Man 3600 practice exam 1
Which of the following is another term for importing?
global sourcing
The first phase of globalization was characterized by the ________.
growth of railroads
The most direct implication of market globalization is on the firm's ________.
value chain
________ are the most transformative technology in developing economies.
Mobile phones
Calexor is a telecommunications SME that has been highly successful despite its limited resources. Stakeholders attribute Calexor's success to its ability to serve niche markets. Which of the following, if true, would most strongly support the claim that Calexor's growth can be attributed to niche market sales?
Most of Calexor's sales are in specialty markets that larger competitors do not serve.
Each of the following types of organizations is active in international business EXCEPT
RND
Which of the following would most likely be considered an appropriate action for a multinational company in meeting its global corporate social responsibility obligations?
promoting rights for people with disabilities
Regional economic integration blocs ________.
reduce trade and investment barriers
Technological advances have contributed to manufacturing by ________.
reducing production costs
An underground economy ________.
refers to the informal economic sector
Reduction in trade barriers is associated with the emergence of ________.
regional economic integration blocs
Which of the following stages comes before procurement in a firm's value chain?
research & development
Which of the following represents the final stage in a firm's value chain?
sales and service
The ________ phase of globalization began around 1900 and was associated with the rise of electricity and steel production.
second
The ability of a nation to govern its own affairs is known as ________.
sovereignty
_______________________ means meeting humanity's needs without harming future generations.
sustainability
Widespread corruption hinders economic development.
true
Which of the following is true with regard to corruption?
Corruption harms the poorest in societies
_________ is the total value of products and services produced in a country over the course of a year.
GDP
Which of the following statements is true about the firm-level consequences of market globalization?
Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world.
In terms of international business, market globalization can be viewed as a ________.
driver and consequence of firm-level internationalization
In terms of international business, market globalization can be viewed as a ___________.
driver and consequence of firm-level internationalization.
Which of the following contributes LEAST to increasing a company's profit margins?
increasing global competition
As market globalization intensifies, ________.
individual firms respond to the challenges and new advantages that it brings
The science and process of creating and using information resources is known as ________.
information technology
Which of the following is a driver of globalization?
integration of world financial markets
____________________ refers to the transfer of assets to another country or the acquisition of assets in that country.
international investment
While a degree of cultural imperialism may be at work, it is offset by the countertrend of ________.
local nationalism
The most advanced companies monitor suppliers to ensure that they use sustainable practices.
true
Which of the following is an example of a new global challenger?
A firm from Russia that is rapidly growing in the communication industry.
________ refers to the sequence of value-adding activities performed by the firm in the course of developing, producing, marketing, and servicing a product.
A value chain
Firms with a strong social interest
aim to optimize work conditions and diversity in hiring.
Fluctuating exchange rates are an example of which of the following?
currency risk
Which of the following is an example of a supranational institution?
the World Trade Organization
________ refers to the tendency of a financial or monetary crisis in one country to spread rapidly to other countries, due to the ongoing integration of national economies.
Contagion
________ marked the end of the 50-year Cold War and smoothed the integration of former command economies into the global economy.
China's free-market reforms
Which of the following, if true, would most strongly support the claim that national prosperity is increased by participation in international business?
Countries that participate in international trade have higher GDPs than non-participating countries
Which of the following statements is true about value chain and international business?
Exporting firms perform most of the upstream value chain activities in the home market.
Which of the following benefits of IT is specific to smaller firms?
It allows firms to design and produce customized products they can target to narrow, cross-national market niches.
Which of the following is true of a good code of conduct?
It guides employee behavior in all situations.
Which of the following best characterizes the development of international business?
It has existed in some form for centuries
Which of the following statements is true of technological advances?
It provides a means for globalization to happen.
Which of the following reflects the major contribution of GATT to globalization?
It reduced barriers to international trade and investment.
At a conference on business internationalization strategies, representatives of three different businesses meet to discuss a joint venture between their companies. Business A is located in a country that internationalized during the second phase of globalization. Business B is based in a country that internationalized during the third phase of globalization. Business C is located in an emerging market country. The representative from Business B is most likely from ____________.
Japan
Early multinationals from the third phase of globalization originated in ________.
Japan
A restaurant chain based in Hong Kong plans to open a series of restaurants in the U.S. to gain access to low-cost capital for its expansion efforts. Which of the following, if true, would most strongly support the claim that establishing U.S. operations would NOT be the best choice for providing the chain access to the low-cost capital it seeks?
U.S. funding sources are more expensive than capital sources in many other promising locations
Over time, the GATT evolved into the ________.
World Trade Organization
Sterling Auto International is a successful car manufacturing company headquartered in Detroit, Michigan. Over the past year, the company implemented multiple efforts to expand its overseas operations. At a recent shareholders meeting, attendees questioned the CEO's motivations for authorizing certain aspects of the expansion efforts. The CEO introduced another overseas effort by noting that it represented an attempt to confront an international competitor. The CEO was most likely referring to which of the following efforts?
a distribution center established in London to preempt the growth of a British car manufacturer.
Firms that are more successful at global competition display each of the following qualities EXCEPT ________.
approaching internationalization from a reactive standpoint
When making decisions regarding ethical business actions, managers should
balance their obligation to shareholders with explicit conditions to the broader public good
Companies strive to drive down prices ________.
by standardizing what they sell
Technological leapfrogging is defined as ________.
bypassing certain stages of technology to come up with a radical innovation when upgrading to new products
The globalization of finance ________.
contributes to firms' abilities to develop and operate world-scale production and marketing
__________________ refers to the system of procedures and processes by which corporations are managed, directed, and controlled.
corporate governance
Increases in international trade and investment are accompanied by increases in all of the following EXCEPT
cross-border conflict
Whittaker Semiconductors has recently decided to expand its operations overseas. Amanda Quan, Vice President of International Business, assigned a team of investigators to analyze the risks faced by the company in making this move. Of particular interest were the risks that might affect the success of a new production plant to be located in one of three potential countries. LeShaun Golding researched the risks linked to establishing the plant in Country B. He cited government intervention, lack of local managerial talent, and unethical business practices as the most prominent risks for this location. LeShaun noted all of the following types of risks EXCEPT
currency risk
Which of the following is characteristic of globalization of markets?
declining trade barriers
Governments have facilitated economic integration by ________.
developing supranational institutions to further reduce trade barriers
Financial market integration makes it possible for internationally active firms to ________.
engage in foreign currency transactions
Which of the following refers to a typical CSR value?
engaging in philanthropy
The fourth phase of globalization is characterized by ________.
enormous growth of cross-border trade and investment
The fourth phase of globalization ________.
facilitated the globalization of the service sector in such areas as banking and retailing
Which of the following approaches to ethical standards for corporate governance reflects the view that the best action treats everyone equally and in a just manner?
fairness approach
In helping identify ethical problems, the firm's code of conduct should be tailored to match the norms of each individual region from which the firm operates.
false
Large multinationals are not constrained by market forces because they can exert considerable influence on governments through lobbying.
false
The globalization of markets refers to the growing independence and self-sufficiency of countries worldwide
false
Businesses that directly initiate and implement international business activity are known as
focal firms
The process of targeting and serving markets outside the home country is known as ___________.
market diversification
The relocation of manufacturing and other value-chain activities to cost-effective locations abroad is known as ________.
offshoring
Which of the following is a societal consequence of market globalization?
offshoring and the flight of jobs
In a typical value chain, the firm ________.
performs marketing activities such as pricing, promotion, and selling
The third phase of globalization was triggered by ________.
the end of World War II
The free movement of capital around the world is also known as ________.
the globalization of capital
Each of the following has contributed to the rapid integration of world economies EXCEPT
the increase in trade barriers
Convergence of consumer preferences has led to an enhanced emphasis on standardization which implies that ________.
the raw materials, parts, and components sourced by professional buyers are very similar in design and structure
A value chain is ________.
the sequence of value-adding activities performed by a firm in the course of developing, producing, marketing, and servicing a product
International business is defined as the performance of ____________ activities by firms across national borders.
trade and investment
Evaluation of results is the last step of the framework for arriving at ethical decisions.
true
Exporting is the most common foreign market entry strategy of the SME.
true
Falling trade barriers are facilitated by the WTO
true
Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages.
true
For manufacturing companies, on a per-unit-of-output basis, high volumes of production are correlated with lower per-unit cost.
true
Grease payments intended to expedite transactions are both accepted and legal in many countries
true