Chapter 1 warm up

Based on her studies of international business. Yolanda Sanchez decides to buy paper for her office supply store from wood grown in sustainable forests in Canada, even though the sustainable paper costs more than other paper. Considering the reasons to study international business, which of the following best explains Yolanda decision?

Implementing corporate citizenship efforts

A company with _______ or fewer employees is defined as an SME

500

Which of the following is a motivation for international expansions?

Being closer to supply sources

_______ risk represents possible losses or failures as a result of poorly developed or implemented business strategies, tactics, or procedures.

Commercial

Lifestyles, customs, and religion have a potential for causing which type of international business risk?

Cross-Cultural

________ initiate international business activities by envisioning, crafting, and creating goods and services for global buyers.

Focal Firms

Which term refers to the trend of corporations to methodically expand their worldwide business activities?

Internalization

_______ Involves the allocation of assets to another country or the attainment of assets in that particular country.

International investment

_______ is inspiring quicker dispersion of consumer products and brands across the globe.

International trade

Leon's Luxury Clothing, located in Manhattan, designs a line of high end summer apparel for professional men and women. The company is considering opening a location in Brazil. The most likely reason for this international expansion is to _______

Seek opportunities for growth through market diversification.

When a domestic firm seeks opportunities in foreign markets, the firm's motive is best described as ________

Strategic