Test Bank for M International Business, 1st.pdf

The Challenging World of International Business True / False Questions 1. American companies want their managers to have a basic knowledge of international business. True False 2. Only those companies that have foreign operations need to be aware of what is occurring globally in its markets and their industry. True False 3. Foreign business is business whose activities are carried out across national borders. True False 4. An international company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. True False 5. A business whose activities are carried out across national borders is known as an international business. True False 6. Foreign business refers to the operations of a company outside its home or domestic market. True False Chapter 01 - The Challenging World of International Business 1-3 7. 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. True False 8. A multidomestic company is an organization that attempts to standardize and integrate operations worldwide in all functional areas. True False 9. The term international company refers to both global and multidomestic companies. True False 10. A global company is an organization that attempts to standardize and integrate operations worldwide in most or all functional areas. True False 11. According to the definitions in the text, a multidomestic firm is an organization that attempts to standardize operations worldwide in all functional areas. True False 12. The United Nations uses the term transnational to describe an enterprise doing business in more than one country. True False 13. International business differs from domestic business in that a firm operating across borders must deal with the forces of two kinds of environments-domestic and foreign. True False Chapter 01 - The Challenging World of International Business 1-4 14. External forces in the international business environment are commonly called uncontrollable forces. True False 15. According to the text, environmental elements over which management does have some control-include competitive, labor, and financial forces-are called the internal forces. True False Chapter 01 The Challenging World of International Business Answer Key True / False Questions 1. (p. 6) American companies want their managers to have a basic knowledge of international business. TRUE As stated directly in the text. AACSB: Reflective thinking Bloom's: Understand Difficulty: 1 Easy Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? 2. (p. 6) Only those companies that have foreign operations need to be aware of what is occurring globally in its markets and their industry. FALSE Even a strictly domestic company must be able to consider actions or potential actions of suppliers, competitors, customers, and other stakeholders that operate in foreign markets or that are active or may be active within the domestic company's marketplace and that may impact the domestic company's sales and profits. AACSB: Reflective thinking Bloom's: Understand Difficulty: 2 Medium Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? Chapter 01 - The Challenging World of International Business 1-21 3. (p. 6) Foreign business is business whose activities are carried out across national borders. FALSE Foreign business denotes the operations of a company outside its home or domestic market. International business is business whose activities are carried out across national borders. AACSB: Reflective thinking Bloom's: Understand Difficulty: 2 Medium Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? 4. (p. 6) An international company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. FALSE An international company can be either a global or a multidomestic company. A multidomestic company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. AACSB: Reflective thinking Bloom's: Understand Difficulty: 2 Medium Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? Chapter 01 - The Challenging World of International Business 1-22 5. (p. 6) A business whose activities are carried out across national borders is known as an international business. TRUE As stated directly in text. AACSB: Reflective thinking Bloom's: Remember Difficulty: 1 Easy Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? 6. (p. 6) Foreign business refers to the operations of a company outside its home or domestic market. TRUE As stated directly in text. AACSB: Reflective thinking Bloom's: Remember Difficulty: 2 Medium Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? Chapter 01 - The Challenging World of International Business 1-23 7. (p. 6) 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. FALSE A multidomestic company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. AACSB: Reflective thinking Bloom's: Remember Difficulty: 2 Medium Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? 8. (p. 6) A multidomestic company is an organization that attempts to standardize and integrate operations worldwide in all functional areas. FALSE A global company is an organization that attempts to standardize and integrate operations worldwide in all functional areas. AACSB: Reflective thinking Bloom's: Remember Difficulty: 1 Easy Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? 9. (p. 6) The term international company refers to both global and multidomestic companies. TRUE As stated directly in text. AACSB: Reflective thinking Bloom's: Remember Difficulty: 2 Medium Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? Chapter 01 - The Challenging World of International Business 1-24 10. (p. 6) A global company is an organization that attempts to standardize and integrate operations worldwide in most or all functional areas. TRUE As stated directly in the text. AACSB: Reflective thinking Bloom's: Understand Difficulty: 1 Easy Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? 11. (p. 6) According to the definitions in the text, a multidomestic firm is an organization that attempts to standardize operations worldwide in all functional areas. FALSE A multidomestic company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. A global company is an organization that attempts to standardize and integrate operations worldwide in most or all functional areas. AACSB: Reflective thinking Bloom's: Understand Difficulty: 2 Medium Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? 12. (p. 6) The United Nations uses the term transnational to describe an enterprise doing business in more than one country. TRUE As stated directly in the text. AACSB: Reflective thinking Bloom's: Understand Difficulty: 2 Medium Learning Objective: 01-01 Understand what international business is and why it is important. Topic Area: What is international business? Chapter 01 - The Challenging World of International Business 1-25 13. (p. 7) International business differs from domestic business in that a firm operating across borders must deal with the forces of two kinds of environments-domestic and foreign. FALSE International business involves three kinds of environments-domestic, foreign, and international. AACSB: Reflective thinking Bloom's: Understand Difficulty: 2 Medium Learning Objective: 01-02 Comprehend why and how international business differs from domestic business. Topic Area: What is different about international business? 14. (p. 7) External forces in the international business environment are commonly called uncontrollable forces. TRUE As stated directly in the text. AACSB: Reflective thinking Bloom's: Understand Difficulty: 1 Easy Learning Objective: 01-02 Comprehend why and how international business differs from domestic business. Topic Area: What is different about international business? 15. (p. 7) According to the text, environmental elements over which management does have some control-include competitive, labor, and financial forces-are called the internal forces. FALSE Competitive, labor, and financial forces are external (or uncontrollable) forces. AACSB: Reflective thinking Bloom's: Understand Difficulty: 2 Medium Learning Objective: 01-02 Comprehend why and how international business differs from domestic business. Topic Area: What is different about international business?