Man 3600 practice exam 1

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

a

44) 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

48) 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

53) The free movement of capital around the world is also known as ________. A) bond-based debt financing B) contagion C) the globalization of capital D) common market arrangement

c

72) The relocation of manufacturing and other value-chain activities to cost-effective locations abroad is known as ________. A) insourcing B) cultural imperialism C) contagion D) offshoring

d

75) While a degree of cultural imperialism may be at work, it is offset by the countertrend of ________. A) offshoring B) McDonaldization C) privatization D) local nationalism

d

85) Which of the following represents the final stage in a firm's value chain? A) marketing B) procurement C) research & development D) sales and service

d

34) 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

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

a

50) 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

54) ________ refers to the sequence of value-adding activities performed by the firm in the course of developing, producing, marketing, and servicing a product. A) A value chain B) A supply chain C) Value gap D) Value migration

a

63) 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

70) ________ 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. A) Contagion B) Nationalization C) Internationalization D) Codetermination

a

71) The ability of a nation to govern its own affairs is known as ________. A) sovereignty B) liberalization C) interdependence D) homogenization

a

74) An underground economy ________. A) refers to the informal economic sector B) refers to the formal economic sector C) is characterized by dominantly legal transactions D) is regulated and monitored by public authorities

a

80) The most direct implication of market globalization is on the firm's ________. A) value chain B) supply chain C) internal stakeholders D) top management

a

84) Which of the following stages comes before procurement in a firm's value chain? A) research & development B) marketing C) manufacturing D) distribution

a

33) 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

46) 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

52) Governments have facilitated economic integration by ________. A) increasing barriers to international trade and investment B) developing supranational institutions to further reduce trade barriers C) adopting different monetary and fiscal policies within the same regional economic integration blocs D) standardizing consumer lifestyles and preferences

b

55) Companies strive to drive down prices ________. A) by centralizing manufacturing and procurement to a single source B) by standardizing what they sell C) by thwarting the growth of supranational institutions D) by discouraging competition

b

57) Reduction in trade barriers is associated with the emergence of ________. A) fragmentary monetary and fiscal policies across the borders B) regional economic integration blocs C) widespread violation of intellectual property rights law D) violation of GATT provisions

b

62) 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

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

b

81) Which of the following statements is true about value chain and international business? A) Exporting firms perform most of the downstream value chain activities in the home market. B) Exporting firms perform most of the upstream value chain activities in the home market. C) Exporting firms perform most of the upstream value chain activities abroad. D) Exporting firms perform most of the research and product development and production abroad.

b

83) Which of the following statements is true about the firm-level consequences of market globalization? A) The globalization of markets has narrowed down new business opportunities for internationalizing firms. B) Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world. C) A firm's value chain is not subject to internationalization. D) Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market.

b

31) 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

35) 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

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

c

43) 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

56) Convergence of consumer preferences has led to an enhanced emphasis on standardization which implies that ________. A) the consistently rising prices of consumer goods have led to a demand vacuum in the market B) the distance between consumers worldwide has increased with the advent of technology C) the raw materials, parts, and components sourced by professional buyers are very similar in design and structure D) the globalization of services has adversely affected the quality of service worldwide

c

60) ________ 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 the World War II B) The Bolshevik Revolution in Russia C) China's free-market reforms D) China's move to join the WTO

c

64) 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

82) In a typical value chain, the firm ________. A) rarely conducts research and development B) performs most upstream value-chain activities abroad, when exporting C) performs marketing activities such as pricing, promotion, and selling D) performs most downstream activities in the home market, when exporting

c

32) 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

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

d

42) 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

45) 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

49) 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

51) Which of the following is an example of a supranational institution? A) the World Intellectual Property Organization B) the UNICEF C) the Red Cross D) the World Trade Organization

d

61) Financial market integration makes it possible 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

66) 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

68) 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