Int Mgmt 3150: Chapter 1

Which of the following BEST describes the difference between a multinational corporation and a multinational​ organization?

A multinational organization is an organization that has involvement in multiple countries and may be​ for-profit or​ not-for-profit; a multinational corporation is a​ for-profit organization that has involvement in multiple countries.

Which of the following describes a difference between international and domestic​ business?

Domestic business involves transactions that use one​ currency; international business involves transactions that use multiple currencies.

Which of the following is a type of international investment that involves the purchase of foreign financial assets for a purpose other than​ control?

Foreign portfolio investment

Walmart is based in the United States. Walmart opens a store in​ Alberta, Canada. Which of the following best describes​ Canada's relationship with​ Walmart?

Host country

​Jose's company agrees to operate facilities for a firm in another country for an​ agreed-upon fee. This is an example of which of the​ following?

International management contract

A core competency is​ a(n) ________.

distinctive strength or advantage that is central to a​ firm's operations

The purchase of all the common stock of the​ UK's Cadbury PLC by Kraft is an example of​ _____________________.

foreign direct investment

International trade and investment declined throughout the 1930s as a result of​ _______________.

increased tariffs and quotas

What are the BRIC​ countries?

Brazil, Russia,​ India, and China

A country whose recent growth or prospects for future growth exceed that of traditional markets is known as which of the​ following?

Emerging market

During the Cold War between the United States and the Soviet​ Union, many scholars divided the world into three regions. Which of the following BEST describes the difference between a First World nation and a Third World​ nation?

First World nations were wealthy and usually had political and economic ties to the United​ States; Third World nations were poor and were primarily located in​ Africa, Asia, and Latin America.

ABC Medical Products acquires 51 percent of XYZ Productos​ Medicos, a Mexican corporation. Which of the following is this an example​ of?

Foreign direct investment​ (FDI)

Buying products made in other countries for use or resale in​ one's own country is known as which of the​ following?

Importing

Which of the following is TRUE regarding international business​ expansion?

International business expansion has led to an expansion of business activity into new markets previously insulated from the international marketplace.

​Jamal's company sells the rights to use its logo to a foreign company. This is an example of which of the​ following?

International licensing

Which of the following describes a primary difference between international licensing and international​ franchising?

International licensing involves only intellectual property such as​ patents, trademarks, brand​ names, and​ copyrights; international franchising involves operating systems as well.

The firms in which country pioneered​ just-in-time inventory management​ techniques?

Japan

Which is NOT one of the elements of the model developed by Pankaj​ Ghemawat, of IESE Business School in​ Barcelona, as a useful framework for understanding the operating challenges facing international businesses because of national​ differences?

Labor distance

Melanie works in the United States selling computer hardware to a company in Germany. This is known as which of the​ following?

Merchandise export

Which of the following BEST describes the difference between merchandise import and service​ import?

Merchandise import involves purchasing tangible items from a foreign​ company; service import involves purchasing intangible products from a foreign company.

Stephanie works for a company that has branches in more than 50 countries. Her company can best be described as which of the​ following?

Multinational corporation

Which of the following is FALSE regarding emerging​ markets?

There is a universally accepted definition of the countries to be included in the emerging markets category.

Which of the following is NOT a reason that has compelled firms to become more​ global?

To improve the probability of being acquired

When​ Denzel's firm authorizes a firm in a second country to use its​ patents, the firm is engaging in​ ________________________.

international licensing activities

In the United​ Kingdom, service exports and imports such as​ banking, travel, and accounting activities are known as​ ________ trade.

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