International Business Chapter 1
Companies internationalizing their operations to capture the supply of key raw materials is an example of a ________ driver.
Competitive
New firms, mainly from newly industrialized countries, entering the world markets in computers and electronics is an example of a _____ driver.
Competitive
Match the following external forces with the appropriate definition.
Competitive: Kinds and numbers of competitors and their activities Financial: variables such as interest rates, inflation rates and taxation. Economic: Variables such as gross national income, unit labor cost, and personal consumption expenditure. Legal: The many foreign and domestic laws governing operations. Political: Elements of nations' climates such as nationalism and forms of government Physical: Elements of nature such as topography, climate, and natural resources.
Factors of production and the activities of the organization are referred to as _________ forces.
Controllable
Self reference __________ is the unconscious reference to the one's own cultural values.
Criterion
Which of the following are trading firms was formed to carry out colonial activities in Asia and open ocean trade routes to the East?
Dutch East India Company
Means all the forces influencing the life and development of the firm
Environment
________ is the transportation of any domestic good to a destination outside a country.
Exporting
__________ business denotes the operations of a company outside its home market.
Foreign
What is the commonly used variable that measures where and how fast internationalization is taking place?
Foreign direct investment
International business differs from domestic because they must deal with the forces from which three of the following environments?
Foreign, international, domestic
The forces in the _____ environment that occur outside the firm's home country are the same as those in the _____ environment.
Foreign; domestic
_____ is the best strategy for advancing the world's economic development.
Free Trade
Which of the following statements are true regarding the link between free trade and jobs?
Free trade can cause companies to go out of business Free trade promotes more jobs. Free trade promotes new, better jobs
Which of the following are NOT arguments supporting globalization?
Free trade produces even results in every nation Free trade eliminates poverty
Which of the following are arguments supporting globalization?
Free trade promotes better and more jobs. Free trade enhances socioeconomic development
_________ is the transportation of any good into a country from a foreign origination point.
Importing
The levels of foreign direct investment and exporting have been _________ in recent years.
Increasing
A(n) ______ company is a company with operations in multiple nations.
International
_________ business is business that is carried out across national borders.
International
Which of the following are true regarding the international environment
It consists of interactions between the foreign environmental forces of two countries It involves the crossing of international borders. It consists of the interactions between the domestic environmental forces and the foreign environmental forces.
An accounting firm establishing foreign operations in markets where their principal accounts are located to prevent competitors from gaining access is an example of a ______ driver.
Market
Which empire had the effect of raising the cost of Asian trade for Europeans and drove the search for sea routes to Asia?
Ottoman
Which of the following are considered external forces?
Physical Competitive Economic Distributive
Preferential trading arrangements such as NAFTA and the European Union would be considered _________ drivers.
Political
Which of the following is true of a globalized product line?
Reduces production costs Reduces development costs Reduces inventory costs
Which of the following was a multinational company in the late 1800s?
Singer Sewing Machine
Which of the following regions have not experienced economic success despite efforts to liberalize and privatize its economies?
Sub-Saharan Africa Latin America
Which of the following statements are true regarding the Ottoman Empire?
The empire influenced the emerging trade routes for people, goods, and money that spanned from England to China. The empire spanned Europe, North Africa, and the Middle East The empire drove the search for sea routes to Asia, including the expeditions that discovered the Americas.
Which one of the worst natural disasters in history is associated with international trade?
The plague
Which of the following aspects are considered political drivers?
The privatization of much of the industry in formerly communist nations. The progressive reduction of barriers to trade and foreign investment by governments.
Which of the following aspects of unifying the global community are contributing to the globalization of business operations?
The progressive reduction of barriers to trade and foreign investment by governments The privatization of much of the industry in formerly communist nations.
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
Which of the following statements are true regarding the impact of globalization on labor?
US Companies moving abroad to avoid unionization has risen. Jobs will migrate to developing nations where labor costs are lower. Developing nations tend to have lower labor standards.
Which of the following adds complexity to foreign environments?
Unfamiliarity with other cultures
The _____ environment is all the _____ forces originating in the home country that surround and influence the development of the company.
domestic; uncontrollable
Global communications networks that enable manufacturing workers to coordinate production and design functions worldwide is an example of a ___________ driver.
technological
The external forces are commonly called ______ forces
uncontrollable
