sec 1

Question 1

T OR F: he international business environment varies only slightly from the domestic environment.

Answer 1

False

Question 2

T OR F: A United States business firm may choose to produce its products in a foreign country.

Answer 2

True

Question 3

T OR F: A United States firm may have more customers in foreign countries than in the United States.

Answer 3

True

Question 4

T OR F: A lack of personal contact is frequently a characteristic of international trade.

Answer 4

True

Question 5

T OR F: Political disturbances may slow down or prevent international trading of goods.

Answer 5

True

Question 6

T OR F: The in-country delivery time of an underdeveloped country may be longer than the time required between countries.

Answer 6

True

Question 7

T OR F: Generally, internationally shipped products are required only to meet the packaging standards of the exporting country.

Answer 7

False

Question 8

T OR F: Regardless of the country in which it operates, a United States based firm should always operate in the American way.

Answer 8

False

Question 9

T OR F: Religious differences usually present more business problems in foreign countries than in the United States.

Answer 9

true

Question 10

T OR F: Businessmen are universally respected for their role in the community.

Answer 10

False

Question 11

T OR F: Often, American business firms must train foreign personnel before successful operations can be accomplished.

Answer 11

True

Question 12

T OR F: Historically, European businessmen have come from the wealthy upper classes.

Answer 12

False

Question 13

In addition to the physical problems of international business, multinational firms must also cope with _______________ differences.

Answer 13

cultural

Question 14

In some countries, the ______ habits of the people do not correspond to our customary 8:00 to 5:00 work period.

Answer 14

work

Question 15

A business firm may have to change the design or ______ of its advertising symbols when operating in a foreign country.

Answer 15

color

Question 16

All countries enact ______ to govern the operations of foreign businesses.

Answer 16

laws

Question 17

Countries usually benefit from the __________ flow that takes place when foreign businesses establish operations.

Answer 17

capital

Question 18

National security is a __________ on international business dealings.

Answer 18

constraint

Question 19

The laws of a country may require that a percentage of the business be ________ by the country’s citizens.

Answer 19

owned

Question 20

T OR F: Firms engaged in international business need to worry about political differences ONLY in underdeveloped countries.

Answer 20

False

Question 21

T OR F: A country’s laws may require a large percentage of the employees of a foreign business to be from the native population.

Answer 21

True

Question 22

T OR F: Businesses establish operations in a foreign country primarily to help develop that country.

Answer 22

False

Question 23

T OR F: A frequent characteristic of underdeveloped countries is political instability.

Answer 23

True

Question 24

Existing and future competition by _______ and other foreign firms must be forecasted before international operations.

Answer 24

domestic

Question 25

The lack of firms producing the anticipated products may be due to a ______ of capital in the country.

Answer 25

lack

Question 26

Internationally operating firms often petition the foreign governments to prohibit other competing firms from entering the market to gain a _______ position.

Answer 26

position

Question 27

A multinational firm may be constrained by _______ business practices.

Answer 27

traditional

Question 28

In addition to its personnel management, an international firm's ________, ________, and _____-__ operations are affected by the business environment in the foreign sector.

Answer 28

production, marketing, and financial