mkt 321 chapter 1

Which of the following statements are true regarding a transnational corporation?

- It is composed of entities in more than one nation. -It operates under a decision making system that allows coherent policies -It operates under a decision making system that allows a common strategy.

Which of the following statements are true regarding the Ottoman Empire?

- The empire drove the search for sea routes to Asia, including the expeditions that discovered the Americas. -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.

Which of the following are typical arguments against globalization?

-Globalization produces uneven results across nations. -Globalization has worsened labor standards. -Globalization has been linked to a decline in environmental conditions.

Which of the following 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

Economic globalization refers to the tendency toward an international integration and independency of which of the following?

-capital -labor -technology -goods -information

The definition of international business includes

-international trade -foreign manufacturing -service industries

What are the five major drivers of internationalization listed in the text?

-political -competitive -market -cost -technological

Which of the following are benefits of a globalized product line?

-reduced inventory costs -reduced development costs -reduced production costs

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

Which of the following trading firms were established in the 1600s?

Dutch East India Company and British East India Company

The international environment consists of which group of interactions?

The domestic environmental forces and the foreign environmental forces, as well as the foreign environmental forces of two countries when an affiliate in one country does business in another country

Which of the following adds complexity to foreign environments?

Unfamiliarity with other cultures

the increased internationalization of business requires ________ to have a basic knowledge of international business.

all managers

environment

all the forces influencing the life and development of the firm

Which one of the worst natural disasters in history is associated with international trade?

black death

international business

business across national borders

was the world's leading manufacturing country for about 1,800 years, until it was replaced by Britain in about 1840.

china

A company defending its home market by entering the competitor's home market 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

The automobile manufacturer decided it had to enter the European market because if it didn't, then all of the other car companies that were already there would get the business. Which driver is indicating internationalization for the manufacturer?

competitive

A manager's unfamiliarity with other cultures adds to the ________ of foreign environments.

complexity

Environment as used in the textbook involves the forces surrounding and influencing the life and development of the firm and is classified as

controllable and uncontrollable

Management moving production or other parts of the company's value chain to countries where wages are lower is an example of __ drivers

cost

Which of the following is NOT a major driver of internationalization? Multiple choice question.

cultural drivers

A company's managers tend to be most familiar with the forces in the

domestic environment

the _ environment is all the _forces originating in the home country that surround and influence the development of the company.

domestic; uncontrollable

free trade enhances ___ development

economic

The tendency toward an international integration of goods, technology, information, labor, and capital, or the process of making this integration happen, is called

economic globalization.

refers to the transportation of any domestic good or service to a destination outside a country or region.

exporting

True or false: The levels of foreign direct investment and exporting have been decreasing rapidly in recent years.

false

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

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

International business differs from domestic business in that a firm operating across borders must deal with the forces associated with which three kinds of environments?

foreign, domestic, international

The forces in the _ environment that occur outside a firm's home country are the same as those in the_ environment (that is, the environment of the home country).

foreign; domestic

The forces in the _____ environment that occur outside the firm's home country are the same as those in the _____ environment.

foreign; domestic

the total level of outward FDI worldwide increased about ________ between 1990 and 2018.

fourteenfold

is the best strategy for advancing the world's economic development.

free trade

According to opponents of the globalization of trade and investment

globalization has produced uneven results across nations and people.

What is an example of an external force that can affect a company's environment?

he newly-elected governor decides to raise property taxes.

What is an example of an internal force that can affect a company's environment?

human resources

The levels of foreign direct investment and exporting have been _ in recent years

increasing

The forces influencing the life and development of the firm are classified into which two categories?

internal and external

_ environment consists of interactions between the domestic environmental forces and the foreign environmental forces

international

Brennan Audio Inc. is struggling in the industry because it doesn't have the staff with the right skills for the job. Which category of external forces does this represent?

labor

State-owned transnationals currently account for ________ of all transnational corporations.

less than 1 percent

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

What is identified in the text as being one of the five major drivers of globalization?

market

The level of merchandise exports worldwide were ________ larger in 2017 than they were in 1980.

nine times

Which empire raised the cost of Asian trade for Europeans and drove the search for sea routes to Asia?

ottoman

The forces in the foreign environment differ from the domestic environment in that they originate

outside the firm's home country

Preferential trading arrangements such as NAFTA and the European Union are __ drivers

political

The trend toward the unification and socialization of the global community is considered a __ driver

political

What is one of the five major drivers of globalization?

political

An example of political drivers of globalization would be

privatization of industries.

The rise of the Ottoman Empire before 1300 influenced trade as it

promoted a search for sea routes from Europe to Asia.

The Black Death is an an example of trade affecting

public health

What is the unconscious reference to your own values when judging behaviors of others in a new and different environment?

self-reference criterion

Kendall was recently assigned to a management role in his company's overseas operation. He has been taken off guard several times when his employees responded negatively because they said he didn't take their culture into consideration when he made decisions. His employees are referring to a

self-reference criterion.

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

Jensen Control Corp. now uses videoconferencing which helps the sales team demonstrate products to prospective international customers while eliminating expensive travel costs. Which of the five drivers of international business does this represent?

technological

Relatively inexpensive international communication enables firms to "body shop," that is, transmit computer-oriented tasks worldwide to a cheap but skilled labor force. This is an example of a ________ driver of international business activity.

technological

The term globalization was first coined in a Harvard Business Review article in which the author maintained that

the future belonged to global companies that sold the same things the same way, everywhere.

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

international business really began

when Phoenician and Greek merchants sent representatives abroad to sell goods