Reference no: EM133434049

True / False

Questions

1. The United Nations and the governments of many developing nations use transnational instead of multinatlonal to describe any ?rm doing business in more than one country.

2. Unconscious reference to one's own cultural values when judging behaviours of others in a new and different environment is known as the self-reference criterion.

3. Transnational corporations account for approximately two-thirds of total global output.

4. Whether free trade is the best strategy for advancing the world's economic development is one of the Issues about which economists disagree most frequently.

5. The reasons international ?rms enter foreign markets are all linked to either (1) the desire to increase pro?ts or (2) the desire to increase sales.

Multine Choice Questions

6. A newer name for the term "transnational" to describe any ?rm doing business in more than one country is a(n):

A. multinational corporation.

B. multicultural multinational.

C. multinational enterprise.

D. international company.

7. In the history of international business, why does the saying "all roads lead to China" have relevance within the international trade system?

A. In ancient times, China was the world's leading manufacturing country for about 1,800 years.

B. Hourly rates paid in China were signi?cantly higher than the rates paid in Western countries.

C. A number of multinational companies existed in the late 1800s in China.

D. The Chinese blocked their harbors to prevent trade by ships, so trade with China was only possible through the use of an extensive road system.

8. Exporting is: '

A. a measure of foreign ownership of productive assets.

B. the transportation of any domestic good or service to a destination outside a country.

C. direct investments in organizations in a foreign country at a level that is suf?cient to obtain signi?cant management control.

D. the transportation of any good or service into a country, from a foreign origination point.