IMS EXAM 1 STUDY GUIDE
QUESTIONS WITH COMPLETE
SOLUTIONS
All managers need to have a basic knowledge of international business. - ANS ✔✔True
Only a company that has foreign operations needs to be aware of what is occurring globally in
its markets and in its industry. - ANS ✔✔False
The operations of a company outside its home or domestic market are known as foreign
business. - ANS ✔✔True
An international company (IC) is a company headquartered in another nation. - ANS ✔✔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.
- ANS ✔✔True
As used in the text, the term environment means all the forces influencing the life and
development of the firm. - ANS ✔✔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. - ANS ✔✔True
Lobbyists who advocate for new laws that will affect the production standards of a business are
an example of an internal force. - ANS ✔✔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. - ANS ✔✔False
The international environment refers to all the uncontrollable forces originating outside the
home country that surround and influence the firm. - ANS ✔✔False
Those who work in the international environment find that decision making is more complex
than it is in a purely domestic environment. - ANS ✔✔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. - ANS ✔✔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. - ANS ✔✔False
The plague known as the Black Death moved west and affected more people as the
international trading system expanded. - ANS ✔✔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. - ANS ✔✔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. - ANS ✔✔True
Transnational corporations consist of several entities each of which has its own independent
strategy and policies. - ANS ✔✔False
, The five major drivers of international business include political, sociocultural, technological,
market, and competitive drivers. - ANS ✔✔False
The advent of globalization has had minimal effect on labor standards around the world. - ANS
✔✔False
Opponents of free trade point out that globalization has contributed to a decline in
environmental and health conditions. - ANS ✔✔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. - ANS ✔✔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. - ANS ✔✔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)
QUESTIONS WITH COMPLETE
SOLUTIONS
All managers need to have a basic knowledge of international business. - ANS ✔✔True
Only a company that has foreign operations needs to be aware of what is occurring globally in
its markets and in its industry. - ANS ✔✔False
The operations of a company outside its home or domestic market are known as foreign
business. - ANS ✔✔True
An international company (IC) is a company headquartered in another nation. - ANS ✔✔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.
- ANS ✔✔True
As used in the text, the term environment means all the forces influencing the life and
development of the firm. - ANS ✔✔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. - ANS ✔✔True
Lobbyists who advocate for new laws that will affect the production standards of a business are
an example of an internal force. - ANS ✔✔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. - ANS ✔✔False
The international environment refers to all the uncontrollable forces originating outside the
home country that surround and influence the firm. - ANS ✔✔False
Those who work in the international environment find that decision making is more complex
than it is in a purely domestic environment. - ANS ✔✔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. - ANS ✔✔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. - ANS ✔✔False
The plague known as the Black Death moved west and affected more people as the
international trading system expanded. - ANS ✔✔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. - ANS ✔✔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. - ANS ✔✔True
Transnational corporations consist of several entities each of which has its own independent
strategy and policies. - ANS ✔✔False
, The five major drivers of international business include political, sociocultural, technological,
market, and competitive drivers. - ANS ✔✔False
The advent of globalization has had minimal effect on labor standards around the world. - ANS
✔✔False
Opponents of free trade point out that globalization has contributed to a decline in
environmental and health conditions. - ANS ✔✔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. - ANS ✔✔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. - ANS ✔✔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)
