Deck 1: Introduction and Overview

Question 1

Potential for growth is one reason why companies enter foreign markets?

Answer 1

True

Question 2

Rising input costs in their home countries is another reason why companies enter foreign markets.

Answer 2

True

Question 3

Since the 1950s, growth in international investments has been substantially lower than growth in the U.S. economy.

Answer 3

False

Question 4

Intense global competition has forced companies to seek growth in their domestic markets.

Question 5

Progressive reduction of trade barriers among nations through the efforts of WTO has stimulated cross-border trade between countries.

Question 6

The spread of regional integration efforts have led to a decline in free trade between countries.

Question 7

An international company operates in just a few countries.

Question 8

An international company that has extensive involvement in international operations through direct investments is called a multinational corporation (MNC).

Question 9

An international company owned and managed by nationals from different countries is called a transnational corporation (TNC).

Question 10

A global company adopts customization strategy in its efforts to enter various foreign markets.

Question 11

Information is critical to the success of international companies.

Question 12

In planning entry into overseas markets, companies need to seek information only on the external environment.

Question 13

Many of the developing country markets are unpredictable.

Question 14

Large multinational companies spend very little in gathering customer and market related information.

Question 15

Conducting international business research is a straightforward and simple process.

Question 16

International companies use research to identify market potential.

Question 17

Ethical behavior relates to actions of companies and its executives that affect people and their wellbeing.

Question 18

Corporate social responsibility (CSR) implies that companies are responsible for both the economic as well as the ethical expectations that society has on an organization.

Question 19

Stakeholders are shareholders that reside outside the home country of the company.

Question 20

Stakeholders are less important in an international business context.

Question 21

Globalization proposes that companies view the world as

A) Made up of independent countries with their own rules and regulations
B) Made up of distinctive regions with vast market potential
C) As one single market to assemble, produce, and sell goods and services
D) One large village

Question 22

The external environment of industrialized countries is

A) Stable and easy to understand
B) Volatile with drastic shifts
C) Influenced by industrialist
D) None of the above

Question 23

Growth in international business activities are led by

A) Government initiatives
B) The demand for goods and services among the rich countries of the world
C) The humanitarian concerns of international companies
D) Many forces including the saturation of domestic markets and profit opportunities in foreign markets

Question 24

An international company is involved with

A) Conducting various types of business transactions across countries
B) Shipping goods
C) Selling goods and services in its home country
D) Acquiring companies

Question 25

A global company is defined as

A) A company that exports goods and services
B) A company that licenses its products to companies in foreign countries
C) A company that enters into joint venture arrangements with companies in other countries
D) An international company with a network of worldwide integrative activities that attempts to standardize its offerings

Question 26

In planning entry into foreign markets, international companies need to

A) Understand the geography of the world
B) Be aware of the various types of governments that rule foreign countries
C) Gather information about environments, customers, market forces, and competition
D) Know the cultural dimensions prevalent in societies of the world

Question 27

International research is challenging, expensive, and time consuming because

A) The research is conducted in the company's home country
B) Lack of trained research professionals, lack of research infrastructure, and lack of quality secondary data
C) The countries are far apart and they operate in different time zones
D) Government regulations

Question 28

International companies depend on secondary data as it is

A) Cost-efficient, could be gathered quickly, and sometimes is the only source of information available
B) Provided by government agencies
C) Available through research suppliers
D) Published by newspapers and the trade press

Question 29

International research is useful in

A) Identifying target markets and measuring market potential
B) Building relationships with suppliers
C) Establishing diplomatic ties with foreign countries
D) Understanding the political landscape of a country

Question 30

In international business, the actions of managers and their companies may have drastic effects on

A) The presidential elections of the host country
B) The behavior and attitudes of its customers
C) The company's employees, customers, and suppliers
D) The religious establishments of the country

Question 31

Corporate social responsibility (CSR) is defined as

A) The social behavior of a company's customers
B) The corporate culture of a company
C) The economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time
D) The political influence of a company

Question 32

The primary concern of governments in developing countries is

A) Air pollution
B) Contaminated water supply
C) Health and hygiene
D) Economic growth

Question 33

The major ethical theories are

A) Utilitarian, deontological, and moral language
B) Righteousness and obligatory theory
C) Theory of duty and harm
D) Religious and moral theory

Question 34

To assist their managers in avoiding unethical behavior, international companies develop the following programs

A) Reading of religious books
B) Offer courses in ethics
C) Develop ethical codes, written procedures, and offer training programs
D) Invite prominent ethicists to offer seminars for employees

Question 35

Stakeholders are defined as

A) All those who are involved in the production of goods and services
B) Individuals or groups inside or outside an organization that has stake in and can influence an organization's performance
C) All the parties that make up the political systems of a country
D) Business organizations and trade associations that have influence over a company

Question 36

Stakeholders of a company consist of the following groups

A) Government agencies and politicians
B) Religious groups and social groups
C) Reference groups and family members
D) Stockholders, employees, and the general community

Question 37

As stakeholders, the major concerns of customers is

A) Availability of goods and satisfaction after usage
B) Discount prices and value for their money
C) Quality, satisfaction, and value
D) Excellent after sales service

Question 38

In the United States, the most important stakeholder is

A) The stockholder
B) The customer
C) The supplier
D) The community

Question 39

In a dyadic stakeholder relationship, a company

A) Establishes relationship with at least two of the stakeholders
B) Establishes relationship with two or more stakeholders
C) Establishes relationship with individual stakeholders
D) Establishes relationship with all stakeholders

Question 40

In a symbiotic stakeholder relationship, a company

A) Establishes relationship with at least five stakeholders
B) Establishes relationship with at least two of the stakeholders
C) Establishes relationship with two or more stakeholders
D) Establishes relationship with all stakeholders

Question 41

The first step in developing a comprehensive stakeholder strategy is to

A) Undertake a marketing campaign
B) Develop a communication link between the company and its stakeholders.
C) Donate funds to not-for-profit organizations
D) Mail company brochures to each stakeholder groups

Question 42

Identify and explain the reasons why companies seek foreign markets.

Question 43

Define globalization. What are the implications of globalization for companies?

Question 44

What are the ways in which companies get involved in international business?

Question 45

Identify and distinguish among the various types of international organizations.

Question 46

Why is international research important?

Question 47

What are some of the complexities and difficulties in conducting international research?

Question 48

How do international companies use research?

Question 49

Why is corporate social responsibility important?

Question 50

Enumerate and explain the various ethical theories.