Module 1
Between 1992 and 2018, the United States saw an increase of nearly _____ in nonfarm jobs. 75% 40% 60% 80%
40%
Despite globalization, the number of people living in poverty in sub-Saharan Africa rose _____ between 1990 and 2013. 67% 78% 43% 22%
43%
Which of the following trading firms were established in the 1600s? (Check all that apply.) Roman East Trading Company British East India Company Dutch East India Company Ottoman Trading Company
British East India Company Dutch East India Company
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 Egypt India Persia
China
Which country was the world's leading manufacturing country for about 1800 years until Britain became dominant in 1840? China Mongolia India Italy
China
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? Dutch East India Company Roman East Trading Company Ottoman Trading Company British East India Company
Dutch East India Company
True or false: The levels of foreign direct investment and exporting have been decreasing rapidly in recent years. True False
False
How does the foreign environment operate differently than the domestic environment? (Check all that apply.) Forces in the foreign environment are interrelated. Forces in the foreign environment are more easily controlled. Forces in the foreign environment are difficult to assess. Forces in the foreign environment have different values.
Forces in the foreign environment are interrelated. Forces in the foreign environment are difficult to assess. Forces in the foreign environment have different values.
Which one of the following was a multinational company by the 1920s? Pillsbury Baking Microsoft Winchester Repeating Arms Company Ford Motor
Ford Motor
______ business denotes the operations of a company outside its home market. Foreign Domicile International Domestic
Foreign
______ is the best strategy for advancing the world's economic development. Tariffs Free trade Trade protectionism Political restraint
Free trade
Which of the following statements are true regarding the link between free trade and jobs? (Check all that apply.) Free trade stifles economic growth and expansion. Free trade promotes new, better jobs. Free trade promotes more jobs. Free trade can cause companies to go out of business.
Free trade promotes new, better jobs. Free trade promotes more jobs. Free trade can cause companies to go out of business.
Which of the following are typical arguments against globalization? (check all that apply) Globalization has been linked to a decline in environmental conditions. Globalization has worsened labor standards. Globalization produces uneven results across nations. Globalization produces friction between nations.
Globalization has been linked to a decline in environmental conditions. Globalization has worsened labor standards. Globalization produces uneven results across nations.
Which of the following is NOT typically an argument against globalization? Globalization has decreased efficiency. Globalization has been linked to a decline in health conditions. Globalization has a negative impact on labor. Globalization produces uneven results across people.
Globalization has decreased efficiency.
Which empire raised the cost of Asian trade for Europeans and drove the search for sea routes to Asia? Roman Greek Mongolian Ottoman
Ottoman
The levels of foreign direct investment and exporting have been ______ in recent years. remaining the same decreasing increasing
increasing
Which of the following regions have not experienced economic success despite efforts to liberalize and privatize their economies? (Check all that apply.) Latin America Eastern Europe sub-Saharan Africa Asia
Latin America sub-Saharan Africa
The forces influencing the life and development of the firm are classified into which two categories? unilateral multilateral internal external
internal external
The environment _______ consists of interactions between the domestic environmental forces and the foreign environmental forces.
international
_________ business is business that is carried out across national borders.
international
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 Ford Motor Company Winchester Repeating Arms Company General Motors
Singer Sewing Machine
Which of the following international organizations affect the international market? (Check all that apply.) The European Union The OPEC The Commerce Bank The World Bank
The European Union The OPEC The World Bank
Which of the following are regional economic groupings of nations? (Check all that apply.) The North American Free Trade Agreement The World Bank Mercosur The European Union OPEC
The North American Free Trade Agreement Mercosur The European Union
Economic globalization refers to the tendency toward an international integration and independency of which of the following? (Select all that apply.) labor technology governments capital information goods
labor technology capital information goods
A supplier that moves locations to be closer to an original equipment manufacturer is an example of a _____ driver. market political production competitive
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. political cost competitive market
market
A company defending its home market by entering the competitor's home market is an example of a ______ driver. competitive political cost production
competitive
New firms, mainly from newly industrialized countries, entering the world markets in computers and electronics is an example of a ______ driver. cost political competitive technological
competitive
A manager's unfamiliarity with other cultures adds to the ________ of foreign environments. complexity accessibility value controllability
complexity
Management moving production or other parts of the company's value chain to countries where wages are lower is an example of ______ drivers. competitive political market cost
cost
What are the five major drivers of internationalization listed in the text? (Check all that apply.) cost market competitive time political technological
cost market competitive political technological
The self-reference ________ is the unconscious reference to the one's own cultural values.
criterion
Which of the following is NOT a major driver of internationalization? competitive drivers technological drivers cultural drivers market drivers
cultural drivers
The environment _______ is all the _______ forces originating in the home country that surround and influence the development of the company.
domestic uncontrollable
A company's managers tend to be most familiar with the forces in the _______. domestic environment international environment uncontrollable category foreign regulatory environment
domestic environment
Free trade enhances ______ development. political physical economic cultural
economic
The tendency toward international integration and interdependency of goods, technology, information, labor, and capital is called ______. domestication economic globalization international business free trade
economic globalization
The term ________ means all the forces influencing the life and development of the firm.
environment
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. forces in the foreign environment being easily controlled. forces in the foreign environment being difficult to assess. forces in the foreign environment being interrelated.
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 domestic multinational international
foreign
What commonly used variable measures where and how fast internationalization is taking place? gross domestic product foreign direct investment gross national income total annual sales
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? gross national investment international monetary fund foreign direct investment gross national income
foreign direct investment
Preferential trading arrangements such as NAFTA and the European Union are ______ drivers. market competitive cost political
political
The trend toward the unification and socialization of the global community is considered a ______ driver. cost market competitive political
political
What is the unconscious reference to your own values when judging behaviors of others in a new and different environment? self-reference criterion self-inference bias social bias cultural stereotype
self-reference criterion
The definition of international business includes: (check all that apply) domestic trade service industries international trade foreign manufacturing
service industries international trade foreign manufacturing
Cable and satellite TV systems in Europe and Asia that allow an advertiser to reach numerous countries is an example of a _______ driver. technological market competitive political
technological
Global communications networks that enable manufacturing workers to coordinate production and design functions worldwide are an example of a(n) ________ driver.
technological
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. intrastate domestic transnational foreign
transnational
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 domestic foreign intrastate
transnational
The external forces are commonly _______ forces.
uncontrollable
Management has no direct control over _______, although it can exert influence over them. uncontrollable forces domestic forces unchangeable forces internal forces
uncontrollable forces
Foreign business denotes the operations of a company ________. within a foreign country within its borders with a company in a related line of business with its domestic business partners
within a foreign country
Which one of the worst natural disasters in history is associated with international trade? Black Death typhoid malaria smallpox
Black Death
Which of the following statements are true regarding the international environment? (Check all that apply.) It involves only those activities that take place within a nation's borders. 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 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 the foreign environmental forces of two countries.
Which of the following statements are true regarding a transnational corporation? (Check all that apply) It operates under a decision making system that allows coherent policies. It operates under a decision making system that allows a common strategy. It is composed of entities in more than one nation. It is made up of only one entity in a foreign nation.
It operates under a decision making system that allows coherent policies. It operates under a decision making system that allows a common strategy. It is composed of entities in more than one nation.
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. Its central location had the effect of lowering the cost of Asian trade for European countries. 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.
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.
Which of the following adds complexity to foreign environments? Laws that are similar to those in the home environment Controllability of values Unfamiliarity with other cultures Friendly relations between countries
Unfamiliarity with other cultures
The Black Death is an an example of trade affecting ______. politics economics public health agriculture
public health
Which of the following are benefits of a globalized product line? (Check all that apply.) reduced inventory costs reduced development costs reduced gross national income reduced production costs
reduced inventory costs reduced development costs reduced production costs