Exam 1: Globalizing Business

Which of the following is NOT a reason why global business should be studied?

Possessing intimate knowledge about the formal and informal rules governing competition in various countries is sufficient to succeed globally.

Executives, policymakers, and scholars have carefully evaluated the social, political, and environmental costs associated with globalization.

In order to answer the question: What determines the success and failures of firms around the globe?, the author introduces which two core perspectives?

Expatriate employees face fewer and lower-ranked employment opportunities upon return to the US.

Expatriate managers are usually paid salaries coinciding with the salaries paid to foreign local managers of similar rank.

Explain the correlation between the success and failure of global firms and the institution- and resource-based views.

Which of the following terms best describes foreign direct investment?

Which of the following definitions of the international/global business represents the author s view?

Explain how a country s gross domestic product (GDP) is changed after adjusting for purchasing power parity (PPP).

The institution- and resource-based views are two core perspectives answering the fundamental question: What determines the success and failure of firms around the globe?

Emerging markets contribute about 25% of global GDP when adjusted for purchasing power parity, PPP.

Formal rules refer to government regulations regarding foreign and domestic firms. In most modern emerging environments, formal rules ensure equal playing field for all companies, regardless of origin.

According to the text, most MNEs are ____ the base of the pyramid.

The world economy at the beginning of the 21 st century is an approximately $55 trillion economy (GDP calculated at official, nominal exchange rates).

Firms that are able to succeed in difficult, harsh, even hostile foreign environments, established by unfavorable formal and informal rules, possess unique firm-specific resources and capabilities not shared by competitors.

What defines the field of global business more than anything else?

Globalization is a relatively new phenomenon triggered by the information revolution of the late 1980s.

When an expat employee returns to her or his current employer but the employer does not provide attractive opportunities, she/he often may be hired by a competitor firm. Why?

Many proponents of globalization are nongovernmental organizations (NGOs).