1. In today’s world, every manager needs to think locally. ANS: 2. Business has become a unified, gl
1. In today’s world, every
manager needs to think locally.
ANS:
2. Business has become a unified, global field
as trade barriers fall, communication becomes faster and cheaper, and consumer
tastes converge.
ANS:
3. The second stage in the process of
globalization is the international stage, where the company usually adopts a
multidomestic approach.
ANS:
4. An example of global outsourcing is seen when
Gap, Inc. uses low-cost Caribbean labor to cheaply produce its clothing, and
then finishes off and sells its clothing in the United States.
ANS:
5. With exporting, the corporation transfers its
products for sale and its production facilities in foreign countries.
ANS:
6. Seeking cheaper sources of materials or labor
offshore is called offshoring.
ANS:
7. Countertrade is the barter of products for
products rather than the sale of products for currency.
ANS:
8. An estimated 55 percent of world trade is
countertrade.
ANS:
9. When Harbor Trades, a Korean-based company, makes
resources including technology, managerial skills, and patent and trademark
rights available to Nano Technologies, a Russian company whereby allowing Nano
to make products similar to CBA, it is engaging in a countertrade agreement.
ANS:
10. Outsourcing is perhaps the most widespread approach to
international involvement in China and India.
ANS:
11. Infrastructure management is the management of business operations
conducted in more than one country.
ANS:
12. The basic management functions of planning, organizing, leading,
and controlling are the same whether a company operates domestically or
internationally.
ANS:
13. The sub-divisions of the international environment are the
economic, the sociocultural, and the legal-political environments.
ANS:
14. Some economic environments of business include resource and
product markets, language, religion, and per capita income.
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15. A country’s physical facilities that support economic activities
make up its infrastructure.
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16. The criterion traditionally used to classify countries as
developed or developing is per capita income.
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17. LDCs are less developed countries and tend to be found in the
Southern Hemisphere including Africa, Asia and South America.
ANS:
18. Because of cheap labor, most international business firms are
headquartered in the less developed countries of Asia and South America.
ANS:
19. Market risk is defined as the risk of loss of assets, earning
power, or managerial control due to politically based events or actions by host
governments.
ANS:
20. The countries experiencing political stability face the greatest
threat of violence.
ANS:
