Question 1

While a degree of cultural imperialism may be at work, it is offset by the countertrend of ________.

Accepted Answer

A)  offshoring 
B)  McDonaldization 
C)  privatization 
D)  local nationalism

Question 2

________ 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 3

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

Question 4

________ are the most transformative technology in developing economies.

Accepted Answer

A)  Mobile phones 
B)  Televisions 
C)  Intranets 
D)  E-mails

Question 5

________ marked the end of the 50-year Cold War and smoothed the integration of former command economies into the global economy.

Accepted Answer

A)  The end of World War II 
B)  The Bolshevik Revolution in Russia 
C)  Free-market reforms in China and the former Soviet Union 
D)  China's move to join the WTO

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

How has the adoption of free markets worldwide served as a driver of market globalization? Provide three examples to support your answer.

Accepted Answer

The answer of How has the adoption of free markets...

Question 9

Which of the following is an example of offshoring?

Accepted Answer

A)  Fahad, a resident of the UAE, can share his views-data and information-about the country's construction industry with his friends in the U.S. 
B)  The IT support services for customers of Mayfair Inc., a U.S. based consumer electronics manufacturer, are based in India. 
C)  Treat Corp. is a food and beverage manufacturer based in Texas. It decided to move from Houston to Fort Worth in Texas to cut production costs. 
D)  Lin, a Chinese citizen, decides to move to the U.K. after her application for scholarship is accepted by a leading university in London.

Question 10

Technological advances have contributed to manufacturing by ________.

Accepted Answer

A)  promoting traditional lifestyles and values 
B)  reducing cross-border flow of factors of production 
C)  promoting nationalization 
D)  reducing production costs

Question 11

Acme Software (Scenario)
Acme Software is a U.S.-based maker of software products for the health care industry. Recently Acme has been investigating whether it would be beneficial to internationalize some of its value-chain activities. Acme hires a consulting group to help determine which, if any, value-chain activities could be conducted abroad to promote business growth. The consulting group identifies two health care software development companies in India that could provide programming services at a lower cost than Acme's current expenditures for programming. In addition, the consultants conduct international market research that shows that German health care companies have a strong demand for the type of software that Acme offers.
-Which of the following activities in Acme's value chain would be internationalized if Acme decides to establish a development contract with one of the Indian software firms?

Accepted Answer

A)  sales 
B)  distribution 
C)  marketing 
D)  procurement

Question 12

The third phase of globalization was triggered by ________.

Accepted Answer

A)  the end of World War II 
B)  the invention of electricity 
C)  the end of World War I 
D)  the Great Depression

Question 13

Reduction in trade barriers is associated with the emergence of ________.

Accepted Answer

A)  fragmentary monetary and fiscal policies across the borders 
B)  regional economic integration blocs 
C)  widespread violation of intellectual property rights law 
D)  violation of GATT provisions

Question 14

Globalization Debate (Scenario)
In his international business class, Professor Jang organizes a debate on the societal effects of market globalization. Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.
-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 15

Describe the role of GATT and the WTO in reducing barriers to trade and investment worldwide, and explain how this reduction has led to the integration and interdependence of national economies.

Accepted Answer

The answer of Describe the role of GATT and the...

Question 16

Globalization Debate (Scenario)
In his international business class, Professor Jang organizes a debate on the societal effects of market globalization. Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.
-Which of the following is Rina most likely to cite as a counter example to Juan's argument regarding the influence of MNEs on national sovereignty?

Accepted Answer

A)  the dominating influence of market forces on the global economy 
B)  technological advances in computer-aided design of products 
C)  the political influence of large firms such as Walmart 
D)  the actual GDPs of underdeveloped economies

Question 17

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 18

Financial market integration makes it easier for internationally active firms to ________.

Accepted Answer

A)  nationalize manufacturing industries 
B)  minimize offshoring 
C)  increase tariffs on the import of automobiles and industrial machinery 
D)  engage in foreign currency transactions

Question 19

As the influence of the Chinese economy grows over time, it is likely that Western countries will embrace some of China's cultural attitudes and behaviors.

Accepted Answer

A) True 
 B)False

Question 20

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

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

While a degree of cultural imperialism may be at work, it is offset by the countertrend of ________.

________ 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.

An underground economy ________.

________ are the most transformative technology in developing economies.

________ marked the end of the 50-year Cold War and smoothed the integration of former command economies into the global economy.

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

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

How has the adoption of free markets worldwide served as a driver of market globalization? Provide three examples to support your answer.

Which of the following is an example of offshoring?

Technological advances have contributed to manufacturing by ________.

The third phase of globalization was triggered by ________.

Reduction in trade barriers is associated with the emergence of ________.

Describe the role of GATT and the WTO in reducing barriers to trade and investment worldwide, and explain how this reduction has led to the integration and interdependence of national economies.

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

Financial market integration makes it easier for internationally active firms to ________.

As the influence of the Chinese economy grows over time, it is likely that Western countries will embrace some of China's cultural attitudes and behaviors.

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.