Deck 1: Globalization

Question 1

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

Answer 1

A

Question 2

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

Answer 2

B

Question 3

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)

Answer 3

C

Question 4

________ 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 5

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 6

Small companies selling traditional products benefit from ________.

A)the barriers to trade that restrict their products from crossing domestic boundaries
B)increased investment by foreign competitors in domestic markets
C)government policies that seek to regulate the flow of capital across national borders
D)technology that lowers the costs and difficulties of global communication

Question 7

________ 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 8

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 9

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 10

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.
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 11

________ is the trend toward greater economic,cultural,political,and technological interdependence among national institutions and economies.

A)Privatization
B)Heterogenization
C)Globalization
D)Decentralization

Question 12

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 13

The term ________ refers to entities cooperating across national boundaries.

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

Question 14

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 15

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 16

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 17

Which of the following terms applies to the sale of a particular brand of jeans manufactured in the U.S.and sold in Canadian stores?

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

Question 18

Any commercial transaction that crosses the borders of two or more nations is known as ________.

A)domestic marketing
B)market segmentation
C)international business
D)global manufacturing

Question 19

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 20

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 21

Which of the following is an example of globalization of production?

A)Canadian consumers who import food products from Australia
B)A German company which sells car components to British car makers
C)A U.S.company that builds a computer hardware manufacturing facility in India
D)A Swiss watch manufacturer that builds a manufacturing facility in Switzerland

Question 22

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

Question 23

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 24

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 25

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 26

International business is any commercial transaction that crosses the borders of two or more nations.

Question 27

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

Question 28

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 29

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 30

Which of the following refers to convergence in buyer preferences in markets around the world?

A)heterogenization of markets
B)globalization of markets
C)segmentation of markets
D)nationalization of markets

Question 31

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

Question 32

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 33

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 34

________ 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 35

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

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

________ 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 38

A born global firm is a company that engages in international business from or near its inception.

Question 39

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

Question 40

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 41

How might a company benefit from the globalization of production?

Question 42

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

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

Question 43

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 44

The power of the General Agreement on Tariffs and Trade (GATT)to settle trade disputes is what sets it apart from the World Trade Organization (WTO).

Question 45

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 46

Explain how technological innovation has benefitted entrepreneurs.

Question 47

Which of the following was 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 48

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

Question 49

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 50

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 51

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 52

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 53

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

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

Question 54

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 arguments against globalization,if true,could be made using Jeans Unlimited as an example?

A)Globalization results in the government making nearly all economy-related decisions.
B)Globalization permits the use of unethical practices as long as it brings the company profits.
C)Globalization causes companies to produce goods in nations with the most lenient labor regulations.
D)Globalization places least emphasis on corporate social responsibility.

Question 55

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

Question 56

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 57

The three main goals of the World Trade Organization (WTO)are to help the free flow of trade,help negotiate the further opening of markets,and ________.

A)measure the extent of globalization across the world
B)settle trade disputes between its members
C)accelerate technological innovation
D)fund small traders in developing nations

Question 58

Products marketed in all countries essentially without any changes are known as continental products.

Question 59

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 60

A major flaw of the original General Agreement on Tariffs and Trade (GATT)was that it lacked the power to ________.

A)displace the WTO
B)reduce nontariff barriers to international trade
C)govern exchange rates
D)enforce world trade rules

Question 61

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

Question 62

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

Question 63

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

Question 64

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 65

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 66

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

Question 67

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 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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 73

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 74

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

Question 75

NAFTA is the international organization that enforces the rules of international trade worldwide.

Question 76

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

Question 77

Supporters and critics of globalization appear to agree that globalization prevents dislocation in labor markets.

Question 78

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 79

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

Question 80

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