quiz 2

The third phase of globalization was triggered by ________. A) the end of World War II B) the invention of electricity C) the end of World War I D) the Great Depression

A) the end of World War II

Firms expand abroad mainly as a reaction to market globalization. A) True B) False

B) False

Industrialization implies that emerging markets are increasing their dependence on low-cost labor. A) True B) False

B) False

Offshoring and the flight of jobs are prime drivers of market globalization. A) True B) False

B) False

The Great Depression marked the beginning of the second phase of globalization. A) True B) False

B) False

The Internet has increased the cost of transmitting voices, data, and images. A) True B) False

B) False

The end of the Cold War in 1989 hindered the forces of market liberalization in Eastern Europe. A) True B) False

B) False

The third phase of globalization was triggered by the development of personal computers, the Internet, and Web browsers. A) True B) False

B) False

Nationalization refers to the gradual integration and growing interdependence of national economies. A) True B) False

B) False globalization

Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages. A) True B) False

A) True

Globalization of production activities and services is a dimension of market globalization. A) True B) False

A) True

Technological advances have contributed to manufacturing by ________. A) promoting traditional lifestyles and values B) reducing cross-border flow of factors of production C) promoting nationalization D) reducing production costs

D) reducing production costs

Firms are sometimes motivated to enter new markets because of unfavorable conditions in the home market, such as regulation or declining local industry sales. A) True B) False

A) True

Which of the following statements is true of technological advances? A) It provides a means for globalization to happen. B) It discourages internationalization. C) It inhibits the growth of new products and services. D) It helps consolidate traditional values among consumers worldwide.

A) It provides a means for globalization to happen.

Regional economic integration blocs ________. A) reduce trade and investment barriers B) reduce private investments C) adopt a hostile stance toward the private sector D) hinder the cross-border flow of factors of production

A) reduce trade and investment barriers

Early multinationals from the third phase of globalization originated in ________. A) Japan B) China C) India D) Brazil

A) Japan

________ are the most transformative technology in developing economies. A) Mobile phones B) Televisions C) Intranets D) E-mails

A) Mobile phones

Falling trade barriers are facilitated by the WTO. A) True B) False

A) True

Technological advances have helped make internationalization affordable for all sizes of firms. A) True B) False

A) True

The initial phase of globalization was triggered by the introduction of the railroads and ocean transport. A) True B) False

A) True

Firms that are more successful at global competition display each of the following qualities EXCEPT ________. A) identifying foreign market opportunities aggressively B) approaching internationalization from a reactive standpoint C) actively pursuing partnerships with foreign firms D) focusing intensively on building organizational capacities

B) approaching internationalization from a reactive standpoint

The globalization of finance ________. A) enables companies to minimize offshoring B) contributes to firms' abilities to develop and operate world-scale production and marketing C) discourages innovation D) discourages free international exchange of goods and services

B) contributes to firms' abilities to develop and operate world-scale production and marketing

The science and process of creating and using information resources is known as ________. A) information design B) information technology C) psychographics D) demographics

B) information technology

The ________ phase of globalization began around 1900 and was associated with the rise of electricity and steel production. A) first B) second C) third D) fourth

B) second

________ marked the end of the 50-year Cold War and smoothed the integration of former command economies into the global economy. A) The end of World War II B) The Bolshevik Revolution in Russia C) Free-market reforms in China and the former Soviet Union D) China's move to join the WTO

C) Free-market reforms in China and the former Soviet Union

Which of the following reflects the major contribution of GATT to globalization? A) It instituted strict controls on international currencies. B) It simplified patent and copyright laws. C) It reduced barriers to international trade and investment. D) It eliminated the divide between the rich and the poor.

C) It reduced barriers to international trade and investment.

Over time, the GATT evolved into the ________. A) World Bank B) International Monetary Fund C) World Trade Organization D) World Intellectual Property Organization

C) World Trade Organization

Technological leapfrogging is defined as ________. A) adopting new technology late in the hype cycle B) adopting new technology as soon as it is released C) bypassing certain stages of technology to come up with a radical innovation when upgrading to new products D) boosting demand artificially by postponing the sale of new technology in the market

C) bypassing certain stages of technology to come up with a radical innovation when upgrading to new products

Which of the following is characteristic of globalization of markets? A) lack of skilled labor B) conservatism C) declining trade barriers D) diminishing gap between the rich and the poor

C) declining trade barriers

In terms of international business, market globalization can be viewed as a ________. A) consequence of a strong emphasis on traditional values worldwide B) consequence of the loss of national sovereignty C) driver and consequence of firm-level internationalization D) prime cause of rising diseconomies of scale in emerging economies

C) driver and consequence of firm-level internationalization

As market globalization intensifies, ________. A) the gap between the rich and the poor shrinks rapidly B) the distance between consumers worldwide expands C) individual firms respond to the challenges and new advantages that it brings D) firms internationalize solely as a reaction to it

C) individual firms respond to the challenges and new advantages that it brings

Which of the following is a driver of globalization? A) greater emphasis on proactive internationalization B) internationalization of firm's value chain C) integration of world financial markets D) globalization of services

C) integration of world financial markets

Which of the following benefits of IT is specific to smaller firms? A) It mitigates organizational anarchy. B) It creates competitive advantages by encouraging organizational learning. C) It aids in the consolidation of market monopolies. D) It allows firms to design and produce customized products they can target to narrow, cross-national market niches.

D) It allows firms to design and produce customized products they can target to narrow, cross-national market niches.

Financial market integration makes it easier for internationally active firms to ________. A) nationalize manufacturing industries B) minimize offshoring C) increase tariffs on the import of automobiles and industrial machinery D) engage in foreign currency transactions

D) engage in foreign currency transactions

The fourth phase of globalization ________. A) is characterized by the rise of electricity and steel production B) is characterized by the rise of MNEs from Japan C) witnessed the Bretton Woods Conference of twenty-three nations in 1947 that led to the General Agreement on Tariffs and Trade D) facilitated the globalization of the service sector in such areas as banking and retailing

D) facilitated the globalization of the service sector in such areas as banking and retailing

The first phase of globalization was characterized by the ________. A) rise of steel production B) rise of SMEs C) dominance of MNEs in the agricultural industry D) growth of railroads

D) growth of railroads

Which of the following is a societal consequence of market globalization? A) greater emphasis on proactive internationalization B) internationalization of firm's value chain C) new risks and instant rivalry from foreign competitors D) offshoring and the flight of jobs

D) offshoring and the flight of jobs

The fourth phase of globalization is characterized by ________. A) the rise of railroads and ocean transport B) the reduction of barriers to trade by Western industrialized countries C) the initiation of the Marshall Plan to reconstruct Europe D) the enormous growth of cross-border trade and investment

D) the enormous growth of cross-border trade and investment

A value chain is ________. A) the sequence of administrative policies implemented to promote economic integration by a government B) the process of relocating manufacturing and production to valuable and cost-effective locations abroad C) the process of integrating national economies during a financial crisis D) the sequence of value-adding activities performed by a firm in the course of developing, producing, marketing, and servicing a product

D) the sequence of value-adding activities performed by a firm in the course of developing, producing, marketing, and servicing a product