Question 1

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 2

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 3

The representative from Business C is most likely from ________.

Accepted Answer

A) Italy 
B) Brazil 
C) the United States 
D) France

Question 4

Firms are sometimes motivated to enter new markets because of unfavorable conditions in the home market, such as regulation or declining local industry sales.

Accepted Answer

A) True 
 B)False

Question 5

The end of the Cold War in 1989 hindered the forces of market liberalization in Eastern Europe.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Firms that are more successful at global competition display each of the following qualities EXCEPT ________.

Accepted Answer

A) identifying foreign market opportunities aggressively 
B) approaching internationalization from a reactive standpoint 
C) actively pursuing partnerships with foreign firms 
D) focusing intensively on building organizational capacities

Question 8

The globalization of capital refers to the aggregate activities of firms that gives rise to economic integration.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

In a short essay, discuss the impact of market globalization on consumer lifestyles and preferences around the world. Provide examples to illustrate your answer.

Accepted Answer

The answer of In a short essay, discuss the impact...

Question 11

Which of the following reflects the major contribution of GATT to globalization?

Accepted Answer

A) It instituted strict controls on international currencies. 
B) It simplified patent and copyright laws. 
C) It reduced barriers to international trade and investment. 
D) It eliminated the divide between the rich and the poor.

Question 12

Which of the following statements is true about the firm-level consequences of market globalization?

Accepted Answer

A) The globalization of markets has narrowed down new business opportunities for internationalizing firms. 
B) Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world. 
C) A firm's value chain is not subject to internationalization. 
D) Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market.

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

The fourth phase of globalization ________.

Accepted Answer

A) is characterized by the rise of electricity and steel production 
B) is characterized by the rise of MNEs from Japan 
C) witnessed the Bretton Woods Conference of twenty-three nations in 1947 that led to the General Agreement on Tariffs and Trade 
D) facilitated the globalization of the service sector in such areas as banking and retailing

Question 16

To minimize globalization's harm and reap its benefits, governments should strive for nationalized economic regimes.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a societal consequence of market globalization?

Accepted Answer

A) greater emphasis on proactive internationalization 
B) internationalization of firm's value chain 
C) new risks and instant rivalry from foreign competitors 
D) offshoring and the flight of jobs

Question 18

Which of the following is a driver of globalization?

Accepted Answer

A) greater emphasis on proactive internationalization 
B) internationalization of firm's value chain 
C) integration of world financial markets 
D) globalization of services

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

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

Which of the following is an example of offshoring?

The representative from Business C is most likely from ________.

Firms are sometimes motivated to enter new markets because of unfavorable conditions in the home market, such as regulation or declining local industry sales.

The end of the Cold War in 1989 hindered the forces of market liberalization in Eastern Europe.

Firms that are more successful at global competition display each of the following qualities EXCEPT ________.

The globalization of capital refers to the aggregate activities of firms that gives rise to economic integration.

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.

In a short essay, discuss the impact of market globalization on consumer lifestyles and preferences around the world. Provide examples to illustrate your answer.

Which of the following reflects the major contribution of GATT to globalization?

Which of the following statements is true about the firm-level consequences of market globalization?

The third phase of globalization was triggered by ________.

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

The fourth phase of globalization ________.

To minimize globalization's harm and reap its benefits, governments should strive for nationalized economic regimes.

Which of the following is a societal consequence of market globalization?

Which of the following is a driver of globalization?