Exam 1: Globalizing Business

Which of the following would be an example of a product undergoing reverse innovation on the global economic pyramid?

A multinational enterprise is a firm that engages in foreign direct investment by directly managing value-added activities in other countries.

_____ is the strategy of treating the entire world as one market.

Globalization has driven up the salaries of low-level jobs.

Which of the following groups is primarily composed of emerging economies?

Reverse innovation is an example of bottom up innovation.

The global economic pyramid does not represent countries that have a per capita annual income of less than $2,000.

An institution-based view suggests that the success and failure of firms are enabled and constrained by business norms of the host nation.

Purchasing power parity (PPP)is calculated as the sum of value added by resident firms,households,and governments operating in an economy.

According to the pendulum view of globalization,globalization is a relatively new phenomenon triggered by the information revolution of early 1990s.

Standardization of markets would lead to a state of semiglobalization.

The strategy of treating the entire world as one market is known as localization.

Formal institutions include laws,regulations,and rules.

The _____ view of global business focuses on internal factors that can help a firm overcome its external environment.

All the countries of the BRIC belong to the top tier of the global economic pyramid.

The Group of 20 includes the European Union (EU)-a regional bloc.

The _____ view suggests that the success and failure of firms are largely determined by their environments.

Explain the pendulum view of globalization.