Chapter 01
The Challenging World of International Business

True / False Questions 1. | All managers need to have a basic knowledge of international business. True False | 2. | As the term is used in the text, foreign business is business whose activities are carried out across national borders. True False | 3. | An international company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. True False | 4. | A business whose activities are carried out across national borders is known as an international business. True False | 5. | Foreign business refers to the operations of a company outside its home or domestic market. True False | 6. | A company headquartered in another country is known as a foreign business. True False | 7. | The term international business is used to describe an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. True False | 8. | A multidomestic company is an organization that attempts to standardize and integrate operations worldwide in all functional areas. True False | 9. | The term international company refers to both global and multidomestic companies. True False | 10. | A global company is an organization that attempts to standardize and integrate operations worldwide in most or all functional areas. True False | 11. | According to the definitions in the text, a multidomestic firm is an organization that attempts to standardize operations worldwide in all functional areas. True False | 12. | The United Nations uses the term transnational to describe an enterprise doing business in more than one country. True False