Intro to International Bus - Module 1

A common cause of the added complexity of foreign environments is managers' unfamiliarity with other cultures and is called self-reference syndrome.

False

According to the text, reduction of barriers to trade and foreign investment is an example of a competitive driver of globalization.

False

An international 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.

False

As used in the text, the term environment means all the forces influencing the life and development of the firm within the international realm.

False

International business differs from domestic business in that a firm operating across borders must deal with the forces of two kinds of environments—domestic and foreign.

False

Multinational firms first appeared after World War I, and the level of intracompany trade of multinationals in 1930, as a percentage of overall world trade, was nearly half the level achieved at the end of the 20th century.

False

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

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.

False

The expanding importance of foreign-owned firms in local economies has come to be viewed by a number of governments as a threat to their autonomy. As a result, in recent years there has been a marked increase in the number of government policies and attitudes intended to limit and control foreign investment in both developed and developing nations.

False

The five major kinds of drivers, all based on changes that are leading international firms to the globalization of their operations, include geographic forces.

False

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

False

The international environment is composed of all the uncontrollable forces that surround and influence the firm's life and development

False

The late Professor C. K. Prahalad suggested that the approximately 3 billion of the world's poorest inhabitants who survive on less than $2 per day should be viewed as victims of capitalism.

False

The vast majority of transnational corporations are privately owned, under government ownership.

False

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

False

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

False

ina was the world's leading manufacturing country for about 1,800 years, until it was replaced by the United States at the end of the 1800s.

False

Data have shown a clear and definitive link between liberalization of trade and economic growth.

True

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

True

If you already have a job, you can enhance your opportunities for international experience by taking additional international business courses and making sure that people in your company know what you are doing.

True