Question 1

The current globalisation wave has been driven by technological change and declining barriers to trade in goods, ideas and services.

Accepted Answer

A) True 
 B)False  True

Question 2

The growth of GVCs has brought changes to both the structure of trade and the governance of cross-border transactions.

Accepted Answer

A) True 
 B)False  True

Question 3

Traditional trade, where a country produces a product or service that is exported to overseas consumers as a final good, now represents only around 30 per cent of all trade.

Accepted Answer

A) True 
 B)False  True

Question 4

Globalisation describes the shift towards:

Accepted Answer

A)   a world economy dominated by national policies and standards
B)   a more integrated and interdependent world economy
C)   a world economy where uncertainty can be more effectively managed through multilateral agreements
D)   a fairer world that offers greater economic security for all

Question 5

Technology could be considered as the application of knowledge which redefines the boundaries of global business.

Accepted Answer

A) True 
 B)False

Question 6

A global value chain shows how an international business organises the transformation of goods and services from raw materials to finished goods.

Accepted Answer

A) True 
 B)False

Question 7

The globalisation is bringing about homogenization of national cultures and values.

Accepted Answer

A) True 
 B)False

Question 8

The growth of non-equity modes of internationalization indicates that:

Accepted Answer

A)   Globalisation is slowing down
B)   Companies prefer internalising activities
C)   Internalisation is preferred to externalisation
D)   Companies increase 'fine-slicing' and externalization

Question 9

The international business environment is mostly characterised by:

Accepted Answer

A)   Constant change that impacts the strategies and the structures of international firms
B)   Risks and global opportunities that are generally equal
C)   Risks that exceed global opportunities
D)   Constant cross-border integration

Question 10

Outsourcing is only possible for intermediate manufactured products.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to International Business

The current globalisation wave has been driven by technological change and declining barriers to trade in goods, ideas and services.

The growth of GVCs has brought changes to both the structure of trade and the governance of cross-border transactions.

Traditional trade, where a country produces a product or service that is exported to overseas consumers as a final good, now represents only around 30 per cent of all trade.

Globalisation describes the shift towards:

Technology could be considered as the application of knowledge which redefines the boundaries of global business.

A global value chain shows how an international business organises the transformation of goods and services from raw materials to finished goods.

The globalisation is bringing about homogenization of national cultures and values.

The growth of non-equity modes of internationalization indicates that:

The international business environment is mostly characterised by:

Outsourcing is only possible for intermediate manufactured products.