Ch.1 GB

Why do company's globalize?

-market growth ($) -technological advances -political change (free trade) -additional resources (costs) -competition

The 7 dimensions for globalizing a business

1.Product 2.Market 3.Promotion 4.Location of value added(where you manufacture) 5.competitive strategy 6.use of non-home country personnel 7.ownership

Which of the following are identified in the text as being drivers of globalization? A. Technological B. Social C. Two of A, B, and D D. Economic E. All of A, B, and D

A. Technological

As stated in the text, an international business is: A. a business whose activities involve crossing national borders. B. the operations of a company outside its home or domestic market. C. an organization with multicountry affiliates that each formulate their own business strategy. D. an organization that attempts to standardize operations worldwide. E. all of the above.

A. a business whose activities involve crossing national borders.

The increased internationalization of business requires __________ to have a basic knowledge of international business. A. all managers B. managers of multinationals C. managers of transnationals D. managers of purely domestic operations E. none of A, B, C, or D

A. all managers

International business differs from domestic business in that a firm operating across borders must deal with: A. all of C, D, and E. B. two of C, D, and E. C. the foreign environment. D. the international environment. E. the domestic environment.

A. all of C, D, and E.

According to supporters of the globalization of trade and investment, free trade: A. creates more and better jobs. B. benefits all nations and workers. C. does not cause the loss of high-paying jobs. D. all of the above. E. two of A, B, and C.

A. creates more and better jobs.

The major globalization drivers include all of the following except: A. competitive. B. cultural. C. cost. D. market. E. none of the above. All of the above are major kinds of globalization drivers identified in the text.

B. cultural.

Due to the expanding importance of foreign-owned firms in local economies, host governments have made their policies toward these companies: A. more strict. B. more liberal. C. harsher. D. more confronting. E. two of the above.

B. more liberal.

The major globalization drivers include all of the following except: A. political. B. social. C. cost. D. market. E. none of the above. All of the above are major kinds of globalization drivers identified in the text.

B. social.

The kinds of forces in the foreign environment are __________ those in the domestic environment except that they occur in foreign nations. A. different from B. the same as C. less than D. more stringent than E. none of the above

B. the same as

Foreign subsidiaries must obey the local laws. If they don't, according to the text they are subject to: A. legal action by the host country. B. two of A, C, and D. C. seizure by the host government. D. cancellation by the parent company of its right to do business in the host country. E. all of A, C and D.

B. two of A, C, and D.

The worldwide stock of outward FDI is estimated to have increased _______ between 1990 and 2010. A. 3-fold B. 5-fold C. 9-fold D. 12-fold E. 17-fold

C. 9-fold

_______ refers to the transportation of any domestic good or service to a destination outside a country or region. A. Importing B. Foreign direct investment C. Exporting D. International business E. None of the above

C. Exporting

International business really began: A. with the East India Company, chartered in 1600. B. when Singer Sewing Machine put up a factory in Scotland in 1868. C. before the time of Christ. D. when Colt Fire Arms set up a plant in England. E. when the Ottoman Empire was established.

C. before the time of Christ.

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: A. internationalization. B. international business. C. economic globalization. D. multinationalization. E. global integration.

C. economic globalization.

The domestic environment is composed of all the uncontrollable forces originating in the __________ that surround and influence the life and development of the firm. A. international arena B. host nation C. home country D. foreign country E. two of the above.

C. home country

Decision making in the international environment is __________ it is in a purely domestic environment. A. less complex than B. less demanding than C. more complex than D. about the same as E. two of the above

C. more complex than

Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called: A. self-reference culture. B. self-reference values. C. self-reference criterion. D. self-reference customs. E. self-reference environment.

C. self-reference criterion.

Historically, international business: A. is relatively new as a discipline and as a business practice. B. existed before the time of Christ. C. two of A, B, and D. D. was influenced by the rise of the Ottoman Empire. E. none of the above.

C. two of A, B, and D.

UNCTAD, an agency of the United Nations, estimates there are __________ international firms in the world. A. 5,500 B. 12,000 C. 64,000 D. 82,000 E. over 800,000

D. 82,000

Reasons for international firms to enter into foreign markets are linked to which of the following desires? A. Increased sales and reduced costs B. Protecting sales and profits from being eroded by competitors C. Creation of new markets. D. All of the above. E. Two of A, B, and C.

D. All of the above.

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: A. an introduction to international business. B. international strategy and competitiveness. C. international legal and political issues. D. all of the above. E. two of A, B, and C.

D. all of the above.

According to opponents of the globalization of trade and investment: 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. D. all of the above. E. two of A, B and C.

D. all of the above.

If you already have a job, you can enhance your opportunities for international experience by: 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. D. all of the above. E. two of A, B, and C.

D. all of the above.

A global company is: A. a business whose activities involve crossing national borders. B. the domestic operations within a foreign country. C. an organization with multicountry affiliates. D. an organization that attempts to standardize operations worldwide. E. two of the above.

D. an organization that attempts to standardize operations worldwide.

A multidomestic company is: A. none of B, C, D, or E. B. a business whose activities involve crossing national borders. C. the domestic operations within a foreign country. D. an organization with multicountry affiliates. E. an organization that attempts to standardize operations worldwide.

D. an organization with multicountry affiliates

Examples of the kinds of uncontrollable forces listed in the text are: A. competitive. B. technological. C. personnel. D. two of the above. E. all of A, B, and C.

D. two of the above.

Foreign environmental forces often operate differently than domestic environmental forces because: A. they are uncontrollable. B. force values are different. C. changes are difficult to assess. D. two of the above. E. all of A, B, and C.

D. two of the above.

The international environment is the interactions between: A. the domestic environmental forces and the foreign environmental forces. B. the domestic controllable forces and the domestic uncontrollable forces. C. the foreign environmental forces of two countries when an affiliate in one country does business in another country. D. two of the above. E. all of A, B, and C.

D. two of the above.

Environment as used in the textbook is the forces surrounding and influencing the life and development of the firm and is classified as: A. controllable or uncontrollable. B. domestic or foreign. C. internal or external. D. all of the above. E. A and C.

E. A and C.

International business differs from domestic business in that a firm operating across borders must deal with what environmental forces? A. International B. Foreign C. Political D. Competitive E. Two of the above

E. Two of the above

The international business manager can choose to: A. transfer a management practice intact. B. transfer and adjust a management practice. C. not transfer a management practice at all. D. two of A, B, and C. E. all of A, B, and C.

E. all of A, B, and C.

__________ was the world's leading manufacturing country for about 1,800 years, until it was replaced by Britain in about 1840. A. The United States B. Germany C. India D. France E. none of the above.

E. none of the above.

According to the text, the reasons international firms enter foreign markets are linked to: A. the desire to increase profits and sales. B. the desire to invest excess capital from domestic markets. C. the desire to protect profits and sales from being eroded by competitors. D. all of the above. E. two of A, B and C.

E. two of A, B and C.

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: A. an international orientation should be an important part of college business education. B. international business skills and knowledge were important for promotion to senior executive positions but not for appointment to entry-level positions. 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. D. all of the above. E. two of A, B, and C.

E. two of A, B, and C.

According to the text, personnel working in a foreign subsidiary are working in the international environment: A. if they work and live in the foreign subsidiary's country. B. if they are responsible for the subsidiary's exports. C. if they are also responsible for the management of another foreign subsidiary. D. all of the above. E. two of A, B, and C.

E. two of A, B, and C.

According to the text, political drivers of globalization include: A. preferential trading agreements. B. reduction of barriers to trade and foreign investment. C. nationalization of much of the industry in formerly communist nations. D. all of the above. E. two of A, B, and C.

E. two of A, B, and C.

According to the text, the dimensions along which management can globalize (standardize) their company's international activities include: A. markets. B. competitive strategy. C. political exposure. D. all of the above. E. two of A, B, and C.

E. two of A, B, and C.

An international company is: A. a global company. B. amultidomestic company. C. an affiliated company. D. all of the above. E. two of A, B, and C.

E. two of A, B, and C.

Management has no direct control over the external environment of the firm but can exert influence by: A. heavy promotion of new products to change cultural attitudes. B. only competing in the domestic market. C. lobbying. D. all of the above. E. two of A, B, and C.

E. two of A, B, and C.

Opponents of globalization argue that globalization has produced: A. more and better jobs. B. deleterious effects on labor and labor standards. C. uneven results across nations and people. D. all of the above. E. two of A, B, and C.

E. two of A, B, and C.

The forces over which management does have some command are called: A. internal. B. controllable. C. foreign. D. external E. two of the above.

E. two of the above.

controllable forces

Internal forces that management administers to adapt to changes in the uncontrollable forces

How do company's do it?

Standardization -----------------Customization

Managers in global market

domestic/ international a lot of work and decisions global managers must know and face

Uncontrollable forces

external forces over which management has no direct control

Globalization

the tendency toward an international integration of goods, technology, information, labor, and capital, or the process of making this integration happen. pros: variety/opinions/lower prices socioeconomic development more & better obs Cons: Uneven results across people/nations environmental harm deleterious effect on labor standards