International Business Multiple Chioce Essay Example

International Business Multiple Chioce Essay A) movement of jobs to high-wage countries B) business being undertaken outside the confines of any nation C) uneven distribution of resources and this distributions influence on different products and services in different parts of the world D) integration of world economies through the reduction of barriers to the movement of trade, capital, technology, and people Answer: D Diff: 1Page Ref: 5 Skill: Concept Objective: STUDY QUESTION 1. 1: What are international business and globalization? What is the relationship between them? AACSB: Multicultural and Diversity ) Which of the following best defines international business? A) It includes all public economic flows between two or more countries. B) It includes all private economic flows between two or more countries. C) It includes all business transactions involving two or more countries, whether the transactions are conducted by private or governmental organizations. D) It includes all business transactions in countries other than y our home country. Answer: C Diff: 1Page Ref: 5 Skill: Concept Objective: STUDY QUESTION 1. 1: What are international business and globalization? What is the relationship between them? 4) Which of the following is the most accurate comparison of how private businesses and governments conduct international business? A) The objectives for private businesses and governments are the same. B) The objective of a private business is profit, whereas a government may or may not seek profit as an objective. C) Governments operate strictly for nonprofit motives, but private businesses seek profits. D) Governments undertake international business for more long-term objectives than private businesses do. Answer: B Diff: 2Page Ref: 5 Skill: Concept Objective: STUDY QUESTION 1. 1: What are international business and globalization? What is the relationship between them? 5) Which of the following is NOT a reason to study international business? A) Business conducted outside the confines of any one country is on the decline. B) Global events affect almost all companies. C) By approaching operating strategies from an international standpoint, you may be able to better obtain the resources you need. D) The physical, social, and competitive conditions differ from country to country. We will write a custom essay sample on International Business Multiple Chioce specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on International Business Multiple Chioce specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on International Business Multiple Chioce specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Answer: A Diff: 2Page Ref: 5-6 Skill: Concept Objective: STUDY QUESTION 1. 2: Why should you study international business? 6) Of the following, it is most essential for a student of business to ________. A) travel widely in order to understand different business environments B) take an internship with a multinational company C) find employment with a company free from global competition D) gain some understanding of international business Answer: D Diff: 1Page Ref: 6 Skill: Application Objective: STUDY QUESTION 1. 2: Why should you study international business? AACSB: Analytic Skills 7) In terms of international business, it is most accurate to say that ________. A) there is a universal best way to conduct business B) global competition affects large companies but not small ones C) most companies, regardless of industry, depend either on foreign markets and supplies or compete against companies that do D) government regulation of international business has little effect on a companys profits Answer: C Diff: 1Page Ref: 6 Skill: Concept Objective: STUDY QUESTION 1. 2: Why should you study international business? ) Even if you never have direct international responsibilities, an understanding of some of the complexities of international business may be useful to you because ________. A) it is essential for most managerial job interviews B) it may help you make more informed operational decisions C) you will need to supervise and evaluate subordinates who have international responsibilities D) you should understand importing and exporting in or der to be promoted Answer: B Diff: 2Page Ref: 7 Skill: Concept Objective: STUDY QUESTION 1. 2: Why should you study international business? ) The shifting of national borders has created which of the following situations for international business? A) It has left most people who reside in rural areas with only the barest connection to the rest of the world. B) It has complicated the understanding of behavioral factors affecting business. C) It has made comparisons of historical data on international transactions problematic. D) It has slowed communications between a companys headquarters and foreign operations. Answer: C Diff: 2Page Ref: 7 Skill: Concept Objective: STUDY QUESTION 1. : Explain how globalization has changed over time and differs both among countries and within countries. AACSB: Multicultural and Diversity 10) Which of the following is an indication of the increased globalization of business since the end of World War II? A) World trade has grown more rapidly than worl d production in almost every year. B) Most countries now depend on foreign output for more than half their consumption. C) Foreign ownership of assets has leveled off. D) Countries have increased their import restrictions to counter the rising tide of imports. Answer: A Diff: 2Page Ref: 7 Skill: Concept Objective: STUDY QUESTION 1. 3: Explain how globalization has changed over time and differs both among countries and within countries. 11) Most of the worlds goods and services are sold ________. A) in international markets B) in the countries where they are produced C) through exports to small countries D) through exports to large countries Answer: B Diff: 2Page Ref: 7 Skill: Concept Objective: STUDY QUESTION 1. 3: Explain how globalization has changed over time and differs both among countries and within countries. 2) According to the A. T. Kearny/Foreign Policy Globalization Index, which ranked countries on their extent of globalization across economic, technological, personal contact, and political dimensions, countries ________. A) tend to be ranked similarly on all four dimensions B) are more globalized on the political dimension than on personal contact C) that are large in land mass and population are less globalized than small coun tries D) sometimes rank high on one dimension and low on another Answer: D Diff: 2Page Ref: 7 Skill: Concept Objective: STUDY QUESTION 1. : Explain how globalization has changed over time and differs both among countries and within countries. AACSB: Multicultural and Diversity 13) Which of the following has NOT been a major force increasing globalization in recent decades? A) liberalization of cross-border trade B) increase in and expansion of technology C) growing pressure from consumers D) decreasing global competition Answer: D Diff: 1Page Ref: 7-8 Skill: Concept Objective: STUDY QUESTION 1. 4: Identify and explain the seven forces that have been causing the growth in globalization. AACSB: Multicultural and Diversity 4) Institutional development of services by business and government has aided the expansion of international business by ________. A) providing a universally agreed upon language for conducting international transactions B) removing immigration restrictions so that i nternational firms can move personnel wherever they are most needed C) developing means to ease the flow of goods among countries D) spurring competition among domestic producers Answer: C Diff: 1Page Ref: 9 Skill: Concept Objective: STUDY QUESTION 1. 4: Identify and explain the seven forces that have been causing the growth in globalization. 5) Which of the following has caused consumers to demand access to foreign-made products? A) Declining global affluence has caused consumers to seek out lower-priced products from abroad. B) Consumers have become more efficient in using media and technologies to compare prices worldwide. C) Fearing that their governments will enact restrictive policies on imports, consumers are stocking up on foreign products before restrictions are put in place. D) Expectations of rising prices of foreign products have caused consumers to seek foreign products before their prices become prohibitive. Answer: B Diff: 2Page Ref: 9 Skill: Concept Objective: STUDY QUESTION 1. 4: Identify and explain the seven forces that have been causing the growth in globalization. AACSB: Use of IT 16) Which of the following is a reason that international business has grown at such a rapid pace in the past few decades? A) the end of the political schism between the Communist and non-Communist blocs B) stricter government policies on cross-border movements C) decreasing global competition D) increased concerns about terrorism Answer: A Diff: 1Page Ref: 10 Skill: Concept Objective: STUDY QUESTION 1. : Identify and explain the seven forces that have been causing the growth in globalization. AACSB: Multicultural and Diversity 17) The recent expansion of technology has contributed to growth in international business through ________. A) the creation of new products that are important in world trade B) reducing the effects of global competition C) the tabulation of international transactions that previou sly did not appear in statistics D) the liberalization of regulations of movements of resources across borders Answer: A Diff: 2Page Ref: 8 Skill: Concept Objective: STUDY QUESTION 1. : How is technology affecting the growth of international business? AACSB: Use of IT 18) Flower producers from Ecuador, Israel, and New Zealand all compete for sales in the same American markets. This is due primarily to ________. A) more effective domestic production techniques B) advances in communications C) advances in transportation D) cross-national cooperation in fighting insects that harm plants Answer: C Diff: 2Page Ref: 8 Skill: Concept Objective: STUDY QUESTION 1. 4: Identify and explain the seven forces that have been causing the growth in globalization. 9) All the following statements are true about the increase and expansion of technology EXCEPT which one? A) Technology facilitates a companys headquarters interactions with its foreign operations. B) Small companies can more easily access global customers and suppliers. C) Companies from more countries can compete for sales in foreign markets. D) Most analysts agree that the rate of development of new products will drop off in the future. Answer: D Diff: 2Page Ref: 8 Skill: Concept Objective: STUDY QUESTION 1. 5: How is technology affecting the growth of international business? AACSB: Use of IT 0) Because of economic growth, a larger portion of the population can shift from ________ to ________. A) recycling old products; disposing of old products B) disposing of old products; recycling old products C) producing new products; developing new products D) developing new products; producing new products Answer: C Diff: 2Page Ref: 8 Skill: Concept Objective: STUDY QUESTION 1. 5: How is technology affecting the growth of international business? AACSB: Use of IT 21) Because their citizens want a greater variety of goods and services at lower prices, many governments have ________. A) reduced their restrictions on the international movement of goods and services B) acted to reduce the pressures created by global competition C) sought to eliminate reciprocal advantages negotiated through international organizations and treaties D) increased their participation in multinational problem-solving efforts Answer: A Diff: 2Page Ref: 10 Skill: Concept Objective: STUDY QUESTION 1. 6: Why have most governments lowered restrictions on international trade and resource movements? 22) Which of the following is a reason for recent governmental relaxation in restrictions on cross-border trade or resource movements? A) Most countries face shortages of workers, so they seek foreign workers who can help them produce more. B) Governments believe that this will decrease the need to make their own companies more innovative. C) Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary. D) Governments believe that domestic producers will become more efficient as a result of foreign competition. Answer: D Diff: 2Page Ref: 8 Skill: Concept Objective: STUDY QUESTION 1. 6: Why have most governments lowered restrictions on international trade and resource movements? 3) Which of the following is a reason for recent governmental relaxation in restrictions on cross-border trade or resource movements? A) Governments typically welcome the opportunity to increase the offshoring of a countrys domestic producers. B) All countries have signed binding reciprocal trade agreements through international organizations. C) Governments hope that other countrie s will lower their barriers in response. D) Most countries face surpluses of workers, so they seek foreign markets in need of labor supplies. Answer: C Diff: 2Page Ref: 8 Skill: Concept Objective: STUDY QUESTION 1. : Why have most governments lowered restrictions on international trade and resource movements? 24) A company starting out with a global focus, usually because of the international experience of its founders, is called a ________. A) multinational enterprise B) transnational company C) strategically allied company D) born-global company Answer: D Diff: 1Page Ref: 9 Skill: Concept Objective: STUDY QUESTION 1. 7: What is the relationship between competition and globalization? 25) In a strategy known as ________, many new companies locate themselves near competitors and suppliers. A) offshoring B) franchising C) clustering D) exporting Answer: C Diff: 1Page Ref: 9 Skill: Concept Objective: STUDY QUESTION 1. 7: What is the relationship between competition and globalization? 26) Companies often expand their business internationally in response to ________. A) increased import restrictions in their domestic markets B) competitive international advantages gained by their competitors C) increased export restrictions in their domestic markets D) a decrease in domestic competition Answer: B Diff: 2Page Ref: 9 Skill: Application Objective: STUDY QUESTION 1. 7: What is the relationship between competition and globalization? AACSB: Analytic Skills 7) When a company successfully responds to foreign production and market opportunities, ________. A) other companies will likely emulate its successful practices B) it likely has a long-term advantage over competitors C) it typically downsizes its domestic operations D) its home government likely raises taxes on the company Answer: A Diff: 2Page Ref: 9 Skill: Applicati on Objective: STUDY QUESTION 1. 7: What is the relationship between competition and globalization? AACSB: Analytic Skills 28) According to your text, which of the following is NOT one of the three main reasons governments cooperate with each other? A) to attack problems that one country acting alone cannot solve B) to deal with areas of concern that lie outside the territory of any nation C) to gain reciprocal advantages D) to encourage cross-border movement of resources in response to interest rate differences Answer: D Diff: 1Page Ref: 10 Skill: Concept Objective: STUDY QUESTION 1. 8: Why/how do countries cooperate with other countries? How does this cooperation affect international business? 29) Governments have signed treaties to protect foreign-owned property rights, such as investments and patents. A primary reason for doing so is to ________. A) gain reciprocal advantages B) reduce the domestic effects of other countries economic policies C) deal with areas of concern outside the territory of any one country D) reduce national conflicts leading to violent encounters Answer: A Diff: 2Page Ref: 10 Skill: Application Objective: STUDY QUESTION 1. 8: Why/how do countries cooperate with other countries? How does this cooperation affect international business? AACSB: Analytic Skills 30) Which of the following is NOT a source of disagreement about the use of noncoastal areas of the oceans, outer space, and Antarctica? A) There is little short-term business potential in these areas. B) There is disagreement about how commercial benefits should be shared among nations. C) There is disagreement about who should be allowed to develop where. D) The commercial viability of some areas has only recently been demonstrated. Answer: A Diff: 2Page Ref: 11 Skill: Concept Objective: STUDY QUESTION 1. 8: Why/how do countries cooperate with other countries? How does this cooperation affect international business? 31) Which of the following is a reason that governments cooperate through treaties, agreements, and consultation? A) to gain a division of labor, such as by performing research and development in one country and production in another B) to be in compliance with United Nations requirements C) to attack problems jointly that one country acting alone cannot solve D) to assure that all countries get an equitable share of taxes from multinational enterprises Answer: C Diff: 2Page Ref: 10 Skill: Concept Objective: STUDY QUESTION 1. 8: Why/how do countries cooperate with other countries? How does this cooperation affect international business? 32) Small countries worry about overdependence caused by globalization. Their concerns include all of the following EXCEPT which of the following? A) A large country on whom they depend may pressure them on political matters. B) A large international company may dictate its terms of operations in a small country. C) A large company may exploit legal loopholes to avoid political oversight and taxes. D) A large country may reduce its level of cultural homogeneity. Answer: D Diff: 2Page Ref: 12-13 Skill: Concept Objective: STUDY QUESTION 1. 9: What are the main criticisms of globalization? AACSB: Multicultural and Diversity 3) Although critics complain that globalization causes the consumption of too many nonrenewable resources while despoiling the environment, those in favor of globalization counter that ________. A) globalization encourages the adoption of uniform and superior standards for combating environmental problems B) economic growth created by globalization is largely in services, which neither use too many nonrenewable resources nor despoil the environment C) the biggest problem of environmental despoliation occurs in the countries that are least globalized D) pollution and toxic runoff problems do not increase with economic growth Answer: A Diff: 2Page Ref: 13 Skill: Concept Objective: STUDY QUESTION 1. 9: What are the main criticisms of globalization? AACSB: Ethical Reasoning 34) Curtailment of logging in the Amazon region is generally viewed as environmentally beneficial for the planet as a whole. However, unemployed Brazilian workers have felt that job creation inside Brazil is more important than climate protection outside Brazil. This example best illustrates which of the following? A) why smaller countries are concerned that large international countries are powerful enough to dictate operating terms B) why globalization is needed to foster uniform standards for combating environmental problems C) how global interests can conflict with a countrys local interests D) how cultural homogeneity threatens the cultural foundation of smaller nations Answer: C Diff: 2Page Ref: 13 Skill: Application Objective: STUDY QUESTION 1. 9: What are the main criticisms of globalization? AACSB: Reflective Thinking 35) Although globalization may bring economic growth, critics nevertheless contend that ________. A) the growth is not fast enough B) the inequality of gains puts some people in a relatively worse economic situation C) this growth is mainly for the future, thus ignoring present economic growth needs D) the cultural foundations of sovereignty are supported by globalization Answer: B Diff: 2Page Ref: 13 Skill: Concept Objective: STUDY QUESTION 1. 9: What are the main criticisms of globalization? 36) The process of shifting production from a domestic to a foreign location is known as ________. A) offshoring B) outsourcing C) licensing D) joint venturing Answer: A Diff: 1Page Ref: 14 Skill: Concept Objective: STUDY QUESTION 1. 10: What is meant by offshoring? What are the major arguments for and against it? 37) Proponents of offshoring claim all EXCEPT which of the following? A) Aggregate employment figures show that displaced workers find new jobs. B) Offshoring increases the number of high-value jobs in the home countries of offshoring companies. C) Offshoring is fundamentally better for workers than the introduction of labor-saving technologies. D) There are upper limits on offshoring because there are not enough workers abroad with needed skills who will permanently work for low wages. Answer: C Diff: 2Page Ref: 14-15 Skill: Concept Objective: STUDY QUESTION 1. 10: What is meant by offshoring? What are the major arguments for and against it? 38) A major criticism of offshoring is that it ________. A) increases production costs B) exchanges good jobs for bad jobs C) threatens the sovereignty of larger countries D) allows companies to avoid payment of any taxes Answer: B Diff: 2Page Ref: 14 Skill: Concept Objective: STUDY QUESTION 1. 10: What is meant by offshoring? What are the major arguments for and against it? 39) Critics of offshoring claim all EXCEPT which of the following? A) Cost savings are seldom passed on to final consumers. B) Workers who have been displaced by offshoring do not have the skills needed for higher-value jobs. C) Incomes of workers in offshoring countries have gone down as a percentage of national income. D) Offshoring reduces the incomes of people in low-wage countries. Answer: D Diff: 2Page Ref: 14-15 Skill: Concept Objective: STUDY QUESTION 1. 10: What is meant by offshoring? What are the major arguments for and against it? 40) Which of the following conditions must be met for a company to increase profits through foreign sales? A) The company can obtain resources abroad. B) The costs to make the sales do not increase disproportionately. C) The company can offshore its production. D) The foreign market can be reached through exporting rather than direct investment. Answer: B Diff: 2Page Ref: 16 Skill: Concept Objective: STUDY QUESTION 1. 11: Why do companies engage in international business? (What advantages do they gain? ) 41) The televising of sports competitions to viewers in multiple countries is an example of international business conducted to achieve the objective of ________. A) acquiring resources B) minimizing risk C) offshoring D) sales expansion Answer: D Diff: 2Page Ref: 16 Skill: Application Objective: STUDY QUESTION 1. 11: Why do companies engage in international business? (What advantages do they gain? ) AACSB: Reflective Thinking 42) A motive for a company to conduct international business is to acquire resources abroad. Which of the following is NOT an example of a resource acquisition motive? A) producing with lower labor costs B) gaining knowledge that the company can use elsewhere C) following a customer into a foreign market D) gaining the means to differentiate a product Answer: C Diff: 2Page Ref: 16 Skill: Concept Objective: STUDY QUESTION 1. 11: Why do companies engage in international business? (What advantages do they gain? ) 43) By operating internationally, a company may reduce its risks because it can ________. A) take advantage of business-cycle differences among countries B) buy competitive risk insurance not available in its home country C) prevent competitors from operating in the countries it has entered D) operate in less competitive environments than those at home Answer: A Diff: 2Page Ref: 17 Skill: Concept Objective: STUDY QUESTION 1. 1: Why do companies engage in international business? (What advantages do they gain? ) 44) An example of a U. S. merchandise import is an automobile made in ________ and sold ________. A) the United States by a Japanese company; in the United States B) the United States by a Japanese company; outside the United States C) Japan by a Japanese company: in the United States D) Japan by a U. S. company; outsi de the United States Answer: C Diff: 2Page Ref: 17 Skill: Application Objective: STUDY QUESTION 1. 12: Define and give examples of merchandise and service imports and exports. AACSB: Reflective Thinking 45) Visible exports and imports are ________. A) merchandise imports and exports B) the sum total of goods and services traded C) international transactions paid for in money rather than barter D) typically a countrys least common international economic transactions Answer: A Diff: 1Page Ref: 20 Skill: Concept Objective: STUDY QUESTION 1. 12: Define and give examples of merchandise and service imports and exports. 46) An example of a Japanese service export is a visit by a ________. A) Japanese citizen to Disneyland in the United States B) Japanese citizen to the Japan Pavilion at Epcot Center in the United States C) U. S. citizen to the Japan Pavilion at Epcot Center in the United States D) U. S. citizen to Tokyo Disneyland in Japan Answer: D Diff: 2Page Ref: 17 Skill: Application Objective: STUDY QUESTION 1. 12: Define and give examples of merchandise and service imports and exports. AACSB: Reflective Thinking 47) Royalties from the use of assets abroad, such as trademarks or patents, are an example of ________. A) merchandise trade B) service trade C) visible trade D) a joint venture Answer: B Diff: 2Page Ref: 18 Skill: Concept Objective: STUDY QUESTION 1. 12: Define and give examples of merchandise and service imports and exports. 48) A foreign direct investment occurs ________. A) only when a company owns more than 50 percent of a foreign firm B) when a company controls a company abroad C) when foreign ownership is in private rather than government securities D) with the establishment of a partnership rather than the purchase of a foreign firm Answer: B Diff: 2Page Ref: 18 Skill: Concept Objective: STUDY QUESTION 1. 13: What are the types of foreign investment? 49) Foreign direct investment ________. A) is undertaken only by large companies B) includes the ownership of foreign bonds C) includes partially owned foreign operations as long as the owner has controlling interest D) in terms of value, is mainly undertaken by small companies Answer: C Diff: 2Page Ref: 18 Skill: Concept Objective: STUDY QUESTION 1. 13: What are the types of foreign investment? 50) When two or more organizations share ownership of a foreign direct investment, the operation is called a ________. A) portfolio investment B) transnational corporation C) turnkey operation D) joint venture Answer: D Diff: 1Page Ref: 18 Skill: Concept Objective: STUDY QUESTION 1. 13: What are the types of foreign investment? 51) Which of the following is an example of an international portfolio investment? A) foreign ownership of bonds B) ownership of patents used by a foreign company C) a joint venture with a foreign company D) one of a group of several foreign companies wholly owned by the same investor Answer: A Diff: 2Page Ref: 19 Skill: Concept Objective: STUDY QUESTION 1. 13: What are the types of foreign investment? 52) A multinational enterprise (MNE) is one that is ________. A) among the worlds 500 largest companies B) owned and managed by companies whose headquarters are split among different countries C) licensed to operate by the United Nations Transnational Center D) willing to consider market and production locations anywhere in the world Answer: D Diff: 1Page Ref: 19 Skill: Concept Objective: STUDY QUESTION 1. 14: What is a multinational enterprise (MNE)? 53) According to the definition used in your text, a company with operations in more than one country is a(n) ________. A) multinational enterprise B) joint venture partner C) international operator D) born-global company Answer: A Diff: 1Page Ref: 19 Skill: Concept Objective: STUDY QUESTION 1. 14: What is a multinational enterprise (MNE)? 54) The term sometimes used by the United Nations as a synonym for multinational enterprise is ________. A) multinational corporation B) transnational company C) stateless company D) global enterprise Answer: B Diff: 2Page Ref: 19 Skill: Concept Objective: STUDY QUESTION 1. 14: What is a multinational enterprise (MNE)? 55) Which of the following must be true about a company in order for it to be considered a multinational enterprise? A) The company is large with vast resources. B) The company holds direct investments in at least five countries. C) The company does not limit its evaluation of markets and production to any one country. D) The organization must be a born-global company. Answer: C Diff: 2Page Ref: 19 Skill: Application Objective: STUDY QUESTION 1. 14: What is a multinational enterprise (MNE)? AACSB: Analytic Skills 56) Politics, law, culture, and economy are all examples of ________ factors that can affect the ways in which companies produce and sell their products in foreign markets. A) social B) physical C) competitive D) political Answer: A Diff: 1Page Ref: 20 Skill: Concept Objective: STUDY QUESTION 1. 15: What do we mean by a companys physical and social environments? Why should companies understand them when engaging in international business? 57) Managers who are knowledgeable about ________ are better able to identify the location, quantity, quality, and availability of the worlds natural resources. A) political factors B) geographic factors C) competitive factors D) cultural factors Answer: B Diff: 1Page Ref: 20 Skill: Concept Objective: STUDY QUESTION 1. 5: What do we mean by a companys physical and social environments? Why should companies understand them when engaging in international business? 58) Although U. S. films depend heavily on revenue in foreign countries, revenue from international markets is usually low for a sports-themed film. This is due to ________ factors. A) political B) geographic C) behavioral D) legal Answer: C Diff: 2Page Ref: 21 Skill: App lication Objective: STUDY QUESTION 1. 15: What do we mean by a companys physical and social environments? Why should companies understand them when engaging in international business? AACSB: Reflective Thinking 59) In addition to understanding the laws affecting business in countries where their companies operate, it is most important for managers to understand which of the following legal factors? A) the methods for appointing judges B) the ethical rationale behind the laws C) the history of the countrys legal system D) the degree of enforcement of laws Answer: D Diff: 2Page Ref: 21 Skill: Concept Objective: STUDY QUESTION 1. 15: What do we mean by a companys physical and social environments? Why should companies understand them when engaging in international business? AACSB: Ethical Reasoning 60) Some key ________ factors in the external environment of an international business are product strategy and resource base and experience. A) geographic B) political C) competitive D) behavioral Answer: C Diff: 1Page Ref: 22 Skill: Concept Objective: STUDY QUESTION 1. 16: How does a companys competitive environment affect its international operations? How might its competitive environment differ from one country to another? 61) The same automobile company produces Fiats and Ferraris. The company built an engine plant in China with low production costs for Fiats, but not Ferraris. The probable reason is that ________. A) Fiat competes mainly on a focus strategy, whereas Ferrari competes mainly on a mass-market strategy B) Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy C) Ferrari faces global competitors in China, whereas Fiat competes in China mainly against Chinese competitors D) although Ferrari did not build an engine plant, it will use the same Fiat engines in its models Answer: B Diff: 2Page Ref: 22 Skill: Application Objective: STUDY QUESTION 1. 16: How does a companys competitive environment affect its international operations? How might its competitive environment differ from one country to another? AACSB: Analytic Skills 62) Which of the following statements is true concerning the international business competitive environment? A) Although countries market sizes differ, companies usually face about the same number of competitors in each national market. B) In most industries, companies face the same competitors in each country where they operate. C) It takes about the same amount of resources to gain national distribution in a large country as in a small one. D) Being a leader in one country doesnt guarantee youll be a leader in any other country. Answer: D Diff: 2Page Ref: 22 Skill: Application Objective: STUDY QUESTION 1. 16: How does a companys competitive environment affect its international operations? How might its competitive environment differ from one country to another? AACS