Question 1

When a firm invests resources in business activities outside its home country,giving it control over those activities,it is referred to as:
A)international trade.
B)domestic direct investment.
C)transnational barter.
D)foreign direct investment.

Accepted Answer

Foreign direct investment (FDI) is the process by which a company invests its resources in business activities outside its home country in order to gain control over those activities, such as establishing subsidiaries or acquiring other firms. International trade refers to the exchange of goods and services between countries, while domestic direct investment is investment in business activities within one's own country. Transnational barter is not a commonly used term in business.

Question 2

Critics of globalisation argue that falling trade barriers and the costs of production allow firms to move manufacturing operations to countries where the wage rates are much lower than in Australia.Supporters of globalisation reply to these criticisms and trends to make the point that:
A)the benefits outweigh the costs.
B)the costs outweigh the benefits.
C)costs are offset by concentrating on product and market factors.
D)consumers benefit in the long run.

Accepted Answer

Supporters of globalization argue that the overall economic benefits, such as increased efficiency, lower prices, and economic growth, outweigh the costs associated with shifting manufacturing to lower-wage countries.

Question 3

Changes in China are creating both opportunities and threats for established international business.

Accepted Answer

China's economic reform and opening up policies have led to significant opportunities for international businesses, but also pose new threats in terms of increased competition and changing market dynamics.

Question 4

During the Global Financial Crisis (GFC),the main reasons for the decline in global production were through a severe drop in consumer demand and an inability to finance international trade due to tight credit controls.

Accepted Answer

During the GFC, there was indeed a severe drop in consumer demand and tight credit controls that affected international trade financing, leading to a decline in global production.

Question 5

Offshoring,which means that the tasks previously performed in one country are now being undertaken abroad,is accepted widely by __________,but not as much by _________ at this time.
A)manufacturing;services
B)management;unions
C)governments;corporations
D)the home country;the host country

Accepted Answer

The answer of Offshoring,which means that the tasks previously performed...

Question 6

Part of Boeing's rationale for outsourcing so much of its production to foreign suppliers is that these suppliers are the best in the world at their particular activity.

Accepted Answer

Boeing has frequently stated that outsourcing allows them to work with the best suppliers in the world, who are specialized in their particular field. This strategy allows Boeing to focus on their core competencies while also benefiting from the expertise of global suppliers.

Question 7

A goal of Komatsu was to become 'truly global'.To be truly global is exemplified by:
A)replicating existing domestic products and operations in foreign locations.
B)ensuring most key management decisions are made by foreign nationals.
C)more autonomy for local managers in foreign markets and less reliance on expatriate managers.
D)more women occupying key management positions in the organisation.

Accepted Answer

A company that is truly global allows local managers in foreign markets to have more autonomy and reduces their reliance on expatriate managers. This enables the company to adapt better to local market conditions and cultural differences, leading to better performance and market penetration.

Question 8

The European Union Central Fund (EUCP)has replaced that of the International Monetary Fund (IMF).

Accepted Answer

This statement is false. The European Union Central Fund (EUCP) is not a replacement for the International Monetary Fund (IMF). The EUCP is a proposed instrument to provide financial assistance to EU Member States facing economic difficulties, while the IMF is a global organization that provides economic advice, loans, and technical assistance to member countries.

Question 9

A company does not have to be the size of multinational corporations to facilitate and benefit from the globalisation of markets.In Australia,for example,______irms that export are small businesses employing fewer than ______employees.
A)57%;10
B)67%;15
C)42%;20
D)87%;25

Accepted Answer

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

Question 10

The globalisation of ________ refers to the shift towards a more integrated and interdependent world economy.
A)corporations
B)production
C)markets
D)culture

Accepted Answer

Markets are the correct answer because globalization refers to the increasing interconnectedness and interdependence of the world's economies, markets, and cultures.

Question 11

The globalisation of _________ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labour,energy,land and capital).
A)information technology
B)process design
C)markets
D)production

Accepted Answer

The globalisation of production refers to sourcing goods and services from different locations around the globe based on factors of production such as labour, energy, and capital. This allows businesses to take advantage of cost and quality differences in different countries. Globalisation of information technology, process design, and markets may also occur, but they are not the focus of this definition.

Question 12

The Group of Twenty (G20)is an international forum comprising the government representatives of the G8 and a selection of other economies who have global economic issues they wish to address at the forum.

Accepted Answer

The answer of The Group of Twenty (G20)is an international...

Question 13

Which of the following refers to the exporting of goods or services to consumers in another country?
A)situational commerce
B)world exchange
C)international trade
D)cross-national barter

Accepted Answer

International trade refers to the exchange of goods and services across national borders, which includes exporting goods or services from one country to another. Choice A (situational commerce) is not a widely recognized term in the field of commerce. Choice B (world exchange) is too broad and does not specifically refer to the exporting of goods or services. Choice D (cross-national barter) is not an accurate term, as barter implies a direct exchange of goods or services without the use of money, whereas international trade typically involves the use of currency for transactions.

Question 14

Two macro factors that underlie the trend towards greater globalisation are (1)the decline in barriers to the free flow of goods,services and capital;and (2)the dramatic developments in recent years in information and communication technologies and transportation.

Accepted Answer

The statement accurately identifies two macro factors that have contributed to the trend towards greater globalisation. The first factor refers to the dismantling of trade barriers, financial restrictions, and other impediments to international economic activity, which has made it easier for firms and countries to engage in cross-border exchanges. The second factor pertains to advancements in ICT and transportation, which have facilitated faster, cheaper, and more efficient communication, data transfer, and mobility of people and goods across the world. Both of these factors have led to increased global interconnectedness and integration.

Question 15

An international business is any firm that engages in exporting.

Accepted Answer

While exporting is one way for a business to conduct international trade, it is not the only way. International businesses may also engage in importing, licensing agreements, joint ventures, and other forms of international expansion.

Question 16

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

Question 17

The most global of markets are for industrial goods and materials that serve a universal need around the world rather than for consumer products.

Accepted Answer

This statement is true. Industrial goods and materials, such as steel, chemicals, and machinery, are essential for various industries worldwide and serve a universal need. Therefore, the market for these products is global, with suppliers and customers located in different parts of the world. In contrast, consumer products may have specific features or designs tailored to meet local preferences, leading to regional markets rather than a global market.

Question 18

Offshoring is a special form of outsourcing.

Accepted Answer

Offshoring involves outsourcing business processes or tasks to be performed in another country. Therefore, offshoring is a type of outsourcing.

Question 19

The most global of brand names is in what area?
A)services
B)consumer goods
C)industrial goods
D)intellectual capital

Accepted Answer

The answer of The most global of brand names is...

Question 20

Although Boeing is incorporated in the United States,eight Japanese suppliers make parts for the fuselage,doors and wings;a supplier in Singapore makes the doors for the nose landing gear;and three suppliers in Italy manufacture wing flaps.Boeing is taking part in:
A)exporting.
B)licensing.
C)outsourcing.
D)franchising.

Accepted Answer

Boeing is engaging in outsourcing by using suppliers from Japan, Singapore, and Italy to manufacture various parts of their aircraft.

Quiz 1: Globalisation

When a firm invests resources in business activities outside its home country,giving it control over those activities,it is referred to as:

Critics of globalisation argue that falling trade barriers and the costs of production allow firms to move manufacturing operations to countries where the wage rates are much lower than in Australia.Supporters of globalisation reply to these criticisms and trends to make the point that:

Changes in China are creating both opportunities and threats for established international business.

During the Global Financial Crisis (GFC),the main reasons for the decline in global production were through a severe drop in consumer demand and an inability to finance international trade due to tight credit controls.

Offshoring,which means that the tasks previously performed in one country are now being undertaken abroad,is accepted widely by __,but not as much by _ at this time.

Part of Boeing's rationale for outsourcing so much of its production to foreign suppliers is that these suppliers are the best in the world at their particular activity.

A goal of Komatsu was to become 'truly global'.To be truly global is exemplified by:

The European Union Central Fund (EUCP)has replaced that of the International Monetary Fund (IMF).

A company does not have to be the size of multinational corporations to facilitate and benefit from the globalisation of markets.In Australia,for example,irms that export are small businesses employing fewer than employees.

The globalisation of ________ refers to the shift towards a more integrated and interdependent world economy.

The globalisation of _________ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labour,energy,land and capital) .

The Group of Twenty (G20)is an international forum comprising the government representatives of the G8 and a selection of other economies who have global economic issues they wish to address at the forum.

Which of the following refers to the exporting of goods or services to consumers in another country?

Two macro factors that underlie the trend towards greater globalisation are (1)the decline in barriers to the free flow of goods,services and capital;and (2)the dramatic developments in recent years in information and communication technologies and transportation.

An international business is any firm that engages in exporting.

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

The most global of markets are for industrial goods and materials that serve a universal need around the world rather than for consumer products.

Offshoring is a special form of outsourcing.

The most global of brand names is in what area?

Although Boeing is incorporated in the United States,eight Japanese suppliers make parts for the fuselage,doors and wings;a supplier in Singapore makes the doors for the nose landing gear;and three suppliers in Italy manufacture wing flaps.Boeing is taking part in: