Chapter 2 BUSA 3000
The first phase of globalization was characterized by the ________.
growth of railroads
72) Which of the following stages comes before procurement in a firm's value chain?
A) research and development
80) The ability of a nation to govern its own affairs is known as ________.
A) sovereignty
The third phase of globalization was triggered by ________.
A) the end of World War II
68) The most direct implication of market globalization is on the firm's ________.
A) value chain
69) Which of the following statements is TRUE about value chain and international business?
B) Exporting firms perform most of the upstream value chain activities in the home market.
71) Which of the following statements is TRUE about the firm-level consequences of market globalization?
B) Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world.
44) ________ are the most transformative technology in developing economies.
Mobile phones
The ________ phase of globalization began around 1900 and was associated with the rise of electricity and steel production.
second
45) Technological advances have contributed to manufacturing by ________.
D) reducing production costs
55) Which of the following is an example of a supranational institution?
D) the World Trade Organization
The fourth phase of globalization is characterized by ________.
D) the enormous growth of cross-border trade and investment
13) As market globalization intensifies, ________.
individual firms respond to the challenges and new advantages that it brings
Which of the following is a driver of globalization?
integration of world financial markets
58) ________ is transforming interactions among customers, employees, business partners and investors, by connecting locations, products, services, and data.
A) Digitization
11) Early multinationals from the third phase of globalization originated in ________.
A) Japan
59) Companies strive to drive down prices ________, among other strategies.
B) by standardizing what they sell
Which of the following is characteristic of globalization of markets?
declining trade barriers
30) Which of the following drivers of market globalization is Lavonne's research most likely to recognize as the factor responsible for the company's expansion to Japan?
A) integration of world financial markets
54) Regional economic integration blocs ________.
A) reduce trade and investment barriers
46) Stella manages the production team at Camden Inc., a manufacturer of heavy industry machinery in the United States. She needs to decide if her firm should export finished products or manufacture abroad. Which of the following would most likely help her evaluate the best alternative in this instance?
B) What are the costs of transporting raw materials, components, and finished products?
32) The globalization of finance ________.
B) contributes to firms' abilities to develop and operate world-scale production and marketing
56) Governments have facilitated economic integration by ________.
B) creating supranational institutions to further reduce trade barriers
61) Reduction in trade barriers is associated with the emergence of ________.
B) regional economic integration blocs
Over time, the GATT evolved into the ________.
C) World Trade Organization
52) In terms of international business, market globalization can be viewed as a ________.
C) driver and consequence of firm-level internationalization
70) In a typical value chain, the firm ________.
C) performs marketing activities such as pricing, promotion, and selling
29) In describing the main driver behind Pax's expansion to China, Rashid is most likely to emphasize ________.
C) reduction of barriers to trade
57) The free movement of capital around the world is also known as ________.
C) the globalization of capital
60) Convergence of consumer preferences has led to an enhanced emphasis on standardization, which implies that ________.
C) the raw materials, parts, and components sourced by professional buyers are very similar in design and structure
28) Financial market integration makes it easier for internationally active firms to ________.
D) engage in foreign currency transactions
12) The fourth phase of globalization ________.
D) facilitated the globalization of the service sector in such areas as banking and retailing
84) While a degree of cultural imperialism may be at work, it is offset by the countertrend of ________.
D) local nationalism
81) The relocation of manufacturing and other value-chain activities to cost-effective locations abroad is known as ________.
D) offshoring
79) ________ 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.
D) procurement
53) A value chain is ________.
D) the sequence of value-adding activities performed by a firm in the course of developing, producing, marketing, and servicing a product
Which of the following reflects the major contribution of GATT to globalization?
It reduced barriers to international trade and investment.
16) Firms that are more successful at global competition display each of the following qualities EXCEPT ________.
approaching internationalization from a reactive standpoint
To which of the following drivers of market globalization is Markus most likely to attribute his company's expansion to Eastern Europe?
market liberalization
Which of the following is a societal consequence of market globalization?
offshoring and the flight of jobs
