Deck 1: Globalisation

Question 1

Over the past two decades, the globalisation of markets in the services sector has overtaken that of goods manufacturing.

Answer 1

False

Question 2

Growth in China's manufacturing sector and in its middle class are creating both opportunities and threats for Australia's economy.

Answer 2

True

Question 3

International businesses are almost exclusively very large and complex.

Answer 3

False

Question 4

The International Monetary Fund (IMF) primarily exists to support free trade.

Question 5

The Group of Eight (G8) represents the fastest-growing emerging economies (including China and Brazil) with respect to global economic issues.

Question 6

One of the objectives of Boeing's outsourcing strategy was to reduce risk by:

A) replicating existing domestic products and operations in foreign locations.
B) ensuring that most key management decisions were made by foreign nationals.
C) pushing some of the risks associated with the production of the new 787 on to foreign suppliers.
D) more women occupying key management positions in the organisation.

Question 7

Critics of offshoring, which is when tasks previously performed in one country are undertaken abroad, suggest that it causes ________________ and _______________.

A) job losses; depresses wages
B) higher trade; lower trade barriers
C) poverty; greater wealth concentration
D) home-country costs; host-country benefits

Question 8

A company does not have to be the size of a multinational corporation to facilitate and benefit from the globalisation of markets. In Australia, for example, _______ of all goods exporters are small businesses employing fewer than ___________ employees.

A) 57%; 10
B) 67%; 15
C) 44%; 20
D) 87%; 25

Question 9

Fifty outside suppliers spread around the world account for 65% of the value of Boeing's 787 Dreamliner. As such, Boeing can be said to be undertaking:

A) exporting.
B) licensing.
C) outsourcing.
D) franchising.

Question 10

Significant differences in cultures, politics and economies between countries can sometimes make it necessary for multinationals to:

A) standardise their product offerings, and then adapt to local conditions.
B) adapt their product offerings, and then standardise to local conditions.
C) outsource manufacturing to key suppliers.
D) open large warehouses under franchise agreements.

Question 11

One of the key considerations for Indian-based global conglomerate the Tata Group in bringing to market the Nano was:

A) free delivery to customers who repeat-purchase.
B) subsidised customer parking.
C) low incomes in India that are rapidly rising.
D) car designs for small-space living in high-rise apartments.

Question 12

The term 'offshoring':

A) is synonymous with the term 'outsourcing'.
B) means that tasks previously performed in one country are undertaken abroad.
C) means shoring up intellectual capital.
D) means that tasks previously performed in-house are now purchased from another country.

Question 13

Globalisation of production allows companies to ______________ so that they may ________________.

A) diversify their products; innovate in their home market's homogeneity
B) leverage their capital investments; complexify their customer base
C) lower their production costs; compete more effectively
D) isolate production risks; minimise market disruptions

Question 14

Although outsourcing has primarily been confined to ___________, companies are increasingly taking advantage of outsourcing for ______________.

A) services; manufacturing
B) manufacturing; services
C) mining; manufacturing
D) manufacturing; mining

Question 15

The investing of resources in business activities outside a firm's home country is referred to as:

A) international trade.
B) domestic direct investment.
C) transnational barter.
D) foreign direct investment.

Question 16

The flow of foreign direct investment experienced a major temporary setback after the:

A) FIFA (football) World Cup.
B) avian influenza (bird flu) outbreak.
C) Global Financial Crisis.
D) 2012 US presidential elections.

Question 17

According to the textbook, between 1985 and 2013, global internet users increased from 50 million to 2.8 billion users. The larger number accounts for approximately:

A) 9% of the world's population
B) the combined population of the European Union.
C) 39% of the world's population.
D) all the world's population under 15 years of age.

Question 18

Due to containerisation and other developments in transport technology, the transport costs associated with the globalisation of production have:

A) remained the same.
B) increased dramatically.
C) declined.
D) increased slightly.

Question 19

One measure of the sustainability of food production is 'food miles'; that is, the distance the food travels to reach the supermarket shelves. Food producers that are sustainable in their food production and concerted in their efforts towards environmental protection are likely to have:

A) a distinct advantage.
B) an absolute advantage.
C) a comparative advantage.
D) a competitive advantage.

Question 20

Which of the following is not a reason why some of the world's poorest countries have suffered from economic stagnation?

A) Democratic governments
B) Economic policies that destroy rather than facilitate the creation of wealth
C) Weak protection of property rights
D) War

Question 21

An important positive driver of the growth of the Indian software industry has been:

A) India's earnings growth of more than 50% per annum.
B) India's proximity to China.
C) the falling regulatory and administrative barriers to doing business internationally.
D) India's abundant supply of engineering talent.