Deck 1: Globalization

Question 1

Christopher,an accounts manager at a mid-sized health care firm,does not have any direct international responsibilities; however,Christopher would most likely benefit from studying international business issues so that he can ________.

A) conduct better job interviews
B) better understand how foreign operations affect the company's competitive position
C) supervise and evaluate subordinates who have global assignments
D) understand the legalities of importing and exporting products overseas

Answer 1

B

Question 2

The widening set of interdependent relationships among people from different parts of the world is known as ________.

A) globalization
B) offshoring
C) franchising
D) outsourcing

Answer 2

A

Question 3

The term ________ refers to entities cooperating across national boundaries.

A) internationalization
B) supranationalism
C) denationalization
D) multiculturalism

Answer 3

A

Question 4

Scenario: Topsy Turvey Toys and Ureshi Toys
Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification.
Ureshi Toys selling its products to Topsy Turvey Toys is an example of ________.

A) outsourcing
B) insourcing
C) exporting
D) importing

Question 5

Which of the following best defines international business?

A) It includes all economic flows between two or more countries.
B) It includes all private economic flows between two or more countries.
C) It includes all business transactions involving two or more countries.
D) It includes all business transactions in countries other than your home country.

Question 6

Globalization is characterized by ________.

A) the demise of democracy within a nation
B) national boundaries becoming less relevant
C) the fortification of trade barriers
D) rigid foreign relations policies

Question 7

Which of the following is NOT a likely reason to study international business?

A) Global events affect almost all companies.
B) Differences among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to country.
C) Business conducted outside the limits of any one country is inexplicably on the decline.
D) Firms may be better able to obtain better or less expensive resources by operating internationally.

Question 8

A business that has direct investments (in the form of marketing or manufacturing subsidiaries)abroad in several countries is called a ________.

A) dummy corporation
B) shell corporation
C) multinational corporation
D) domestic corporation

Question 9

As a result of globalization,Argonia finds that its national borders are becoming less relevant.This indicates that Argonia is undergoing ________.

A) denationalization
B) standardization
C) reorganization
D) internationalization

Question 10

Goods and services purchased abroad and brought into a country are called ________.

A) gross domestic products
B) exports
C) gross national products
D) imports

Question 11

Scenario: Donna Bader, Globalization Opponent
Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good.
Upon what assumption does Donna's conclusion rest? Donne assumes that ________.

A) there are no factors other than globalization which influence the economic conditions of a country
B) the welfare of individuals matters less than the economic prosperity of a nation
C) globalization does not affect the employment rate of developed and developing countries
D) the wages paid to all individuals within developed countries are equal

Question 12

Most companies today operate in an environment of increased transparency and scrutiny regarding their business activities.This is due to ________.

A) the rise of the social media
B) the prosperity of developing nations
C) the heterogeneity in markets
D) labor market flexibility in developing nations

Question 13

Scenario: Topsy Turvey Toys and Ureshi Toys
Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification.
Topsy Turvey Toys buying its merchandise from Ureshi Toys is an example of ________.

A) importing
B) exporting
C) outsourcing
D) insourcing

Question 14

________ is an effective alternative to traditional distribution channels for firms that sell digitized products.

A) Dual licensing
B) Electronic distribution
C) Visual merchandising
D) Digital switchover

Question 15

Olive oil prepared in a small Italian oil press factory and sold by large supermarkets in the United States is an example of a ________.

A) net national product
B) U.S. export
C) U.S. import
D) gross domestic product

Question 16

The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________.

A) gross domestic product (GDP)
B) gross world product (GWP)
C) gross national product (GNP)
D) gross state product (GSP)

Question 17

Scenario: Topsy Turvey Toys and Ureshi Toys
Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification.
The products that Ureshi Toys manufactures are examples of ________.

A) global products
B) niche products
C) intangible products
D) customized products

Question 18

________ are all goods and services sold abroad and sent out of a country.

A) Net national products
B) Exports
C) Gross domestic products
D) Imports

Question 19

The rise of a new international entity called the ________ suggests that any company,regardless of age,experience,and resources,can engage in international business.

A) transnational corporation
B) multinational corporation
C) born global firm
D) global firm

Question 20

Scenario: Topsy Turvey Toys and Ureshi Toys
Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets its toys globally without modification.
Ureshi Toys is an example of a(n)________.

A) domestic company
B) multinational company
C) direct importer
D) shell corporation

Question 21

Konesia is a country in which rising incomes are increasing the global demand for basic products and services.Which of the following is the type of market featured in this country?

A) traditional market
B) emerging market
C) feudal market
D) virtual market

Question 22

________ markets are characterized by the rural population migrating to cities for better pay and thus,overloading cities' infrastructures.

A) Traditional
B) Emerging
C) Virtual
D) Developed

Question 23

Kireki is a small country with a corrupt government.Its population is rural for most part and citizens have few or no legal rights.Which of the following is the type of market featured in Kireki?

A) developed market
B) traditional market
C) emerging market
D) virtual market

Question 24

Extranets give distributors and suppliers access to a company's database to place orders or restock inventories electronically.

Question 25

An established consumer market that primarily comprises the middle class and possesses efficient infrastructure is characteristic of ________ markets.

A) emerging
B) frontier
C) traditional
D) developed

Question 26

International business includes all commercial transactions between two or more countries.

Question 27

Multinational corporations (MNCs)have direct investments abroad in multiple countries.

Question 28

Summarize each benefit a company might obtain from the globalization of markets.

Question 29

Imports are goods and services purchased abroad and brought into a country.

Question 30

Crystal Inc.is a multifaceted company that deals with the mining,cutting,and selling of diamonds.It gives distributors and suppliers access to its database to place orders or restock inventories electronically and automatically.Which of the following is the network implemented in the company?

A) intranet
B) chaosnet
C) extranet
D) ethernet

Question 31

Which of the following refers to the use of computer networks to purchase,sell,or exchange products; service customers; and collaborate with partners?

A) e-commerce
B) telecommuting
C) data virtualization
D) virtual hosting

Question 32

Whereas relocating production to low-cost locales traditionally meant production of goods almost exclusively,it increasingly applies to the production of ________.

A) domestic products
B) perishables
C) services
D) global brands

Question 33

Describe key characteristics of a born global firm,and explain why a born global firm would be attuned to international firm management.

Question 34

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs indicates ________.

A) egalitarianism
B) denationalization
C) generalizability
D) sustainability

Question 35

Which of the following has NOT been a major force increasing globalization in recent decades?

A) liberalization of cross-border trade
B) increase in and expansion of technology
C) growing pressure from consumers
D) decreasing prices of natural resources

Question 36

The population of a(n)________ market is mostly rural and is characterized by poor infrastructure with little credit or collateral.

A) emerging
B) traditional
C) developed
D) virtual

Question 37

Gaining some understanding of international business is important for any business student because global events and competition affect almost all companies.

Question 38

Gentian Violet is a dye manufacturing company that uses computer networks to sell its products,service customers,and collaborate with partners.Which of the following technologies is the company engaging in this scenario?

A) rapid prototyping
B) e-business
C) simulation
D) console automation

Question 39

________ is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service.

A) Global offering
B) Globalization of production
C) Global governance
D) Globalization of markets

Question 40

The widening set of interdependent relationships among people from different parts of the world is known as ________.

A) globalization
B) offshoring
C) franchising
D) outsourcing

Question 41

The General Agreement on Tariffs and Trade (GATT)was designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

Question 42

How might a company benefit from the globalization of production?

Question 43

Explain globalization of production and its benefits.Why should a company study international firm management if its leadership commits to globalization of production?

Question 44

The recent expansion of technology has contributed to the growth in international business by creating new products that are important in world trade.

Question 45

The KOF Index measures the ________.

A) distribution of the global workforce
B) extent of globalization
C) gross regional product of an area
D) extent of technological innovation in a nation

Question 46

Two major forces that underlie the expansion of globalization are falling barriers to trade and investment,and ________.

A) elevation of nationalism
B) rise of closed economies
C) political stagnation
D) technological innovation

Question 47

Scenario: Jeans Unlimited
Jeans Unlimited produces clothing for young adults. It designs its clothes at its New York headquarters and produces them at facilities located in two Southeast Asian countries. The company recently received negative press after one of its facilities was found using questionable labor practices, such as, employing children and operating in a manner that damages the environment.
Which of the following statements would most likely be made by a SUPPORTER of globalization?

A) Globalization encourages the adoption of uniform and superior standards for combating environmental problems.
B) Economic growth created by globalization is largely in services, which involves the use of few nonrenewable resources.
C) Global competition discourages resource-saving technologies, which are costly.
D) Air pollution and toxic runoff problems increase with global economic growth.

Question 48

As former competitors in many industries link up to challenge others on a worldwide basis,________ occurs.

A) segregation
B) denationalization
C) consolidation
D) technological stagnation

Question 49

Some nations encourage ________ because of recent resistance to worldwide trade agreements.

A) regional pacts
B) homogeneous markets
C) product standardization
D) domestic manufacturing

Question 50

Under the WTO agreement,________.

A) a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures
B) there is no dispute resolution mechanism except for trade involving environmental products
C) countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement mechanism
D) tariffs are permitted to be levied by developed countries against developing countries but not against each other

Question 51

The ________ is an agency created to provide financing for national economic development efforts.

A) Global Financial Markets Association
B) World Trade Organization
C) Financial Stability Board
D) World Bank

Question 52

Scenario: Jeans Unlimited
Jeans Unlimited produces clothing for young adults. It designs its clothes at its New York headquarters and produces them at facilities located in two Southeast Asian countries. The company recently received negative press after one of its facilities was found using questionable labor practices, such as, employing children and operating in a manner that damages the environment.
Jeans Unlimited manufactures its clothing at facilities located in two Southeast Asian countries.The dispersal of manufacturing activities by the company indicates ________.

A) customization of products
B) niche marketing
C) globalization of markets
D) globalization of production

Question 53

GATT's contribution to trade liberalization made possible the expansion of world trade in the second half of the twentieth century.

Question 54

Which of the following was originally created to regulate fixed exchange rates and enforce the rules of the International monetary system?

A) International Monetary Fund
B) World Trade Organization
C) European Union
D) World Bank

Question 55

The ________ replaced the institution of GATT while retaining all of the former GATT agreements.

A) World Trade Organization
B) Federation of International Trade Association
C) Commonwealth of Nations
D) International Monetary Fund

Question 56

The purpose of the General Agreement on Tariffs and Trade (GATT)was to ________.

A) create an international currency
B) regulate exchange rates
C) create regional trade organizations
D) promote free trade

Question 57

The term "globalization of production" refers to convergence in buyer preferences in markets around the world.

Question 58

________ place limits on the quantity of a product being imported.

A) Embargoes
B) Trade blocs
C) Nontariff barriers (Quotas)
D) Anti-dumping duties

Question 59

Explain how technological innovation has benefited entrepreneurs.

Question 60

Which of the following accurately identifies a difference between GATT and the WTO?

A) GATT could enforce member compliance with agreements, but the WTO cannot.
B) At its inception, GATT had more member nations than the WTO currently has.
C) GATT withdrew the most-favored-nation clause, but the WTO reinstated it.
D) GATT rules did not cover trade in services, but the rules of the WTO do.

Question 61

Which of the following terms is used to refer to widespread job turnover throughout an economy?

A) redeployment
B) restructuring
C) onboarding
D) churning

Question 62

It is difficult to compare globalization of business over time because shifting national borders have changed the nature of transactions from domestic to international and vice versa.

Question 63

Flexible labor markets allow workers to be redeployed rapidly to sectors of the economy where they are highly valued.

Question 64

A characteristic of the world's least-global nations is low levels of corruption.

Question 65

The goal of a free trade agreement is to abolish all tariffs among member countries.

Question 66

Critics of globalization argue that it eliminates jobs in developing nations.

Question 67

The role of the World Bank is to provide financing for national economic development efforts for infrastructure development.

Question 68

According to the opponents of globalization,which of the following occurs as a result of worker dislocation brought about by globalization?

A) increased labor costs for companies
B) lower workers' wages in developed nations
C) surfeit of jobs in developed nations
D) increased investment in individual education

Question 69

The World Trade Organization's dispute settlement system has the ability to penalize offending nations.

Question 70

The rules of the international monetary system are enforced by the World Bank.

Question 71

Resistance to worldwide trade agreements has resulted in some nations placing greater emphasis on regional pacts.

Question 72

Critics of globalization believe the overall gains that accrue to national economies are worth the lost livelihoods of some workers.

Question 73

Trade unions claim that by permitting international firms to continually move to nations with ________,globalization reduces labor's bargaining power and forces overall labor standards lower.

A) better factory facilities
B) higher resource accessibility
C) lower labor standards
D) lower labor density

Question 74

Export-processing zones are special areas in which companies engage in tariff-free importing and exporting.

Question 75

Identify the World Trade Organization's (WTO)three main goals and explain how the WTO differs from the General Agreement on Tariffs and Trade (GATT).

Question 76

Gross national product (GNP)is the value of all goods and services imported into a country over a one-year period.

Question 77

Opponents argue that globalization ________.

A) eliminates manufacturing jobs in developed nations
B) generates labor market flexibility in developed nations
C) brings an end to practices like outsourcing
D) slows down the employment rate in developing nations

Question 78

Compare and contrast the purposes of the World Bank and the International Monetary Fund.

Question 79

Supporters affirm that globalization ________.

A) brings an end to practices like outsourcing
B) causes worker dislocation that gradually lowers wages
C) increases wealth and efficiency in all countries
D) curbs market flexibility in developed nations

Question 80

Globalization is criticized because it ________.

A) does not generate labor market flexibility in developing nations
B) prevents developed countries from outsourcing work to developing nations
C) creates fewer manufacturing jobs in developing nations
D) exploits workers in low-wage nations