Question 1

The first stage of global development,what Friedman calls "Globalization 1.0," was characterized by how much industrial power countries could produce and apply.

Accepted Answer

In his book "The World is Flat," Friedman identifies Globalization 1.0 as the period from 1492 to about 1800, where countries competed in global exploration and colonization, and Globalization 2.0 as the period from the early 1900s to the late 20th century, where countries competed in industrialization and mass production.

Question 2

The greater the level of standardization in operations,both within and across markets,the greater is the possibility of global efficiency.

Accepted Answer

Standardization of operations allows for streamlined processes and a consistent approach across markets, reducing the need for customization and increasing efficiency on a global scale.

Question 3

International business relates to any situation where the production or distribution of goods or services crosses country borders.

Accepted Answer

International business involves any business activity that involves the crossing of national borders. This can include importing and exporting goods and services, establishing a presence in another country, and engaging in transactions with foreign businesses.

Question 4

Google and other technology companies are able to do business globally because the laws governing the Internet are the same everywhere.

Accepted Answer

The laws governing the Internet vary from country to country, and technology companies such as Google have to comply with the local laws and regulations of each country they operate in.

Question 5

The government of any country is generally not considered to be a stakeholder in any business venture.

Accepted Answer

The government of a country can be considered a stakeholder in a business venture, especially if it has invested in the venture or has a regulatory interest in it. The government may also be interested in the success of the venture if it believes it will have a positive impact on the country's economy or provide employment opportunities.

Question 6

A stakeholder refers to a person within an established business who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation.

Accepted Answer

While stakeholders are individuals or groups who have an interest in a business and can be affected by its decisions, they do not necessarily take direct responsibility for turning an idea into a profitable finished product.

Question 7

Strategic management is mainly concerned with the determinants of a firm's performance.

Accepted Answer

Strategic management involves analyzing a firm's resources, capabilities, competitive environment, and market conditions to develop and implement strategies that maximize performance and create sustainable competitive advantage. Thus, it is primarily concerned with determining the factors that impact a firm's performance.

Question 8

The knowledge of both strategic management and entrepreneurship enhances one's understanding of international business.

Accepted Answer

Strategic management and entrepreneurship are two essential components of international business. Strategic management helps businesses to analyze and plan their long-term goals and objectives for international expansion, while entrepreneurship provides the skills and mindset required to identify and exploit opportunities in an international market. Therefore, the knowledge of both strategic management and entrepreneurship is crucial to understanding and succeeding in international business.

Question 9

Global business professionals conduct stakeholder analysis in order to understand how operations in different countries impact the overall corporate strategy.

Accepted Answer

Stakeholder analysis helps global business professionals identify key stakeholders in different countries and assess their needs, interests, and potential impact on the organization's strategies and goals. This information is critical for developing effective business strategies and ensuring responsible and sustainable operations across borders.

Question 10

Google locates its computer-server farms close to wind farms that produce power because it is one of the cheapest sources of electricity.

Accepted Answer

The answer of Google locates its computer-server farms close to...

Question 11

The flat-world view is largely credited to Milton Friedman.

Accepted Answer

The flat-world view is largely credited to Thomas Friedman, not Milton Friedman.

Question 12

Many people consider globalization a modern phenomenon,but according to Friedman,this is its third stage.

Accepted Answer

According to Friedman in his book "The Lexus and the Olive Tree", globalization has gone through three stages: Globalization 1.0 (1492-1800), Globalization 2.0 (1800-2000) and Globalization 3.0 (2000 onwards). Therefore, many people may consider globalization a modern phenomenon, but according to Friedman, it is actually its third stage.

Question 13

The social or environmental performance of an organization is irrelevant as long as it is earning profits.

Accepted Answer

The social and environmental performance of an organization is becoming increasingly important to stakeholders, customers, investors, and the general public. Ignoring these factors can ultimately harm the profitability and long-term success of the organization. Ethical and responsible business practices are essential in today's business world.

Question 14

Foreign direct investment means that a firm is investing assets directly into a foreign country's buildings,equipment,or organizations.

Accepted Answer

Foreign direct investment (FDI) refers to an investment made by a company or entity based in one country, into a company or entity based in another country. This investment involves a long-term relationship and often involves the transfer of managerial skills and technology. FDI can involve investments in buildings, equipment, or organizations.

Question 15

International business would not be relevant to an organization if it only produced and sold its products in one country.

Accepted Answer

Even if an organization only produces and sells its products in one country, international business can still be relevant due to factors like global competition, supply chain sourcing, and potential for future market expansion.

Question 16

Globalization can be defined only in terms of markets but not in terms of production.

Accepted Answer

Globalization can be defined in terms of both markets and production as it involves the interconnectedness and integration of economies, cultures, and societies around the world.

Question 17

International transfers of resources,such as people,intellectual property,and contractual assets or liabilities,do not form a part of international business.

Accepted Answer

International transfers of resources, such as people, intellectual property, and contractual assets or liabilities, do form a part of international business.

Question 18

Stakeholder analysis refers to the recognition of opportunities and the use of resources to implement innovative ideas for new,thoughtfully planned ventures.

Accepted Answer

This statement is incorrect. Stakeholder analysis is the process of identifying and assessing the interests, power, and influence of individuals or groups that can affect or are affected by a project or decision. It is not specifically related to the implementation of innovative ideas or ventures.

Question 19

Globalization is fueled largely by declining trade and investment barriers and new technologies,such as the Internet.

Accepted Answer

Globalization is indeed fueled by declining trade and investment barriers as well as the advancements in technology, such as the Internet. These factors have made it easier for countries to connect and interact with each other, leading to increased trade, investment, and cultural exchange.

Question 20

A business can be a person or organization engaged in commerce with the aim of achieving a profit.

Accepted Answer

This definition of a business is correct, therefore the answer is A.

Quiz 1: Introduction