Chapter 4 Managing in a Global Environment True/False Questions 1. Wal-Mart is a well-established company with a global interest who is facing minimal challenges in developing a successful international business. Answer: False Level: 2 Page: 118 Type: F 2. Large companies such as America Online and Yahoo have proven that Internet development is rapidly expanding and has fewer difficulties than traditional business operations. Answer: False Level: 1 Page: 118 Type: F 3. The reality of today's borderless companies also means that consumers can easily identify from which country they are buying. Answer: False Level: 2 Page: 119 Type: F 4. ABC Manufacturing is in the domestic stage. It has its market potential open to the countries that border its home country. Answer: False Level: 2 Page: 120 Type: A 5. To deal with the marketing of products in several countries individually, a company in the international stage often uses an international division. Answer: True Level: 1 Page: 120 Type: F 6. The second stage in the process of globalization is the international stage, where the company usually adopts a multidomestic approach. Answer: True Level: 2 Page: 120 Type: F 7. The multinational stage of corporate international development transcends any single home country. The ownership, control, and top management tend to be dispersed among several nationalities. Answer: False Level: 1 Page: 121 Type: F 8. As the number of stateless corporations increases, the awareness of national borders Chapter Four * Managing in a Global Environment Test Bank * Page 90
increases as well. Answer: False Level: 2 Page: 121 Type: F 9. Whether a company operates domestically or internationally, the basic management functions of planning, organizing, leading, and controlling are the same. Answer: True Level: 1 Page: 121 Type: F 10. The sub-divisions of the international environment are the economic, the sociocultural, and the legal-political environments. Answer: True Level: 2 Page: 122 Type: F 11. Some economic environments of business include resource and product markets, language, religion, and per capita income. Answer: False Level: 1 Page: 122 Type: F 12. LDC's are less developed countries and tend to be found in the Southern Hemisphere including Africa, Asia and South America. Answer: True Level: 2 Page: 123 Type: F 13. Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America. Answer: False Level: 2 Page: 123 Type: F 14. Changes in the exchange rates can have major implications for the profitability of international operations. Answer: True Level: 1 Page 125 Type: F 15. The countries experiencing political, ethnic, and religious stability face the greatest threat of violence. Answer: False
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