International Business and Trade

International Business and Trade

This introductory course focuses on the core concepts and techniques for entering the international marketplace. Emphasis is on the effect of sociocultural, demographic, economic, technological, and political-legal factors in the foreign trade environment. As an introductory survey course, we will cover a variety of topics to illustrate the unique nature of international business including the patterns of world trade, currency exchange and international finance, globalization of the firm, international marketing, and operating procedures of the multinational enterprise.

Answers	Questions
A company has to be a major multinational corporation to facilitate, and benefit from, the
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
FALSE	International business refers to the shift toward a more integrated and interdependent world economy.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
FALSE	Globalization always go as planned.
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
TRUE	The IMF is often seen as the lender of last resort to nation-states whose economies are in
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global market places.
TRUE	The internet has been a major force facilitating international trade in services.
TRUE	An international business is any firm that engages in international trade or investment.
FALSE	Communications slowed down transportation of goods.
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
TRUE	Substantial impediments such as barriers to foreign direct investment make it difficult for
TRUE	Transnational company is a large global firm that operates in a number of countries.
FALSE	International business refers to the shift toward a more integrated and interdependent world economy.
World Trade Organization	It is primarily responsible for policing the world trading systems and making sure nation-state adhere to the rules laid down in trade treaties.
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
Globalization of Production	It refers to the sourcing of goods and services from location around the globe to take advantage of national differences in the cost of production.
TRUE	The internet has been a major force facilitating international trade in services.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global market places.
FALSE	Communications slowed down transportation of goods.
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
TRUE	The IMF is often seen as the lender of last resort to nation-states whose economies are in
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
Globalization of Markets	The _______________refers to the merging of historically distinct and separate national markets into one huge global marketplace.
TRUE	Transnational company is a large global firm that operates in a number of countries.
United Nations	It is committed to preserving peace through international cooperation and collective security.
none of the above	It was established to maintain order in the international monetary system.
FALSE	Globalization always go as planned.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
TRUE	Substantial impediments such as barriers to foreign direct investment make it difficult for
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
TRUE	An international business is any firm that engages in international trade or investment.
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
TRUE	The internet has been a major force facilitating international trade in services.
United Nations	It is committed to preserving peace through international cooperation and collective security.
TRUE	The IMF is often seen as the lender of last resort to nation-states whose economies are in
TRUE	Transnational company is a large global firm that operates in a number of countries.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
FALSE	International business refers to the shift toward a more integrated and interdependent world economy.
FALSE	Globalization always go as planned.
World Trade Organization	It is primarily responsible for policing the world trading systems and making sure nation-state adhere to the rules laid down in trade treaties.
TRUE	An international business is any firm that engages in international trade or investment.
Globalization of Production	It refers to the sourcing of goods and services from location around the globe to take advantage of national differences in the cost of production.
FALSE	Communications slowed down transportation of goods.
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
Globalization of Markets	The _______________refers to the merging of historically distinct and separate national markets into one huge global marketplace.
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global market places.
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
TRUE	Substantial impediments such as barriers to foreign direct investment make it difficult for
none of the above	It was established to maintain order in the international monetary system.
TRUE	The internet has been a major force facilitating international trade in services.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
FALSE	Globalization always go as planned.
TRUE	Transnational company is a large global firm that operates in a number of countries.
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
United Nations	It is committed to preserving peace through international cooperation and collective security.
FALSE	International business refers to the shift toward a more integrated and interdependent world economy.
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
none of the above	It was established to maintain order in the international monetary system.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
FALSE	Communications slowed down transportation of goods.
World Trade Organization	It is primarily responsible for policing the world trading systems and making sure nation-state adhere to the rules laid down in trade treaties.
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global market places.
Globalization of Production	It refers to the sourcing of goods and services from location around the globe to take advantage of national differences in the cost of production.
TRUE	The IMF is often seen as the lender of last resort to nation-states whose economies are in
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
TRUE	Substantial impediments such as barriers to foreign direct investment make it difficult for
TRUE	An international business is any firm that engages in international trade or investment.
Globalization of Markets	The _______________refers to the merging of historically distinct and separate national markets into one huge global marketplace.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
TRUE	The IMF is often seen as the lender of last resort to nation-states whose economies are in
FALSE	International business refers to the shift toward a more integrated and interdependent world economy.
TRUE	Transnational company is a large global firm that operates in a number of countries.
TRUE	Substantial impediments such as barriers to foreign direct investment make it difficult for
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
TRUE	An international business is any firm that engages in international trade or investment.
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global market places.
TRUE	The internet has been a major force facilitating international trade in services.
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
FALSE	Globalization always go as planned.
FALSE	Communications slowed down transportation of goods.
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
individualism	It refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.
FALSE	The mixing of world cultures through different ethnicities, religions and nationalities has increased with advanced communication, transportation and technology is called cross- culture.
TRUE	The emphasis on the individual in the United States may raise the costs of
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
TRUE	The regular and repeated way in which something happens or is done is called pattern.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
mixed economy	In a ________, certain sectors of the economy of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.
totalitarianism	It is where citizens' right to freedom of expression and organization, a free media, and regular elections are all denied.
TRUE	t is not legal to charge interest under Islamic laws therefore Islamic banks
FALSE	Outsourcing is a process that is limited to manufacturing enterprises.
TRUE	Gold and silver are the currency of trade in mid 16th century.
legal system	The ________________of a country refers to the rules, or laws, that regulate behavior along with the process by which the law are enforced and through which redress for grievances is obtained.
TRUE	By political system we mean the system of government in a nation.
civil law	It is based on a detailed set of laws organized into codes.
common law	________________is based on tradition, precedent, and custom.
TRUE	Follower of Islam is called a Muslim.
market economy	It is where all productive activities are privately owned, as opposed to being owned by the state.
FALSE	Communist states practice representative election.
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
TRUE	Follower of Islam is called a Muslim.
FALSE	Communist states practice representative election.
TRUE	By political system we mean the system of government in a nation.
TRUE	The emphasis on the individual in the United States may raise the costs of
TRUE	The regular and repeated way in which something happens or is done is called pattern.
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
FALSE	Outsourcing is a process that is limited to manufacturing enterprises.
FALSE	The mixing of world cultures through different ethnicities, religions and nationalities has increased with advanced communication, transportation and technology is called cross- culture.
TRUE	Gold and silver are the currency of trade in mid 16th century.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
TRUE	t is not legal to charge interest under Islamic laws therefore Islamic banks
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
TRUE	t is not legal to charge interest under Islamic laws therefore Islamic banks
individualism	It refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.
civil law	It is based on a detailed set of laws organized into codes.
FALSE	Communist states practice representative election.
legal system	The ________________of a country refers to the rules, or laws, that regulate behavior along with the process by which the law are enforced and through which redress for grievances is obtained.
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
TRUE	The emphasis on the individual in the United States may raise the costs of
totalitarianism	It is where citizens' right to freedom of expression and organization, a free media, and regular elections are all denied.
FALSE	Outsourcing is a process that is limited to manufacturing enterprises.
mixed economy	In a ________, certain sectors of the economy of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.
common law	________________is based on tradition, precedent, and custom.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
TRUE	Gold and silver are the currency of trade in mid 16th century.
TRUE	Follower of Islam is called a Muslim.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
TRUE	The regular and repeated way in which something happens or is done is called pattern.
TRUE	By political system we mean the system of government in a nation.
FALSE	The mixing of world cultures through different ethnicities, religions and nationalities has increased with advanced communication, transportation and technology is called cross- culture.
market economy	It is where all productive activities are privately owned, as opposed to being owned by the state.
TRUE	Gold and silver are the currency of trade in mid 16th century.
TRUE	The emphasis on the individual in the United States may raise the costs of
TRUE	t is not legal to charge interest under Islamic laws therefore Islamic banks
TRUE	By political system we mean the system of government in a nation.
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
TRUE	Follower of Islam is called a Muslim.
TRUE	The regular and repeated way in which something happens or is done is called pattern.
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
FALSE	Outsourcing is a process that is limited to manufacturing enterprises.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
legal system	The ________________of a country refers to the rules, or laws, that regulate behavior along with the process by which the law are enforced and through which redress for grievances is obtained.
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
TRUE	t is not legal to charge interest under Islamic laws therefore Islamic banks
totalitarianism	It is where citizens' right to freedom of expression and organization, a free media, and regular elections are all denied.
market economy	It is where all productive activities are privately owned, as opposed to being owned by the state.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
TRUE	Gold and silver are the currency of trade in mid 16th century.
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
TRUE	The regular and repeated way in which something happens or is done is called pattern.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
individualism	It refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.
TRUE	Follower of Islam is called a Muslim.
FALSE	The mixing of world cultures through different ethnicities, religions and nationalities has increased with advanced communication, transportation and technology is called cross- culture.
mixed economy	In a ________, certain sectors of the economy of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.
civil law	It is based on a detailed set of laws organized into codes.
TRUE	By political system we mean the system of government in a nation.
common law	________________is based on tradition, precedent, and custom.
FALSE	Outsourcing is a process that is limited to manufacturing enterprises.
FALSE	Communist states practice representative election.
TRUE	The emphasis on the individual in the United States may raise the costs of
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
Islam	This religion requires unconditional acceptance of the uniqueness, power, and authority of God and the understanding that the objective of life is to fulfill the dictates of His will in the hope of admission to paradise.
glass ceiling	The following are work-related values except for:
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
social strata	These are typically defined on the basis of characteristics such as family background, occupation, and income.
FALSE	Culture is constant; it does not evolves over time.
civil law	It is based on a detailed set of laws organized into codes.
Religion	___________may be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred.
The correct answers are: Confucianism, Buddhism	It is built around a comprehensive ethical code that sets down guidelines for relationships with others.
TRUE	Gold and silver are the currency of trade in mid 16th century.
Globalization of Production	It refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of production.
social mobility	It refers to the extent to which individuals can move out of the strata into which they are born.
FALSE	Nations that invest more in education will have lower growth rates because an educated population is less productive.
TRUE	By political system we mean the system of government in a nation.
common law	_________________ is based on tradition, precedent, and custom.
market economy	It is where all productive activities are privately owned, as opposed to being owned by the state.
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global marketplaces.
World Trade Organization	It is committed to preserving peace through international cooperation and collective security.
unspoken language	_________________ refers to nonverbal communication.
TRUE	The internet has been a major force facilitating international trade services.
totalitarianism	It is where citizens' right to freedom of expression and organization, a free media, and regular elections are all denied.
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
gender	All are determinants of culture except for:
International Monetary Fund	It was established to maintain order in the international monetary system.
TRUE	One of the biggest dangers confronting a company that goes abroad for the first time is the danger of being ill-informed.
TRUE	The rise of Islamic fundamentalism is portrayed as a response to the alienation produced by modernization.
Buddhism	According to this religion, suffering originates in people's desires for pleasure.
TRUE	An international business is any firm that engages in international trade or investment.
Hinduism	It would be dubbed more a way of life than a religion. Followers believe that a moral force in society requires the acceptance of certain responsibilities.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
mixed economy	In a _________________, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
TRUE	The emphasis on the individual in the United States may raise the costs of
ethical systems	It refers to a set of moral principles, or values, that are used to guide and shape behavior.
FALSE	International business refers to the shift toward a more integrated world economy.
World Trade Organization	It is primarily responsible for policing the word trading systems and making sure nation-state adhere to the rules laid down in the trade treaties.
FALSE	In many Asian societies, the individual is the basic building block of social organization.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
individualism	It refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
social structure	It refers to its basic social organization.
FALSE	Terrorism represents one of the major drivers to world peace and economic progress in the 21st century.
legal system	The __________ of a country refers to the rules, or laws, that regulate behavior along with the processes by which the law are enforced and through which redress for grievances is obtained.
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
TRUE	Economic freedom does not necessarily equate with political freedom.
FALSE	Communist states practice representative election.
Globalization of Markets	The __________________refers to the merging of historically distinct and separate national markets into one huge global marketplace.
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
Christianity	It is the most widely practiced religion in the world.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
TRUE	One of the biggest dangers confronting a company that goes abroad for the first time is the danger of being ill-informed.
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
TRUE	The rise of Islamic fundamentalism is portrayed as a response to the alienation produced by modernization.
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global marketplaces.
TRUE	The emphasis on the individual in the United States may raise the costs of
FALSE	Communist states practice representative election.
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
TRUE	By political system we mean the system of government in a nation.
FALSE	Nations that invest more in education will have lower growth rates because an educated population is less productive.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
TRUE	Gold and silver are the currency of trade in mid 16th century.
TRUE	An international business is any firm that engages in international trade or investment.
TRUE	Economic freedom does not necessarily equate with political freedom.
FALSE	Culture is constant; it does not evolves over time.
TRUE	The internet has been a major force facilitating international trade services.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
FALSE	Terrorism represents one of the major drivers to world peace and economic progress in the 21st century.
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
FALSE	International business refers to the shift toward a more integrated world economy.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
FALSE	In many Asian societies, the individual is the basic building block of social organization.
ethical systems	It refers to a set of moral principles, or values, that are used to guide and shape behavior.
TRUE	One of the biggest dangers confronting a company that goes abroad for the first time is the danger of being ill-informed.
totalitarianism	It is where citizens' right to freedom of expression and organization, a free media, and regular elections are all denied.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
TRUE	The emphasis on the individual in the United States may raise the costs of
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
Hinduism	It would be dubbed more a way of life than a religion. Followers believe that a moral force in society requires the acceptance of certain responsibilities.
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global marketplaces.
unspoken language	_________________ refers to nonverbal communication.
International Monetary Fund	It was established to maintain order in the international monetary system.
FALSE	Culture is constant; it does not evolves over time.
FALSE	Communist states practice representative election.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
gender	All are determinants of culture except for:
FALSE	International business refers to the shift toward a more integrated world economy.
The correct answers are: Confucianism, Buddhism	It is built around a comprehensive ethical code that sets down guidelines for relationships with others.
FALSE	In many Asian societies, the individual is the basic building block of social organization.
individualism	It refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.
FALSE	Terrorism represents one of the major drivers to world peace and economic progress in the 21st century.
Globalization of Markets	The __________________refers to the merging of historically distinct and separate national markets into one huge global marketplace.
TRUE	The rise of Islamic fundamentalism is portrayed as a response to the alienation produced by modernization.
World Trade Organization	It is committed to preserving peace through international cooperation and collective security.
TRUE	Gold and silver are the currency of trade in mid 16th century.
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
TRUE	An international business is any firm that engages in international trade or investment.
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
Christianity	It is the most widely practiced religion in the world.
glass ceiling	The following are work-related values except for:
social structure	It refers to its basic social organization.
TRUE	By political system we mean the system of government in a nation.
Islam	This religion requires unconditional acceptance of the uniqueness, power, and authority of God and the understanding that the objective of life is to fulfill the dictates of His will in the hope of admission to paradise.
Buddhism	According to this religion, suffering originates in people's desires for pleasure.
civil law	It is based on a detailed set of laws organized into codes.
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
legal system	The __________ of a country refers to the rules, or laws, that regulate behavior along with the processes by which the law are enforced and through which redress for grievances is obtained.
Globalization of Production	It refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of production.
TRUE	Economic freedom does not necessarily equate with political freedom.
social strata	These are typically defined on the basis of characteristics such as family background, occupation, and income.
mixed economy	In a _________________, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.
FALSE	Nations that invest more in education will have lower growth rates because an educated population is less productive.
social mobility	It refers to the extent to which individuals can move out of the strata into which they are born.
World Trade Organization	It is primarily responsible for policing the word trading systems and making sure nation-state adhere to the rules laid down in the trade treaties.
market economy	It is where all productive activities are privately owned, as opposed to being owned by the state.
Religion	___________may be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred.
common law	_________________ is based on tradition, precedent, and custom.
TRUE	The internet has been a major force facilitating international trade services.
common law	_________________ is based on tradition, precedent, and custom.
TRUE	By political system we mean the system of government in a nation.
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
totalitarianism	It is where citizens' right to freedom of expression and organization, a free media, and regular elections are all denied.
Christianity	It is the most widely practiced religion in the world.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
TRUE	The emphasis on the individual in the United States may raise the costs of
TRUE	One of the biggest dangers confronting a company that goes abroad for the first time is the danger of being ill-informed.
FALSE	International business refers to the shift toward a more integrated world economy.
International Monetary Fund	It was established to maintain order in the international monetary system.
FALSE	Communist states practice representative election.
ethical systems	It refers to a set of moral principles, or values, that are used to guide and shape behavior.
mixed economy	In a _________________, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning.
The correct answers are: Confucianism, Buddhism	It is built around a comprehensive ethical code that sets down guidelines for relationships with others.
TRUE	Economic freedom does not necessarily equate with political freedom.
Buddhism	According to this religion, suffering originates in people's desires for pleasure.
Religion	___________may be defined as a system of shared beliefs and rituals that are concerned with the realm of the sacred.
FALSE	Terrorism represents one of the major drivers to world peace and economic progress in the 21st century.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
legal system	The __________ of a country refers to the rules, or laws, that regulate behavior along with the processes by which the law are enforced and through which redress for grievances is obtained.
social structure	It refers to its basic social organization.
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global marketplaces.
market economy	It is where all productive activities are privately owned, as opposed to being owned by the state.
Islam	This religion requires unconditional acceptance of the uniqueness, power, and authority of God and the understanding that the objective of life is to fulfill the dictates of His will in the hope of admission to paradise.
FALSE	In many Asian societies, the individual is the basic building block of social organization.
Hinduism	It would be dubbed more a way of life than a religion. Followers believe that a moral force in society requires the acceptance of certain responsibilities.
FALSE	Culture is constant; it does not evolves over time.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
TRUE	The internet has been a major force facilitating international trade services.
Globalization of Production	It refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of production.
gender	All are determinants of culture except for:
World Trade Organization	It is committed to preserving peace through international cooperation and collective security.
TRUE	An international business is any firm that engages in international trade or investment.
unspoken language	_________________ refers to nonverbal communication.
glass ceiling	The following are work-related values except for:
TRUE	Gold and silver are the currency of trade in mid 16th century.
social mobility	It refers to the extent to which individuals can move out of the strata into which they are born.
TRUE	The rise of Islamic fundamentalism is portrayed as a response to the alienation produced by modernization.
social strata	These are typically defined on the basis of characteristics such as family background, occupation, and income.
FALSE	Nations that invest more in education will have lower growth rates because an educated population is less productive.
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
civil law	It is based on a detailed set of laws organized into codes.
Globalization of Markets	The __________________refers to the merging of historically distinct and separate national markets into one huge global marketplace.
individualism	It refers to a philosophy that an individual should have freedom in his or her economic and political pursuits.
World Trade Organization	It is primarily responsible for policing the word trading systems and making sure nation-state adhere to the rules laid down in the trade treaties.
TRUE	The lowering of trade barriers made globalization of markets and production a theoretical possibility.
TRUE	One of the biggest dangers confronting a company that goes abroad for the first time is the danger of being ill-informed.
TRUE	By political system we mean the system of government in a nation.
FALSE	A company has to be a major multinational corporation to facilitate, and benefit from, the
FALSE	As firms follow each other around the world, greater diversity replaces uniformity.
TRUE	Currently, the most global of markets are for industrial goods and materials that serve a
FALSE	International business refers to the shift toward a more integrated world economy.
TRUE	The rise of Islamic fundamentalism is portrayed as a response to the alienation produced by modernization.
FALSE	The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based.
FALSE	The basic principles of Judaism, Christianity, and Islam have nothing in common.
FALSE	In many Asian societies, the individual is the basic building block of social organization.
FALSE	Culture is constant; it does not evolves over time.
TRUE	Gold and silver are the currency of trade in mid 16th century.
TRUE	Economic freedom does not necessarily equate with political freedom.
TRUE	Like the economic system of a country, the legal system is influenced by prevailing political system.
FALSE	Terrorism represents one of the major drivers to world peace and economic progress in the 21st century.
TRUE	The internet has been a major force facilitating international trade services.
TRUE	The emphasis on the individual in the United States may raise the costs of
FALSE	Nations that invest more in education will have lower growth rates because an educated population is less productive.
TRUE	A company does not need a large size to facilitate, and benefit from, the globalization of markets.
TRUE	Tastes and preferences of consumers in different nations are beginning to converge on
FALSE	Communist states practice representative election.
TRUE	An international business is any firm that engages in international trade or investment.
FALSE	Low-cost communication networks such as the World Wide Web are not helping to create electronic global marketplaces.
FALSE	Upon meeting a foreign business executive, a Japanese executive will hold
FALSE	Ricardo states that comparative advantage arises
from differences in national factor endowments.
FALSE	Capitalism views trade as a zero-sum game.
FALSE	Adam Smith argued that a country has
a competitive advantage in
the production of a product when it is more efficient than any other country in
producing it.
TRUE	Free trade is beneficial because it allows country
TRUE	Mercantilism suggests that it is in a country's
best interest to maintain a trade surplus -to export more than it imports.
TRUE	Heckscher and
Ohlin predict that countries will
TRUE	A country may dominate in the
export of a good simply because it was lucky enough to have one or more firms
among the first to produce that good.
FALSE	Government policy can't
TRUE	New trade theory
suggests that the ability of firms to gain economies of scale (unit cost reductions associated with a
large scale of output) can have important implications for international trade.
TRUE	The theory of comparative
advantage suggests that countries should specialize in the
production of those goods they produce most efficiently and buy goods that they
produce less efficiently from other countries.
FALSE	Free trade is a situation where a government attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.
FALSE	The Leontief Paradox suggests that
TRUE	Demand conditions is one of the determinants of National Competitive Advantage.
TRUE	Zero sum game is
TRUE	International trade allows
a country
TRUE	Trade is a positive sum
game.
TRUE	Demand conditions is one of the determinants of National Competitive Advantage.
TRUE	Heckscher and
Ohlin predict that countries will
TRUE	International trade allows
a country
FALSE	Adam Smith argued that a country has
a competitive advantage in
the production of a product when it is more efficient than any other country in
producing it.
FALSE	The Leontief Paradox suggests that
TRUE	A country may dominate in the
export of a good simply because it was lucky enough to have one or more firms
among the first to produce that good.
TRUE	New trade theory
suggests that the ability of firms to gain economies of scale (unit cost reductions associated with a
large scale of output) can have important implications for international trade.
TRUE	Mercantilism suggests that it is in a country's
best interest to maintain a trade surplus -to export more than it imports.
TRUE	Zero sum game is
TRUE	The theory of comparative
advantage suggests that countries should specialize in the
production of those goods they produce most efficiently and buy goods that they
produce less efficiently from other countries.
TRUE	Trade is a positive sum
game.
FALSE	Government policy can't
TRUE	Free trade is beneficial because it allows country
FALSE	Ricardo states that comparative advantage arises
from differences in national factor endowments.
TRUE	Mercantilism suggests that it is in a country's
best interest to maintain a trade surplus -to export more than it imports.
FALSE	The Leontief Paradox suggests that
TRUE	Trade is a positive sum
game.
TRUE	Demand conditions is one of the determinants of National Competitive Advantage.
TRUE	A country may dominate in the
export of a good simply because it was lucky enough to have one or more firms
among the first to produce that good.
TRUE	International trade allows
a country
FALSE	Adam Smith argued that a country has
a competitive advantage in
the production of a product when it is more efficient than any other country in
producing it.
FALSE	Free trade is a situation where a government attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.
TRUE	Zero sum game is
TRUE	New trade theory
suggests that the ability of firms to gain economies of scale (unit cost reductions associated with a
large scale of output) can have important implications for international trade.
TRUE	Free trade is beneficial because it allows country
TRUE	Mercantilism suggests that it is in a country's
best interest to maintain a trade surplus -to export more than it imports.
TRUE	The theory of comparative
advantage suggests that countries should specialize in the
production of those goods they produce most efficiently and buy goods that they
produce less efficiently from other countries.
TRUE	Demand conditions is one of the determinants of National Competitive Advantage.
FALSE	The Leontief Paradox suggests that
TRUE	New trade theory
suggests that the ability of firms to gain economies of scale (unit cost reductions associated with a
large scale of output) can have important implications for international trade.
FALSE	Government policy can't
TRUE	A country may dominate in the
export of a good simply because it was lucky enough to have one or more firms
among the first to produce that good.
TRUE	International trade allows
a country
TRUE	Trade is a positive sum
game.
TRUE	Zero sum game is
TRUE	Heckscher and
Ohlin predict that countries will
Exports give a country a political advantage over other countries that export less.	According to the theory of comparative advantage, which of the following is not a reason why countries trade?
FALSE	Capitalism views trade as a zero-sum game.
TRUE	A country may dominate in the export of a good simply because it was lucky enough to have one or more firms among the first to produce that good.
FALSE	Free trade is a situation where a government attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.
TRUE	New trade theory suggests that the ability of firms to gain economies of scale (unit cost reductions associated with a large scale of output) can have important implications for international trade.
Imports are desirable.	Which of the following statements would a mercantilist not agree with?
TRUE	The theory of comparative advantage suggests that countries should specialize in the production of those goods they produce most efficiently and buy goods that they produce less efficiently from other countries.
TRUE	Free trade is beneficial because it allows country to specialize in the manufacture and export of products and services that it can produce efficiently.
TRUE	Trade is a positive sum game.
FALSE	Adam Smith argued that a country has a competitive advantage in the production of a product when it is more efficient than any other country in producing it.
The nominal wage rate in country A will have to fall	If all prices in one country (country A) are higher than all prices in another country (B) when compared at the wage rates that happen to prevail in the two countries, and if the countries share the same currency, then if the nominal wage rate in country B remains fixed
TRUE	Heckscher and Ohlin predict that countries will export goods that make intensive use of locally abundant factors.
FALSE	Ricardo states that comparative advantage arises from differences in national factor endowments.
All of the above.	According to the theory of comparative advantage, a country will export a good only if
FALSE	The Leontief Paradox suggests that as products mature both the location of sales and the optimal production location will change affecting the flow and direction of trade.
TRUE	Mercantilism suggests that it is in a country's best interest to maintain a trade surplus -to export more than it imports.
TRUE	Demand conditions is one of the determinants of National Competitive Advantage.
FALSE	Government policy can't affect demand through product standards.
TRUE	International trade allows a country to specialize in the manufacture and export of products and services that it can produce efficiently.
TRUE	Zero sum game is one in which a gain by one country results in a loss by another.
TRUE	Tariffs are considered to be the oldest form of trade policy.
FALSE	The flow of Foreign Direct Investment is the total accumulated value of
foreign-owned assets at a given time.
Marketing environment	Factors that affect Company's ability to maintain customer relationships are known as
all of the above	A payment to a domestic producer can be:
all of above	Most successful products are those which are
She will be creating a new foreign enterprise	Maan live in The Philippines and she wants to mak
When an investor starts or acquires a business in a foreign country	How can foreign direct investment (FDI) be best described?
ideal self-concept	Consumer's seek, for answer of 'how we like to view ourselves' is a concept named by
none of the above	Which of the following is not considered as GATT criticism?
FALSE	Firms prefer to acquire new assets because greenfield investments
A firm having someone else do part of what it previously did itself.	Outsourcing is
opinion leader	A person, who offers informal reviews or advice about specific category is called as
FALSE	Import quotas requires some specific fraction of a good to
be produced domestically.
cancellation principle	Strategy to integrate larger gains with smaller losses involved
TRUE	Anti-dumping policies d
Global warming	The following are political arguments for intervention except:
FALSE	Offshore investments is the establishment of a wholly new operation in a foreign
country.
TRUE	Foreign direct investment (FDI) occurs when a firm
invests directly in new facilities to produce and/or market in a foreign
country.
Media	Foreign policy decision makers for spreading their information they rely on
A company that operates in many different countries	Which of the following best defines a multinational corporation?
A firm having someone else do part of what it previously did itself.	Outsourcing is
TRUE	Tariffs are considered to be the oldest form of trade policy.
FALSE	Offshore investments is the establishment of a wholly new operation in a foreign
country.
all of the above	A payment to a domestic producer can be:
When an investor starts or acquires a business in a foreign country	How can foreign direct investment (FDI) be best described?
FALSE	Import quotas requires some specific fraction of a good to
be produced domestically.
A company that operates in many different countries	Which of the following best defines a multinational corporation?
Global warming	The following are political arguments for intervention except:
ideal self-concept	Consumer's seek, for answer of 'how we like to view ourselves' is a concept named by
cancellation principle	Strategy to integrate larger gains with smaller losses involved
FALSE	The flow of Foreign Direct Investment is the total accumulated value of
foreign-owned assets at a given time.
She will be creating a new foreign enterprise	Maan live in The Philippines and she wants to mak
Media	Foreign policy decision makers for spreading their information they rely on
TRUE	Anti-dumping policies d
TRUE	Foreign direct investment (FDI) occurs when a firm
invests directly in new facilities to produce and/or market in a foreign
country.
all of above	Most successful products are those which are
opinion leader	A person, who offers informal reviews or advice about specific category is called as
none of the above	Which of the following is not considered as GATT criticism?
FALSE	Firms prefer to acquire new assets because greenfield investments
Marketing environment	Factors that affect Company's ability to maintain customer relationships are known as
opinion leader	A person, who offers informal reviews or advice about specific category is called as
A company that operates in many different countries	Which of the following best defines a multinational corporation?
A firm having someone else do part of what it previously did itself.	Outsourcing is
Media	Foreign policy decision makers for spreading their information they rely on
When an investor starts or acquires a business in a foreign country	How can foreign direct investment (FDI) be best described?
Marketing environment	Factors that affect Company's ability to maintain customer relationships are known as
all of above	Most successful products are those which are
Global warming	The following are political arguments for intervention except:
none of the above	Which of the following is not considered as GATT criticism?
all of the above	A payment to a domestic producer can be:
ideal self-concept	Consumer's seek, for answer of 'how we like to view ourselves' is a concept named by
cancellation principle	Strategy to integrate larger gains with smaller losses involved
She will be creating a new foreign enterprise	Maan live in The Philippines and she wants to mak
A firm having someone else do part of what it previously did itself.	Outsourcing is
TRUE	Foreign direct investment (FDI) occurs when a firm
invests directly in new facilities to produce and/or market in a foreign
country.
When an investor starts or acquires a business in a foreign country	How can foreign direct investment (FDI) be best described?
all of above	Most successful products are those which are
FALSE	The flow of Foreign Direct Investment is the total accumulated value of
foreign-owned assets at a given time.
Media	Foreign policy decision makers for spreading their information they rely on
TRUE	Anti-dumping policies d
FALSE	Firms prefer to acquire new assets because greenfield investments
cancellation principle	Strategy to integrate larger gains with smaller losses involved
She will be creating a new foreign enterprise	Maan live in The Philippines and she wants to mak
Marketing environment	Factors that affect Company's ability to maintain customer relationships are known as
TRUE	Tariffs are considered to be the oldest form of trade policy.
FALSE	Import quotas requires some specific fraction of a good to
be produced domestically.
Global warming	The following are political arguments for intervention except:
all of the above	A payment to a domestic producer can be:
none of the above	Which of the following is not considered as GATT criticism?
opinion leader	A person, who offers informal reviews or advice about specific category is called as
ideal self-concept	Consumer's seek, for answer of 'how we like to view ourselves' is a concept named by
FALSE	Offshore investments is the establishment of a wholly new operation in a foreign
country.
A company that operates in many different countries	Which of the following best defines a multinational corporation?
all of above	Most successful products are those which are
She will be creating a new foreign enterprise	Maan live in The Philippines and she wants to mak
FALSE	Import quotas requires some specific fraction of a good to
be produced domestically.
When an investor starts or acquires a business in a foreign country	How can foreign direct investment (FDI) be best described?
FALSE	The flow of Foreign Direct Investment is the total accumulated value of
foreign-owned assets at a given time.
Media	Foreign policy decision makers for spreading their information they rely on
opinion leader	A person, who offers informal reviews or advice about specific category is called as
TRUE	Tariffs are considered to be the oldest form of trade policy.
TRUE	Foreign direct investment (FDI) occurs when a firm
invests directly in new facilities to produce and/or market in a foreign
country.
Global warming	The following are political arguments for intervention except:
FALSE	Offshore investments is the establishment of a wholly new operation in a foreign
country.
Marketing environment	Factors that affect Company's ability to maintain customer relationships are known as
A firm having someone else do part of what it previously did itself.	Outsourcing is
ideal self-concept	Consumer's seek, for answer of 'how we like to view ourselves' is a concept named by
TRUE	Anti-dumping policies d
all of the above	A payment to a domestic producer can be:
FALSE	Firms prefer to acquire new assets because greenfield investments
A company that operates in many different countries	Which of the following best defines a multinational corporation?
none of the above	Which of the following is not considered as GATT criticism?
cancellation principle	Strategy to integrate larger gains with smaller losses involved
opinion leader	A person, who offers informal reviews or advice about specific category is called as
Marketing environment	Factors that affect Company's ability to maintain customer relationships are known as
A company that operates in many different countries	Which of the following best defines a multinational corporation?
ideal self-concept	Consumer's seek, for answer of 'how we like to view ourselves' is a concept named by
She will be creating a new foreign enterprise	Maan live in The Philippines and she wants to mak
all of the above	A payment to a domestic producer can be:
all of above	Most successful products are those which are
cancellation principle	Strategy to integrate larger gains with smaller losses involved
A firm having someone else do part of what it previously did itself.	Outsourcing is
none of the above	Which of the following is not considered as GATT criticism?
Global warming	The following are political arguments for intervention except:
When an investor starts or acquires a business in a foreign country	How can foreign direct investment (FDI) be best described?
Media	Foreign policy decision makers for spreading their information they rely on