According to the text, foreign business denotes the operations of a company outside its home or domestic market.. According to the text, a global company is an organization with multicou
Trang 1Test Bank for International Business The Challenge of Global Competition
12th Edition by Ball
True / False Questions
1 A senior manager of a major multinational said that "no one will be in a general
management job by the end of the decade who didn't have international exposure and
4 Only those companies that have foreign operations need to be aware of what is occurring globally in its markets and their industry
Trang 27 According to the text, foreign business denotes the operations of a company outside its home or domestic market
True False
8 According to the text, a global company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences True False
9 According to the definitions in the text, a multidomestic firm is an organization that
attempts to standardize operations worldwide in all functional areas
True False
13 There are five major kinds of drivers, all based on changes that are leading international firms to the globalization of their operations
True False
Trang 314 Transnational corporations account for approximately 25 percent of total global output and nearly 5 percent of world trade
Trang 421 Supporters of globalization generally argue that it is the best strategy for advancing the world's economic development
Trang 529 The external forces are commonly called uncontrollable forces
Trang 636 Those who work in the international environment find that decision making is not as complex as it is in a purely domestic environment
True False
Multiple Choice Questions
41 The increased internationalization of business requires to have a basic knowledge of international business
Trang 742 There is an emphatic need for all business people to have a basic knowledge of:
A if they are going to work overseas
B if they are going to work in a firm with no foreign operations
C Neither A nor B because they can learn on the job
D was influenced by the rise of the Ottoman Empire
45 As used in the text, a global company is an organization
A that attempts to standardize operations worldwide in most or all functional areas
B that looks for differences among markets
C that is transnational
D all of the above
46 Firms that have substantial operations in more than one country are called
Trang 847 An international business
A is a business whose activities involve crossing national borders
B denotes the domestic operations within a foreign country
C is an organization with multicountry affiliates
D is an organization that attempts to standardize operations worldwide
48 Foreign business denotes
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
49 A multidomestic company is
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
50 A global company (GC) is
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
51 International business really began:
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
Trang 952 The major globalization drivers include all of the following except:
A Political
B Social
C Technological
D Market
E None All of the above are major kinds of globalization drivers
53 The trend toward unification and socialization of the global community is illustrated by which of the following:
A Preferential trading arrangements that group several nations into a single market
B Progressive increases in barriers to foreign investment by most governments
C Increased public ownership of much of the industry in formerly communist nations
D All of the above are aspects of the trend toward unification and socialization of the global community
54 UNCTAD, an agency of the United Nations estimates there are international firms in the world
Trang 1056 Due to the expanding importance of foreign-owned firms in local economies, host
governments have made their policies toward these companies _
57 Foreign subsidiaries must obey the local laws If they don't, they are subject to:
A legal action by the host country
B legal action by the host country and the country of the parent company
C seizure by the host government
D cancellation by the parent company of its right to do business in the host country
E A and C
58 In 2006, the total amount of ExxonMobil's worldwide sales was greater than
A the combined GNIs of 80 of the world's smallest economies
B the sum of the combined sales of Ford and General Electric
C the total sales of Wal-Mart Stores and Citigroup
D the sum of the GNI of the U.S
59 In the United States, an overseas investment by an American resident is considered to be aforeign direct investment if it is or more of the stockholder's equity
A 10
B 51
C 25
D 100
Trang 1160 The worldwide stock of outward FDI is estimated to have increased between 1980 and
A the increase in a nation's population
B the increase in the number of new companies formed
C the increase in foreign direct investment
D the increase in international trade
62 The level of service exports worldwide increased nearly between 1980 and 2007
A Fourfold
B Sixfold
C Ninefold
D Twentyfold
63 According to supporters of the globalization of trade and investment, free trade
A creates more and better jobs
B benefits all nations and workers
C does not cause the loss of high-paying jobs
D all of the above
64 According to opponents of the globalization of trade and investment,
A globalization has produced uneven results across nations and people
B globalization has had harmful effects on labor and labor standards
C globalization has contributed to a decline in environmental and health conditions
D all of the above
Trang 1265 Environment as used in the textbook is the forces surrounding and influencing the life and development of the firm and is classified as
A controllable and uncontrollable
B domestic and foreign
C internal and external
D All of the above
E A and C
66 Management has no direct control over the external environment of the firm but can exert influence by
A heavy promotion of new products to change cultural attitudes
B focus on the strategic plan
C the foreign environment
D the international environment
E the domestic environment
68 Examples of the kinds of uncontrollable forces listed in the text are:
Trang 1369 The forces over which the management does have some command are called:
A they are uncontrollable
B force values are different
C changes are difficult to assess
Trang 1473 The international environment is the interactions between
A the domestic environmental forces and the foreign environmental forces
B the foreign uncontrollable forces and the domestic uncontrollable forces
C the foreign environmental forces of two countries when an affiliate in one country does business in another country
D both A and C
E All of the above
74 Decision making in the international environment is it is in a purely domesticenvironment
A less complex than
B less demanding than
C more complex than
D about the same as
75 According to the text, personnel working in a foreign subsidiary are working in the international environment:
A if they work and live in a foreign country
B if they are responsible for the subsidiary's exports
C if they are also responsible for the management of another foreign subsidiary
D all of the above
Trang 1577 The international business manager can choose to:
A transfer a management practice intact
B transfer and adjust a management practice
C not transfer a management practice at all
79 Discuss the differences of the various names given to firms that have substantial
operations in more than one country such as a global company, a multinational firm and an international company
80 Contrast the differences between firms of the early 1900s and present-day global
companies
Trang 1681 Identify and discuss the 5 major kinds of drivers that are leading international firms to the globalization of their operations
82 Explain why comparisons of nations and industrial firms by GNI and total sales,
respectively, can produce misleading results
83 Discuss the arguments supporting and opposing globalization of trade and investment
84 Discuss why and how international business differs from domestic business
Trang 1785 Discuss the three environments in which an international company operates
Fill in the Blank Questions
86 Management must have _ _ to be able to meet the challenge of global competition
87 Some academic writers suggest using terms such as multidomestic and _
as synonyms for what others call a multinational
88 The term is used to describe an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences
Trang 1891 _ denotes the domestic operations within a foreign country
92 The tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this integration happen, is termed
Trang 1998 International business differs from domestic business in that a firm operating across borders must deal with the forces of , , and _ environments
103 The forces in the are the same as those in the domestic
environment except that they occur in foreign nations
104 The is the interaction between domestic and foreign environmental forces or between sets of foreign environmental forces
105 A common cause of the added complexity of foreign environments is managers'
unfamiliarity with other cultures and is called -
Trang 20
Chapter 01 The Rapid Change of International Business Answer Key
True / False Questions
1. (p 5) A senior manager of a major multinational said that "no one will be in a general
management job by the end of the decade who didn't have international exposure and
Topic: International Business Terminology
2. (p 6) American companies want their managers to have a basic knowledge of international business
Topic: International Business Terminology
3. (p 6) CEOs of major American firms doing business overseas are not convinced the business graduates they hire should have some education in the international aspects of business
Trang 214. (p 7) Only those companies that have foreign operations need to be aware of what is
occurring globally in its markets and their industry
Topic: International Business Terminology
5. (p 7) Firms with no foreign operations of any kind do not need managers with a global business perspective
Topic: International Business Terminology
6. (p 9) The United Nations uses the term transnational to describe a firm doing business in more than one country
Topic: International Business Terminology
7. (p 10) According to the text, foreign business denotes the operations of a company outside itshome or domestic market
Trang 228. (p 10) According to the text, a global company is an organization with multicountry
affiliates, each of which formulates its own business strategy based on perceived market differences
Topic: International Business Terminology
9. (p 10) According to the definitions in the text, a multidomestic firm is an organization that attempts to standardize operations worldwide in all functional areas
Topic: International Business Terminology
10. (p 10) The term in this text, "international company," refers to both global and
Topic: International Business Terminology
11. (p 10) While international business as a discipline is relatively new, international business
as a business practice is not
TRUE
AACSB: Analytic
Trang 2312. (p 12) The tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this integration happen, is referred to as economic globalization
Topic: International Business Terminology
13. (p 12) There are five major kinds of drivers, all based on changes that are leading
international firms to the globalization of their operations
Topic: Drivers of Globalization
14. (p 15) Transnational corporations account for approximately 25 percent of total global output and nearly 5 percent of world trade
Topic: Growth of International Firms and International Business
15. (p 15) Critics of large global firms compare these firms' sales with nations' total sales to illustrate the tremendous size of these firms
Trang 2416. (p 15) In 2006, ExxonMobil's sales worldwide were greater than the gross national incomes
of all but the largest 19 nations of the world
Topic: Growth of International Firms and International Business
17. (p 15) When a global firm's total sales are greater than a nation's GNI, the national
government is defenseless against such a firm
Topic: Growth of International Firms and International Business
18. (p 17) One variable commonly used to measure where and how fast internationalization takes place is the increase in total foreign direct investment
Topic: Growth of International Firms and International Business
19. (p 17) The world stock of outward foreign direct investment was $12.5 trillion in 2006, which was almost 10 times what it was in 1980
FALSE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Trang 2520. (p 17) Exporting refers to the transportation of any good or service to a destination inside a country or region
Topic: Growth of International Firms and International Business
21. (p 20) Supporters of globalization generally argue that it is the best strategy for advancing the world's economic development
Topic: The Globalization Debate and You
22. (p 20) Expanded international trade is linked with the creation of more and better jobs
Topic: The Globalization Debate and You
23. (p 21) Globalization has produced uneven results across nations and people
Trang 2624. (p 21) Opponents of free trade point out that globalization has contributed to a decline in environmental and health conditions
Topic: The Globalization Debate and You
25. (p 23) International business differs from domestic business in that a firm operating across borders must deal with three kinds of environments
Topic: Why Is International Business Different?
26. (p 23) The three environments for international business are domestic, foreign and export
Topic: Why Is International Business Different?
27. (p 23) Environment, as used in the textbook, is the sum of all the forces surrounding and influencing the life and development of the firm