International Business: The New Realities, 2e (Cavusgil/Knight/Riesenberger)
Chapter 1 Introduction: What Is International Business?
1) International business is primarily carried out by individual companies.
Answer: TRUE
Diff: 1 Page Ref: 4
Skill: Concept
Objective: 1-1
AACSB: Dynamics of the global economy
2) The globalization of markets refers to the growing independence and self-sufficiency
of countries worldwide.
Answer: FALSE
Diff: 2 Page Ref: 4
Skill: Concept
Objective: 1-1
AACSB: Dynamics of the global economy
3) International business today is predominantly the domain of large, multinational
companies.
Answer: FALSE
Diff: 2 Page Ref: 13
Skill: Concept
Objective: 1-4
AACSB: Dynamics of the global economy
,4) Exporting is an entry strategy involving the sale of products or services to customers
located abroad.
Answer: TRUE
Diff: 1 Page Ref: 5
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
5) A country's economic assets are also known as factors of production.
Answer: TRUE
Diff: 2 Page Ref: 5
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
6) The two primary types of international investment are portfolio investment and foreign
direct investment.
Answer: TRUE
Diff: 1 Page Ref: 5
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
,7) Over the last few decades, export activity by nations has grown more quickly than has
domestic production.
Answer: TRUE
Diff: 2 Page Ref: 5
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
8) In the past, international trade and investment activities were mainly conducted by
companies that sold services.
Answer: FALSE
Diff: 1 Page Ref: 4
Skill: Concept
Objective: 1-1
AACSB: Dynamics of the global economy
9) Services are the fastest growing sector in international trade.
Answer: TRUE
Diff: 2 Page Ref: 8
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
10) The level of government intervention in commercial activities is similar across most
countries.
Answer: FALSE
, Diff: 2 Page Ref: 11
Skill: Concept
Objective: 1-3
AACSB: Dynamics of the global economy
11) Currency risk refers to the risk posed by adverse fluctuations in exchange rates.
Answer: TRUE
Diff: 1 Page Ref: 11
Skill: Concept
Objective: 1-3
AACSB: Dynamics of the global economy
12) For internationalizing firms, the consequences of poor business management
decisions are usually more costly when mistakes occur abroad than when they occur at
home.
Answer: TRUE
Diff: 1 Page Ref: 12
Skill: Concept
Objective: 1-3
AACSB: Dynamics of the global economy
Chapter 1 Introduction: What Is International Business?
1) International business is primarily carried out by individual companies.
Answer: TRUE
Diff: 1 Page Ref: 4
Skill: Concept
Objective: 1-1
AACSB: Dynamics of the global economy
2) The globalization of markets refers to the growing independence and self-sufficiency
of countries worldwide.
Answer: FALSE
Diff: 2 Page Ref: 4
Skill: Concept
Objective: 1-1
AACSB: Dynamics of the global economy
3) International business today is predominantly the domain of large, multinational
companies.
Answer: FALSE
Diff: 2 Page Ref: 13
Skill: Concept
Objective: 1-4
AACSB: Dynamics of the global economy
,4) Exporting is an entry strategy involving the sale of products or services to customers
located abroad.
Answer: TRUE
Diff: 1 Page Ref: 5
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
5) A country's economic assets are also known as factors of production.
Answer: TRUE
Diff: 2 Page Ref: 5
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
6) The two primary types of international investment are portfolio investment and foreign
direct investment.
Answer: TRUE
Diff: 1 Page Ref: 5
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
,7) Over the last few decades, export activity by nations has grown more quickly than has
domestic production.
Answer: TRUE
Diff: 2 Page Ref: 5
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
8) In the past, international trade and investment activities were mainly conducted by
companies that sold services.
Answer: FALSE
Diff: 1 Page Ref: 4
Skill: Concept
Objective: 1-1
AACSB: Dynamics of the global economy
9) Services are the fastest growing sector in international trade.
Answer: TRUE
Diff: 2 Page Ref: 8
Skill: Concept
Objective: 1-2
AACSB: Dynamics of the global economy
10) The level of government intervention in commercial activities is similar across most
countries.
Answer: FALSE
, Diff: 2 Page Ref: 11
Skill: Concept
Objective: 1-3
AACSB: Dynamics of the global economy
11) Currency risk refers to the risk posed by adverse fluctuations in exchange rates.
Answer: TRUE
Diff: 1 Page Ref: 11
Skill: Concept
Objective: 1-3
AACSB: Dynamics of the global economy
12) For internationalizing firms, the consequences of poor business management
decisions are usually more costly when mistakes occur abroad than when they occur at
home.
Answer: TRUE
Diff: 1 Page Ref: 12
Skill: Concept
Objective: 1-3
AACSB: Dynamics of the global economy
