Chap 1: True/False

A global company is an organization with multi-country affiliates, each of which formulates its own business strategy based on perceived market differences.

• True

• False

The difference between firms of the early 1900s and present companies are their explosive growth and the increasing globalization of their products and markets.

• True

• False

One variable commonly used to measure where and how fast internationalization takes place is the increase in total foreign direct investment.

• True

• False

The kinds of forces in the foreign environment are the same as those in the domestic environment except they occur in foreign nations.

• True

• False

An international manager has two choices on what to do overseas with a concept or technique employed in domestic operations: (1) transfer it intact or (2) adapt it to local conditions.

• True

• False

Global company maintains a presence in key markets around the world.

• True

• False

As a business practice, international business is relatively new.

• True

• False

Five major drivers of globalization are political, technological, market, cost, and culture.

• True

• False

Advances in computers and communication technology are permitting an increased flow of ideas and information across borders, enabling customers to learn about foreign goods.

• True

• False

In order to achieve economies of scale, the company can move production or other parts of the company’s value chain to countries where the costs are higher.

• True

• False