International Business: The Challenges of Globalization, 7e (Wild) Chapter 1 Globalization 1) International business is any commercial transaction that crosses the borders of two or more nations. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 2 Difficulty: Easy Course LO: Define the fundamental concepts of international business 2) Imports are goods and services purchased abroad and brought into a country. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 2 Difficulty: Easy Course LO: Discuss the roles of exporting, importing, and countertrade in international business 3) Multinational corporations (MNCs) have direct investments abroad in multiple countries. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Define the fundamental concepts of international business 4) A born global firm is a company that engages in international business from or near its inception. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Define the fundamental concepts of international business 5) The term "globalization of production" refers to convergence in buyer preferences in markets