Question 1

With respect to international trade, what was the policy of many leading nations at the conclusion of WWI?

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Question 2

Explain how many scholars divided the world during the Cold War and the patterns of trade that existed among these divisions.

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Question 3

The BRIC countries include Brazil, Russia, India, and China.

Accepted Answer

The acronym BRIC stands for Brazil, Russia, India, and China, representing four major emerging national economies.

Question 4

Licensing, franchising, and management contracts are all forms of international business activity. Using examples, briefly define each form. What are the advantages and disadvantages of using these forms of activity?

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Question 5

What are some of the advantages and disadvantages of globalization in regards to its effects on emerging economies?

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Question 6

Emerging markets include countries such as the United States and Britain that are leading the globalization charge.

Accepted Answer

Emerging markets refer to economies that are in the process of rapid industrialization and exhibit high growth potential, unlike developed economies like the United States and Britain, which are already highly industrialized and have more stable, slower growth rates.

Question 7

The World Trade Organization and GATT helped reduce international trade barriers after World War II.

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was established in 1947 to reduce tariffs and other trade barriers. The World Trade Organization (WTO), which succeeded GATT in 1995, continues to oversee global trade rules and agreements to further reduce trade barriers.

Question 8

Regional accords increase trade barriers among country members.

Accepted Answer

Regional accords, such as free trade agreements, typically aim to reduce or eliminate trade barriers among member countries to facilitate easier exchange of goods and services.

Question 9

Is foreign direct investment more or less important to the world economy today as compared to 1980? Why do you think this is the case?

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Question 10

Firms that enter new markets can benefit from economies of scale and diversified revenue streams.

Accepted Answer

Entering new markets allows firms to spread their fixed costs over a larger production volume, leading to economies of scale. Additionally, by operating in multiple markets, firms can diversify their revenue sources, reducing their vulnerability to fluctuations in any single market.

Question 11

Globalization has allowed firms to expand into markets that, until recently, were insulated from the international marketplace.

Accepted Answer

Globalization has facilitated the expansion of firms into previously inaccessible or less accessible markets by reducing trade barriers, improving communication technologies, and making transportation more efficient, thus integrating global economies.

Question 12

What is an emerging economy? Provide examples of emerging economies.

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Question 13

E-mail, smart phones, and tablet computers have facilitated the expansion of international markets.

Accepted Answer

These technologies have made communication and information exchange across global markets faster, easier, and more cost-effective, thereby facilitating international business operations and market expansion.

Question 14

The World Trade Organization is the successor to the General Agreement on Tariffs and Trade.

Accepted Answer

The World Trade Organization (WTO) was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT), which was created in 1948.

Question 15

Since World War II changes in two key areas have facilitated significant international expansion by firms. What are the two key areas of change?

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Question 16

Singapore Airlines has expanded into non-Asian markets by leveraging its core competencies, which include reliability and high customer satisfaction.

Accepted Answer

Singapore Airlines has successfully expanded into non-Asian markets by capitalizing on its strengths such as reliability, high-quality service, and customer satisfaction, making it a globally recognized carrier.

Question 17

What is globalization? What are some reasons for globalization's rapid spread in recent years?

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Question 18

What is a core competency? How do firms benefit from their core competencies?

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Quiz 1: An Overview of International Business