Question 1

Foreign banks currently operate and compete in most parts of the United States.

Accepted Answer

The answer of Foreign banks currently operate and compete in...

Question 2

Wynn and Las Vegas Sands report their net revenue in Brazil is growing more than triple their U.S. properties.

Accepted Answer

There is no mention of Wynn or Las Vegas Sands having properties or reporting net revenue in Brazil. The statement is false.

Question 3

Yum Brands, which owns KFC and Pizza Hut, reported in 2011 that its China division overtook the U.S. in profits generated.

Accepted Answer

Yum Brands reported in 2011 that its China division had surpassed its U.S. division in terms of profits generated.

Question 4

The drive to improve the efficiency of global business operations is leading to lesser functional specialization.

Accepted Answer

The answer of The drive to improve the efficiency of...

Question 5

Many countries became less protectionist during the recent global economic recession.

Accepted Answer

During the recent global economic recession, countries tended to become more protectionist in order to safeguard their domestic industries and jobs. This was seen through the increase in tariffs and trade restrictions implemented by many countries in response to the economic downturn.

Question 6

Labor markets have become steadily more international with more and more countries around the world welcoming foreign investment and capital.

Accepted Answer

With the increasing trend of globalization, more and more countries are opening their doors to foreign investment and capital, which is leading to the growth of international labor markets.

Question 7

Though China has more than 1.3 billion residents, the middle class segment that is able to buy goods and services is rapidly shrinking.

Accepted Answer

This statement is incorrect. The middle class segment in China is actually growing rapidly, with some estimates projecting it to reach 600 million by 2022. However, income inequality still exists and there are concerns about the sustainability of this growth.

Question 8

Weaknesses of competitors in foreign lands are often underestimated, and strengths are often overestimated.

Accepted Answer

The answer of Weaknesses of competitors in foreign lands are...

Question 9

Keeping informed about the number and the nature of competitors is easier when doing business internationally.

Accepted Answer

Keeping informed about competitors can be just as challenging if not more so when doing business internationally due to differences in language, culture, and market dynamics.

Question 10

Language, culture, and value systems differ among countries, which can create barriers to communication and problems managing people.

Accepted Answer

Differences in language, culture, and value systems can often create misunderstandings, miscommunication, and conflicts in international management.

Question 11

Shifts in the nature and location of production systems, especially to China and India, are reducing the response time to changing market conditions.

Accepted Answer

The sentence states that production systems are shifting to China and India, which implies that companies are moving their operations closer to the markets they serve. This in turn reduces the response time to changing market conditions, as they are able to more quickly adapt to local demand and adjust their production accordingly. Therefore, this statement is true.

Question 12

Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people.

Accepted Answer

This is an accurate definition of protectionism.

Question 13

A potential advantage to initiating, continuing, or expanding international operations is that foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.

Accepted Answer

This statement is true. By operating in multiple markets, a company can take advantage of economies of scale and reduce risks associated with being reliant on a single market. Additionally, if there is excess capacity in one market, the company can use it to produce goods or services for another market.

Question 14

Although a firm's power and prestige in domestic markets may be significantly enhanced when the firm competes globally, this rarely translates into improved negotiating power among creditors, suppliers, or distributors.

Accepted Answer

The statement is false. Competing globally can actually improve a firm's negotiating power among creditors, suppliers, and distributors due to the increased visibility and reputation gained from international competition.

Question 15

Firms are often motivated to initiate international operations because competitors in foreign markets may not exist, or competition may be less intense than in domestic markets.

Accepted Answer

This statement is true. Firms may see foreign markets as an opportunity to enter a market with little to no competition or with competition that is less intense than in their domestic market. This can allow them to gain a foothold and establish a competitive advantage before other competitors enter the market.

Question 16

A primary reason why most domestic firms are engaging in global operations is that growth in demand for goods and services outside the U.S. is considerably higher than inside.

Accepted Answer

Many domestic firms have found that expanding their operations globally can lead to increased revenue and market share, as demand for their products and services is often higher in international markets than in the United States. This is especially true for industries such as technology, energy, and pharmaceuticals, where there is significant demand for advanced products and services in emerging markets. Additionally, global operations can help firms diversify their revenue streams and reduce dependence on any one particular market or region.

Question 17

American firms that seem insulated from foreign competition today may be vulnerable tomorrow.

Accepted Answer

The global marketplace is constantly changing and evolving, so even firms that appear to have a secure market position could potentially face challenges from foreign competitors in the future. Factors such as technological advancements, regulatory changes, and shifting consumer preferences can all impact a company's competitiveness and market share. Therefore, it is important for companies to remain vigilant and adaptable to changes in the global business environment.

Question 18

Brazil offers skilled labor and technology, while Germany offers abundant natural resources and rapidly developing markets.

Accepted Answer

The statement is false. Germany is known for its skilled labor and technology while Brazil is rich in natural resources and has a rapidly developing market.

Question 19

The availability, depth, and reliability of economic and marketing information in different countries vary extensively.

Accepted Answer

Economic and marketing information can be significantly impacted by numerous factors such as government regulations, cultural differences, technological advancements and economic development. Therefore, it is common for the availability, depth and reliability of such information to vary extensively across different countries.

Question 20

One aspect of the global challenge faced by U.S. business involves the complications of having to deal with two or more monetary systems.

Accepted Answer

Dealing with multiple monetary systems can be complex and challenging for U.S. businesses that operate internationally. Currency exchange rates, transaction costs, and fluctuations in value can all impact profitability and supply chain operations.

Quiz 11: Globalinternational Issues