Chapter 01
The Rapid Change of International Business
True / False Questions
1. A senior manager of a major multinational said that "no one will be in a general
management job by the end of the decade who didn't have international exposure and
experience."
True False
2. American companies want their managers to have a basic knowledge of international
business.
True False
3. CEOs of major American firms doing business overseas are not convinced the business
graduates they hire should have some education in the international aspects of business.
True False
4. Only those companies that have foreign operations need to be aware of what is occurring
globally in its markets and their industry.
True False
5. Firms with no foreign operations of any kind do not need managers with a global
business perspective.
True False
,6. The United Nations uses the term transnational to describe a firm doing business in more
than one country.
True False
,7. According to the text, foreign business denotes the operations of a company outside its
home or domestic market.
True False
8. According to the text, a global company is an organization with multicountry affiliates,
each of which formulates its own business strategy based on perceived market differences.
True False
9. 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
10. The term in this text, "international company," refers to both global and multidomestic
companies.
True False
11. While international business as a discipline is relatively new, international business as a
business practice is not.
True False
12. The tendency toward an international integration of goods, technology, information,
labor and capital, or the process of making this integration happen, is referred to as
economic globalization.
True False
13. There are five major kinds of drivers, all based on changes that are leading international
firms to the globalization of their operations.
True False
, 14. Transnational corporations account for approximately 25 percent of total global output
and nearly 5 percent of world trade.
True False
15. Critics of large global firms compare these firms' sales with nations' total sales to
illustrate the tremendous size of these firms.
True False
16. In 2006, ExxonMobil's sales worldwide were greater than the gross national incomes of
all but the largest 19 nations of the world.
True False
17. When a global firm's total sales are greater than a nation's GNI, the national government
is defenseless against such a firm.
True False
18. One variable commonly used to measure where and how fast internationalization takes
place is the increase in total foreign direct investment.
True False
19. The world stock of outward foreign direct investment was $12.5 trillion in 2006, which
was almost 10 times what it was in 1980.
True False
20. Exporting refers to the transportation of any good or service to a destination inside a
country or region.
True False
The Rapid Change of International Business
True / False Questions
1. A senior manager of a major multinational said that "no one will be in a general
management job by the end of the decade who didn't have international exposure and
experience."
True False
2. American companies want their managers to have a basic knowledge of international
business.
True False
3. CEOs of major American firms doing business overseas are not convinced the business
graduates they hire should have some education in the international aspects of business.
True False
4. Only those companies that have foreign operations need to be aware of what is occurring
globally in its markets and their industry.
True False
5. Firms with no foreign operations of any kind do not need managers with a global
business perspective.
True False
,6. The United Nations uses the term transnational to describe a firm doing business in more
than one country.
True False
,7. According to the text, foreign business denotes the operations of a company outside its
home or domestic market.
True False
8. According to the text, a global company is an organization with multicountry affiliates,
each of which formulates its own business strategy based on perceived market differences.
True False
9. 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
10. The term in this text, "international company," refers to both global and multidomestic
companies.
True False
11. While international business as a discipline is relatively new, international business as a
business practice is not.
True False
12. The tendency toward an international integration of goods, technology, information,
labor and capital, or the process of making this integration happen, is referred to as
economic globalization.
True False
13. There are five major kinds of drivers, all based on changes that are leading international
firms to the globalization of their operations.
True False
, 14. Transnational corporations account for approximately 25 percent of total global output
and nearly 5 percent of world trade.
True False
15. Critics of large global firms compare these firms' sales with nations' total sales to
illustrate the tremendous size of these firms.
True False
16. In 2006, ExxonMobil's sales worldwide were greater than the gross national incomes of
all but the largest 19 nations of the world.
True False
17. When a global firm's total sales are greater than a nation's GNI, the national government
is defenseless against such a firm.
True False
18. One variable commonly used to measure where and how fast internationalization takes
place is the increase in total foreign direct investment.
True False
19. The world stock of outward foreign direct investment was $12.5 trillion in 2006, which
was almost 10 times what it was in 1980.
True False
20. Exporting refers to the transportation of any good or service to a destination inside a
country or region.
True False
