Exam 1: The Rise of Globalization

Scenario - The Renna Company Established in 1956, the Renna Company has always maintained its operations within the boundaries of the United States. Originally based in Lexington, Kentucky, this company has now expanded operations into thirteen other U.S. states. While it's inexpensive and efficient cooling and heating products are in high demand even in foreign markets, this company contends it has no desire for international expansion. Conducting operations strictly within the U.S. borders does not appear to have limited this company overly much. It realized net profits of two billion dollars last year and provided gainful employment for over four thousand workers. The leaders of the Renna Company realize greater profits could be attained through international expansion. However, they stand in agreement when they state, "It is not always the money that best defines the worth of an organization." The company desire to stay true to its mission statement, which claims, "It will serve the marketplace of the United States with its superior products and provide job opportunities with a fair wage for its employees." The Renna Company is very proud of its products and enjoys the fact they are produced and sold in the United States of America. This company truly reflects the success possible when holding to the fact that "Made in America" is still a winner. -All of the following are examples of counterarguments the Renna Company should consider before continuing with their stand of keeping their operations strictly within the borders of the United States except which one?

_______ refers to lowering and/or removing trade barriers such as tariffs, quotas, and subsidies.

Scenario - The Renna Company Established in 1956, the Renna Company has always maintained its operations within the boundaries of the United States. Originally based in Lexington, Kentucky, this company has now expanded operations into thirteen other U.S. states. While it's inexpensive and efficient cooling and heating products are in high demand even in foreign markets, this company contends it has no desire for international expansion. Conducting operations strictly within the U.S. borders does not appear to have limited this company overly much. It realized net profits of two billion dollars last year and provided gainful employment for over four thousand workers. The leaders of the Renna Company realize greater profits could be attained through international expansion. However, they stand in agreement when they state, "It is not always the money that best defines the worth of an organization." The company desire to stay true to its mission statement, which claims, "It will serve the marketplace of the United States with its superior products and provide job opportunities with a fair wage for its employees." The Renna Company is very proud of its products and enjoys the fact they are produced and sold in the United States of America. This company truly reflects the success possible when holding to the fact that "Made in America" is still a winner. -The top management members of the Renna Company have outlined the pros and cons associated with global expansion of their operations. Which one of the following items would not be considered a benefit their company could gain should they ever decide to venture into the international marketplace?

Trade expansion has been a leading factor in global integration, especially since the early _____.

In ABC country, a system of responsibility in which an authority, such as the government, is not answerable for its actions, it would be described as having the lack of _____.

The World Trade Organization has no role in facilitating globalization. Do you agree? Defend your position.

A world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone can be described as a(an)__________.

According to the authors, which of the following is NOT true regarding globalization lessons for developing countries?

Scenario - The Renna Company Established in 1956, the Renna Company has always maintained its operations within the boundaries of the United States. Originally based in Lexington, Kentucky, this company has now expanded operations into thirteen other U.S. states. While it's inexpensive and efficient cooling and heating products are in high demand even in foreign markets, this company contends it has no desire for international expansion. Conducting operations strictly within the U.S. borders does not appear to have limited this company overly much. It realized net profits of two billion dollars last year and provided gainful employment for over four thousand workers. The leaders of the Renna Company realize greater profits could be attained through international expansion. However, they stand in agreement when they state, "It is not always the money that best defines the worth of an organization." The company desire to stay true to its mission statement, which claims, "It will serve the marketplace of the United States with its superior products and provide job opportunities with a fair wage for its employees." The Renna Company is very proud of its products and enjoys the fact they are produced and sold in the United States of America. This company truly reflects the success possible when holding to the fact that "Made in America" is still a winner. -Which one of the following statements is least likely to be a rationale explaining why the Renna Company staunchly desires to avoid global expansion?

More globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by Transparency International.

For World Trade Organization, increasing trade barriers has been one of the most simplistic ways to encourage trade and globalization.

All of the following countries can be considered globalization "winners" EXCEPT:

Of the following, which is NOT true regarding the credit crisis?

Scenario - T & M Computers Thomas Benson and Matthew Roderick started a small computer business ten years ago in Rapid City, South Dakota. Armed only with determination and innovative designs, Thomas and Matthew were driven to achieve success for their company, T & M Computers. Their hard work has indeed, paid off. Since the inception of the company, the two owners have watched their business grow and demand for their products increase. Four years ago due to this high product demand, they went international with their business operations. Thomas and Matthew now have international business operations in Singapore, France, Turkey, and Great Britain. Further operational expansion is anticipated within the next year and the company plans to begin operations in Spain, Greece, and Italy. The owner's hard work and dynamic ideas have proven quite profitable for the company. Thomas and Matthew are pleased with how their operation has grown into becoming a major international business worthy of competing with Intel and Microsoft. T & M Computers may well be the next giant recognized in the field of computer software. -Which one of the following would T & M Computers least expect to be a negative influence from the sovereign governments within the nations where their business operations are located?

Which of the following is NOT a key aspect of globalization?

Economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially or economically is called ______.

In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on _____.

The concept of curtailing agricultural subsidies in developed economies was incorporated into the ninth round to trade negotiations called the _____.

______ are government organizations that create strong incentives for private investment and operate under a system of checks and balances.

Scenario - The Everline Corporation The Everline Corporation is a multinational business that provides state-of-the-art digital communication capabilities to its global customers. Originally operating as a U.S. domestic business based in Duluth, Minnesota, Everline quickly seized on the opportunity provided by international expansion. Within two years, the corporation had expanded into fourteen foreign nations found throughout the Middle East, Europe, Asia, and South America. Everline understands the vital importance of offering effective and affordable communication products to its customers. It realizes the value consumers place on being able to communicate with businesses without delays or hassles. The corporation recognizes its customers need to quickly and efficiently communicate with others in the global marketplace of today. Fueled by its staff of innovative and highly skilled communication engineers, the future for Everline looks more and more promising. Communication needs around the globe continue to grow and this business stands ready to fill the demand. With net profits expected to reach one billion dollars in the next year, this company is decidedly reaping the rewards of its hard work. -The mangers of the Everline Corporation attribute their company's continued profitability to the idea that globalization and information technology are closely related to one another. They acknowledge that the information technology revolution has occurred almost instantaneously. Which one of the following would not be considered a benefit derived from this so-called revolution?