International Business 1-3

what force is considered an external enviormental force

COMPETITON human resources marketing production

In the past four decades, intwrnational trade has had the greatest proportional increase in

China

By 2017, which country was exporting the most goods and services to the United States?

China- Between 1991 and 2017, China rose from sixth to first place in exports to the United States, and to third place as an importer of U.S. goods.

What are the three largest regional trade agreements

EU, ASEAN, NAFTA

The U.S. invested $1.5 trillion in other nations from 2015-2017. This represents the U.S.'s

FDI Outflow- which is the amount invested into other nations.

A cultural paradox refers to a similarity between two seemingly opposite cultures.

False- A cultural paradox is a contradiction in a culture's values.

History shows that businesses make few costly mistakes when making product introductions into foreign markets.

False- Actually, businesses make many costly mistakes in the marketing area, especially in design, ad copy, and pricing.

Ethnocentricity is the belief that all cultures have common values that are shared.

False- Ethnocentricity is the belief that your own culture is superior to other cultures.

In low-context cultures, people tend to form long-lasting relationships that endure over time.

False- High-context cultures tend to have many long-term relationships

Desired leadership traits are consistent among cultures.

False- Leadership traits vary by culture and desired leadership traits also vary.

Arguments in support of mercantilism largely disappeared after the end of the mercantilist era in the late 1700s.

False- Mercantilist sentiments are still cited for explaining or criticizing behavior of countries such as China, and when arguing that exports are "good" for a country or that imports are "bad."

An international corporation is an enterprise made up of entities in two or more nations, with a common strategy and coherent policies

False- Transnational Corporations

In 2017, half of the exports from North American nations went to Asian nations.

False- World trade continues to be dominated by exchanges within—not between—geographic regions. In 2017, approximately half the exports from North American nations went to other nations in North America.

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

False- all the forces influencing the life and development of the firm, whether these forces are active in the domestic foreign, or international realm of activity

A common cause of the added complexity of foreign environments its manager's unfamiliarity with other cultures to defer to their own cultural values. This is called other-reference criteria.

False- common cause of the added complexity of foregin environments is managers unfamilairity with other reigons

Cultural attitudes toward change do not affect the acceptance of new production methods.

False-Cultural attitudes affect the acceptance of new products.

China 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-Replaced by Britain in 1840

Hofstede's individualism-collectivism dimension measures the degree to which economic activity is socialist (communal) or capitalist (independent).

False-This dimension measures the degree to which people tend to be integrated into groups.

The United states has about 10 percent of the worlds population, so most of US Companies are located elsewhere

False-US has only 5 percent of the worlds population

In recent years there has been a marked increase in the number of government polices and attitudes intended to limit and control foregin investment in both developed and developing nations

False-marked liberalization of government polices

We are each born with a knowledge of our culture.

False; One of the critical aspects of culture is that it is learned, not inherent.

_ theory argues that to obtain a higher return on its investment, a firm will transfer its superior knowledge to a foreign subsidiary that it controls, rather than sell it in the open market.

Internalization- Internalization theory begins with the assumption that a firm may have knowledge superior to that of its competitors, such as knowledge that results from successful research and development efforts. However, due to high transaction costs, the firm may obtain a better price by using the knowledge itself than by selling it on the open market.

A nation's relative ability to design, produce, distribute, or service products within an international trading context while earning increasing returns on its resources is known as national competitiveness.

True

Adam Smith believed in free, unregulated trade

True

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

True

External forces in the international business enviorment are commonly called uncontrollable forces

True

Feminine cultures in Hofstede's dimensions care about relationships and are also focused on business success. For them, it is quality of life, both work and private, that matters.

True

Globally, the overall volume of international trade in physical goods exceeds the volume of trade in services.

True

In Hall's use, context is relevant in a communication act.

True

Most manufacturing industries benefit from economies of scale, which is the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.

True

The price of one currency stated in terms of another currency is the exchange rate.

True

The reduction of barriers to trade and foregin investment is an example of a political Driver of globalization

True

The vast majority of transnational corporations are privately owned

True

Trompenaars's dimension of individualism versus communitarianism and Hofstede's individualism-collectivism dimension are similar.

True

Two Reigons that have not been successful in benefitting from globalization are Latin America and sub-Saharan Africa

True

Although some business areas, such as accounting and finance, are quantitative, they are at the same time affected by culture.

True- Both accounting and finance are influenced by the culture's notion of the basic nature of people. Are controls needed to keep people honest?

There are five major kind of drivers, all based on changes that are leading firms to the internationalization of their operations

True- There are five major kind of drivers, all based on changes that are leading firms to the internationalization of their operations- political, technological, market, cost, and competitive

Most Multinationals are based in developed countries, but recently there has been a surge in the number arising in emerging countries

developed, emerging

The word aesthetics has a Greek origin, which means

perceptible by the senses.

Which of these would be considered a goods import?

raw materials