International Marketing Chapter 1 Questions

The world's least global nations account for approximately what percentage of the world's total population?

50%

Which of the following terms is used to refer to widespread job turnover throughout an economy?

Churning

Which of the following most likely represents the greatest accomplishment of the 1994 revision of the GATT(The General Agreement on Tariffs and Trade)?

Creation of the World Trade Organization

Scenario: Acme SoftwareAcme Software is a U.S.-based company that makes software for the health care industry. Recently Acme has been investigating whether it would be beneficial to sell global products or move some of its production overseas. Acme hires a consulting group to help determine which, if any, globalization activities could promote business growth.The consulting group identifies two software development companies in India that could provide programming services at a lower cost than Acme's current cost for programming. Which of the following, if true, would most strongly suggest that outsourcing to these software companies would NOT promote Acme's business growth?

Cultural differences in working with the Indian companies would cost more to resolve than any savings gained.

Which of the following is defined as the use of computer networks to purchase, sell, or exchange products; service customers; and collaborate with partners?

E-commerce

For 75 years, from the start of the First World War to the end of the Cold War, there was a geographic divide between ________, and an ideological divide between ________.

East and West; communism and capitalism

A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to ________

Enforce Trade rules

________ give distributors and suppliers access to a company's database to place orders or restock inventories electronically and automatically.

Extranets

Scenario: Ciao ManufacturingThe Italian car company, Ciao, has made plans to expand its operations by building a manufacturing facility in a foreign market. Ciao has been very successful selling its small, economical, and stylish cars in Italy and Spain, and firm managers believe that the Ciao cars will be equally profitable in other markets.

Globalization of production

is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service.

Globalization of production

According to the opponents of globalization, which of the following occurs as a result of worker dislocation brought about by globalization?

Gradual lowering of workers' wages

All goods and services purchased abroad and brought into a country are called ________.

Imports

Which of the following is most likely not an effect of globalization?

Increases in the economic isolation of developing countries

Which of the following countries has an average annual GDP growth rate of over 5%?

India

A limit placed on the quantity of an imported product is known as which of the following?

Non-tariff barrier

Scenario: Globalization DebateIn his international business class, Professor Jang organizes a debate on the societal effects of globalization. Juan Prince takes a position against globalization. He emphasizes how supranational institutions can threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.

Pollution-intensive U.S. firms tend to invest in countries with stricter environmental standards..

According to the Globalization Index, which of the following is NOT one of the top 10 most globalized nations?

Saudi Arabia

Each of the following countries has an average annual GDP growth rate larger than that of the U.S. EXCEPT

Saudi Arabia

According to the Globalization Index, which of the following nations ranks first as the most globalized nation overall?

Singapore

Scenario: Sabrina's Spices & SaucesLast year, Sabrina Shin started a business selling all types of spices and hot sauces. The business is small but this entrepreneur's dreams are big. Given limited demand and sales fluctuations in the domestic market, Sabrina has been considering going international. Yet she has little information, many doubts, and no guidance.

Small businesses have no place to turn for export advice.

Taxes levied on traded goods are known as which of the following?

Tariffs

The first age of globalization was halted by all of the following EXCEPT ________.

The Cold War

Which of the following helped launch the second age of globalization?

The collapse of the wall separating East and West Berlin

All of the following represent examples of regional trade agreements EXCEPT ________.

WTO

The three main goals of the ________ are to help the free flow of trade, help negotiate the further opening of markets, and settle trade disputes between its members.

WTO(World Trade Organization)

The ________ is an agency created to provide financing for national economic development efforts.

World Bank

Which of the following countries has a negative average annual GDP growth rate?

Zimbabwe

A major flaw of the original General Agreement on Tariffs and Trade (GATT) was that it lacked the power to ________.

enforce world trade rules

Scenario: Jeans, UnlimitedJeans, Unlimited produces clothing for young adults. It designs its clothes at its New York headquarters and produces them at facilities in two Southeast Asian countries. The company recently received negative press after one of its facilities was found using questionable, albeit legal, labor practices-including employing child labor and operating in a manner that damages the environment.Jeans, Unlimited has designed a new line of accessories and must build a new facility to produce them. To avoid paying tariffs when importing raw materials for processing and when exporting finished goods, the company should consider locating its assembly plant in a(n) ________.

export processing zone

Two major forces that underlie the expansion of globalization are ________ and ________.

falling barriers to trade and investment; technological innovation

The three main branches of the debate over income inequality include each of the following EXCEPT ________.

inequality in nongovernmental organizations

Key characteristics of born global firms are an ________ and knowledge-based organizational capabilities

innovative culture

Denationalization refers to ________.

national boundaries becoming less relevant

The purpose of the General Agreement on Tariffs and Trade (GATT) was to

promote free trade

Trade unions claim that by permitting international firms to continually move to nations with relatively lower labor standards, globalization ________ labor's bargaining power and forces overall labor standards ________.

reduces; lower

The first age of globalization extended from ________.

the mid-1800s to the 1920s