Upload
vdchuong
View
222
Download
0
Embed Size (px)
Citation preview
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 1/50
Chapter 01 - The Rapid Change of International Business
Chapter 01
The Rapid Change of International Business
True / False Questions
1. A senior manager of a major multinational said that "no one will be in a generalmanagement job by the end of the decade who didn't have international exposure andexperience."True False
2. American companies want their managers to have a basic knowledge of international business.True False
3. CEOs of major American firms doing business overseas are not convinced the businessgraduates they hire should have some education in the international aspects of business.True False
4. Only those companies that have foreign operations need to be aware of what is occurringglobally in its markets and their industry.
True False
5. Firms with no foreign operations of any kind do not need managers with a global business perspective.True False
6. The United Nations uses the term transnational to describe a firm doing business in more
than one country.True False
1-1
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 2/50
Chapter 01 - The Rapid Change of International Business
7. According to the text, foreign business denotes the operations of a company outside itshome 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 thatattempts to standardize operations worldwide in all functional areas.True False
10. The term in this text, "international company," refers to both global and multidomesticcompanies.True False
11. While international business as a discipline is relatively new, international business as a business practice is not.
True False
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 economicglobalization.True False
13. There are five major kinds of drivers, all based on changes that are leading internationalfirms to the globalization of their operations.True False
1-2
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 3/50
Chapter 01 - The Rapid Change of International Business
14. Transnational corporations account for approximately 25 percent of total global outputand nearly 5 percent of world trade.True False
15. Critics of large global firms compare these firms' sales with nations' total sales to illustratethe tremendous size of these firms.True False
16. In 2006, ExxonMobil's sales worldwide were greater than the gross national incomes of all but the largest 19 nations of the world.True False
17. When a global firm's total sales are greater than a nation's GNI, the national government isdefenseless against such a firm.True False
18. One variable commonly used to measure where and how fast internationalization takes place is the increase in total foreign direct investment.
True False
19. The world stock of outward foreign direct investment was $12.5 trillion in 2006, whichwas almost 10 times what it was in 1980.True False
20. Exporting refers to the transportation of any good or service to a destination inside a
country or region.True False
1-3
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 4/50
Chapter 01 - The Rapid Change of International Business
21. Supporters of globalization generally argue that it is the best strategy for advancing theworld's economic development.True False
22. Expanded international trade is linked with the creation of more and better jobs.True False
23. Globalization has produced uneven results across nations and people.True False
24. Opponents of free trade point out that globalization has contributed to a decline inenvironmental and health conditions.True False
25. International business differs from domestic business in that a firm operating across borders must deal with three kinds of environments.True False
26. The three environments for international business are domestic, foreign and export.True False
27. Environment, as used in the textbook, is the sum of all the forces surrounding andinfluencing the life and development of the firm.True False
28. The environmental forces can be classified as internal and foreign.True False
1-4
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 5/50
Chapter 01 - The Rapid Change of International Business
29. The external forces are commonly called uncontrollable forces.True False
30. Management must administer the controllable forces in order to adapt to changes in theuncontrollable environmental variables.True False
31. The domestic environment is composed of all the controllable forces originating in thehome country that influence the life and development of the firm.True False
32. The kinds of forces in the foreign environment are the same as those in the domesticenvironment except they occur in foreign nations.True False
33. The values of the foreign and domestic forces are identical, but the forces themselves aredifferent.True False
34. A problem with the foreign forces is that they are frequently difficult to assess, especiallytheir legal and political elements.True False
35. One part of the international environment is the interaction between the domestic andforeign environmental forces.
True False
1-5
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 6/50
Chapter 01 - The Rapid Change of International Business
36. Those who work in the international environment find that decision making is not ascomplex as it is in a purely domestic environment.True False
37. The international environment is the interactions between the domestic and foreignenvironmental forces or between sets of foreign environmental forces.True False
38. Managers in the international environment find that decision making is easier becauseforeign countries are smaller than markets in the United States.True False
39. The self-reference criterion is probably the biggest cause of international business blunders.True False
40. An international manager has two choices on what to do overseas with a concept or technique employed in domestic operations: (1) transfer it intact or (2) adapt it to local
conditions.True False
Multiple Choice Questions
41. The increased internationalization of business requires __________ to have a basicknowledge of international business.A. all managers
B. managers of multinationalsC. managers of transnationalsD. managers of purely domestic operations
1-6
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 7/50
Chapter 01 - The Rapid Change of International Business
42. There is an emphatic need for all business people to have a basic knowledge of:A. foreign travel.B. international business.C. the Pacific Rim.
D. foreign exchange.
43. According the text, American CEOs want business graduates they hire to have someeducation in international business.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. Both A and B.
44. Historically, international business:A. is relatively new.B. existed before the time of Christ.C. B and D.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 calledA. global companies.B. multidomestic firms.C. affiliated companies.
D. A, B, and C.E. A and B.
1-7
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 8/50
Chapter 01 - The Rapid Change of International Business
47. An international businessA. 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 denotesA. 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 isA. 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) isA. 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.
1-8
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 9/50
Chapter 01 - The Rapid Change of International Business
52. The major globalization drivers include all of the following except:A. PoliticalB. SocialC. Technological
D. MarketE. None. All of the above are major kinds of globalization drivers
53. The trend toward unification and socialization of the global community is illustrated bywhich 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 __________ internationalfirms in the world.A. 5,500B. 12,000C. 64,000D. 120,000E. over 800,000
55. In 2006, only _______________ nations had GNIs greater than the total sales of ExxonMobil.A. 46B. 19C. 5D. 76
1-9
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 10/50
Chapter 01 - The Rapid Change of International Business
56. Due to the expanding importance of foreign-owned firms in local economies, hostgovernments have made their policies toward these companies _______________.A. more strictB. more liberal
C. harsher D. more confrontingE. A and C
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 thanA. 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. 10B. 51C. 25D. 100
1-10
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 11/50
Chapter 01 - The Rapid Change of International Business
60. The worldwide stock of outward FDI is estimated to have increased __ between 1980 and2006.A. ThreefoldB. Eightfold
C. TwelvefoldD. SeventeenfoldE. Twentytwofold
61. According to the text, one variable commonly used to measure where and how fastinternationalization takes place is: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. FourfoldB. SixfoldC. NinefoldD. Twentyfold
63. According to supporters of the globalization of trade and investment, free tradeA. 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.
1-11
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 12/50
Chapter 01 - The Rapid Change of International Business
65. Environment as used in the textbook is the forces surrounding and influencing the life anddevelopment of the firm and is classified asA. 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 exertinfluence byA. heavy promotion of new products to change cultural attitudes.B. focus on the strategic plan.C. lobbying.
D. All of the above.E. A and C.
67. International business differs from domestic business in that a firm operating across borders must deal withA. C, D, and E.B. C and D.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:A. competitive.B. technological.C. gravitational.D. A and B.E. All of the above.
1-12
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 13/50
Chapter 01 - The Rapid Change of International Business
69. The forces over which the management does have some command are called:A. internal.B. controllable.C. foreign.
D. A and B.E. B and C.
70. The domestic environment is composed of all the uncontrollable forces originating in the __________ that surround and influence the life and development of the firm.A. international arenaB. host nationC. home countryD. foreign country
E. B and C.
71. Foreign environmental forces often operate differently than domestic environmentalforces because:A. they are uncontrollable.B. force values are different.C. changes are difficult to assess.D. B and C.E. A, B, and C.
72. The kinds of forces in the foreign environment are __________ those in the domesticenvironment except that they occur in foreign nations.A. different fromB. the same asC. less thanD. more stringent than
1-13
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 14/50
Chapter 01 - The Rapid Change of International Business
73. The international environment is the interactions betweenA. 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 thanB. less demanding thanC. more complex than
D. about the same as
75. According to the text, personnel working in a foreign subsidiary are working in theinternational 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.E. B and C.
76. Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called:A. self-reference culture.B. self-reference values.C. self-reference criterion.D. self-reference customs.E. self-reference environment.
1-14
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 15/50
Chapter 01 - The Rapid Change of International Business
77. 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.
D. A and B.E. A, B and C.
Essay Questions
78. Considering the dramatic internationalization of markets, discuss the comment "no onewill be in a general management job by the end of the decade who has not had internationalexposure and experience."
79. Discuss the differences of the various names given to firms that have substantialoperations in more than one country such as a global company, a multinational firm and aninternational company.
80. Contrast the differences between firms of the early 1900s and present-day globalcompanies.
1-15
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 16/50
Chapter 01 - The Rapid Change of International Business
81. Identify and discuss the 5 major kinds of drivers that are leading international firms to theglobalization 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.
1-16
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 17/50
Chapter 01 - The Rapid Change of International Business
85. Discuss the three environments in which an international company operates.
Fill in the Blank Questions
86. Management must have _______________ _______________ to be able to meet thechallenge 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 multicountryaffiliates, each of which formulates its own business strategy based on perceived marketdifferences. ________________________________________
89. The term __________ __________ refers to both global and multidomestic companies. ________________________________________
90. __________ __________ is business whose activities involve crossing national borders. ________________________________________
1-17
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 18/50
Chapter 01 - The Rapid Change of International Business
91. _______________ __________ 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 ____________ ______________. ________________________________________
93. The five major kinds of drivers of globalization are _______, _________, ________, _______, and _________. ________________________________________
94. International companies have _______ their participation in world trade since 1995. ________________________________________
95. _______ _______ _______ refers to direct investments into equipment, structures, andorganizations in a foreign country at a level that is sufficient to obtain significant managementcontrol.
________________________________________
96. _______ refers to the transportation of any domestic good or service to a destinationoutside a country or region. ________________________________________
97. __________, as used in the text, is the sum of all the forces surrounding and influencing
the life and development of the firm. ________________________________________
1-18
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 19/50
Chapter 01 - The Rapid Change of International Business
98. International business differs from domestic business in that a firm operating across borders must deal with the forces of __________, __________, and _______________ environments. ________________________________________
99. Environmental forces can be classified as __________ or __________. ________________________________________
100. External environmental forces are commonly referred to as ___________. ________________________________________
101. Internal environmental forces are commonly referred to as __________. ________________________________________
102. The __________ __________ is composed of all the uncontrollable forces originating inthe home country. ________________________________________
103. The forces in the __________ __________ are the same as those in the domesticenvironment except that they occur in foreign nations. ________________________________________
104. The ______ ______ is the interaction between domestic and foreign environmentalforces 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 __________-__________ __________. ________________________________________
1-19
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 20/50
Chapter 01 - The Rapid Change of International Business
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 generalmanagement job by the end of the decade who didn't have international exposure andexperience."TRUE
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy Learning Objective: 2
Topic: International Business Terminology
2. (p. 6) American companies want their managers to have a basic knowledge of international business.TRUE
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
Topic: International Business Terminology
3. (p. 6) CEOs of major American firms doing business overseas are not convinced the businessgraduates they hire should have some education in the international aspects of business.FALSE
AACSB: Analytic
Bloom: Knowledge Difficulty: Medium Learning Objective: 2
Topic: International Business Terminology
1-20
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 21/50
Chapter 01 - The Rapid Change of International Business
4. (p. 7) Only those companies that have foreign operations need to be aware of what isoccurring globally in its markets and their industry.FALSE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2Topic: International Business Terminology
5. (p. 7) Firms with no foreign operations of any kind do not need managers with a global business perspective.FALSE
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
Topic: International Business Terminology
6. (p. 9) The United Nations uses the term transnational to describe a firm doing business inmore than one country.TRUE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1Topic: International Business Terminology
7. (p. 10) According to the text, foreign business denotes the operations of a company outside itshome or domestic market.TRUE
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1
Topic: International Business Terminology
1-21
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 22/50
Chapter 01 - The Rapid Change of International Business
8. (p. 10) According to the text, a global company is an organization with multicountryaffiliates, each of which formulates its own business strategy based on perceived marketdifferences.FALSE
AACSB: Analytic
Bloom: Knowledge Difficulty: Hard
Learning Objective: 1
Topic: International Business Terminology
9. (p. 10) According to the definitions in the text, a multidomestic firm is an organization thatattempts to standardize operations worldwide in all functional areas.FALSE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
Topic: International Business Terminology
10. (p. 10) The term in this text, "international company," refers to both global andmultidomestic companies.TRUE
AACSB: Analytic
Bloom: Knowledge Difficulty: Medium
Learning Objective: 1
Topic: International Business Terminology
11. (p. 10) While international business as a discipline is relatively new, international businessas a business practice is not.TRUE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
Topic: International Business Terminology
1-22
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 23/50
Chapter 01 - The Rapid Change of International Business
12. (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 economicglobalization.TRUE
AACSB: Analytic
Bloom: Knowledge Difficulty: Easy
Learning Objective: 1
Topic: International Business Terminology
13. (p. 12) There are five major kinds of drivers, all based on changes that are leadinginternational firms to the globalization of their operations.TRUE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
Topic: Drivers of Globalization
14. (p. 15) Transnational corporations account for approximately 25 percent of total globaloutput and nearly 5 percent of world trade.FALSE
AACSB: Analytic
Bloom: Knowledge Difficulty: Hard
Learning Objective: 3
Topic: Growth of International Firms and International Business
15. (p. 15) Critics of large global firms compare these firms' sales with nations' total sales toillustrate the tremendous size of these firms.FALSE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 3
Topic: Growth of International Firms and International Business
1-23
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 24/50
Chapter 01 - The Rapid Change of International Business
16. (p. 15) In 2006, ExxonMobil's sales worldwide were greater than the gross national incomesof all but the largest 19 nations of the world.TRUE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 3Topic: 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 nationalgovernment is defenseless against such a firm.FALSE
AACSB: Analytic Bloom: Knowledge
Difficulty: Hard
Learning Objective: 3
Topic: Growth of International Firms and International Business
18. (p. 17) One variable commonly used to measure where and how fast internationalizationtakes place is the increase in total foreign direct investment.TRUE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 3Topic: 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
Learning Objective: 3
Topic: Growth of International Firms and International Business
1-24
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 25/50
Chapter 01 - The Rapid Change of International Business
20. (p. 17) Exporting refers to the transportation of any good or service to a destination inside acountry or region.FALSE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 3Topic: Growth of International Firms and International Business
21. (p. 20) Supporters of globalization generally argue that it is the best strategy for advancingthe world's economic development.TRUE
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy
Learning Objective: 3
Topic: The Globalization Debate and You
22. (p. 20) Expanded international trade is linked with the creation of more and better jobs.TRUE
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium
Learning Objective: 3
Topic: The Globalization Debate and You
23. (p. 21) Globalization has produced uneven results across nations and people.TRUE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium Learning Objective: 3Topic: The Globalization Debate and You
1-25
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 26/50
Chapter 01 - The Rapid Change of International Business
24. (p. 21) Opponents of free trade point out that globalization has contributed to a decline inenvironmental and health conditions.TRUE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 3Topic: 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.TRUE
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium
Learning Objective: 4
Topic: Why Is International Business Different?
26. (p. 23) The three environments for international business are domestic, foreign and export.FALSE
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy
Learning Objective: 4
Topic: Why Is International Business Different?
27. (p. 23) Environment, as used in the textbook, is the sum of all the forces surrounding andinfluencing the life and development of the firm.TRUE
AACSB: Analytic
Bloom: Knowledge Difficulty: Hard Learning Objective: 4
Topic: Why Is International Business Different?
1-26
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 27/50
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 28/50
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 29/50
Chapter 01 - The Rapid Change of International Business
36. (p. 25) Those who work in the international environment find that decision making is not ascomplex as it is in a purely domestic environment.FALSE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 5Topic: Why Is International Business Different?
37. (p. 25) The international environment is the interactions between the domestic and foreignenvironmental forces or between sets of foreign environmental forces.TRUE
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy
Learning Objective: 5
Topic: Why Is International Business Different?
38. (p. 24) Managers in the international environment find that decision making is easier because foreign countries are smaller than markets in the United States.FALSE
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 4Topic: Why Is International Business Different?
39. (p. 25) The self-reference criterion is probably the biggest cause of international business blunders.TRUE
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium
Learning Objective: 4
Topic: Why Is International Business Different?
1-29
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 30/50
Chapter 01 - The Rapid Change of International Business
40. (p. 27) An international manager has two choices on what to do overseas with a concept or technique employed in domestic operations: (1) transfer it intact or (2) adapt it to localconditions.FALSE
AACSB: Analytic
Bloom: Knowledge Difficulty: Hard
Learning Objective: 4
Topic: Why Is International Business Different?
Multiple Choice Questions
41.(p. 7)
The increased internationalization of business requires __________ to have a basicknowledge of international business.A. all managersB. managers of multinationalsC. managers of transnationalsD. managers of purely domestic operations
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2
Topic: International Business Terminology
42. (p. 2) There is an emphatic need for all business people to have a basic knowledge of:A. foreign travel.B. international business.C. the Pacific Rim.D. foreign exchange.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy Learning Objective: 2
Topic: International Business Terminology
1-30
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 31/50
Chapter 01 - The Rapid Change of International Business
43. (p. 6) According the text, American CEOs want business graduates they hire to have someeducation in international business.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. Both A and B.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2Topic: International Business Terminology
44. (p. 10) Historically, international business:
A. is relatively new.B. existed before the time of Christ.C. B and D.D. was influenced by the rise of the Ottoman Empire.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1Topic: A Brief History of International Business
45. (p. 10) As used in the text, a global company is an organizationA. 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
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium Learning Objective: 1
Topic: International Business Terminology
1-31
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 32/50
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 33/50
Chapter 01 - The Rapid Change of International Business
49. (p. 10) A multidomestic company isA. 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.
AACSB: Analytic Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
Topic: International Business Terminology
50. (p. 10) A global company (GC) isA. 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.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 1
Topic: International Business Terminology
51. (p. 10) 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.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 2Topic: A Brief History of International Business
1-33
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 34/50
Chapter 01 - The Rapid Change of International Business
52. (p. 12) The major globalization drivers include all of the following except:A. PoliticalB. SocialC. Technological
D. MarketE. None. All of the above are major kinds of globalization drivers
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 2Topic: Drivers of Globalization
53. (p. 12) 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 globalcommunity.
AACSB: Analytic Bloom: Knowledge
Difficulty: Hard
Learning Objective: 2
Topic: Drivers of Globalization
54. (p. 15) UNCTAD, an agency of the United Nations estimates there are __________ international firms in the world.A. 5,500B. 12,000C. 64,000D. 120,000E. over 800,000
AACSB: Analytic
Bloom: Knowledge Difficulty: Medium
Learning Objective: 3
Topic: Growth of International Firms and International Business
1-34
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 35/50
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 36/50
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 37/50
Chapter 01 - The Rapid Change of International Business
61. (p. 17) According to the text, one variable commonly used to measure where and how fastinternationalization takes place is: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.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 3Topic: Growth of International Firms and International Business
62. (p. 17) The level of service exports worldwide increased nearly __ between 1980 and 2007.
A. FourfoldB. SixfoldC. NinefoldD. Twentyfold
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 3Topic: Growth of International Firms and International Business
63. (p. 20) According to supporters of the globalization of trade and investment, free tradeA. 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
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium Learning Objective: 3
Topic: The Globalization Debate and You
1-37
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 38/50
Chapter 01 - The Rapid Change of International Business
64. (p. 21) 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.
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy
Learning Objective: 3
Topic: The Globalization Debate and You
65. (p. 23) Environment as used in the textbook is the forces surrounding and influencing the lifeand 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.
AACSB: Analytic
Bloom: Knowledge Difficulty: Hard
Learning Objective: 4
Topic: Why Is International Business Different?
66. (p. 23) Management has no direct control over the external environment of the firm but canexert influence byA. heavy promotion of new products to change cultural attitudes.B. focus on the strategic plan.C. lobbying.D. All of the above.E. A and C.
AACSB: Analytic Bloom: Knowledge
Difficulty: Hard Learning Objective: 4
Topic: Why Is International Business Different?
1-38
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 39/50
Chapter 01 - The Rapid Change of International Business
67. (p. 23) International business differs from domestic business in that a firm operating across borders must deal withA. C, D, and E.B. C and D.
C. the foreign environment.D. the international environment.E. the domestic environment.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy Learning Objective: 4
Topic: Why Is International Business Different?
68.(p. 23)
Examples of the kinds of uncontrollable forces listed in the text are:A. competitive.B. technological.C. gravitational.D. A and B.E. All of the above.
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium
Learning Objective: 4
Topic: Why Is International Business Different?
69. (p. 23) The forces over which the management does have some command are called:A. internal.B. controllable.C. foreign.D. A and B.E. B and C.
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium Learning Objective: 4
Topic: Why Is International Business Different?
1-39
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 40/50
Chapter 01 - The Rapid Change of International Business
70. (p. 24) The domestic environment is composed of all the uncontrollable forces originating inthe __________ that surround and influence the life and development of the firm.A. international arenaB. host nation
C. home countryD. foreign countryE. B and C.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium Learning Objective: 5
Topic: Why Is International Business Different?
71.(p. 24)
Foreign environmental forces often operate differently than domestic environmentalforces because:A. they are uncontrollable.B. force values are different.C. changes are difficult to assess.D. B and C.E. A, B, and C.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 5Topic: Why Is International Business Different?
72. (p. 24) The kinds of forces in the foreign environment are __________ those in the domesticenvironment except that they occur in foreign nations.A. different fromB. the same asC. less thanD. more stringent than
AACSB: Analytic
Bloom: Knowledge Difficulty: Medium
Learning Objective: 5
Topic: Why Is International Business Different?
1-40
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 41/50
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 42/50
Chapter 01 - The Rapid Change of International Business
76. (p. 25) Unconscious reference to one's own cultural values when judging behavioral actionsof others in a new and different environment is called:A. self-reference culture.B. self-reference values.
C. self-reference criterion.D. self-reference customs.E. self-reference environment.
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium Learning Objective: 4
Topic: Why Is International Business Different?
77.(p. 27)
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.D. A and B.E. A, B and C.
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium
Learning Objective: 4
Topic: Why Is International Business Different?
Essay Questions
78. (p. 7) Considering the dramatic internationalization of markets, discuss the comment "noone will be in a general management job by the end of the decade who has not hadinternational exposure and experience."
Answers may vary.
AACSB: Analytic Bloom: Synthesis
Difficulty: Easy
Learning Objective: 2
Topic: International Business Terminology
1-42
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 43/50
Chapter 01 - The Rapid Change of International Business
79. (p. 10) Discuss the differences of the various names given to firms that have substantialoperations in more than one country such as a global company, a multinational firm and aninternational company.
Answers may vary.
AACSB: Analytic
Bloom: Synthesis Difficulty: Medium
Learning Objective: 2
Topic: International Business Terminology
80. (p. 10) Contrast the differences between firms of the early 1900s and present-day globalcompanies.
Answers may vary.
AACSB: Analytic
Bloom: Synthesis
Difficulty: Medium
Learning Objective: 1
Topic: International Business Terminology
81. (p. 12) Identify and discuss the 5 major kinds of drivers that are leading international firms
to the globalization of their operations.
Answers may vary.
AACSB: Analytic
Bloom: Synthesis Difficulty: Easy
Learning Objective: 2
Topic: Drivers of Globalization
1-43
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 44/50
Chapter 01 - The Rapid Change of International Business
82. (p. 15) Explain why comparisons of nations and industrial firms by GNI and total sales,respectively, can produce misleading results.
Answers may vary.
AACSB: Analytic
Bloom: Synthesis
Difficulty: Hard Learning Objective: 3
Topic: Growth of International Firms and International Business
83. (p. 18) Discuss the arguments supporting and opposing globalization of trade andinvestment.
Answers may vary.
AACSB: Analytic
Bloom: Synthesis Difficulty: Medium
Learning Objective: 3
Topic: The Globalization Debate and You
84. (p. 23) Discuss why and how international business differs from domestic business.
Answers may vary.
AACSB: Analytic
Bloom: Synthesis
Difficulty: Medium
Learning Objective: 3
Topic: Why Is International Business Different?
85. (p. 24) Discuss the three environments in which an international company operates.
Answers may vary.
AACSB: Analytic
Bloom: Synthesis
Difficulty: Hard
Learning Objective: 5
Topic: Why Is International Business Different?
1-44
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 45/50
Chapter 01 - The Rapid Change of International Business
Fill in the Blank Questions
86. (p. 7) Management must have _______________ _______________ to be able to meet thechallenge of global competition.
knowledge of international business
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
Topic: International Business Terminology
87. (p. 9) Some academic writers suggest using terms such as multidomestic and _______________ as synonyms for what others call a multinational.
multilocal
AACSB: Analytic
Bloom: Knowledge Difficulty: Medium
Learning Objective: 1
Topic: International Business Terminology
88. (p. 10) The term __________ __________ is used to describe an organization withmulticountry affiliates, each of which formulates its own business strategy based on perceived
market differences.multidomestic company
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy Learning Objective: 1
Topic: International Business Terminology
1-45
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 46/50
Chapter 01 - The Rapid Change of International Business
89. (p. 10) The term __________ __________ refers to both global and multidomesticcompanies.international company
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1Topic: International Business Terminology
90. (p. 10) __________ __________ is business whose activities involve crossing national borders.International business
AACSB: Analytic Bloom: Knowledge
Difficulty: Easy
Learning Objective: 1
Topic: International Business Terminology
91. (p. 10) _______________ __________ denotes the domestic operations within a foreigncountry.Foreign business
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 1Topic: International Business Terminology
92. (p. 12) The tendency toward an international integration of goods, technology, information,labor and capital, or the process of making this integration happen, is termed ____________ ______________.economic globalization
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 2
Topic: Globalization - What is it?
1-46
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 47/50
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 48/50
Chapter 01 - The Rapid Change of International Business
97. (p. 20) __________, as used in the text, is the sum of all the forces surrounding andinfluencing the life and development of the firm.Environment
AACSB: Analytic
Bloom: Knowledge
Difficulty: Medium
Learning Objective: 3Topic: Growth of International Firms and International Business
98. (p. 23) International business differs from domestic business in that a firm operating across borders must deal with the forces of __________, __________, and _______________ environments.domestic, foreign, and international
AACSB: Analytic
Bloom: Knowledge
Difficulty: Hard
Learning Objective: 4
Topic: Why Is International Business Different?
99. (p. 23) Environmental forces can be classified as __________ or __________.external, internal OR controllable, uncontrollable
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 4Topic: Why Is International Business Different?
100. (p. 23) External environmental forces are commonly referred to as ___________.uncontrollable
AACSB: Analytic
Bloom: Knowledge Difficulty: Easy Learning Objective: 4
Topic: Why Is International Business Different?
1-48
7/22/2019 International Business 12e [Ball]
http://slidepdf.com/reader/full/international-business-12e-ball 49/50
Chapter 01 - The Rapid Change of International Business
101. (p. 23) Internal environmental forces are commonly referred to as __________.controllable
AACSB: Analytic
Bloom: Knowledge
Difficulty: Easy
Learning Objective: 4
Topic: Why Is International Business Different?
102. (p. 24) The __________ __________ is composed of all the uncontrollable forcesoriginating in the home country.domestic environment
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium Learning Objective: 5
Topic: Why Is International Business Different?
103. (p. 24) The forces in the __________ __________ are the same as those in the domesticenvironment except that they occur in foreign nations.foreign environment
AACSB: Analytic Bloom: Knowledge
Difficulty: Medium
Learning Objective: 5
Topic: Why Is International Business Different?
104. (p. 25) The ______ ______ is the interaction between domestic and foreign environmentalforces or between sets of foreign environmental forces.international environment
AACSB: Analytic
Bloom: Knowledge Difficulty: Medium Learning Objective: 5
Topic: Why Is International Business Different?
1-49