Int Bus Mid Ch 1

Environment as used in the textbook is the forces surrounding and influencing the life and development of the firm and is classified as:

A and C. (controllable or uncontrollable; internal or external)

According to opponents of the globalization of trade and investment:

All of the Above 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.

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.

Cultural

Examples of the kinds of uncontrollable forces listed in the text are:

D. two of the above. (competitive; technological)

According to the text, environmental elements over which management does have some control—including competitive, labor, and financial forces—are called internal forces. T/F

False

According to the text, the international environment is all of the uncontrollable forces originating outside the home country that surround and influence the firm. T/F

False

External environmental forces are commonly referred to as controllable. T/F

False

Opponents of globalization argue that globalization has contributed to an improvement in environmental and health conditions. T/F

False

The United States has only about 10 percent of the world's population, so the vast proportion of most companies' potential customers are located elsewhere. T/F

False

The forces in the international environment are the same as those in the domestic environment except that they occur in foreign nations. T/F

False

The international environment is composed of all the uncontrollable forces that surround and influence the firm's life and development. T/F

False

Uncontrollable forces are external forces over which management cannot exert any influence. T/F

False

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.

Social

Which of the following are identified in the text as being drivers of globalization?

Technological

According to the text, the domestic environment is all of the uncontrollable forces originating in the home country that surround and influence the firm's life and development. T/F

True

External forces in the international business environment are commonly called uncontrollable forces. T/F

True

Globalization has produced uneven results across nations and people. T/F

True

Internal environmental forces are commonly referred to as controllable. T/F

True

Opponents of free trade point out that globalization has contributed to a decline in environmental and health conditions. T/F

True

Supporters of globalization generally argue that it is the best strategy for advancing the world's economic development. T/F

True

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 economic globalization. T/F

True

There are five major kinds of globalization drivers, all based on changes that are leading international firms to the globalization of their operations. T/F

True

According to supporters of the globalization of trade and investment, free trade:

creates more and better jobs.

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:

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.

home country

Opponents of globalization argue that globalization has produced

two of A, B, and C (deleterious effects on labor and labor standards; uneven results across nations and people)

According to the text, political drivers of globalization include:

two of A, B, and C. (preferential trading agreements; reduction of barriers to trade and foreign investment)

The forces over which management does have some command are called:

two of the above (controllable; internal)

The international environment is the interactions between

two of the above. (the domestic environmental forces and the foreign environmental forces; the foreign environmental forces of two countries when an affiliate in one country does business in another country.)