international business ch 2

Which one of the following is an upstream​ value-chain activity? A. ​After-sales service B. Marketing C. Research and development D. Customer service E. Transportation

Research and development

_______ involves a company paying external suppliers and​ contractors, who are located in foreign​ nations, to perform​ value-adding activities. A. Reshoring B. Offshoring C. Sovereignty D. Global outsourcing E. Foreign direct investment

global outsourcing

The spread of Starbucks around the world is an example of the​ ________ of markets. A. globalization B. modernization C. industrialization D. market liberalization E. technological advancement

globalization

Which one of the following is considered an important measure of economic development of a country that often characterizes lower levels of​ globalization? A. Gross domestic product B. Sovereignty C. Gross national income per person D. The underground economy E. Number of supranational institutions

gross national income per person

Dimensions of Market Globalization

integration of interdependence of national economies rise of regional economic blocs growth of global investment and financial flows

Societal Consequences of Globalization

loss of national sovereignty offshoring and flight of jobs effect on the poor sustainability and natural environment effect on national culture

Firm-level Consequences of Market Globalization

new business opportunities for internationalizing firms new risks and rivalry from foreign comp more demanding buyers proactive internationalization Internationalization of the Firm's Value Chain

When a company transfers its​ value-chain activities by launching a subsidiary in a foreign​ country, it is called​ ________. A. exporting B. reshoring C. relaunching D. offshoring E. contagion

offshoring

Stages in the Firm's Value Chain

1) Research and Development 2) Procurement (Sourcing) 3) Manufacturing 4) Marketing 5) Distribution 6) Sales and Service

phases of globalization

1. intro to railroads and ocean transport, rise of manufacturing, crossborder trade of commodities 2. rise of electricity and steel production, emergence and dominance of early MNEs in manufacturing 3. formation of general agreement on tariffs and trade (GATT), focus by industrializing western countries to reduce trade barriers, rise ofMNEs from japan, global capital markets 4. privatization of state enterprises in transition economies, revolution in info, communication and transportation tech 5. rise of digital tech, boosting manufacturing productivity and efficiency of international trade in services

fastest modes of transportation (1500-1840s, 1850-1900, and 1900s-today)

1500-1840: human powered ships and horse drawn carriages 1850-1900: steamships and steam locomotive trains 1900-today: motor vehicles, propeller airplanes and jet aircraft

Which one of the following is an example of globalizing​ manufacturing? A. A British bank opens loan offices in the United​ States, Sri​ Lanka, and Guatemala. B. A U.S. paper manufacturer opens sales offices in Germany and Kazakhstan. C. A Swiss watch maker signs distribution contracts with retail stores around the world. D. A Mexican software company opens a Research and Development department in China. E. An Indian apparel company sets up a factory in Madagascar.

An Indian apparel company sets up a factory in Madagascar.

Mohammed lives in Turkey. Juan lives in Mexico. Both men were able to purchase the latest Mac book from their local retailer the day Apple released the new product. The functionality of the computer is the same with exception of the​ keyboard, which is customized for each language. This is an example of which of the​ following? A. Globalization of production B. Convergence of consumer lifestyles and preferences C. Rise of regional economic integration blocs D. Growth of global investment and financial flows E. Globalization of services

Convergence of consumer lifestyles and preferences

Which cause of globalization BEST explains why some emerging markets have increased their standards of living and become competitive producers and exporters of computers and​ software? A. A global decrease in barriers to trade B. Technological advances C. The implementation of free markets D. Financial markets integrating on a global scale E. Economic development and industrialization

Economic development and industrialization

Which one of the following best explains the globalization of​ production? A. Globally active corporations develop multinational operations through the exchange of​ goods, financial​ ventures, and various​ value-chain activities. B. Firms reduce manufacturing costs and retail prices by moving manufacturing activities to nations with lower costs of labor. C. Regional trade agreements like the North American Free Trade Agreement facilitate reduced trade barriers among member nations. D. Manufacturing firms and governments buy and sell large quantities of global currencies. E. Consumer shopping habits indicate changing trends and preferences to which manufacturers must respond.

Firms reduce manufacturing costs and retail prices by moving manufacturing activities to nations with lower costs of labor.

China, India, and Eastern Europe have become known as​ cost-effective places for producing goods and​ services, and they have attracted an increasing amount of foreign capital into their economies. Which driver of globalization best explains this​ occurrence? A. A global decrease in barriers of trade B. Market liberalization and implementation of open markets C. Technological advances improving efficiency at a global scale D. Industrialization and rebuilding E. Financial markets integrating on a global scale

Market liberalization and implementation of open markets

A grocer in Niagara​ Falls, Ontario, regularly bought vegetables from farmers in​ Rochester, New York. The invention of the telephone during this phase made it much easier for the grocer to call the New York farmers to ask about current prices and adjust her selling prices. In what phase of globalization did this situation​ occur? A. The fifth phase—2007 to the present B. The fourth phase—1980s ​- 2006 C. The second phase—​1900-1930 D. The third phase—1948 to the 1970s E. The first phase—1830 to the late 1800s

The first phase—1830 to the late 1800s

Which one of the following globalization drivers increased monetary connectivity and simplified​ cross-border transactions? A. The implementation of free markets B. Industrialization in underdeveloped nations C. The integration of global financial markets D. Global decreases in barriers to trade E. Advancements in communication technology

The integration of global financial markets

Which phase of globalization was triggered by the rise of electricity and steel​ production? A. The second phase—​1900-1930 B. The fourth phase—1980 ​- 2006 C. The first phase—1830 to the late 0800s D. The third phase—1948 to the 1970s E. The fifth phase—2007 to the present

The second phase—​1900-1930

The greatest significance of globalization is reflected directly in a​ company's ________. A. offshoring activities B. reshoring efforts C. balance sheet D. value chain E. market share

Value chain

The​ ________ consists of approximately 160 countries worldwide and was created to control and safeguard fairness in international trade and investments. A. APEC B. WTO C. IMF D. GATT E. NAFTA

WTO

The formation of the WTO and the emergence of economic integration blocs led to​ ________. A. market liberalization and implementation of free markets B. industrialization and innovation C. financial markets integrating on a global scale D. a global decrease in barriers to trade E. technological advances

a global decrease in barriers to trade

One of the most noteworthy influences on globalization has been​ ________. A. a global decrease in barriers to trade B. industrial​ growth, financial​ expansion, and innovation C. financial markets integrating on a global scale D. market liberalization and the implementation of free markets E. advances in​ technology, including​ communications, data, and engineering

advances in technology, including communications, data and engineering

Societal Consequences of Market Globalization

contagion (rapid spread of monetary crises from one country to another) loss of nation soverignty offshoring flight of jobs effect on the poor effect on environment effect on national culture

rationale of internationalization of firms value chain

cost savings increase efficiency, productivity and flexibility access customers, inputs, labor, tech benefit from foreign partner capabilities

globalization

refers to interconnectedness of national economies and growing interdependence of buyers, producers, suppliers and government around world

What should governments do to reduce the harm of globalization while also acquiring the benefits associated with​ globalization? A. Nationalize foreign companies. B. Make private property more accessible. C. Support exchange through political processes. D. Make it more difficult to enter new markets. E. Regulate financial institutions appropriately.

regulate financial institutions appropriately

ABC Enterprises transferred some of its manufacturing and other​ value-chain activities to a more​ cost-effective location in China five years ago.​ Recently, ABC Enterprises has undergone a change in​ management, and the new manager has decided to move those​ value-chain and manufacturing activities back to the home country. In which one of the following is ABC​ participating? A. Offshoring B. Sovereignty C. Global outsourcing D. Reshoring E. Global sourcing

reshoring

Which phase of globalization is composed of the growth and supremacy of multinational enterprises in the industrial and agricultural​ industries? A. Fifth phase B. First phase C. Third phase D. Fourth phase E. Second phase

second. phase

value chain

sequence of value adding activities performed by firm in process of developing, producing and marketing product or service

driving forces of market globalization

worldwide reduction of barriers to trade and investment market liberalization and adoption of free trade industrialization integration of world financial markets advances in tech bring suppliers and demanders together more efficiently

India has become a prominent provider of software​ technologies, and Brazil has become a frontrunner in commercial aircraft development. Which cause of globalization is illustrated by these​ examples? A. ​Industrialization, economic​ growth, and innovation B. Worldwide reduction in trade barriers C. Financial markets integrating globally D. Technological advancements in communication networks E. Market liberalization and the implementation of free markets

​Industrialization, economic​ growth, and innovation