International Business Chapter 1 Quiz
A company that adopts a global perspective and engages in international business from or near its inception is known as a(n) ____________.
Born Global Firm
Operating across borders and time zones could complicate the job of coordinating and controlling international business activities especially for smaller firms. To operate more efficiently, international companies tend to ________.
Accelerate the use of technology, email, video conferencing, the Internet, and intranets.
International business refers to ________.
Any commercial transaction that crosses the borders of two or more nations
The opponents of globalization argue that freer trade and investment allows international companies to ________.
Close factories in high-wage-area developed nations and move them to low-wage developing countries
________________are the two main forces that underlie the globalization of markets and production.
Falling barriers to trade and investment and technological innovation
The main purpose for establishing regional trade agreements such as NAFTA and APEC is to ________.
Foster trade and boost cross-border investment
The revision in 1994 of the GATT clearly defined intellectual property rights in order to ________.
Give more protection to copyrights, trademarks, and patents
________ is the name we give to the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.
Globalization
Which one of the following best describes the sourcing of key production inputs, such as raw materials or products, for assembly as well as the international outsourcing of services?
Globalization of Production
The convergence in buyer preferences in countries around the world is referred to as ________.
Globalization of markets
Japan's largest paper company, Nippon Seishi, has decided to own huge forests and corresponding processing facilities in Australia, Canada, and the U.S. so it can ________.
Guarantee a steady flow of its wood pulp
Multinational corporations are key players in international business and can be described as companies that __________.
Have direct investments in the form of marketing or manufacturing subsidiaries abroad in multiple countries
The ____________ is an agency that was created to regulate fixed exchange rates and to enforce the rules of the international monetary system?
International Monetary Fund (IMF)
A firm that produces a product with universal but seasonal appeal and is trying to level its income stream and reduce or eliminate wide variations in domestic sales can supplement its domestic sales with ________.
International Sales
Globalization of markets can benefit companies that sell a global product and creates new market opportunities abroad especially if their home market _________.
Is small or becoming saturated
Which of the following is a major flaw of the original GATT?
It lacked the power to enforce trade rules.
Globalization supporters argue that globalization increases wealth and efficiency in both developed and underdeveloped nations because of ______________.
Openness to international trade increases national production
The power of the WTO that sets it apart from the GATT is its capability to ______________.
Penalize offending nations and the power to settle trade disputes
Companies that sell global products can standardize certain market activities in order to ________.
Reduce marketing costs
Some of the critics of globalization argue that the relentless pursuit of low-cost goods has led to ________.
Sending manufacturing jobs abroad
Opposition groups allege that globalization empowers organizations erodes the ________.
Sovereignty of a nation
A firm is less likely to offer a standardized product globally when __________.
The benefit of serving the customers with an adapted product may outweigh the benefit of a standardized product
The globalization impact on the gap between rich and poor nations varies. One group of nations, such as China and India, is closing the gap with rich economies while a second group of poor countries is falling further behind, such as most countries in Africa. On closer inspection this is due to which one of the following?
The level of embracing globalization by developing countries
Why do most international firms today support reasonable environmental laws?
They recognize that healthy future markets require a sustainable approach to the business expansion for future local markets for their goods and services.
Why do companies typically produce goods and services abroad?
To reduce their overall labor costs