Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

An underground economy ________.

Accepted Answer

A)   refers to the informal economic sector
B)   refers to the formal economic sector
C)   is characterized by dominantly legal transactions
D)   is regulated and monitored by public authorities A

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A)   bond-based debt financing
B)   contagion
C)   the globalization of capital
D)   common market arrangement

Question 5

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

Accepted Answer

A)   As globalization standardizes superficial aspects of life across national cultures, people resist these forces by insisting on their national identity and taking steps to protect it.
B)   Foreign values tend to shift not just superficial aspects of culture, but deeply held beliefs as well.
C)   Material goods such as cell phones and computers are found in most homes throughout the world.
D)   In most industries, domestic operation alone cannot sustain competitive business growth.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   It mitigates organizational anarchy.
B)   It creates competitive advantages by encouraging organizational learning.
C)   It aids in the consolidation of market monopolies.
D)   It allows firms to design and produce customized products they can target to narrow, cross-national market niches.

Question 8

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.

Question 9

"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.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)   the consistently rising prices of consumer goods have led to a demand vacuum in the market
B)   the distance between consumers worldwide has increased with the advent of technology
C)   the raw materials, parts, and components sourced by professional buyers are very similar in design and structure
D)   the globalization of services has adversely affected the quality of service worldwide

Question 14

Companies strive to drive down prices ________.

Accepted Answer

A)   by centralizing manufacturing and procurement to a single source
B)   by standardizing what they sell
C)   by thwarting the growth of supranational institutions
D)   by discouraging competition

Question 15

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

Accepted Answer

A)   Japan
B)   China
C)   India
D)   Brazil

Question 16

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

Accepted Answer

A)   marketing
B)   procurement
C)   research & development
D)   sales and service

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

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 ________.

Accepted Answer

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

Question 20

The fourth phase of globalization is characterized by ________.

Accepted Answer

A)   rise of railroads and ocean transport
B)   reduction of barriers to trade by Western industrialized countries
C)   the initiation of the Marshall Plan to reconstruct Europe
D)   enormous growth of cross-border trade and investment

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.

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.

The fourth phase of globalization is characterized by ________.