My Lab IBUS330 Ch 3 Practice questions

In​ 2015, which region had the smallest proportion of Internet​ users? A. North America B. Africa C. Europe D. Latin America E. The Middle East

Africa ----- Correct. According to the​ text, Africa had only a 27 percent Internet penetration rate in 2015.

What has been the result of making improvements to​ Nigeria's cell phone​ infrastructure? A. Changing the transportation infrastructure B. Enhancing economic growth and productivity C. Facilitating the use of​ computer-aided design in manufacturing D. Reducing corporate expenditures on information technology E. Reducing corporate social responsibility requirements

Enhancing economic growth and productivity----- Correct. In six​ years, Nigeria increased its telecom infrastructure from just​ 500,000 phone lines to more than 30 million cellular subscribers. The result has been a dramatic rise in productivity and​ commerce, which has helped improve living standards. Greater access to cell phones saves wasted​ trips, provides access to education and health care​ services, and facilitates communication between suppliers and customers.

________ refers to the steady assimilation and increasing interdependence of economies. A. Global sourcing B. Cross-border trade of commodities C. Globalization of markets D. Foreign direct investment E. Industrialization

Globalization of markets ---- Correct. Globalization of markets refers to the gradual integration and growing interdependence of national economies.

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. Technological advancements in communication networks B. Worldwide reduction in trade barriers C. ​Industrialization, economic​ growth, and innovation D. Market liberalization and the implementation of free markets E. Financial markets integrating globally

Industrialization, economic​ growth, and innovation -- Correct. Industrialization and modernization are a globalization driver that has allowed previously underdeveloped​ countries, such as Brazil and​ India, to become competitive producers and exporters of premium products such as electronics and aircrafts.

Which term describes the knowledge and process of creating and utilizing informational​ resources? A. Communications B. Manufacturing infrastructure C. Value chain D. Information technology E. Information reshoring

Information technology ---- Correct. Information technology is the science and process of creating and utilizing information resources.

The trend of financial crises spreading from one country to another is known as​ ________. A. globalization B. contagion C. cross-cultural risk D. internationalization E. pollution

contagion---- Correct. Contagion refers to the tendency for a financial or monetary crisis in one country to spread rapidly to other​ countries, due to integrated national economies.

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

offshoring----- Correct. Through​ offshoring, the firm relocates a major​ value-chain activity by establishing a factory or other subsidiary abroad.

Which of the following represents the trend of economic disaster spreading from one country to​ another? A. Country risk B. Pollution C. Internationalization D. Contagion E. Globalization

Contagion-----Correct. Contagion refers to the tendency for a financial or monetary crisis in one country to spread rapidly to other​ countries, due to integrated national economies.

A grocer in Niagara​ Falls, Ontario, regularly bought vegetables from farmers in​ Rochester, New York. The invention of the telephone 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. 1948 to the 1970s B. ​1931-1947 C. The 1980s to the present D. 1900-1930 E. 1830 to the late 1800s

1830 to the late 1800s ---Correct. The four phases of globalization are​ (1) 1830 to the late​ 1880s, (2)​ 1900-1930, (3) 1948 to the​ 1970s, and​ (4) the 1980s to the present. The invention of the telegraph and telephone in the late 1800s facilitated information flows between and within nations and greatly aided early efforts to manage​ companies' supply chains. The grocer lived during the first phase of globalization from 1830 to the late 1880s.

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

An Indian apparel company sets up a factory in Madagascar. ---- Correct. Companies strive to drive down prices through economies of scale by standardizing what they​ sell, and by shifting manufacturing and procurement to foreign locations with inexpensive labor. Setting up a factory in a foreign country is an example of globalizing manufacturing.

​Consumers' daily​ lives, partialities toward​ products, and spending habits all over the world are becoming increasingly similar. Popular brands now have global​ followings, and materials are becoming more standardized. This represents which dimension of​ globalization? A. Globalization of production B. Convergence of customer preferences and standards C. Globalization of services D. Progression of international ventures and economic movements E. Integration and interdependence of national economies

Convergence of customer preferences and standards ---- Correct. The merging of customer preferences and standards involves the similar shopping habits of consumers worldwide. Many aspects of lifestyles and preferences are converging.

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. Technological advances B. The implementation of free markets C. A global decrease in barriers to trade D. Financial markets integrating on a global scale E. Economic development and industrialization

Economic development and industrialization ----- Correct.​ Industrialization, economic​ development, and modernization were due to emerging markets increasing their standards of living and becoming competitive producers and exporters of quality items such as electronics and computers.

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

Firms reduce manufacturing costs and retail prices by moving manufacturing activities to nations with lower costs of labor.------Correct. Globalization of production involves companies striving to reduce costs and selling prices by moving manufacturing and procurement to various foreign locations with lower costs of labor.

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

Global outsourcing------ Correct. Global outsourcing is when a firm delegates performance of a​ value-adding activity to an external supplier or contractor located abroad.

​________ inspires corporations to establish their​ sourcing, producing, and promoting activities on a worldwide scale in order to attain lower costs with higher efficiency. A. Globalization B. Sovereignty C. Foreign direct investment D. Country risk E. Contagion

Globalization---- Correct. Globalization compels firms to organize their​ sourcing, manufacturing,​ marketing, and other​ value-adding activities on a global scale to achieve cost advantages and time efficiencies.

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

Gross national income per person--- Correct. Economic development is enhancing standards of living and discretionary income in emerging markets. Perhaps the most important measure of economic development is gross national income​ (GNI) per head.

Which dimension of market globalization is a result of the North American Free Trade​ Agreement, as well as other​ countries' agreements that have facilitated reduced trade barriers among their​ members? A. Incorporation and interdependence of global markets B. Progression of international ventures and economic movements C. Growth of regional economic integration blocs D. Merging of customer preferences and standards E. Globalization of manufacturing

Growth of regional economic integration blocs----Correct. The growth of regional economic integration blocs is a result of the North American Free Trade​ Agreement, as well as other​ countries' agreements that have facilitated reduced trade barriers among their members.

Which of the following statements regarding information technology is​ accurate? A. The cost of computer processing has increased by more than​ 30% in the past 30 years. B. Information technology benefits only larger firms due to the design and production of customized products being targeted to more narrow market niches. C. Given the added investment​ costs, a result of advances in information technology has been a decrease in early internationalization by​ small- and​ medium-sized enterprises. D. Information technology has created a competitive advantage for firms by allowing them more opportunities to outdo their competitors. E. Technology enables companies to interact with their partners globally in a timelier but less​ cost-effective manner.

Information technology has created a competitive advantage for firms by allowing them more opportunities to outdo their competitors. ------ Correct. Information technology has created a competitive advantage for companies by allowing them more opportunities to outperform their competitors. Geographically distant subsidiaries of a multinational firm are now interconnected by intranets that facilitate instant sharing of​ data, information, and experience across company operations worldwide. MNEs use collaboration software to connect distant product development teams.

​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. Industrialization and rebuilding B. Technological advances improving efficiency at a global scale C. A global decrease in barriers of trade D. Market liberalization and implementation of open markets E. Financial markets integrating on a global scale

Market liberalization and implementation of open markets------ Correct. One of the causes of globalization was market liberalization and adoption of free markets due to previously​ state-owned industries becoming economically efficient and attracting large amounts of foreign capital into their economies.

​________ involves companies transferring​ value-chain activities to more economical sites in foreign countries. A. Contagion B. Offshoring C. Global outsourcing D. Reshoring E. Global sourcing

Offshoring---- Correct. Offshoring is the relocation of manufacturing and other​ value-chain activities to​ cost-effective locations abroad.

Which dimension of globalization involves the unrestricted movement of capital and the expanded networks of economies throughout the​ world? A. Globalization of production B. Merging of customer preferences and standards C. Growth of local financial integration alliances D. Progression of international investments and financial activities E. Incorporation and interdependence of global markets

Progression of international investments and financial activities ----Correct. The growth of global investments and financial flows dimension of market globalization involves international​ transactions, firms and governments buying and selling large volumes of national​ currencies, and various economic activities around the globe.

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

Regulate financial institutions appropriately.------ Correct. Governments should regulate financial institutions appropriately to reduce the harm of globalization while also acquiring the benefits associated with globalization.

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

Research and development----- Correct. The​ value-chain concept is useful in international business because it helps clarify what activities are performed where in the world. For​ instance, exporting firms perform most​ "upstream" value-chain activities​ (R&D and​ production) in the home market and most​ "downstream" activities​ (marketing and​ after-sales service) abroad.

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 of the following is ABC​ participating? A. Reshoring B. Global sourcing C. Global outsourcing D. Sovereignty E. Offshoring

Reshoring ------ Correct. Reshoring is the return of manufacturing and services back to the home country.

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

Second phase---- Correct. The second phase of globalization included the development and dominance of multinational enterprises in the manufacturing and agricultural industries from 1900 to 1930.

________ refers to the degree of competence a country has in overseeing its own matters. It implies that the laws of one country cannot be applied to another country. A. Contagion B. Sovereignty C. Reshoring D. Offshoring E. Global sourcing

Sovereignty----- Correct. Sovereignty is the ability of a nation to govern its own affairs.

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

The integration of global financial markets ---- Correct. The integration of world financial markets allows internationally active firms to raise​ capital, borrow​ money, and take part in foreign currency transactions more easily.

Which phase of globalization was triggered by the rise of electricity and steel​ production? A. The final phase B. The fourth phase C. The first phase D. The second phase E. The third phase

The second phase --- Correct. The second phase of globalization began around 1900 and was associated with the rise of electricity and steel production. This phase reached its height just before the Great​ Depression, a worldwide economic downturn that began in 1929.

Which of the following terms represents the arrangement of activities conducted by a company in the course of​ creating, manufacturing,​ promoting, and servicing a​ product? A. Contagion B. Globalization of markets C. Global sourcing D. Value chain E. Internationalization

Value chain---- Correct. A value chain is the sequence of​ value-adding activities performed by a firm in the course of​ developing, producing,​ marketing, and servicing a product.

The​ ________ consists of approximately 150 countries worldwide and was created to control and safeguard fairness in international trade and investments. A. IMF B. NAFTA C. APEC D. WTO E. GATT

WTO----Correct. The World Trade Organization​ (WTO) was formed because of GATT and aimed to regulate and ensure fairness in global trade and investment.

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

a global decrease in barriers to trade --- Correct. One of the causes of globalization was a worldwide reduction in barriers to trade and investment due to falling trade​ barriers, the​ WTO, and the emergence of economic integration blocs.

The sequence of activities implemented by a company in the course of​ creating, manufacturing,​ promoting, and servicing a product is known as​ ________. A. global sourcing B. a contagion C. a value chain D. internationalization E. globalization of markets

a value chain---- Correct. A value chain is the sequence of​ value-adding activities performed by the firm in the course of​ developing, producing,​ marketing, and servicing a product.

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

advances in​ technology, including​ communications, data, and engineering--- Correct. Possibly the most significant driver of globalization has been technological advances in​ information, communication,​ manufacturing, and transportation.

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

globalization--- Correct. The globalization of markets is the ongoing economic integration and growing interdependency of countries worldwide. Market globalization is manifested by the production and marketing of branded products and services worldwide.

Many small enterprises are creating products for international markets using​ 3-D printers. Product plans and designs can be found simply by searching online. Using the Internet to design products is an example of which area of technological​ advancement? A. Manufacturing B. Information technology C. Transportation D. Basic scientific research E. Communications

information technology--- Correct. Information technology​ (IT) is the science and process of creating and using information resources. Its effect on business has been revolutionary. At a higher​ level, IT supports managerial decision​ making, such as the selection of qualified foreign business​ partners, by allowing firms to quickly access key information and intelligence.

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

value chain------ Correct. The most direct consequence of market globalization is on a​ company's value chain. Globalization compels firms to organize their​ sourcing, manufacturing,​ marketing, and other​ value-adding activities on a global scale to achieve cost advantages and time efficiencies.