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

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

An underground economy ________.

Converging tastes of consumers worldwide promote traditional lifestyles and values in individual countries.

The free movement of capital around the world is also known as ________.

Which of the following statements most likely to counters Juan's argument concerning the homogenization of national cultures?

Today, the cost of transportation, as a proportion of the value of products shipped internationally, has increased dramatically.

Which of the following benefits of IT is specific to smaller firms?

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

"McDonaldization" or "Coca-Colonization" of the world refers to the idea that globalization can alter people's norms, values, and behaviors, which may tend to homogenize over time.

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

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 ________.

Companies strive to drive down prices through economies of scale, by standardizing what they sell.

Convergence of consumer preferences has led to an enhanced emphasis on standardization which implies that ________.

Companies strive to drive down prices ________.

Early multinationals from the third phase of globalization originated in ________.

Which of the following represents the final stage in a firm's value chain?

The globalization of capital refers to the aggregate activities of firms that gives rise to economic integration.

Firms that pursue internationalization as a strategic move tend to approach global competition more aggressively than do firms that internationalize on a purely reactive basis.

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 twenty 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 ________.

The fourth phase of globalization is characterized by ________.