Question 1

Describe the fourth phase of globalization. What is contagion?

Accepted Answer

The answer of Describe the fourth phase of globalization. What...

Question 2

Market globalization compels firms to organize their sourcing, manufacturing, marketing, and other value-adding activities on a strictly local scale.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

Internationalization Conference (Scenario)
At a conference on business internationalization strategies, representatives of three different businesses meet to discuss a joint venture between their companies. Business A is located in a country that internationalized during the second phase of globalization. Business B is based in a country that internationalized during the third phase of globalization. Business C is located in an emerging market country.
-The representative from Business A is most likely from ________.

Accepted Answer

A)  China 
B)  United Kingdom 
C)  Mexico 
D)  Brazil

Question 6

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 7

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.
-In terms of international business, market globalization can be viewed as a ________.

Accepted Answer

A)  consequence of a strong emphasis on traditional values worldwide 
B)  consequence of the loss of national sovereignty 
C)  driver and consequence of firm-level internationalization 
D)  prime cause of rising diseconomies of scale in emerging economies

Question 8

Technological advances have helped make internationalization affordable for all sizes of firms.

Accepted Answer

A) True 
 B)False

Question 9

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.
-Rina is most likely to counter Juan's claim regarding environmental effects by pointing out which of the following?

Accepted Answer

A)  The intensity of environmental pollution is far greater in emerging economies than in undeveloped ones. 
B)  China's landscape was permanently altered by the construction of the Three Gorges Dam. 
C)  Environmental destruction tends to diminish in the long run, as economies develop. 
D)  Attempts at foreign cultural imperialism are often blocked by national governments.

Question 10

Stella manages the production team at Camden Inc., a manufacturer of heavy industry machinery in the United States. She needs to decide if her firm should export finished products or manufacture abroad. Which of the following would most likely help her evaluate the best alternative in this instance?

Accepted Answer

A)  What is the gross national income of the United States? 
B)  What are the costs of transporting raw materials, components, and finished products? 
C)  Is employee empowerment culturally favored in the United States? 
D)  What is the average annual rate of employee turnover in the manufacturing industry?

Question 11

Discuss the effect of globalization on national culture.

Accepted Answer

The answer of Discuss the effect of globalization on national...

Question 12

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 which shows that German health care companies have a strong demand for the type of software that Acme offers.
-Which of the following would be most important for Acme to determine before outsourcing its programming services to India?

Accepted Answer

A)  What benefits have Indian companies gained historically from internationalizing their value-chain activities? 
B)  Do Indian businesses outsource value-chain activities to Europe? 
C)  Would the lower cost of outsourcing allow Acme to sustain a competitive advantage in its business operations? 
D)  Is either of the Indian health care companies interested in moving their operations abroad?

Question 13

The Great Depression marked the beginning of the second phase of globalization.

Accepted Answer

A) True 
 B)False

Question 14

In a short essay, explain the concept of sovereignty. How does globalization affect sovereignty?

Accepted Answer

The answer of In a short essay, explain the concept...

Question 15

Which of the following is an example of a supranational institution?

Accepted Answer

A)  the World Intellectual Property Organization 
B)  the UNICEF 
C)  the Red Cross 
D)  the World Trade Organization

Question 16

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 17

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 which 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 18

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 19

Technological leapfrogging is defined as ________.

Accepted Answer

A)  adopting new technology late in the hype cycle 
B)  adopting new technology as soon as it is released 
C)  bypassing certain stages of technology to come up with a radical innovation when upgrading to new products 
D)  boosting demand artificially by postponing the sale of new technology in the market

Question 20

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.
-Which of the following drivers of market globalization is Lavonne's research most likely to recognize as the factor responsible for the company's expansion to Japan?

Accepted Answer

A)  integration of world financial markets 
B)  the highly conservative nature of the Japanese economy 
C)  the rise of monopoly markets in Japan 
D)  reduction of barriers to investment

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

Describe the fourth phase of globalization. What is contagion?

Market globalization compels firms to organize their sourcing, manufacturing, marketing, and other value-adding activities on a strictly local scale.

Which of the following is an example of offshoring?

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.

Technological advances have helped make internationalization affordable for all sizes of firms.

Discuss the effect of globalization on national culture.

The Great Depression marked the beginning of the second phase of globalization.

In a short essay, explain the concept of sovereignty. How does globalization affect sovereignty?

Which of the following is an example of a supranational institution?

Technological advances have contributed to manufacturing by ________.

The third phase of globalization was triggered by ________.

Technological leapfrogging is defined as ________.