Question 1

A foreign direct investment occurs:

1. only when a company owns more than 50 percent of a foreign firm.
2. when a company controls a company abroad.
3. when foreign ownership is in private rather than government securities.
4. with the establishment of a partnership rather than the purchase of a foreign firm.

Question 2

Which of the following statements about the increase and expansion of technology is FALSE?

1. Technology facilitates a company's headquarters' interactions with its foreign operations.
2.  Small companies can more easily access global customers and suppliers.
3.  Companies from more countries can compete for sales in foreign markets.
4.  Most analysts agree that the rate of development of new products will drop off in the future.

Question 3

Managers who are knowledgeable about __________ are better able to identify the location, quantity, quality, and availability of the world's natural resources.

1. political factors
2. geographic factors
3. competitive factors
4. cultural factors

Question 4

In the case on Carnival Cruise Lines in Chapter 1, we saw that cruise lines pay little or no taxes because:

1. of international tax treaties.
2. they take advantage of different taxation and employment laws in foreign countries.
3. international law does not apply in noncoastal areas of the oceans.
4. they use focus strategies.

Question 5

Most of the world's goods and services are:

1. sold in international markets.
2. sold in the countries where they are produced.
3. sold through exports to small countries.
4. sold through exports to large countries.

Question 6

Safe work environments motivate __________; challenges motivate __________.

1. individualists; collectivists
2. collectivists; individualists
3. non-fatalists; fatalists
4. materialists; non-materialists

Question 7

Which of the following is a reason that international business has grown at such a rapid pace in the past few decades?

1. The end of the political schism between the Communist and non-Communist blocs
2. Stricter government policies on cross-border movements
3. Decreasing global competition
4. Increased concerns about terrorism

Question 8

The process of shifting production from a domestic to a foreign location is known as __________.

1. offshoring
2. outsourcing
3. licensing
4. joint venturing

Question 9

When two countries are very culturally close:

1. communications between them need not be translated.
2. there is little chance of cultural friction.
3. foreigners and domestic citizens are treated differently.
4. a company may overlook important subtleties.

Question 10

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.

1. social
2. physical
3. competitive
4. political

Question 11

Summarize the positive and negative aspects of offshoring, and state whether you support or are against offshoring and why. Include an experience that you or someone you know has had in which offshoring affected them positively/negatively.

Question 12

Review the case study “Carnival Cruise Lines: Exploiting a Sea of Global Opportunity” at the end of Chapter 1 in your course textbook. Describe the global forces that have contributed to the growth of the cruise-line industry. Discuss the specific steps that Carnival Cruise Lines has taken to benefit from global social changes? What additional steps might the company take to benefit from global social change in the future?