International Management Strategy and Culture in the Emerging World, Ahlstrom - Complete test bank - exam questions - quizzes (updated 2022)

Chapter 01: Introduction to International Management




TRUE/FALSE



1. The process of applying management concepts and techniques in a multinational environment is
called international management.


ANS: T PTS: 1 DIF: Easy REF: p.3

OBJ: 1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



2. Offshoring occurs when activities that were once part of a company’s internal operation, are
performed by other firms outside of the U.S. at a lower cost.


ANS: F PTS: 1 DIF: Easy REF: p.4

OBJ: 1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



3. The number of jobs insourced to the U.S. increased even more than those outsourced in 2000.


ANS: T PTS: 1 DIF: Moderate REF: p.5

OBJ: 1 NAT: AACSB: Tier 1 Reflective Thinking; Tier 2 Environmental
Influence



4. International business focuses on how individuals manage a global business.


ANS: F PTS: 1 DIF: Moderate REF: p.6

OBJ: 1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



5. Tariffs are defined as taxes on exported goods.

, ANS: F PTS: 1 DIF: Easy REF: p.6

OBJ: 1 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



6. The Big Unit economy generally produced efficient but rigid, pyramidal organizations and
government departments that demanded excellence and accountability in work and educational
quality.


ANS: F PTS: 1 DIF: Moderate REF: p.7

OBJ: 1 NAT: AACSB: Tier 1 Reflective Thinking; Tier 2 Creation of Value



7. The change in the amount of information available began with the globalization of television.


ANS: T PTS: 1 DIF: Moderate REF: p.10

OBJ: 2 NAT: AACSB: Tier 1 Technology; Tier 2 Creation of Value



8. A sustaining innovation is an innovation that changes the economics or technological standard of
an industry.


ANS: F PTS: 1 DIF: Easy REF: p.11

OBJ: 2 NAT: AACSB: Tier 1 Technology; Tier 2 Creation of Value



9. The market for corporate control is beginning to expand worldwide.


ANS: T PTS: 1 DIF: Easy REF: p.12

OBJ: 2 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



10. The greatest opportunity for the poor around the world is protectionism.


ANS: F PTS: 1 DIF: Moderate REF: p.15

OBJ: 2 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence

,11. China is now the largest recipient of foreign direct investment.


ANS: T PTS: 1 DIF: Moderate REF: p.16

OBJ: 3 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



12. The original six members of the European Union were Austria, West Germany, Luxembourg,
France, Italy, and the Netherlands.


ANS: F PTS: 1 DIF: Moderate REF: p.17

OBJ: 3 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



13. The countries that are part of the WTO are committed to the promotion of trade.


ANS: T PTS: 1 DIF: Easy REF: p.18

OBJ: 3 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



14. The Japan-Thailand Trade Agreement went beyond established regional trade agreements and
allowed Thailand greater access to rice grown in Japan.


ANS: F PTS: 1 DIF: Moderate REF: p.18

OBJ: 3 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



15. China was a doctrinaire communist country until 1978.


ANS: T PTS: 1 DIF: Easy REF: p.19

OBJ: 3 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



16. During the last 30 years China has experienced economic growth averaging about 5 percent
annually.

, ANS: F PTS: 1 DIF: Moderate REF: p.19

OBJ: 3 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



17. India has undergone an economic revival in recent years and now has a GDP of $3.7 trillion in
purchasing-power parity terms.


ANS: T PTS: 1 DIF: Moderate REF: p.20

OBJ: 3 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



18. The International Monetary Fund was established in 1944 as part of the Bretton Woods
Agreements.


ANS: T PTS: 1 DIF: Easy REF: p.20

OBJ: 3 NAT: AACSB: Tier 1 Analytic; Tier 2 Environmental Influence



19. In lending to different nations, the World Bank typically imposes standards of behaviors that
require the country to conduct certain reforms.


ANS: F PTS: 1 DIF: Moderate REF: p.21

OBJ: 3 NAT: AACSB: Tier 1 Reflective Thinking; Tier 2 Environmental
Influence



20. One of the recent trends in international management has been the growth of multinational and
bilateral agreements with the goal of encouraging free trade.


ANS: T PTS: 1 DIF: Easy REF: p.21

OBJ: 3 NAT: AACSB: Tier 1 Reflective Thinking; Tier 2 Environmental
Influence



21. Under the Foreign Corrupt Practices Act, ‘‘facilitating payments’’ are not allowed.