Chapterf01f-fThefChallengingfWorldfoffInternationalfBusiness
Test Bank forM: International Business, 1stE
f f f f f f f
dition: Michael Geringer
f f
1-1
,Chapterf01f-fThefChallengingfWorldfoffInternationalfBusiness
Chapter 01 f f
The Challenging World of International Business
f f f f f
Truef/fFalsefQuestions
1. Americanfcompaniesfwantftheirfmanagersftofhavefafbasicfknowledgefoffinternationalfbu
siness.
True False
2. Onlyfthosefcompaniesfthatfhavefforeignfoperationsfneedftofbefawarefoffwhatfisfoccurringfglo
ballyfinfitsfmarketsfandftheirfindustry.
True False
3. Foreignfbusinessfisfbusinessfwhosefactivitiesfarefcarriedfoutfacrossfnationalfborders.fTr
ue False
4. Anfinternationalfcompanyfisfanforganizationfwithfmulticountryfaffiliates,feachfoffwhichffor
mulatesfitsfownfbusinessfstrategyfbasedfonfperceivedfmarketfdifferences.
True False
5. Afbusinessfwhosefactivitiesfarefcarriedfoutfacrossfnationalfbordersfisfknownfasfanfinte
rnationalfbusiness.
True False
6. Foreignfbusinessfrefersftofthefoperationsfoffafcompanyfoutsidefitsfhomeforfdomesticfma
rket.
True False
1-2
,Chapterf01f-fThefChallengingfWorldfoffInternationalfBusiness
7. Theftermfinternationalfbusinessfisfusedftofdescribefanforganizationfwithfmulticountryfaffi
liates,feachfoffwhichfformulatesfitsfownfbusinessfstrategyfbasedfonfperceivedfmarketfdiffere
nces.
Truef False
8. Afmultidomesticfcompanyfisfanforganizationfthatfattemptsftofstandardizefandfintegratefop
erationsfworldwidefinfallffunctionalfareas.
Truefff False
9. Theftermfinternationalfcompanyfrefersftofbothfglobalfandfmultidomesticfcompanies.fTr
ue False
10. Afglobalfcompanyfisfanforganizationfthatfattemptsftofstandardizefandfintegratefoperationsfwo
rldwidefinfmostforfallffunctionalfareas.
Truef False
11. Accordingftofthefdefinitionsfinftheftext,fafmultidomesticffirmfisfanforganizationfthatfatte
mptsftofstandardizefoperationsfworldwidefinfallffunctionalfareas.
Truef False
12. ThefUnitedfNationsfusesftheftermftransnationalftofdescribefanfenterprisefdoingfbusinessfinfmo
refthanfonefcountry.
Truefff False
13. Internationalfbusinessfdiffersffromfdomesticfbusinessfinfthatfaffirmfoperatingfacrossfbo
rdersfmustfdealfwithfthefforcesfofftwofkindsfoffenvironments-domesticfandfforeign.fTrue
False
1-3
, Chapterf01f-fThefChallengingfWorldfoffInternationalfBusiness
14. Externalfforcesfinfthefinternationalfbusinessfenvironmentfarefcommonlyfcalledfun
controllablefforces.
True False
15. Accordingftoftheftext,fenvironmentalfelementsfoverfwhichfmanagementfdoesfhavefsomefco
ntrol-includefcompetitive,flabor,fandffinancialfforces-arefcalledfthefinternalfforces.
True False
16. Externalfenvironmentalfforcesfarefcommonlyfreferredftofasfcontrollable.fT
rue False
17. Internalfenvironmentalfforcesfarefcommonlyfreferredftofasfcontrollable.fT
rue False
18. Thefinternationalfenvironmentfisfcomposedfoffallfthefuncontrollablefforcesforiginatingfinfthe
fhomefcountry.
True False
19. Accordingftoftheftext,fthefinternationalfenvironmentfisfallfoffthefuncontrollablefforcesfori
ginatingfoutsidefthefhomefcountryfthatfsurroundfandfinfluenceftheffirm.
True False
20. Accordingftoftheftext,fthefdomesticfenvironmentfisfallfoffthefuncontrollablefforcesforiginati
ngfinfthefhomefcountryfthatfsurroundfandfinfluenceftheffirm'sflifefandfdevelopment.fTrue
False
1-4
Test Bank forM: International Business, 1stE
f f f f f f f
dition: Michael Geringer
f f
1-1
,Chapterf01f-fThefChallengingfWorldfoffInternationalfBusiness
Chapter 01 f f
The Challenging World of International Business
f f f f f
Truef/fFalsefQuestions
1. Americanfcompaniesfwantftheirfmanagersftofhavefafbasicfknowledgefoffinternationalfbu
siness.
True False
2. Onlyfthosefcompaniesfthatfhavefforeignfoperationsfneedftofbefawarefoffwhatfisfoccurringfglo
ballyfinfitsfmarketsfandftheirfindustry.
True False
3. Foreignfbusinessfisfbusinessfwhosefactivitiesfarefcarriedfoutfacrossfnationalfborders.fTr
ue False
4. Anfinternationalfcompanyfisfanforganizationfwithfmulticountryfaffiliates,feachfoffwhichffor
mulatesfitsfownfbusinessfstrategyfbasedfonfperceivedfmarketfdifferences.
True False
5. Afbusinessfwhosefactivitiesfarefcarriedfoutfacrossfnationalfbordersfisfknownfasfanfinte
rnationalfbusiness.
True False
6. Foreignfbusinessfrefersftofthefoperationsfoffafcompanyfoutsidefitsfhomeforfdomesticfma
rket.
True False
1-2
,Chapterf01f-fThefChallengingfWorldfoffInternationalfBusiness
7. Theftermfinternationalfbusinessfisfusedftofdescribefanforganizationfwithfmulticountryfaffi
liates,feachfoffwhichfformulatesfitsfownfbusinessfstrategyfbasedfonfperceivedfmarketfdiffere
nces.
Truef False
8. Afmultidomesticfcompanyfisfanforganizationfthatfattemptsftofstandardizefandfintegratefop
erationsfworldwidefinfallffunctionalfareas.
Truefff False
9. Theftermfinternationalfcompanyfrefersftofbothfglobalfandfmultidomesticfcompanies.fTr
ue False
10. Afglobalfcompanyfisfanforganizationfthatfattemptsftofstandardizefandfintegratefoperationsfwo
rldwidefinfmostforfallffunctionalfareas.
Truef False
11. Accordingftofthefdefinitionsfinftheftext,fafmultidomesticffirmfisfanforganizationfthatfatte
mptsftofstandardizefoperationsfworldwidefinfallffunctionalfareas.
Truef False
12. ThefUnitedfNationsfusesftheftermftransnationalftofdescribefanfenterprisefdoingfbusinessfinfmo
refthanfonefcountry.
Truefff False
13. Internationalfbusinessfdiffersffromfdomesticfbusinessfinfthatfaffirmfoperatingfacrossfbo
rdersfmustfdealfwithfthefforcesfofftwofkindsfoffenvironments-domesticfandfforeign.fTrue
False
1-3
, Chapterf01f-fThefChallengingfWorldfoffInternationalfBusiness
14. Externalfforcesfinfthefinternationalfbusinessfenvironmentfarefcommonlyfcalledfun
controllablefforces.
True False
15. Accordingftoftheftext,fenvironmentalfelementsfoverfwhichfmanagementfdoesfhavefsomefco
ntrol-includefcompetitive,flabor,fandffinancialfforces-arefcalledfthefinternalfforces.
True False
16. Externalfenvironmentalfforcesfarefcommonlyfreferredftofasfcontrollable.fT
rue False
17. Internalfenvironmentalfforcesfarefcommonlyfreferredftofasfcontrollable.fT
rue False
18. Thefinternationalfenvironmentfisfcomposedfoffallfthefuncontrollablefforcesforiginatingfinfthe
fhomefcountry.
True False
19. Accordingftoftheftext,fthefinternationalfenvironmentfisfallfoffthefuncontrollablefforcesfori
ginatingfoutsidefthefhomefcountryfthatfsurroundfandfinfluenceftheffirm.
True False
20. Accordingftoftheftext,fthefdomesticfenvironmentfisfallfoffthefuncontrollablefforcesforiginati
ngfinfthefhomefcountryfthatfsurroundfandfinfluenceftheffirm'sflifefandfdevelopment.fTrue
False
1-4
