TRUE/FALSE 1. Business has become a unified, global field as trade barriers fall….

TRUE/FALSE1. Business has become a unified, global field as trade barriers fall, communication becomes faster and cheaper, and consumer tastes converge.( )2. The multinational stage of corporate international development transcends any single home country. The ownership, control, and top management tend to be dispersed among several nationalities.( )3. The global stage of corporate international development is also referred to as the stateless stage.( )4. 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.( )5. The criterion traditionally used to classify countries as developed or developing is per capita income.( )6. Large international firms typically are called multinational corporations.( )7. The term top of the pyramid refers to the more than four billion people who earn the least, as defined by per capita income.( )8. Fifteen member states of the EU have adopted the rupee, as a single European currency.( )9. Culture shock refers to a person’s ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.( )10. There are three components to cultural intelligence: cognitive, emotional, and physical.( )11. A tendency to regard their own culture as superior and to downgrade other cultures reflects an attitude called geocentric.( )12. 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.( )13. With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.( )14. Seeking cheaper sources of materials or labor offshore is called offshoring.( )15. The least costly and least risky direct investment is called a greenfield venture.( )16. Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control.( )17. Countertrade is the barter of products for products rather than the sale of products for currency.( )18. To deal with the marketing of products in several countries individually, a company in the international stage often uses an international division.( )19. Licensing means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.( )20. When a company builds a subsidiary from scratch in a foreign country it is called a greenfield venture.( )21. One advantage to acquiring a wholly owned foreign affiliate is that the company that acquires it would then have complete control.( )22. A form of direct investment is franchising.( )23. The goal of the European Union is to create a powerful single market system for Europe’s millions of consumers.( )24. The sub-divisions of the international environment are the economic, the sociocultural, and the legal-political environments.( )25. The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally.( )