1. In today’s world, every manager needs to think locally.

1. In today’s world, every manager needs to think locally.

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2. Business has become a unified, global field as trade barriers fall, communication becomes faster and cheaper, and consumer tastes converge.

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3. The second stage in the process of globalization is the international stage, where the company usually adopts a multidomestic approach.

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4. An example of global outsourcing is seen when Gap, Inc. uses low-cost Caribbean labor to cheaply produce its clothing, and then finishes off and sells its clothing in the United States.

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5. With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.

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6. Seeking cheaper sources of materials or labor offshore is called offshoring.

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7. Countertrade is the barter of products for products rather than the sale of products for currency.

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8. An estimated 55 percent of world trade is countertrade.

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9. When Harbor Trades, a Korean-based company, makes resources including technology, managerial skills, and patent and trademark rights available to Nano Technologies, a Russian company whereby allowing Nano to make products similar to CBA, it is engaging in a countertrade agreement.

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10. Outsourcing is perhaps the most widespread approach to international involvement in China and India.

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11. Infrastructure management is the management of business operations conducted in more than one country.

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12. The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally.

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13. The sub-divisions of the international environment are the economic, the sociocultural, and the legal-political environments.

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14. Some economic environments of business include resource and product markets, language, religion, and per capita income.

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15. A country’s physical facilities that support economic activities make up its infrastructure.

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16. The criterion traditionally used to classify countries as developed or developing is per capita income.

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17. LDCs are less developed countries and tend to be found in the Southern Hemisphere including Africa, Asia and South America.

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18. Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America.

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19. Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.

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20. The countries experiencing political stability face the greatest threat of violence.

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