Question 1

According to the pendulum view of globalization,globalization is a relatively new phenomenon triggered by the information revolution of early 1990s.

Accepted Answer

The pendulum view of globalization argues that globalization has been a cyclical process throughout history, with periods of globalization followed by periods of deglobalization. It does not view globalization as a new phenomenon triggered solely by the information revolution of the early 1990s.

Question 2

Semiglobalization is primarily caused by the practice of total isolation.

Accepted Answer

Semiglobalization is caused by the interconnectedness of countries through trade, finance, and communication, but with certain barriers still in place such as trade regulations and cultural differences. Total isolation would result in complete disconnection from the global economy and therefore cannot cause semiglobalization.

Question 3

The institution-based view places emphasis on the external factors that could affect a firm.

Accepted Answer

The institution-based view focuses on the external factors such as legal, political, and cultural institutions that could affect a firm's operations and strategies.

Question 4

Liability of foreignness is the inherent disadvantage experienced by foreign firms in host counties because of their non-native status.

Accepted Answer

The statement accurately defines the concept of liability of foreignness, which refers to the challenges and difficulties that foreign firms face in host countries due to their non-native status. This can include cultural differences, unfamiliar institutional environments, language barriers, and other factors that make it harder for foreign firms to operate effectively and compete with local businesses. Research has shown that liability of foreignness can be a significant obstacle for foreign firms seeking to expand into new markets, and may require a range of strategies and adaptations in order to overcome.

Question 5

Standardization of markets would lead to a state of semiglobalization.

Accepted Answer

The answer of Standardization of markets would lead to a...

Question 6

Formal institutions include laws,regulations,and rules.

Accepted Answer

This is true. Formal institutions refer to established and officially recognized rules, regulations, and laws that govern behavior and interactions within society, organizations, and other entities.

Question 7

Without adjusting for PPP,emerging economies contribute about 26% of the global GDP.Adjusting for PPP,they now contribute approximately 45% of the global GDP.The reason there is a huge difference between the two measures is because:

Accepted Answer

The cost of living in emerging economies tends to be lower than that in developed economies. This means that even though the nominal GDP of these economies might be lower, when adjusted for PPP, their contribution to the global GDP is much higher.

Question 8

A conversion that determines the equivalent amount of goods and services that different currencies can buy is known as _____.

Accepted Answer

Purchasing power parity compares the prices of goods and services of different countries to determine the equivalent amount that can be purchased with different currencies. This helps to eliminate the impact of exchange rates on international trade and investment. The other options (B, C, D) are unrelated to this concept.

Question 9

The gross domestic product plus the income from non-resident sources abroad gives the ____.

Accepted Answer

The given description perfectly matches with the calculation of Gross National Product (GNP) which is the total value of all final goods and services produced by a country's residents, regardless of their location, plus income from non-resident sources abroad.

Question 10

Most opponents of globalization view globalization as a long-run historical evolution since trade began.

Accepted Answer

Most opponents of globalization often criticize its contemporary form and its impacts, such as economic inequality and cultural homogenization, rather than viewing it as a positive historical evolution.

Question 11

The strategy of treating the entire world as one market is known as localization.

Accepted Answer

The strategy of treating the entire world as one market is known as globalization, not localization. Localization is a strategy of adapting products or marketing strategies to meet the specific needs and preferences of local markets.

Question 12

An institution-based view suggests that the success and failure of firms are enabled and constrained by business norms of the host nation.

Accepted Answer

An institution-based view emphasizes the importance of formal and informal rules, regulations, and norms of the host country that govern firm behavior and performance. These include factors such as legal systems, cultural norms, and political institutions that shape the incentives and opportunities of firms operating in a particular environment.

Question 13

The current state of globalization around the world is that of semiglobalization.

Accepted Answer

Semiglobalization refers to the current state of globalization in which there is significant interconnectedness and interdependence between countries, but there are still barriers to international trade, investment, and migration such as tariffs, regulations, and cultural differences.

Question 14

A dragon multinational is a name given to MNEs from emerging markets.

Accepted Answer

A dragon multinational is a term used to describe MNEs from emerging markets, particularly China. The term "dragon" refers to the Chinese symbol of power and strength, which is why it is used to describe Chinese MNEs.

Question 15

Scenario planning is a technique to prepare and plan exclusively for high risk scenarios.

Accepted Answer

Scenario planning is a technique that involves considering a range of possible future situations, not just high risk scenarios. It is a strategic planning tool that helps organizations prepare for a variety of potential outcomes and make informed decisions based on those possibilities.

Question 16

Focusing on a firm's internal resources and capabilities is the main emphasis of the resource-based view.

Accepted Answer

The resource-based view highlights the importance of a firm's internal resources and capabilities as the key drivers of long-term competitive advantage. It suggests that firms should focus on leveraging their unique strengths and assets to create value for customers, rather than solely relying on external factors such as market conditions or industry trends.

Question 17

The _____ is measured as the sum of value added by resident firms,households,and governments operating in an economy.

Accepted Answer

The gross domestic product (GDP) is the total value of goods and services produced within a country's borders by residents, businesses and governments. This measure is important in determining the size and health of an economy, as well as understanding its growth or decline over time. The other answer choices are not equivalent measures of economic activity within a country.

Question 18

Semiglobalization calls for adopting one way of doing business for all conditions.

Accepted Answer

Semiglobalization recognizes that there are variations in business practices and strategies that are necessary to succeed in different regions and markets. It promotes a balance between global integration and local responsiveness, rather than a one-size-fits-all approach.

Question 19

The term "emerging economies" has replaced the term _____.

Accepted Answer

The term "emerging economies" has replaced the term "developing countries" as it reflects the growth potential of these economies and their potential to become major players in the global economy. The other options are not related to this term.

Question 20

Overall,the focus on firm performance around the globe defines the field of global business more than anything else.

Accepted Answer

The focus on firm performance around the globe is one of the defining characteristics of the field of global business. Other factors such as cultural differences, international trade regulations, and global economic trends also play a significant role, but the ultimate goal of global business is to enhance the performance and competitiveness of firms operating in global markets.

Quiz 1: Globalizing Business