Module 1

Between 1992 and 2018, the United States saw an increase of nearly _____ in nonfarm jobs. 75% 40% 60% 80%

40%

Despite globalization, the number of people living in poverty in sub-Saharan Africa rose _____ between 1990 and 2013. 67% 78% 43% 22%

43%

Which of the following trading firms were established in the 1600s? (Check all that apply.) Roman East Trading Company British East India Company Dutch East India Company Ottoman Trading Company

British East India Company Dutch East India Company

A vast expansion of agricultural and industrial production in _____ stimulated the emergence of an internationally integrated trading system stretching from Asia to the Mediterranean and Africa. China Egypt India Persia

China

Which country was the world's leading manufacturing country for about 1800 years until Britain became dominant in 1840? China Mongolia India Italy

China

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 Roman East Trading Company Ottoman Trading Company British East India Company

Dutch East India Company

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

False

How does the foreign environment operate differently than the domestic environment? (Check all that apply.) Forces in the foreign environment are interrelated. Forces in the foreign environment are more easily controlled. Forces in the foreign environment are difficult to assess. Forces in the foreign environment have different values.

Forces in the foreign environment are interrelated. Forces in the foreign environment are difficult to assess. Forces in the foreign environment have different values.

Which one of the following was a multinational company by the 1920s? Pillsbury Baking Microsoft Winchester Repeating Arms Company Ford Motor

Ford Motor

______ business denotes the operations of a company outside its home market. Foreign Domicile International Domestic

Foreign

______ is the best strategy for advancing the world's economic development. Tariffs Free trade Trade protectionism Political restraint

Free trade

Which of the following statements are true regarding the link between free trade and jobs? (Check all that apply.) Free trade stifles economic growth and expansion. Free trade promotes new, better jobs. Free trade promotes more jobs. Free trade can cause companies to go out of business.

Free trade promotes new, better jobs. Free trade promotes more jobs. Free trade can cause companies to go out of business.

Which of the following are typical arguments against globalization? (check all that apply) Globalization has been linked to a decline in environmental conditions. Globalization has worsened labor standards. Globalization produces uneven results across nations. Globalization produces friction between nations.

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

Which of the following is NOT typically an argument against globalization? Globalization has decreased efficiency. Globalization has been linked to a decline in health conditions. Globalization has a negative impact on labor. Globalization produces uneven results across people.

Globalization has decreased efficiency.

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

Ottoman

The levels of foreign direct investment and exporting have been ______ in recent years. remaining the same decreasing increasing

increasing

Which of the following regions have not experienced economic success despite efforts to liberalize and privatize their economies? (Check all that apply.) Latin America Eastern Europe sub-Saharan Africa Asia

Latin America sub-Saharan Africa

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

internal external

The environment _______ consists of interactions between the domestic environmental forces and the foreign environmental forces.

international

_________ business is business that is carried out across national borders.

international

Which of the following was one of the first U.S. companies to own foreign production facilities, have worldwide distribution networks, and market its products under global brands? Singer Sewing Machine Ford Motor Company Winchester Repeating Arms Company General Motors

Singer Sewing Machine

Which of the following international organizations affect the international market? (Check all that apply.) The European Union The OPEC The Commerce Bank The World Bank

The European Union The OPEC The World Bank

Which of the following are regional economic groupings of nations? (Check all that apply.) The North American Free Trade Agreement The World Bank Mercosur The European Union OPEC

The North American Free Trade Agreement Mercosur The European Union

Economic globalization refers to the tendency toward an international integration and independency of which of the following? (Select all that apply.) labor technology governments capital information goods

labor technology capital information goods

A supplier that moves locations to be closer to an original equipment manufacturer is an example of a _____ driver. market political production competitive

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. political cost competitive market

market

A company defending its home market by entering the competitor's home market is an example of a ______ driver. competitive political cost production

competitive

New firms, mainly from newly industrialized countries, entering the world markets in computers and electronics is an example of a ______ driver. cost political competitive technological

competitive

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

complexity

Management moving production or other parts of the company's value chain to countries where wages are lower is an example of ______ drivers. competitive political market cost

cost

What are the five major drivers of internationalization listed in the text? (Check all that apply.) cost market competitive time political technological

cost market competitive political technological

The self-reference ________ is the unconscious reference to the one's own cultural values.

criterion

Which of the following is NOT a major driver of internationalization? competitive drivers technological drivers cultural drivers market drivers

cultural drivers

The environment _______ is all the _______ forces originating in the home country that surround and influence the development of the company.

domestic uncontrollable

A company's managers tend to be most familiar with the forces in the _______. domestic environment international environment uncontrollable category foreign regulatory environment

domestic environment

Free trade enhances ______ development. political physical economic cultural

economic

The tendency toward international integration and interdependency of goods, technology, information, labor, and capital is called ______. domestication economic globalization international business free trade

economic globalization

The term ________ means all the forces influencing the life and development of the firm.

environment

Sanctions being placed on Russia and Russian companies in response to Russia's actions in Ukraine is an example of: forces in the foreign environment having different values. forces in the foreign environment being easily controlled. forces in the foreign environment being difficult to assess. forces in the foreign environment being interrelated.

forces in the foreign environment having different values

Which environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm? foreign domestic multinational international

foreign

What commonly used variable measures where and how fast internationalization is taking place? gross domestic product foreign direct investment gross national income total annual sales

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? gross national investment international monetary fund foreign direct investment gross national income

foreign direct investment

Preferential trading arrangements such as NAFTA and the European Union are ______ drivers. market competitive cost political

political

The trend toward the unification and socialization of the global community is considered a ______ driver. cost market competitive political

political

What is the unconscious reference to your own values when judging behaviors of others in a new and different environment? self-reference criterion self-inference bias social bias cultural stereotype

self-reference criterion

The definition of international business includes: (check all that apply) domestic trade service industries international trade foreign manufacturing

service industries international trade foreign manufacturing

Cable and satellite TV systems in Europe and Asia that allow an advertiser to reach numerous countries is an example of a _______ driver. technological market competitive political

technological

Global communications networks that enable manufacturing workers to coordinate production and design functions worldwide are an example of a(n) ________ driver.

technological

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. intrastate domestic transnational foreign

transnational

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 domestic foreign intrastate

transnational

The external forces are commonly _______ forces.

uncontrollable

Management has no direct control over _______, although it can exert influence over them. uncontrollable forces domestic forces unchangeable forces internal forces

uncontrollable forces

Foreign business denotes the operations of a company ________. within a foreign country within its borders with a company in a related line of business with its domestic business partners

within a foreign country

Which one of the worst natural disasters in history is associated with international trade? Black Death typhoid malaria smallpox

Black Death

Which of the following statements are true regarding the international environment? (Check all that apply.) It involves only those activities that take place within a nation's borders. It consists of the interactions between the domestic environmental forces and the foreign environmental forces. It consists of interactions between two or more domestic environmental forces. 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. It consists of interactions between the foreign environmental forces of two countries.

Which of the following statements are true regarding a transnational corporation? (Check all that apply) It operates under a decision making system that allows coherent policies. It operates under a decision making system that allows a common strategy. It is composed of entities in more than one nation. It is made up of only one entity in a foreign nation.

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

Which of the following statements are true regarding the Ottoman Empire? (Check all that apply.) The empire spanned Europe, North Africa, and the Middle East. Its central location had the effect of lowering the cost of Asian trade for European countries. The empire influenced the emerging trade routes for people, goods, and money that spanned from England to China. The empire drove the search for sea routes to Asia, including the expeditions that discovered the Americas.

The empire spanned Europe, North Africa, and the Middle East. The empire influenced the emerging trade routes for people, goods, and money that spanned from England to China. The empire drove the search for sea routes to Asia, including the expeditions that discovered the Americas.

Which of the following adds complexity to foreign environments? Laws that are similar to those in the home environment Controllability of values Unfamiliarity with other cultures Friendly relations between countries

Unfamiliarity with other cultures

The Black Death is an an example of trade affecting ______. politics economics public health agriculture

public health

Which of the following are benefits of a globalized product line? (Check all that apply.) reduced inventory costs reduced development costs reduced gross national income reduced production costs

reduced inventory costs reduced development costs reduced production costs