Question 1

International business differs from domestic business in that a firm operating across borders must deal with the forces of two kinds of environments-domestic and foreign.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)   Importing
B)   Foreign direct investment
C)   Exporting
D)   International business
E)   None of the above

Question 3

Foreign business denotes:

Accepted Answer

A)   a business whose activities involve crossing national borders.
B)   the domestic operations within a foreign country.
C)   an organization with multicountry affiliates.
D)   an organization that attempts to standardize operations worldwide.
E)   all of the above.

Question 4

Reasons for international firms to enter into foreign markets are linked to which of the following desires?

Accepted Answer

A)   Increased sales and reduced costs
B)   Protecting sales and profits from being eroded by competitors
C)   Creation of new markets.
D)   all of the above.
E)   two of A, B, and C.

Question 5

Due to the expanding importance of foreign-owned firms in local economies, host governments have made their policies toward these companies:

Accepted Answer

A)   more strict.
B)   more liberal.
C)   harsher.
D)   more confronting.
E)   two of the above.

Question 6

A multidomestic company is an organization that attempts to standardize and integrate operations worldwide in all functional areas.

Accepted Answer

A) True 
 B)False

Question 7

The increased internationalization of business requires __________ to have a basic knowledge of international business.

Accepted Answer

A)   all managers
B)   managers of multinationals
C)   managers of transnationals
D)   managers of purely domestic operations
E)   none of A, B, C, or D

Question 8

Supporters of globalization generally argue that it is the best strategy for advancing the world's economic development.

Accepted Answer

A) True 
 B)False

Question 9

External forces in the international business environment are commonly called uncontrollable forces.

Accepted Answer

A) True 
 B)False

Question 10

Britain was the world's leading manufacturing country for about 1,800 years, until it was replaced by the United States at the end of the 1800s.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   internationalization.
B)   international business.
C)   economic globalization.
D)   multinationalization.
E)   global integration.

Question 12

In organizing their international activities, there are five dimensions along which management can globalize or standardize these activities.

Accepted Answer

A) True 
 B)False

Question 13

UNCTAD, an agency of the United Nations, estimates there are __________ international firms in the world.

Accepted Answer

A)   5,500
B)   12,000
C)   64,000
D)   82,000
E)   over 800,000

Question 14

The United Nations uses the term transnational to describe an enterprise doing business in more than one country.

Accepted Answer

A) True 
 B)False

Question 15

International business really began:

Accepted Answer

A)   with the East India Company, chartered in 1600.
B)   when Singer Sewing Machine put up a factory in Scotland in 1868.
C)   before the time of Christ.
D)   when Colt Fire Arms set up a plant in England.
E)   when the Ottoman Empire was established.

Question 16

According to the text, the level of intracompany trade of multinationals in 1930, as a percentage of world trade, may have exceeded the proportion at the end of the 20th century.

Accepted Answer

A) True 
 B)False

Question 17

Decision making in the international environment is __________ it is in a purely domestic environment.

Accepted Answer

A)   less complex than
B)   less demanding than
C)   more complex than
D)   about the same as
E)   two of the above

Question 18

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

Accepted Answer

A)   The United States
B)   Germany
C)   India
D)   France
E)   none of the above.

Question 19

According to the text, the self-absorption criterion is probably the biggest cause of international business blunders.

Accepted Answer

A) True 
 B)False

Question 20

Expanded international trade is linked with the creation of more and better jobs.

Accepted Answer

A) True 
 B)False

Exam 1: The Challenging World of International Business

UNCTAD, an agency of the United Nations, estimates there are __________ international firms in the world.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Supporters of globalization generally argue that it is the best strategy for advancing the world's economic development.

Correct AnswerverifiedShow Answer

External forces in the international business environment are commonly called uncontrollable forces.

Correct AnswerverifiedShow Answer

Britain was the world's leading manufacturing country for about 1,800 years, until it was replaced by the United States at the end of the 1800s.

Correct AnswerverifiedShow Answer

A multidomestic company is an organization that attempts to standardize and integrate operations worldwide in all functional areas.

Correct AnswerverifiedShow Answer

Reasons for international firms to enter into foreign markets are linked to which of the following desires?

Correct AnswerverifiedShow Answer

International business differs from domestic business in that a firm operating across borders must deal with the forces of two kinds of environments-domestic and foreign.

Correct AnswerverifiedShow Answer

The increased internationalization of business requires __________ to have a basic knowledge of international business.

Correct AnswerverifiedShow Answer

According to the text, the level of intracompany trade of multinationals in 1930, as a percentage of world trade, may have exceeded the proportion at the end of the 20th century.

Correct AnswerverifiedShow Answer

In organizing their international activities, there are five dimensions along which management can globalize or standardize these activities.

Correct AnswerverifiedShow Answer

According to the text, the self-absorption criterion is probably the biggest cause of international business blunders.

Correct AnswerverifiedShow Answer

Foreign business denotes:

Correct AnswerverifiedShow Answer

Due to the expanding importance of foreign-owned firms in local economies, host governments have made their policies toward these companies:

Correct AnswerverifiedShow Answer

Expanded international trade is linked with the creation of more and better jobs.

Correct AnswerverifiedShow Answer

International business really began:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The United Nations uses the term transnational to describe an enterprise doing business in more than one country.

Correct AnswerverifiedShow Answer

Decision making in the international environment is __________ it is in a purely domestic environment.

Correct AnswerverifiedShow Answer

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