IMS EXAM 1 STUDY GUIDE 2023 with complete solution
All managers need to have a basic knowledge of international business.
True
Only a company that has foreign operations needs to be aware of what is
occurring globally in its markets and in its industry.
False
The operations of a company outside its home or domestic market are known as
foreign business.
True
An international company (IC) is a company headquartered in another nation.
False
International business differs from domestic business in that a firm operating
across borders must deal with the forces of three kinds of environments—
domestic, foreign, and international.
True
As used in the text, the term environment means all the forces influencing the life
and development of the firm.
True
External forces are commonly called uncontrollable forces, which are the external
forces that management has no direct control over, although it can exert
influence.
True
Lobbyists who advocate for new laws that will affect the production standards of
a business are an example of an internal force.
False
The domestic environment includes all the controllable forces originating in the
home country that surround and influence the life and development of the firm.
False
The international environment refers to all the uncontrollable forces originating
outside the home country that surround and influence the firm.
False
Those who work in the international environment find that decision making is
more complex than it is in a purely domestic environment.
True
When a manager unconsciously imparts his or her own cultural values on a
situation without taking into account the possibility that the culture might vary in
a foreign environment, that manager is exhibiting a self-reference criterion.
True
Britain was the world's leading manufacturing country for about 1,800 years, until
it was replaced by the United States in the 1800s.
False
The plague known as the Black Death moved west and affected more people as
the international trading system expanded.
True
,The 17th and 18th centuries have frequently been termed the age of industrialism
because this was the period when industrialization was advanced to the masses.
False
Rapid urbanization of populations combined with industrialization in the
emerging markets is quickly shifting the world's economic center of gravity from
Europe and the Americas back to Asia.
True
Transnational corporations consist of several entities each of which has its own
independent strategy and policies.
False
The five major drivers of international business include political, sociocultural,
technological, market, and competitive drivers.
False
The advent of globalization has had minimal effect on labor standards around the
world.
False
Opponents of free trade point out that globalization has contributed to a decline
in environmental and health conditions.
True
Big Tire Bikes Inc. is headquartered in Maryland and does business within the
United States, as well as within many countries in Europe and South America.
This company is an example of a(n)
A) domestic corporation.
B) foreign subsidy.
C) international affiliate.
D) international business.
D) international business.
Why would companies that don't have any foreign operations still need to acquire
a global perspective?
A) This will help the company provide more efficient domestic services.
B) This would help the companies be more aware of new foreign competitors.
C) This would help companies manufacture products more efficiently.
D) This will help the company create more job opportunities.
B) This would help the companies be more aware of new foreign competitors.
Jetson Manufacturing has manufacturing operations in the United States,
Germany, Indonesia, and Brazil. Jetson Manufacturing is an example of a(n)
A) state-owned corporation.
B) distribution center.
C) international affiliate.
D) international company.
D) international company.
The increased internationalization of business requires ________ to have a basic
knowledge of international business.
, A) all managers
B) managers of multinationals
C) managers of transnationals
D) managers of purely domestic operations
A) all managers
An international business is defined as a(n)
A) business whose activities involve crossing national borders.
B) organization with multicountry affiliates.
C) organization that attempts to standardize operations worldwide.
D) organization engaged in domestic trade.
A) business whose activities involve crossing national borders.
Foreign business denotes
A) a business with operations in multiple nations.
B) business conducted within a foreign country.
C) an organization with multicountry affiliates.
D) an organization that attempts to standardize operations worldwide.
B) business conducted within a foreign country.
The construction industry has joined the ranks of other industries and now
carries out business across national borders. In other words, the construction
industry has become a(n)
A) foreign-owned company.
B) domestic affiliate.
C) international affiliate.
D) international business.
D) international business.
International business differs from domestic business in that a firm operating
across borders must deal with the forces associated with which three kinds of
environments?
A) geographic, political, economic
B) foreign, domestic, international
C) initial, secondary, primary
D) multicultural, ethnocentric, stereotypical
B) foreign, domestic, international
Environment as used in the textbook involves the forces surrounding and
influencing the life and development of the firm and is classified as
A) primary and secondary.
B) controllable and uncontrollable.
C) domestic and foreign.
D) representative and democratic.
B) controllable and uncontrollable.
All managers need to have a basic knowledge of international business.
True
Only a company that has foreign operations needs to be aware of what is
occurring globally in its markets and in its industry.
False
The operations of a company outside its home or domestic market are known as
foreign business.
True
An international company (IC) is a company headquartered in another nation.
False
International business differs from domestic business in that a firm operating
across borders must deal with the forces of three kinds of environments—
domestic, foreign, and international.
True
As used in the text, the term environment means all the forces influencing the life
and development of the firm.
True
External forces are commonly called uncontrollable forces, which are the external
forces that management has no direct control over, although it can exert
influence.
True
Lobbyists who advocate for new laws that will affect the production standards of
a business are an example of an internal force.
False
The domestic environment includes all the controllable forces originating in the
home country that surround and influence the life and development of the firm.
False
The international environment refers to all the uncontrollable forces originating
outside the home country that surround and influence the firm.
False
Those who work in the international environment find that decision making is
more complex than it is in a purely domestic environment.
True
When a manager unconsciously imparts his or her own cultural values on a
situation without taking into account the possibility that the culture might vary in
a foreign environment, that manager is exhibiting a self-reference criterion.
True
Britain was the world's leading manufacturing country for about 1,800 years, until
it was replaced by the United States in the 1800s.
False
The plague known as the Black Death moved west and affected more people as
the international trading system expanded.
True
,The 17th and 18th centuries have frequently been termed the age of industrialism
because this was the period when industrialization was advanced to the masses.
False
Rapid urbanization of populations combined with industrialization in the
emerging markets is quickly shifting the world's economic center of gravity from
Europe and the Americas back to Asia.
True
Transnational corporations consist of several entities each of which has its own
independent strategy and policies.
False
The five major drivers of international business include political, sociocultural,
technological, market, and competitive drivers.
False
The advent of globalization has had minimal effect on labor standards around the
world.
False
Opponents of free trade point out that globalization has contributed to a decline
in environmental and health conditions.
True
Big Tire Bikes Inc. is headquartered in Maryland and does business within the
United States, as well as within many countries in Europe and South America.
This company is an example of a(n)
A) domestic corporation.
B) foreign subsidy.
C) international affiliate.
D) international business.
D) international business.
Why would companies that don't have any foreign operations still need to acquire
a global perspective?
A) This will help the company provide more efficient domestic services.
B) This would help the companies be more aware of new foreign competitors.
C) This would help companies manufacture products more efficiently.
D) This will help the company create more job opportunities.
B) This would help the companies be more aware of new foreign competitors.
Jetson Manufacturing has manufacturing operations in the United States,
Germany, Indonesia, and Brazil. Jetson Manufacturing is an example of a(n)
A) state-owned corporation.
B) distribution center.
C) international affiliate.
D) international company.
D) international company.
The increased internationalization of business requires ________ to have a basic
knowledge of international business.
, A) all managers
B) managers of multinationals
C) managers of transnationals
D) managers of purely domestic operations
A) all managers
An international business is defined as a(n)
A) business whose activities involve crossing national borders.
B) organization with multicountry affiliates.
C) organization that attempts to standardize operations worldwide.
D) organization engaged in domestic trade.
A) business whose activities involve crossing national borders.
Foreign business denotes
A) a business with operations in multiple nations.
B) business conducted within a foreign country.
C) an organization with multicountry affiliates.
D) an organization that attempts to standardize operations worldwide.
B) business conducted within a foreign country.
The construction industry has joined the ranks of other industries and now
carries out business across national borders. In other words, the construction
industry has become a(n)
A) foreign-owned company.
B) domestic affiliate.
C) international affiliate.
D) international business.
D) international business.
International business differs from domestic business in that a firm operating
across borders must deal with the forces associated with which three kinds of
environments?
A) geographic, political, economic
B) foreign, domestic, international
C) initial, secondary, primary
D) multicultural, ethnocentric, stereotypical
B) foreign, domestic, international
Environment as used in the textbook involves the forces surrounding and
influencing the life and development of the firm and is classified as
A) primary and secondary.
B) controllable and uncontrollable.
C) domestic and foreign.
D) representative and democratic.
B) controllable and uncontrollable.
