Exam 1: An Overview of International Business

Which of the following is the LEAST likely reason that firms globalize?

A(n) ________ involves a firm in one country agreeing to operate facilities for a firm in another country for an agreed-upon fee.

The desire for control is the primary difference between foreign direct investments and portfolio investments.

Mexico and Poland are examples of ________.

Ford Motor Company is based in Detroit, Michigan. It also has offices in Germany, England, and China. Which of the following is Ford's home country?

The British term for the trading of tangible goods is ________.

What is the difference between the home country and the host country?

Which of the following is not a common activity of MNCs?

You are a manager at a small business, and the firm's CEO wants the firm to globalize. What suggestions would you offer to accomplish this task? Should the firm globalize? Why or why not?

In 2010, companies such as L'Oreal lost revenue in emerging markets due to the global financial crisis.

A(n) ________ is a distinctive strength that is central to a firm's operations.

The BRIC countries include Brazil, Russia, India, and China.

The International Red Cross is an example of a(n) ________.

The number of Americans working for U.S. affiliates of foreign-owned corporations is about ________.

The ratio of international trade to economic activity has been falling steadily in recent years.

Siemens is headquartered in Germany but maintains operations in the United States. The United States is the ________ country.

As an experienced accounts manager for a U.S. firm, Tyrone has worked exclusively with other U.S. firms. However, his employer is expanding overseas, and Tyrone will now be an international manager. Tyrone will most likely need to develop his knowledge in all of the following areas EXCEPT ________.

Trade agreements increase trade barriers among country members.

Ford Motor Company purchased all of the common stock of Sweden's Volvo Corporation. This is an example of ________.

The integration of markets, nation-states, and technologies in a way that is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before is referred to as ________.