INTB Connect Questions
Foreign business refers to the operations of a company outside its home or domestic market.
The term international business is used to describe an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences.
Expanded international trade is linked with the creation of more and better jobs.
a global company is
An organization that attempts to standardize and integrate operations worldwide in most or all functional areas
Importing refers to the transportation of any good or service to a destination into a country or region, from a foreign origination point.
According to supporters of the globalization of trade and investment, free trade:
Creates more and better jobs
UNCTAD, an agency of the United Nations, estimates there are __________ international firms in the world.
Foreign environmental forces often operate differently than domestic environmental forces because:
Force values are different and changes are difficult to assess
Changing the method of going abroad from exporting to overseas production is often necessary to protect foreign markets.
The forces over which the management does have some command are called:
Internal and Controllable
Examples of the kinds of uncontrollable forces listed in the text are:
Competitive and Technological
The international environment is the interactions between:
The domestic environmental forces and the foreign environmental forces. The foreign environmental forces of 2 countries when an affiliate in 1 country does business in another country
The world stock of outward foreign direct investment was $16.2 trillion in 2008, which was 9 times what it was in 1990.
_______ refers to the transportation of any domestic good or service to a destination outside a country or region.
According to the text, the self-absorption criterion is probably the biggest cause of international business blunders.
FALSE, Self-Reference Criterion
Foreign business is business whose activities are carried out across national borders.
FALSE, International Business
The trend toward unification and socialization of the global community is illustrated by which of the following?
Preferential trading arrangements that group several nations into a single market.
Supporters of globalization generally argue that it is the best strategy for advancing the world's economic development.
Unconscious reference to one's own cultural values when judging behavioral actions of others in a new and different environment is called:
According to opponents of the globalization of trade and investment:
Globalization has produced uneven results across nations and people, had harmful effects on labor and labor standards and has contributed to a decline in environmental and health conditions.
The primary reasons for international trade is a lack of natural resources in the developed nations.
FALSE, is relative price differences across nations, which stem from differences in production costs
In 2009, the top 10 exporting and importing nations collectively accounted for over half of all exports and imports of merchandise and services worldwide.
The development of expanded regional trade agreements, such as the Association of Southeast Asian Nations, Mercosur, and the EU, can substantially alter the level and proportion of trade flows within and across regions.
A nation's relative ability to design, produce, distribute, or service products within an international trading context, while earning increasing returns on its resources, is known as national competitiveness.
The monopolistic advantage theory states that:
FDI is made by firms in oligopolistic industries possessing technical advantages over local companies.
_______________ occurs primarily because of relative price differentials among nations
The three nations that exported the largest amount of goods to the United States in 2009 were:
Canada, Mexico and China
According to the theory of comparative advantage,
a nation should produce the goods at which it is most efficient
Portfolio investment is the purchase of sufficient stock in a firm to obtain significant management control.
FALSE, Direct Investment
Which of the following is explained by international trade theory?
Differences in production costs, differences in levels of technology, foreign exchange rates and differences in efficiency of factor use.
The magnitude of international trade and how it has grown are reflected in that one-fourth of everything grown or made in the world is now exported.
China, Mexico, and Japan are the three largest trading partners of the U.S., in terms of the total volume of imports and exports.
FALSE, China, Mexico, and Canada
Reflecting their continued economic development, developing countries have dramatically increased their share of FDI stock, from 1 percent in 1980 to nearly 15 percent in 2008.
More than half of the exports from developing nations go to developed nations and:
this proportion has been declining over the past 35 years and approximately 70 percent of exports from developed economies also go to other industrialized nations.
The capability of one nation to produce more of a good with the same amount of input than another country is a/an __________ _________.
The proportion of manufacturing value added that is located in developed countries has been roughly stable since 1995.
FALSE, has been declining since 1995
Industrialized nations invest primarily in one another just as they trade more with one another.
Mercantilists believed that:
a nation should have an export surplus in order to accumulate precious metals.
Some observers have argued American industry and the American economy as a whole will be strengthened by offshoring activities to workers in India or other nations that have comparative advantages in areas such as labor costs.
The dynamic capability theory states that for a firm to invest overseas, it must have three kinds of advantages: ownership specific, internalization, and location specific.
FALSE, Ownership specific, internalization, and location specific advantages are part of Dunning's Eclectic Theory of International Production.
Aging populations are more pronounced in developed countries due to the stresses of rural living.
FALSE, due to declining birth rates and marriage rates.
Studies show a relationship between women's education and a nation's overall prosperity.
Women's salaries in Western countries are equal to men's salaries.
No; in fact, in the U.S., Germany, Canada, the UK, Finland and Portugal, the gender salary gap is above the OECD average.
Human trafficking and forced labor are often linked because:
forced labor often involves the selling of human services in activities such as prostitution and slave/bonded labor, activities that are conducted out of sight.
Forced labor is the most common in:
South and East Asia
Most child labor occurs in the textile sector, on a global basis.
FALSE, is in Agriculture
The nations with the largest number of migrants to other nations are France, Australia and Israel.
FALSE, Turkey, Russia, Mexico, India, China, Ukraine, and Bangladesh.
When educated immigrants decide to return home, their adopted country experiences reverse brain drain.
The need for the United Nations pledge against racism is a reminder that racial friction exists in many locales.
UNICEF reports that one in six children (aged 5 to 14) work under conditions that are exploitative.
Because all Americans are middle class, there are no issues of class, social status or gender equity in the workplace.
FALSE, Americans self-identify as middle class. Look to the housing market's segregation for an example of the importance of social class.
India and Egypt are the world's two most populated countries.
FALSE, India & China
In 2010, 31 percent of the world's population was under the age of 15.
needs to be understood and addressed within its context
More than half of all victims of forced labor are women and girls.
As the labor force moves from agricultural work to industrial employment and from rural to urban areas, the number of vulnerable workers decreases.
Korea shows the greatest gap in gender earnings and Belgium the least. The U.S. and Canada are above the OECD average on this measure.
Union membership is high in France and Japan and low in Denmark and Sweden.
FALSE, Reverse. High in Denmark & Sweden, Low in France & Japan
By 2010, more than half the world's workforce:
is located in urban areas in developing countries
Populations in developing nations tend to be growing larger and younger at the same time.