Exam 1: Globalizing Business

____ is/are measured as the sum of value added by resident firms, households, and government operating in an economy.

Liability of foreignness is the inherent disadvantage experienced by foreign firms in host counties because of their non-native status.

According to the pendulum view, globalization has been perceived both positively and negatively throughout history.

The pendulum view of globalization is embraced by:

In the 1990s, the term emerging economy/market replaced the commonly used term:

Most opponents of globalization view globalization as a long-run historical evolution since the dawn of human history.

The firm that engages in foreign direct investment is a:

How many individuals are employed by foreign-owned firms throughout the world?

A multinational enterprise is a firm that engages in foreign direct investment by directly investing in, controlling, and managing value-added activities in other countries.

The ____-based view suggests that the formal and informal rules of the game, known as institutions, shed a great deal of light on what is behind firm performance around the globe.

The terms international business (IB) and global business are synonymous.

More than half of the world GDP growth in recent years comes from ____.

The global economy can be viewed as a pyramid. The Triad represents:

The world economy at the beginning of the 21 st century is an approximately:

Approximately 80 million people worldwide are employed by foreign-owned firms.

Explain in your own words how, according to the author, this book will focus on international business.

The term base of the pyramid represents economies in which individuals make less than $2,000 a year.

In order to better compare/contrast costs of living in the various environments GNP/GDP may be adjusted to:

Due to informal rules such as culture and ethics, some developed economies have a hard time fostering entrepreneurship.

The ____-based view suggests that in order to achieve remarkable success, a firm must possess some very rare and powerful firm-specific resources and capabilities that are the envy of their rivals around the globe.