Question 1

The third phase of globalization was triggered by the development of personal computers, the Internet, and Web browsers.

Accepted Answer

A) True 
 B)False  False

Question 2

Firms are sometimes motivated to enter new markets because of unfavorable conditions in the home market, such as regulation or declining local industry sales.

Accepted Answer

A) True 
 B)False  True

Question 3

Firms expand abroad mainly as a reaction to market globalization.

Accepted Answer

A) True 
 B)False  False

Question 4

Internationalization Conference (Scenario)
At a conference on business internationalization strategies, representatives of three different businesses meet to discuss a joint venture between their companies. Business A is located in a country that internationalized during the second phase of globalization. Business B is based in a country that internationalized during the third phase of globalization. Business C is located in an emerging market country.
-The representative from Business B is most likely from ________.

Accepted Answer

A)  Panama 
B)  Hungary 
C)  Uganda 
D)  Japan 
A)  Panama 
B)  Hungary 
C)  Uganda 
D)  Japan

Question 5

Countries that liberalize international trade and investment enjoy faster per-capita economic growth.

Accepted Answer

A) True 
 B)False

Question 6

Over time, the GATT evolved into the ________.

Accepted Answer

A)  World Bank 
B)  International Monetary Fund 
C)  World Trade Organization 
D)  World Intellectual Property Organization 
A)  World Bank 
B)  International Monetary Fund 
C)  World Trade Organization 
D)  World Intellectual Property Organization

Question 7

Falling trade barriers are facilitated by the WTO.

Accepted Answer

A) True 
 B)False

Question 8

Large multinationals are not constrained by market forces because they can exert considerable influence on governments through lobbying.

Accepted Answer

A) True 
 B)False

Question 9

The fourth phase of globalization ________.

Accepted Answer

A)  is characterized by the rise of electricity and steel production 
B)  is characterized by the rise of MNEs from Japan 
C)  witnessed the Bretton Woods Conference of twenty-three nations in 1947 that led to the General Agreement on Tariffs and Trade 
D)  facilitated the globalization of the service sector in such areas as banking and retailing 
A)  is characterized by the rise of electricity and steel production 
B)  is characterized by the rise of MNEs from Japan 
C)  witnessed the Bretton Woods Conference of twenty-three nations in 1947 that led to the General Agreement on Tariffs and Trade 
D)  facilitated the globalization of the service sector in such areas as banking and retailing

Question 10

The globalization of finance ________.

Accepted Answer

A)  enables companies to minimize offshoring 
B)  contributes to firms' abilities to develop and operate world-scale production and marketing 
C)  discourages innovation 
D)  discourages free international exchange of goods and services 
A)  enables companies to minimize offshoring 
B)  contributes to firms' abilities to develop and operate world-scale production and marketing 
C)  discourages innovation 
D)  discourages free international exchange of goods and services

Question 11

Which of the following is an example of a supranational institution?

Accepted Answer

A)  the World Intellectual Property Organization 
B)  UNICEF 
C)  the Red Cross 
D)  the World Trade Organization 
A)  the World Intellectual Property Organization 
B)  UNICEF 
C)  the Red Cross 
D)  the World Trade Organization

Question 12

Which of the following statements is TRUE about the firm-level consequences of market globalization?

Accepted Answer

A)  The globalization of markets has narrowed down new business opportunities for internationalizing firms. 
B)  Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world. 
C)  A firm's value chain is not subject to internationalization. 
D)  Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market. 
A)  The globalization of markets has narrowed down new business opportunities for internationalizing firms. 
B)  Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world. 
C)  A firm's value chain is not subject to internationalization. 
D)  Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market.

Question 13

Globalization results in more demanding buyers who shop for the best deals worldwide.

Accepted Answer

A) True 
 B)False

Question 14

Describe the fourth phase of globalization. What is contagion?

Accepted Answer

The fourth phase of globalization began

Question 15

Acme Software (Scenario)
Acme Software is a U.S.-based maker of software products for the health care industry. Recently Acme has been investigating whether it would be beneficial to internationalize some of its value-chain activities. Acme hires a consulting group to help determine which, if any, value-chain activities could be conducted abroad to promote business growth. The consulting group identifies two health care software development companies in India that could provide programming services at a lower cost than Acme's current expenditures for programming. In addition, the consultants conduct international market research that shows that German health care companies have a strong demand for the type of software that Acme offers.
-Which of the following would be most important for Acme to determine before outsourcing its programming services to India?

Accepted Answer

A)  What benefits have Indian companies gained historically from internationalizing their value-chain activities? 
B)  Do Indian businesses outsource value-chain activities to Europe? 
C)  Would the lower cost of outsourcing allow Acme to sustain a competitive advantage in its business operations? 
D)  Is either of the Indian health care companies interested in moving their operations abroad? 
A)  What benefits have Indian companies gained historically from internationalizing their value-chain activities? 
B)  Do Indian businesses outsource value-chain activities to Europe? 
C)  Would the lower cost of outsourcing allow Acme to sustain a competitive advantage in its business operations? 
D)  Is either of the Indian health care companies interested in moving their operations abroad?

Question 16

The science and process of creating and using information resources is known as ________.

Accepted Answer

A)  information design 
B)  information technology 
C)  psychographics 
D)  demographics 
A)  information design 
B)  information technology 
C)  psychographics 
D)  demographics

Question 17

Global Operations Report (Scenario)
As Vice President of Global Expansion for Pax Telecom, Deva Mikiri is tasked with preparing a comprehensive report on the company's global operations over the past 20 years. Deva assigns three strategists to collaborate on the History portion of the report, which details the rationale behind Pax's decisions to expand operations in particular areas. Rashid Ahl focuses on early expansion to China, which occurred after China began to make its market more accessible to foreign companies. Markus Teller focuses on Pax's expansion to Eastern Europe, which was motivated by increased industry privatization in key countries. Lavonne Jackson focuses on expansion to Japan, which happened when the company's commercial bank expanded its service network to Asia.
-In describing the main driver behind Pax's expansion to China, Rashid is most likely to emphasize ________.

Accepted Answer

A)  the high rate of employee attrition in China 
B)  advances in technology 
C)  reduction of barriers to trade 
D)  integration of world financial markets 
A)  the high rate of employee attrition in China 
B)  advances in technology 
C)  reduction of barriers to trade 
D)  integration of world financial markets

Question 18

________ is transforming interactions among customers, employees, business partners and investors, by connecting locations, products, services, and data.

Accepted Answer

A)  Digitization 
B)  A supply chain 
C)  A value chain 
D)  Value migration 
A)  Digitization 
B)  A supply chain 
C)  A value chain 
D)  Value migration

Question 19

Discuss the effect of globalization on national culture.

Accepted Answer

Globalization exerts strong pressures on

Question 20

As market globalization intensifies, ________.

Accepted Answer

A)  the gap between the rich and the poor shrinks rapidly 
B)  the distance between consumers worldwide expands 
C)  individual firms respond to the challenges and new advantages that it brings 
D)  firms internationalize solely as a reaction to it 
A)  the gap between the rich and the poor shrinks rapidly 
B)  the distance between consumers worldwide expands 
C)  individual firms respond to the challenges and new advantages that it brings 
D)  firms internationalize solely as a reaction to it

The third phase of globalization was triggered by the development of personal computers, the Internet, and Web browsers.

Firms are sometimes motivated to enter new markets because of unfavorable conditions in the home market, such as regulation or declining local industry sales.

Firms expand abroad mainly as a reaction to market globalization.

Countries that liberalize international trade and investment enjoy faster per-capita economic growth.

Over time, the GATT evolved into the ________.

Falling trade barriers are facilitated by the WTO.

Large multinationals are not constrained by market forces because they can exert considerable influence on governments through lobbying.

The fourth phase of globalization ________.

The globalization of finance ________.

Which of the following is an example of a supranational institution?

Which of the following statements is TRUE about the firm-level consequences of market globalization?

Globalization results in more demanding buyers who shop for the best deals worldwide.

Describe the fourth phase of globalization. What is contagion?

The science and process of creating and using information resources is known as ________.

________ is transforming interactions among customers, employees, business partners and investors, by connecting locations, products, services, and data.

Discuss the effect of globalization on national culture.

As market globalization intensifies, ________.

Introduction: What Is International Business

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 2: Globalization of Markets and the Internationalization of the Firm

The third phase of globalization was triggered by the development of personal computers, the Internet, and Web browsers.

Firms are sometimes motivated to enter new markets because of unfavorable conditions in the home market, such as regulation or declining local industry sales.

Firms expand abroad mainly as a reaction to market globalization.

Countries that liberalize international trade and investment enjoy faster per-capita economic growth.

Over time, the GATT evolved into the ________.

Falling trade barriers are facilitated by the WTO.

Large multinationals are not constrained by market forces because they can exert considerable influence on governments through lobbying.

The fourth phase of globalization ________.

The globalization of finance ________.

Which of the following is an example of a supranational institution?

Which of the following statements is TRUE about the firm-level consequences of market globalization?

Globalization results in more demanding buyers who shop for the best deals worldwide.

Describe the fourth phase of globalization. What is contagion?

The science and process of creating and using information resources is known as ________.

________ is transforming interactions among customers, employees, business partners and investors, by connecting locations, products, services, and data.

Discuss the effect of globalization on national culture.

As market globalization intensifies, ________.

Introduction: What Is International Business

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters