BUSI Mod 1

When nations and corporations were ranked by GNI and total sales, respectively, for 2020, how many had GNI greater than the total annual sales of Walmart Stores?

23

A nation's GNI and a company's sales are directly comparable because GNI is a measure of value added, as are sales.

FALSE

An international company (IC) is a company headquartered in another nation.

FALSE

Lobbyists who advocate for new laws that will affect the production standards of a business are an example of an internal force.

FALSE

The foreign environment consists of the interactions between the domestic environmental forces and the foreign environmental forces, as well as interactions between the foreign environmental forces of two countries.

FALSE, its international

Multinational corporations consist of several entities in different countries, each of which has its own independent strategy and policies.

False

What is one argument in support of globalization?

Free trade enhances economic development.

An advertising company based in Toronto decided to establish an operation in France because it was concerned that its competition would try to take over its clients in Europe, which represents 65 percent of its business. Which type of driver is responsible for this decision to go international?

Market

When a supplier to an original equipment manufacturer (e.g., a battery manufacturer supplying an automobile producer) follows its major customer to a new country, it is an example of a ________ driver of international business activity.

Market

After Simone was transferred from the U.S. home office to the French satellite office, she was frustrated that most of her workers took the month of August off for vacation. She believed they would work the extra hours if she offered them bonus pay, but they weren't interested. In misunderstanding her workforce's motivations, Simone is exhibiting a self-reference criterion.

TRUE

Business conducted within a foreign country is known as foreign business.

True

What is the COVAX initiative?

a collaboration of nations to develop and disperse vaccines for COVID-19

What is an example of the competitive driver of international business activity?

a company that enters a foreign market to distract companies with similar products or services

An international manager has three choices when deciding how to employ a technique used in domestic operations to an international operation: transfer it intact, not use it, or

adapt it to local conditions

An automobile manufacturer decided 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 causing internationalization for the manufacturer?

competitive

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

controllable and uncontrollable.

A company that decides to engage in exporting as a way to increase economies of scale is basing this decision on which driver of international business activity?

cost

According to supporters of the globalization of trade and investment, free trade

creates more and better jobs.

When gross national income drops significantly, it affects a company's environment. Which type of external force does this represent?

economic

The ________ environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm.

foreign

The operations of a company outside its home or domestic market are known as ________ business.

foreign

A company controlled by another company that is located in a foreign land, and this control may be exercised by a variety of means, both those involving stock ownership and those involving nonownership mechanisms, is a(n)

foreign affiliate

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

What was Theodore Levitt referring to when he said that the future belonged to corporations that operated "as if the entire world were a single entity; [such an organization] sells the same things in the same way everywhere"?

globalization

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

human resources

Compared to 1980, service exports in 2017 can best be described as

more than 15 times larger.

The 17th and 18th centuries have frequently been termed the "Age of Mercantilism" because

national power depended on the sponsorship and control of merchant capital.

The trend toward unification and socialization of the global community is illustrated by

preferential trading arrangements that group several nations into a single market

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

promoted a search for sea routes from Europe to Asia.

Foreign affiliates must obey the local laws. If they don't, they could be subject to

seizure by the host government.

Kai was recently assigned to a management role in his company's overseas operation. He has been surprised several times when his employees responded negatively because they said he didn't take their culture into consideration when he made decisions. Kai is demonstrating a

self-reference criterion.

Jackson 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

Sankha is the director of operations for Farm Fresh Produce Corp. and is now able to sell his product to the international market thanks to a new computer system that is specifically designed for businesses in the fresh food industry. Which driver helped Sankha's company internationalize?

technological

The kinds of forces in the foreign environment are ________blank those in the domestic environment except that they occur in foreign nations.

the same

Woodbine Millworks is frustrated with the lobbyists who are currently trying to influence Congress to raise taxes for all corporations in the wood products industry. In the environment of Woodbine Millworks, these lobbyists are an example of

uncontrollable forces.