Module 1 Quiz MGT-5362-850

When nations and corporations were ranked by GNI and total sales, respectively, for 2020, how many had GNI greater than the total annual sales of Walmart Stores?

23

When Georgio accepted a job in the U.S.-based subsidiary of his Spanish multinational company, he was surprised to learn that wage rates were

30 percent higher than the national average.

What company was the first to issue stock and is often identified as the world's first multinational corporation?

Dutch East India Company

What is one argument in support of globalization?

Free trade enhances economic development.

The construction industry has joined the ranks of other industries and now carries out business across national borders. In other words, the construction industry has become a(n)

international business.

The argument that free trade is the best strategy for advancing the world's economic development is considered

a proposition with which most economists agree.

An international manager has three choices when deciding how to employ a technique used in domestic operations to an international operation: transfer it intact, not use it, or

adapt it to local conditions.

A company that decides to engage in exporting as a way to increase economies of scale is basing this decision on which driver of international business activity?

cost In this situation, a cost driver is affecting the decision to conduct international business.

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

creates more and better jobs. Expanded trade is linked with the creation of more and better jobs. Between 1991 and 2020—a period of immense technological change and growth in trade—over 42 million more nonfarm jobs were created than were destroyed in the United States, an increase of 40 percent.

Gentille Manufacturing, based in California, recently purchased a new manufacturing facility and production equipment in Germany that it will use to produce component parts. This purchase is an example of

foreign direct investment

When a supplier to an original equipment manufacturer (e.g., a battery manufacturer supplying an automobile producer) follows its major customer to a new country, it is an example of a ________ driver of international business activity.

market Suppliers to original equipment manufacturers (battery manufacturers supplying automobile producers) often follow their large customers, reflecting a market driver for internationalization. These suppliers have an added advantage in that they are moving into new markets with a guaranteed customer base.

The 17th and 18th centuries have frequently been termed the "Age of Mercantilism" because

national power depended on the sponsorship and control of merchant capital.

The forces in the foreign environment differ from the domestic environment in that they originate

outside the firm's home country.

When a government sees that local industry is threatened by imports, it can threaten to erect import barriers to stop or reduce these imports. This is an example of a ________ driver of international business activity.

political

Kai was recently assigned to a management role in his company's overseas operation. He has been surprised several times when his employees responded negatively because they said he didn't take their culture into consideration when he made decisions. Kai is demonstrating a

self-reference criterion.

Jackson Control Corp. now uses video conferencing which helps the sales team demonstrate products to prospective international customers while eliminating expensive travel costs. Which of the five drivers of international business does this represent?

technological. Advances in computers and communications technology are permitting an increased flow of ideas and information across borders, enabling customers to learn about foreign goods. Internet videoconferencing allows sellers to demonstrate their products to prospective buyers all over the world without the need to travel. It also permits international companies to hold corporate meetings between managers from headquarters and overseas subsidiaries without expensive, time-consuming travel.

The kinds of forces in the foreign environment are ________ those in the domestic environment except that they occur in foreign nations.

the same as

Woodbine Millworks is frustrated with the lobbyists who are currently trying to influence Congress to raise taxes for all corporations in the wood products industry. In the environment of Woodbine Millworks, these lobbyists are an example of

uncontrollable forces.

________ refers to the transportation of any domestic good or service to a destination outside a country or region.

Exporting

An example of a political driver of globalization is

privatization of industries. There is a trend toward the unification and socialization of the global community. Preferential trading arrangements that group several nations into a single market, such as the North American Free Trade Agreement and the European Union, have presented firms with significant marketing opportunities. Many firms have moved swiftly to gain access to the combined markets of these trading partners, by either exporting to or producing in the area. Two other aspects of this trend are contributing to the globalization of business operations: (1) the progressive reduction of barriers to trade and foreign investment by most governments, which is hastening the opening of new markets by international firms that are both exporting to them and building production facilities in them, and (2) the privatization of much of the industry in formerly communist nations and the opening of their economies to global competition.