Question 1

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

Accepted Answer

While globalization has significantly impacted both services and goods manufacturing, the globalization of goods manufacturing has traditionally been more pronounced due to factors like trade liberalization, advancements in transportation, and the establishment of global supply chains. The services sector has seen growth in globalization, but it has not overtaken goods manufacturing in this regard.

Question 2

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

Accepted Answer

The growth in China's manufacturing sector and its expanding middle class can lead to increased demand for Australian goods and services, presenting opportunities for economic growth. However, it can also pose threats by intensifying competition for Australian manufacturers and influencing Australia's economic dependence on China.

Question 3

International businesses are almost exclusively very large and complex.

Accepted Answer

International businesses can vary in size, including small and medium-sized enterprises (SMEs) that engage in cross-border trade and operations.

Question 4

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

Accepted Answer

The primary purpose of the International Monetary Fund (IMF) is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries to transact with each other. It provides financial assistance and advice to member countries facing economic instability.

Question 5

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

Accepted Answer

The Group of Eight (G8) primarily consisted of major advanced economies, not emerging economies. China and Brazil were not members of the G8.

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.

Accepted Answer

Boeing's outsourcing strategy for the 787 Dreamliner aimed to reduce risk and costs by distributing the production and financial risks associated with developing new airplane parts and systems to its global suppliers. This approach meant that some of the inherent risks in developing and manufacturing new technologies were shared with, or transferred to, these foreign suppliers.

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

Accepted Answer

Critics argue that offshoring leads to job losses in the home country as jobs are moved abroad, and it can depress wages due to increased competition with lower-wage countries.

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

Accepted Answer

The answer of A company does not have to be...

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.

Accepted Answer

Boeing is undertaking outsourcing by relying on fifty outside suppliers from around the world for 65% of the value of its 787 Dreamliner. This means Boeing is contracting out certain tasks or functions to external suppliers rather than performing them in-house.

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.

Accepted Answer

The answer of Significant differences in cultures, politics and economies...

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.

Accepted Answer

The Tata Nano was primarily designed to be an affordable car for the masses in India, targeting the segment of the population with low incomes that are on the rise. This was a strategic move to cater to the growing middle class looking for affordable transportation options.

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.

Accepted Answer

Offshoring refers to relocating business processes or tasks to another country, often to leverage cost advantages.

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

Accepted Answer

Globalisation of production enables companies to lower their production costs by taking advantage of cheaper labor, materials, and operational costs in different countries. This, in turn, allows them to compete more effectively in the global market by offering lower prices or higher quality products, or both.

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

Accepted Answer

Historically, outsourcing was predominantly seen in the manufacturing sector, where companies would outsource production to reduce costs. However, in recent years, there has been a significant shift towards outsourcing services as well, including IT services, customer support, and back-office operations, among others. This reflects a broader trend of companies leveraging global talent and cost efficiencies across various aspects of their operations beyond manufacturing.

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.

Accepted Answer

Foreign direct investment (FDI) refers to the investment in business activities outside a firm's home country, typically involving either establishing business operations or acquiring business assets in the foreign country.

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.

Accepted Answer

The Global Financial Crisis, which began in 2007 and intensified in 2008, led to a significant reduction in the flow of foreign direct investment worldwide as economies contracted, financial markets became more volatile, and investors became more cautious.

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.

Accepted Answer

As of 2013, the world population was approximately 7.1 billion. 2.8 billion represents about 39% of the world's population, making option C the correct answer.

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.

Accepted Answer

Containerisation and other developments in transport technology have significantly reduced the costs associated with the globalisation of production, making it cheaper and more efficient to ship goods around the world.

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.

Accepted Answer

A competitive advantage refers to the ability of a company to perform in one or more ways that competitors cannot or will not match. Sustainable food producers may have a competitive advantage as consumers increasingly value and choose environmentally friendly products.

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

Accepted Answer

Democratic governments are not inherently a reason for economic stagnation. In fact, democracy can provide a framework for economic growth through stability, rule of law, and protection of property rights. The other options (B, C, D) are factors that can contribute to economic stagnation.

Quiz 1: Globalisation

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

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

International businesses are almost exclusively very large and complex.

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

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

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

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

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.

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:

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

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

The term 'offshoring':

Globalisation of production allows companies to so that they may __.

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

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

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

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:

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

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:

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