1-8 pearson

Which of the following is the definition of international business?

Commercial transaction that crosses the borders of two or more nations

A company that has directly invested in and built several manufacturing subsidiaries abroad is a

multinational corporation.

Foreign direct investment is the

purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control.

Multinational corporations tend to

have direct investments in multiple countries.

Born global firms tend to have

innovative cultures and hard-to-imitate knowledge-based organizational capabilities.

Globalization is characterized by denationalization, which refers to

national boundaries becoming less relevant.

Today, the portion of world output that is traded among nations (global trade-to-GDP ratio) is approximately

60 percent.

Convergence in buyer preferences around the world is called

globalization of markets.

Development that meets the needs of the present without compromising the ability of future generations to meet their needs is called

sustainability.

Which of the following is a benefit of the globalization of production?

Accesses technical expertise or production inputs

The World Trade Organization and regional trade agreements help drive globalization by

reducing barriers to trade and investment.

A key feature of the World Trade Organization that was lacking in the General Agreement on Tariffs and Trade is the power to

settle trade disputes and penalize offending nations.

Which of the following is the definition of e-commerce?

Use of computer networks to purchase, sell, or exchange products; to service customers; and to collaborate with partners

Which of the following speeds information flows and thereby eases coordination and control for international managers?

Innovative communication methods

Innovation in the shipping industry is

globalizing markets and production by making shipping more efficient and dependable.

Supporters of globalization say that it

raises living standards in developing nations.

Which of the following is a position of globalization opponents?

Globalization eliminates jobs and lowers wages in advanced nations.

Globalization supporters say some nations, including China and India, are closing the income gap with advanced economies because they

integrated their economies into the global economy.

Globalization opponents say that it encourages companies to move to lower-wage countries and that this increases the

wage gap between white-collar and blue-collar occupations within advanced nations.

Which of the following is a position of globalization supporters regarding national sovereignty?

Globalization helps spread democracy worldwide.

Why do most companies today support reasonable environmental laws worldwide?

Companies know that healthy future markets require a sustainable approach to business.

Many emerging professions and jobs of tomorrow will be in which of the following areas?

Technology and business strategy

Having learned decision-making skills in your business studies and later applying those skills at your place of work is an example of

application of knowledge.

Articulating one's thoughts and ideas in another language and culture benefits from skills in the area of

communication

The portion of the global business environment model covering national business environments includes which of the following?

Cultural, political, economic, and legal characteristics