BUSI Mod 1 learnsmart
What term is used when large insurance, banking, or software firms transmit computer-oriented tasks worldwide to a cheap, but skilled labor force?
"body shop"
Between 1991 and 2020, the United States saw an increase of nearly ______ in nonfarm jobs.
40%
Which one of the worst natural disasters in history is associated with international trade?
Black Death
True or False: The COVID-19 global pandemic cemented the notion that countries can and should be self-reliant for the goods and services its economies require.
False
True or false: The levels of foreign direct investment and exporting have been decreasing rapidly in recent years.
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 have different values Forces in the foreign environment are difficult to assess.
Which one of the following was a multinational company by the 1920s?
Ford Motor Company
Which of the following are typical arguments against globalization? (check all that apply)
Globalization has been linked to a decline in environmental conditions. Globalization produces uneven results across nations. Globalization has worsened labor standards.
Which of the following is NOT typically an argument against globalization?
Globalization has decreased efficiency.
Which statement is true regarding gross national income?
Gross national income is a measure of value added, not sales.
What two statements are true regarding the international environment?
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.
Which statements are true regarding a multinational enterprise (MNE)? (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.
______ have grown faster than world output in nearly each of the past 60 years.
Merchandise exports
Which three international organizations affect the international market?
The European Union OPEC The World Bank
Which factor adds complexity to foreign environments?
Unfamiliarity with other cultures
In the aftermath of the COVID-19 global pandemic, what have critics proposed in order to reduce nations' vulnerability?
a de-globalization of markets
Barriers to the free movement of a nation's people, such as mountain ranges, help maintain pockets of distinct cultures within a country, thus affecting a company's decision making. This scenario is an example of foreign forces
being interrelated
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
A manager's unfamiliarity with other cultures adds to the ______ of foreign environments.
complexity
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?
cultural drivers
Which environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm?
foreign
What commonly used variable measures where and how fast internationalization is taking place?
foreign direct investment
The definition of international business includes: (check all that apply)
foreign manufacturing international trade service industries
The liberalization of trade has been responsible for:
increased spending on public education. greater levels of political rights. greater levels of civil liberties.
A business that is carried out across national borders is referred to as a(n) ______ business.
international
A(n) ______ company is a company with operations in multiple nations.
international
In which environment is decision making most complex?
international
The ____________ environment consists of interactions between the domestic environmental forces and the foreign environmental forces.
international
A company with operations in multiple nations is referred to as a(n)
international company.
The forces in the foreign environments are often ______; that is, they are connected to one another.
interrelated
Which of the following regions have not experienced economic success despite efforts to liberalize and privatize their economies? (Check all that apply.)
sub-Saharan Africa Latin America
Foreign business denotes the operations of a company
within a foreign country
Despite globalization, the number of people living in extreme poverty in sub-Saharan Africa rose nearly ______ between 1990 and 2018.
50%
In international business, which of the following is typically NOT a choice international managers have in deciding what to do with a concept employed in domestic operations?
Change the national culture
Which country was the world's leading manufacturing country for about 1800 years until Britain became dominant in 1840?
China
Match the following external forces with the appropriate definition. Instructions
Competitive: Kinds and number 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 business operations Political: Elements of nations' climates such as nationalism and forms of government Physical: Elements of nature such as topography, climate, and natural resources
Which of the following statements reflect workers' fears regarding the impact of globalization on labor?
Developing countries fear the imposition of demanding labor standards within their borders will be a barrier to free trade Workers in developed countries fear that jobs migrate to developing nations where labor costs are lower. Globalization reduces wages in the United States.
In international business, what are the three choices international managers have in deciding what to do with a concept employed in domestic operations? (Check three.)
Do not use it overseas. Adapt it to local conditions. Transfer it intact.
The first company to issue stock, _____ is also frequently identified as the world's first multinational corporation.
Dutch East India Company
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
What two trading firms were established in the 1600s? (Check all that apply.)
Dutch East India Company British East India Company
Which of following are considered external forces? (check all that apply)
Economic Physical Technological Competitive Distributive
_____ is the transportation of any domestic good to a destination outside a country. ______ is the transportation of any good into a country from a foreign origination point.
Exporting; importing
True or false: The rise of international commerce did not have much of an effect on society as a whole.
FALSE
is the best strategy for advancing the world's economic development.
Free trade
Which statements are true regarding the link between free trade and jobs? (Check all that apply.)
Free trade promotes new, better jobs. Free trade promotes more jobs. Free trade can cause companies to go out of business.
Which statements are true of multinational enterprises (MNEs)? (Check all that apply.)
MNEs have approximately 900,000 foreign affiliates. State-owned MNEs are found in both developing and developed countries MNEs account for more than half of world trade.
Which three statements are true regarding the growth in exports?
Merchandise exports have grown faster than world output in nearly each of the past 60 years. In 2019, the total value of exported services was $6.1 trillion. Exports in 2018 were ten times larger than they were in 1980.
Which empire raised the cost of Asian trade for Europeans and drove the search for sea routes to Asia?
Ottoman
Which sectors of human life were profoundly impacted by the emerging international trading system? (Check all that apply.)
Politics Public health Arts Agriculture
What 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 Manufacturing Company
Which three statements are true of state-owned multinational enterprises (MNEs)?
State-owned MNEs have more than 8,500 affiliates. State-owned MNEs come from both developing and developed countries. There is a minimum of 650 state-owned MNEs.
Which of the following are negative affects of the North American Free Trade Agreement? (Check all that apply.)
Substantial increases in ground water pollution along the U.S.-Mexican border Substantial increases in air pollution along the U.S.-Mexican border Substantial increases in population along the U.S.-Mexican border
Which of the following are regional economic groupings of nations? (Check all that apply.)
The North American Free Trade Agreement Mercosur The European Union
Which statements are true regarding the Ottoman Empire? (Check all that apply.)
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 two factors are contributing to the globalization of business operations?
The privatization of much of the industry in formerly communist nations The progressive reduction of barriers to trade and foreign investment by governments
Foreign forces are frequently difficult to
asses
A company defending its home market by entering the competitor's home market is an example of a ______ driver.
competitive
A company investing in a downstream market as a way to protect its existing international business is an example of a ______ driver.
competitive
An OPEC nation investing in filling stations in a foreign country to guarantee a market for its crude oil at a more favorable price is an example of a ______ driver.
competitive
Companies internationalizing their operations to guarantee a 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
Internal forces are also called forces.
controllable
Production, finance, and marketing are all examples of _____ forces.
controllable
Management moving production or other parts of the company's value chain to countries where wages are lower is an example of ______ drivers.
cost
The world development indicators from the World Bank show that the number of people living in extreme poverty has:
declined from 35 percent of the world's population in 1990 to 10.7 percent in 2013.
The ______ environment is all the ______ forces originating in the home country that surround and influence the life and development of the company
domestic; uncontrollable
Free trade enhances ______ development.
economic
The tendency toward international integration and interdependency of goods, technology, information, labor, and capital is called ______.
economic globalization
True or false: A nation's GNI and a company's sales are directly comparable.
false
True or false: Decision making in a purely domestic environment is typically more complex than it is in an international environment.
false
True or false: Importing is the transportation of any domestic good to a destination outside a country.
false
True or false: The vast proportion of most U.S. companies' potential customers are located within the United States
false
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.
What term refers to direct investments in equipment, structures, and organizations in a foreign country at a level sufficient to obtain significant management control?
foreign direct investment
The ______ environment refers to all the ______ forces originating outside the home country that surround and influence the firm.
foreign; uncontrollable
Critics of __ state that it helped fueled the COVID-19 global pandemic.
globalization
Which of the following foreign forces are especially difficult to assess? (check all that apply)
legal political
Data suggest that the liberation of trade has improved Blank______. (check all that apply)
life expectancy health poverty rate education
A supplier that moves locations to be closer to an original equipment manufacturer is an example of a ______ driver.
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.
market
An accounting firm establishing foreign operations in markets where their principal accounts are located to prevent competitors from gaining access to these accounts is an example of a ______ driver.
market
Select the five major drivers of internationalization listed in the text.
market cost political competitive technological
Which of the following markets are appealing to managers who face a mature, saturated market at home? (Check all that apply.)
markets whose economies are growing rapidly markets with a rising population markets with a rising gross domestic product per capita
Labor standards in developed nations tend to be ______ than in developing nations.
more rigorous
A corporation that owns or controls the production of goods or services in at least one nation outside its home nation is referred to as a(n) ______ corporation.
multinational
A _____ is a company made up of entities in more than one nation, operating under a decision-making system that allows a common strategy and coherent policies.
multinational enterprise (MNE)
What two factors have enabled small companies to compete globally because they make possible the rapid flow of information regardless of physical location?
network computing the Internet
Preferential trading arrangements such as the USMCA and the European Union are______ drivers.
political
The progressive reduction of barriers to trade and foreign investment by most governments and the privatization of much of the industry in formerly communist nations are ______ drivers to the globalization of business operations.
political
The trend toward the unification and socialization of the global community is considered a ______ driver.
political
The Black Death is an an example of trade affecting
public health
Which of the following are benefits of a globalized product line? (Check all that apply.)
reduced production costs reduced development costs reduced inventory costs
What term refers to the unconscious reference to your own values when judging behaviors of others in a new and different environment?
self-reference criterion
Which of the following is NOT a negative effect of the North American Free Trade Agreement?
substantial decrease in production facilities along the U.S.-Mexican border
Cable and satellite TV systems in Europe and Asia that allow an advertiser to reach numerous countries is an example of a _____ driver.
technological
Global communications networks that enable manufacturing workers to coordinate production and design functions worldwide are an example of ________a(n) driver.
technological
Economic globalization refers to the tendency toward an international integration and independency of which of the following? (Select all that apply.)
technology information labor goods capital
Critics of globalization point to which two factors as fueling the spread of the COVID-19 global pandemic?
the international movement of people and products increasing interconnectedness of nations
True or False: To ensure a continuous supply of raw materials, industrialized companies are sometimes forced to invest in the developing nations where most new deposits are being discovered.
true
