Question 1

Regional economic integration blocs ________.

Accepted Answer

A)  reduce trade and investment barriers 
B)  reduce private investments 
C)  adopt a hostile stance toward the private sector 
D)  hinder the cross-border flow of factors of production

Question 2

The end of the Cold War in 1989 hindered the forces of market liberalization in Eastern Europe.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a driver of globalization?

Accepted Answer

A)  greater emphasis on proactive internationalization 
B)  internationalization of firm's value chain 
C)  integration of world financial markets 
D)  globalization of services

Question 4

Which of the following is a societal consequence of market globalization?

Accepted Answer

A)  greater emphasis on proactive internationalization 
B)  internationalization of firm's value chain 
C)  new risks and instant rivalry from foreign competitors 
D)  offshoring and the flight of jobs

Question 5

What is meant by the internationalization of a firm's value chain? How do advances in technology contribute to internationalization of firms' value chains?

Accepted Answer

The answer of What is meant by the internationalization of...

Question 6

Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages.

Accepted Answer

A) True 
 B)False

Question 7

The ability of a nation to govern its own affairs is known as ________.

Accepted Answer

A)  sovereignty 
B)  liberalization 
C)  interdependence 
D)  homogenization

Question 8

Governments have facilitated economic integration by ________.

Accepted Answer

A)  increasing barriers to international trade and investment 
B)  developing supranational institutions to further reduce trade barriers 
C)  adopting different monetary and fiscal policies within the same regional economic integration blocs 
D)  standardizing consumer lifestyles and preferences

Question 9

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.
-A value chain is ________.

Accepted Answer

A)  the sequence of administrative policies implemented to promote economic integration by a government 
B)  the process of relocating manufacturing and production to valuable and cost-effective locations abroad 
C)  the process of integrating national economies during a financial crisis 
D)  the sequence of value-adding activities performed by a firm in the course of developing, producing, marketing, and servicing a product

Question 10

Offshoring and the flight of jobs are prime drivers of market globalization.

Accepted Answer

A) True 
 B)False

Question 11

The ________ phase of globalization began around 1900 and was associated with the rise of electricity and steel production.

Accepted Answer

A)  first 
B)  second 
C)  third 
D)  fourth

Question 12

Globalization of production activities and services is a dimension of market globalization.

Accepted Answer

A) True 
 B)False

Question 13

________ refers to the tendency of a financial or monetary crisis in one country to spread rapidly to other countries, due to the ongoing integration of national economies.

Accepted Answer

A)  Contagion 
B)  Nationalization 
C)  Internationalization 
D)  Codetermination

Question 14

Nationalization refers to the gradual integration and growing interdependence of national economies.

Accepted Answer

A) True 
 B)False

Question 15

Industrialization implies that emerging markets are increasing their dependence on low-cost labor.

Accepted Answer

A) True 
 B)False

Question 16

In international economics, codetermination refers to the tendency for a financial or monetary crisis in one country to spread rapidly to other countries, due to integrated national economies.

Accepted Answer

A) True 
 B)False

Question 17

Environmental destruction diminishes as economies develop, at least in the long run.

Accepted Answer

A) True 
 B)False

Question 18

The Internet has increased the cost of transmitting voices, data, and images.

Accepted Answer

A) True 
 B)False

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

Regional economic integration blocs ________.

The end of the Cold War in 1989 hindered the forces of market liberalization in Eastern Europe.

Which of the following is a driver of globalization?

Which of the following is a societal consequence of market globalization?

What is meant by the internationalization of a firm's value chain? How do advances in technology contribute to internationalization of firms' value chains?

Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages.

The ability of a nation to govern its own affairs is known as ________.

Governments have facilitated economic integration by ________.

Offshoring and the flight of jobs are prime drivers of market globalization.

The ________ phase of globalization began around 1900 and was associated with the rise of electricity and steel production.

Globalization of production activities and services is a dimension of market globalization.

________ refers to the tendency of a financial or monetary crisis in one country to spread rapidly to other countries, due to the ongoing integration of national economies.

Nationalization refers to the gradual integration and growing interdependence of national economies.

Industrialization implies that emerging markets are increasing their dependence on low-cost labor.

In international economics, codetermination refers to the tendency for a financial or monetary crisis in one country to spread rapidly to other countries, due to integrated national economies.

Environmental destruction diminishes as economies develop, at least in the long run.

The Internet has increased the cost of transmitting voices, data, and images.