chapter 1

Question 1

globalization

Answer 1

the widening and deepening of interdependent relationships among people from different nations

Question 2

factors that have increased globalization

Answer 2

*rise in and application of technology
*liberalization of cross-border trade and resource movements
*services that support IB
*growth is consumer pressures
*increase in global competition
*changes in political situations and government policies
*expansion of cross-national cooperation

Question 3

criticisms of international business

Answer 3

threats to national sovereignty
concern that globalization will bring about homogenization of products
environmental stress
growing income inequality

Question 4

why companies engage in IB

Answer 4

Sales expansion
Resource acquisition
Risk reduction

Question 5

IB operating modes

Answer 5

merchandise exports and imports
service exports and imports
investments

Question 6

turnkey operations

Answer 6

construction, performed under contract, of facilities that are transferred to the owner when they are ready for operation),

Question 7

management contracts

Answer 7

arrangements in which one firm provides personnel to perform management functions for another

Question 8

international company

Answer 8

any company operating in more than one country

Question 9

multinational enterprise

Answer 9

is a company with foreign direct investments

Question 10

transnational company

Answer 10

synonym of MME used by the UN

Question 11

geographic influences

Answer 11

geographic barriers affect
transportation, communications, and distribution channels
within a country.

Question 12

demographic influences

Answer 12

populations differ in many
ways, such as density, education, age distribution, and life
expectancy.