and service import?
Merchandise import involves purchasing tangible items from a foreign company; service import involves purchasing intangible products from a foreign company.
Stephanie works for a company that has branches in more than 50 countries. Her company can best be described as which of the following?
Multinational corporation
Which of the following is FALSE regarding emerging markets?
There is a universally accepted definition of the countries to be included in the emerging markets category.
Which of the following is NOT a reason that has compelled firms to become more global?
To improve the probability of being acquired
When Denzel's firm authorizes a firm in a second country to use its patents, the firm is engaging in ________________________.
international licensing activities
In the United Kingdom, service exports and imports such as banking, travel, and accounting activities are known as ________ trade.
invisible
