Question 1

George and John are both managers at Routen Plan Inc.based in Washington,but only George receives a significant international premium compensation as he is an expatriate manager of Routen Plan,Germany.

Accepted Answer

A) True 
 B)False

Question 2

The _____ consists of North America,Western Europe,and Japan.

Accepted Answer

A)  base of the pyramid 
B)  Triad 
C)  top tier of the pyramid 
D)  triplex

Question 3

According to one of the three views of globalization,globalization is _____.

Accepted Answer

A)  recent 
B)  the disintegration of countries and peoples of the world 
C)  one-directional 
D)  a process similar to the swing of a pendulum

Question 4

MaltHanks Inc.,a leading American firm,starts its operations in China.It incurs a lot of additional costs in comparison to the local firms.These costs originate in limited local knowledge and local stakeholders' discriminatory attitudes.Which of the following best describes the problem faced by MaltHanks?

Accepted Answer

A)  Foreign premium 
B)  Liability of foreignness 
C)  Liability of localization 
D)  International premium

Question 5

Which of the following statements is true of foreign firms?

Accepted Answer

A)  They easily adjust to laws,regulations,and rules of host nations. 
B)  They focus only on a firm's internal environment. 
C)  They do not dominate nonnative markets. 
D)  They are a close integration of countries and peoples of the world.

Question 6

BRIC is an acronym for the emerging economies of _____.

Accepted Answer

A)  Britain,Russia,India,and China 
B)  Brazil,Romania,India,and Chile 
C)  Belgium,Romania,Indonesia,and Chile 
D)  Brazil,Russia,India,and China

Question 7

Business leaders should focus on the top two tiers of the global economic pyramid because the base of the pyramid (BoP)does not offer many economic opportunities.

Accepted Answer

A) True 
 B)False

Question 8

A(n)_____ is a leading perspective in global business that suggests that firm performance is,at least in part,determined by its internal capital and capabilities.

Accepted Answer

A)  product-based view 
B)  institution-based view 
C)  resource-based view 
D)  profit-based view

Question 9

Which of the following is true of the Great Transformation?

Accepted Answer

A)  It does not take purchasing power parity (PPP)into account. 
B)  It is the linear story of the high speed economic growth of the developed world. 
C)  It refers to emerging economies struggling to compete with developed nations. 
D)  It refers to the shift in economic weight and engines of growth toward emerging economies.

Question 10

SchulzRobb Inc.,a company based in England,engages in foreign direct investment in other countries such as India,Japan,and Brazil.SchulzRobb is a multinational enterprise.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true of the second tier of the global economy pyramid?

Accepted Answer

A)  It consists of a billion people making $2,000 to $20,000 a year. 
B)  It mostly consists of people who live in the developed economies. 
C)  It mostly consists of people who live in North America,Western Europe,and Japan. 
D)  It consists of the vast majority of the people who make less than $2,000 a year.

Question 12

Explain how the pendulum view attempts to describe globalization as a cyclical phenomenon with many difficulties.

Accepted Answer

The answer of Explain how the pendulum view attempts to...

Question 13

Which of the following expression does the author use to describe globalization in the recent times?

Accepted Answer

A)  Global localization 
B)  Total globalization 
C)  Semiglobalization 
D)  Global standardization

Question 14

Which of the following statements is true of the emerging economies?

Accepted Answer

A)  They grow only their absolute gross domestic product (GDP). 
B)  They attract 60 percent of foreign direct investment (FDI)inflows and generate 40 percent FDI outflows. 
C)  They always manage to repeat their extraordinary growth sprint. 
D)  They contribute approximately 90 percent of the global gross domestic product.

Question 15

According to the Pendulum view on globalization,globalization is very recent and one-directional.

Accepted Answer

A) True 
 B)False

Question 16

Croulene Corp,an American company,starts its operations in China.Croulene has an inherent disadvantage in China because of its nonnative status.This is an example of a liability of foreignness.

Accepted Answer

A) True 
 B)False

Question 17

If the largest MNE,Walmart,were an independent country,it would be the 27th largest economy in the world.

Accepted Answer

A) True 
 B)False

Question 18

_____ is the sum of value added by residents,households,and government operating in an economy.

Accepted Answer

A)  Foreign direct investment 
B)  Purchasing power parity 
C)  Gross domestic product 
D)  Intermediate consumption

Question 19

Which of the following is a difference between risk management and scenario planning?

Accepted Answer

A)  Risk management plans for either high risk or low risk,whereas scenario planning prepares to minimize the impact of only high-risk events. 
B)  Risk management is the identification and assessment of risks,whereas scenario planning is a technique to prepare and plan for multiple situations. 
C)  Risk management is a new phenomenon beginning in the late 20th century,whereas scenario planning started 2,000 or 8,000 years ago. 
D)  Risk management is driven by recent technological innovations,whereas scenario planning is driven by a Western ideology.

Question 20

Which of the following is true of The Great Recession of 2008-2009?

Accepted Answer

A)  The crisis showed,for better or worse,how isolated the global economy had become. 
B)  Globalization was widely regarded as a minor factor in causing the crisis. 
C)  Global output,trade,and investment plummeted,while unemployment skyrocketed. 
D)  The crisis led to massive government bailouts of failed firms in the United States but not elsewhere in the world.

Exam 1: Globalizing Business

George and John are both managers at Routen Plan Inc.based in Washington,but only George receives a significant international premium compensation as he is an expatriate manager of Routen Plan,Germany.

The _____ consists of North America,Western Europe,and Japan.

According to one of the three views of globalization,globalization is _____.

Which of the following statements is true of foreign firms?

BRIC is an acronym for the emerging economies of _____.

Business leaders should focus on the top two tiers of the global economic pyramid because the base of the pyramid (BoP)does not offer many economic opportunities.

A(n) _____ is a leading perspective in global business that suggests that firm performance is,at least in part,determined by its internal capital and capabilities.

Which of the following is true of the Great Transformation?

SchulzRobb Inc.,a company based in England,engages in foreign direct investment in other countries such as India,Japan,and Brazil.SchulzRobb is a multinational enterprise.

Which of the following statements is true of the second tier of the global economy pyramid?

Explain how the pendulum view attempts to describe globalization as a cyclical phenomenon with many difficulties.

Which of the following expression does the author use to describe globalization in the recent times?

Which of the following statements is true of the emerging economies?

According to the Pendulum view on globalization,globalization is very recent and one-directional.

Croulene Corp,an American company,starts its operations in China.Croulene has an inherent disadvantage in China because of its nonnative status.This is an example of a liability of foreignness.

If the largest MNE,Walmart,were an independent country,it would be the 27th largest economy in the world.

_____ is the sum of value added by residents,households,and government operating in an economy.

Which of the following is a difference between risk management and scenario planning?

Which of the following is true of The Great Recession of 2008-2009?