Question 1

Which of the following is NOT a concern for managers in international businesses?

Accepted Answer

A)  Fundamental differences in culture
B)  Perceived distance between home country and operating nations
C)  Government restrictions on international trade
D)  Cross-border transactions involving currency exchange
E)  Ethical adherence to environmental standardsF) A) and D)
G) None of the above

Question 2

Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.

Accepted Answer

A) True 
 B)False  True

Question 3

The move toward a global economy has strengthened the adoption of conservative economic policies by developing nations.

Accepted Answer

A) True 
 B)False

Question 4

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the:

Accepted Answer

A)  globalization of production.
B)  globalization of markets.
C)  dislocation of a developing nation's economy.
D)  restriction on foreign direct investment.
E)  regulation of the environment.F) A) and E)
G) D) and E)

Question 5

Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012?

Accepted Answer

A)  United States
B)  Thailand
C)  Japan
D)  China
E)  South KoreaF) A) and E)
G) None of the above

Question 6

What is a multinational enterprise? What have been the two most notable trends in multinational enterprises since the 1960s?

Accepted Answer

A multinational enterprise is any busine...

Question 7

What are the various reasons for economic stagnation in many of the world's poorest countries?

Accepted Answer

Many of the world's poorest countries ha...

Question 8

Why are supranational organizations, such as the World Trade Organization and the United Nations, criticized?

Accepted Answer

A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power away from national governments and toward supranational organizations such as the World Trade Organization, the European Union, and the United Nations. As perceived by critics, unelected bureaucrats now impose policies on the democratically elected governments of nation-states, thereby undermining the sovereignty of those states and limiting the nation's ability to control its own destiny.

Question 9

Which of the following best illustrates the globalization of production?

Accepted Answer

A)  Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process.
B)  Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in China to serve the Asian market.
C)  Uncle Crab, a U.K. fast food chain, has been serving customers worldwide through its franchises.
D)  Silver Unicorn Inc. uses sales personnel from the respective host country to sell its products and services.
E)  Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers.F) All of the above
G) C) and D)

Question 10

Ryan is the executive general manager of a U.S. multinational and Veronica is a manager in a similar position, but works for another U.S. company that operates only in its home country. In this context, which of the following business functions will be most typically exclusive to Ryan?

Accepted Answer

A)  Marketing a product or service
B)  Maintaining healthy relations with the U.S. government
C)  Planning on a business strategy
D)  Adhering to labor and environmental standards
E)  Choosing an appropriate mode for entering a particular foreign countryF) A) and E)
G) B) and D)

Question 11

Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that:

Accepted Answer

A)  significant differences still exist among national markets.
B)  cultural diversity has been replaced by global uniformity.
C)  the global market is less complex than national markets.
D)  only multinational giants can benefit from the globalization of markets.
E)  the social norms in a country do not affect purchase decisions of consumers.F) None of the above
G) C) and D)

Question 12

In general, as countries get richer, they enact tougher environmental and labor regulations.

Accepted Answer

A) True 
 B)False  True

Question 13

What is globalization? Explain, with examples, how global companies can facilitate the creation of a global market.

Accepted Answer

The globalization of markets refers to t...

Question 14

The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations.

Accepted Answer

A) True 
 B)False

Question 15

It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by unskilled workers, raising their living standards.

Accepted Answer

A) True 
 B)False

Question 16

As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.

Accepted Answer

A) True 
 B)False

Question 17

Although most international trade and investment are still conducted by large firms, many medium-size and small businesses are becoming increasingly involved in international trade and investment.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements reflects the changing demographics of the global economy?

Accepted Answer

A)  U.S. dominance in export markets has waned as Japan, Germany, and a number of newly industrialized countries have taken a larger share of world exports.
B)  The change in the position of the United States in terms of the share of world output is the result of the absolute decline in the health of the U.S. economy.
C)  From 1960 to 2010, countries that experienced a large decrease in their share of world output include Japan, Thailand, Malaysia, Taiwan, and South Korea.
D)  The United States is the only developed nation to see its relative standing in the share of world output slip.
E)  Today, roughly half the globe-the centrally planned economies of the communist world-is off-limits to Western international businesses.F) A) and C)
G) A) and E)

Question 19

Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of global markets?

Accepted Answer

A)  Differences in business systems and legal regulations lead companies to customize their marketing strategies, product features, and operating practices to best match conditions in a particular country.
B)  As rival global firms follow each other across countries, they bring with them their brand names, products, and marketing strategies from other national markets, thus creating homogeneity across markets.
C)  Truly innovative companies succeed by developing products that serve specific needs of the local markets.
D)  The volume of goods, services, and investment crossing national borders has expanded at a slower rate than world output for more than half a century.
E)  The most global of markets are not typically markets for consumer products, as significant differences in consumer tastes and preferences still exist among national markets.F) A) and C)
G) A) and B)

Question 20

What are some of the challenges faced by managers of an international business?

Accepted Answer

Managing an international business is ch...

Exam 1: Globalization

Which of the following is NOT a concern for managers in international businesses?

Correct Answer
verified

Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.

Correct Answer
verified
True

The move toward a global economy has strengthened the adoption of conservative economic policies by developing nations.

Correct Answer
verified

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the:

Correct Answer
verified

Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012?

Correct Answer
verified

What is a multinational enterprise? What have been the two most notable trends in multinational enterprises since the 1960s?

Correct Answer
verified
A multinational enterprise is any busine...
View Answer

What are the various reasons for economic stagnation in many of the world's poorest countries?

Correct Answer
verified
Many of the world's poorest countries ha...
View Answer

Why are supranational organizations, such as the World Trade Organization and the United Nations, criticized?

Which of the following best illustrates the globalization of production?

Correct Answer
verified

Ryan is the executive general manager of a U.S. multinational and Veronica is a manager in a similar position, but works for another U.S. company that operates only in its home country. In this context, which of the following business functions will be most typically exclusive to Ryan?

Correct Answer
verified

Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that:

Correct Answer
verified

In general, as countries get richer, they enact tougher environmental and labor regulations.

Correct Answer
verified
True

What is globalization? Explain, with examples, how global companies can facilitate the creation of a global market.

Correct Answer
verified
The globalization of markets refers to t...
View Answer

The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations.

Correct Answer
verified

It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by unskilled workers, raising their living standards.

Correct Answer
verified

As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.

Correct Answer
verified

Although most international trade and investment are still conducted by large firms, many medium-size and small businesses are becoming increasingly involved in international trade and investment.

Correct Answer
verified

Which of the following statements reflects the changing demographics of the global economy?

Correct Answer
verified

Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of global markets?

Correct Answer
verified

What are some of the challenges faced by managers of an international business?

Correct Answer
verified
Managing an international business is ch...
View Answer

Exam 1: Globalization

Which of the following is NOT a concern for managers in international businesses?

Correct AnswerverifiedShow Answer

Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.

Correct AnswerverifiedTrue

The move toward a global economy has strengthened the adoption of conservative economic policies by developing nations.

Correct AnswerverifiedShow Answer

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the:

Correct AnswerverifiedShow Answer

Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012?

Correct AnswerverifiedShow Answer

What is a multinational enterprise? What have been the two most notable trends in multinational enterprises since the 1960s?

Correct AnswerverifiedA multinational enterprise is any busine...View AnswerShow Answer

What are the various reasons for economic stagnation in many of the world's poorest countries?

Correct AnswerverifiedMany of the world's poorest countries ha...View AnswerShow Answer

Why are supranational organizations, such as the World Trade Organization and the United Nations, criticized?

Which of the following best illustrates the globalization of production?

Correct AnswerverifiedShow Answer

Ryan is the executive general manager of a U.S. multinational and Veronica is a manager in a similar position, but works for another U.S. company that operates only in its home country. In this context, which of the following business functions will be most typically exclusive to Ryan?

Correct AnswerverifiedShow Answer

Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that:

Correct AnswerverifiedShow Answer

In general, as countries get richer, they enact tougher environmental and labor regulations.

Correct AnswerverifiedTrue

What is globalization? Explain, with examples, how global companies can facilitate the creation of a global market.

Correct AnswerverifiedThe globalization of markets refers to t...View AnswerShow Answer

The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations.

Correct AnswerverifiedShow Answer

It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by unskilled workers, raising their living standards.

Correct AnswerverifiedShow Answer

As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.

Correct AnswerverifiedShow Answer

Although most international trade and investment are still conducted by large firms, many medium-size and small businesses are becoming increasingly involved in international trade and investment.

Correct AnswerverifiedShow Answer

Which of the following statements reflects the changing demographics of the global economy?

Correct AnswerverifiedShow Answer

Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of global markets?

Correct AnswerverifiedShow Answer

What are some of the challenges faced by managers of an international business?

Correct AnswerverifiedManaging an international business is ch...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A multinational enterprise is any busine...
View Answer

Correct Answer
verified
Many of the world's poorest countries ha...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified
The globalization of markets refers to t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Managing an international business is ch...
View Answer