MAN 3600 Exam 1
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
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
The third phase of globalization was triggered by ____________. a. the end of WW II b. the invention of electricity c. the end of WW I d. the Great Depression
a
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
_______ are the most transformative technology in developing economies. a Mobile phones b Televisions c Intranets d E-mails
a
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
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
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
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
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
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
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
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
According to Michael Porter, a nation's factor endowments help determine its _______. a. national competitive advantage b. demand conditions c. negative balance of trade d. comparative advantage
a
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
Early multinationals from the third phase of globalization originated in ________. a Japan b China c India d Brazil
a
________ 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
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
Which of the following would NOT be considered an example of foreign direct investment (FDI)? a. cross-border purchase of a textile plant b. cross-border purchase of stocks c. purchase of capital assets of a foreign company d. purchase of foreign land for business operations
b
Competitive advantage refers to the ___________. a. belief that national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports b. superior features of a country that provide unique benefits in global competition, typically derived from either natural endowments or deliberate national policies. c. distinctive assets or competencies of a firm that are difficult for competitors to imitate and are typically derived from specific knowledge, capabilities, skills, or superior strategies d. relative absence of restrictions to the flow of goods and services between nations.
c
Each of the following represents a factor of production EXCEPT______ a. manufacturing infrastructure b. technology c. government regulations d. managerial talent
c
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
Over time, the GATT evolved into the ________. a World Bank b International Monetary Fund c World Trade Organization d World Intellectual Property Organization
c
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
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
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
________ 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
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
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
The merging of historically distinct & separate national markets into one huge global marketplace is referred to as the _________ a. globalization of production b. integration of markets c. transformation of commerce d. globalization of markets
d
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
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
Which of the following best explains why export growth has outpaced the growth of domestic production during the last few decades? a. Both world exports and domestic production have grown significantly over the past 30 years. b. The cost to import products is generally higher than the cost to produce domestic products. c. Growth in gross domestic product in most countries has steadily increased since 1970. d. Advanced economies now source many of their consumable products from low-cost manufacturing nations.
d
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
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