EC-104 The Global Business Environment

12. When people from one country/region eat and dress differently from people in another country/region, it is due to differences in infrastructure political climate nationalism culture

culture

11. One of the biggest barriers that separates countries/regions is language technology brain drain methods of travel

language

16. A clothing manufacturer in the United States allows a company in Argentina to use its name and logo in exchange for a fee and royalties. This is an example of franchising licensing a joint venture exporting

licensing

9. Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of environmental degradation nationalism exporting offshoring

offshoring

The technology that has had the most influence on globalization has been wireless connections inexpensive telephone service television the Internet

the Internet

13. Which of the following is a main reason for businesses to expand into foreign markets To build brand value To spread culture To pay taxes To help the less fortunate

To build brand value

14. Which of the following is a reason a company might organize itself under the laws of a different country than those of its "home" country: To take advantage of technology To save on taxes To remain competitive To build brand value

To save on taxes

19. A business can create a wholly owned subsidiary by building a facility in a foreign market or by signing a licensing agreement finding a franchisee exporting to the market buying an existing firm in the market

buying an existing firm in the market

15. Of the following methods of entering a foreign market, which is the least risky: Establishing multinational firms Exporting Licensing Creating wholly owned subsidiaries

Exporting

7. How has globalization affected consumers? It has increased competition among them It has helped them to save on taxes It has given them a bigger and better variety of products to choose from It has made them more closed-minded toward other cultures and ethnicities

It has given them a bigger and better variety of products to choose from

3. How has the ability to travel more freely contributed to globalization? It escalates competition between businesses It promotes a sense of nationalism It helps enable the spread of culture and ideas It breaks down political barriers between countries

It helps enable the spread of culture and ideas

Which of the following is a true statement about globalization: Its pace is slowing down. It has had a minimal impact on the world It is a purely economic term It involves the flow of ideas across national borders

It involves the flow of ideas across national borders

4. Which of the following is a true statement about globalization and political barriers Many countries are sealed off from the rest of the world due to communism The United States has very few trading partnerships with other countries In the future, there will be more political barriers between countries The world is much more politically open than it used to be

The world is much more politically open than it used to be

8. Brain drain occurs when businesses outsource jobs to other countries consumers spend too much time shopping online a country loses talented employees to better opportunities in other countries people who speak different languages try to communicate with one another

a country loses talented employees to better opportunities in other countries

18. Forming a joint venture reduces risk by increasing technology allowing costs to be shared ensuring business success cutting down on taxes

allowing costs to be shared

5. Globalization can be an advantage for businesses because it can help them to cut costs for certain resources can contribute to a phenomenon called brain drain inhibits the ideas of other businesses increases direct competition

can help them to cut costs for certain resources

20. The highest level of involvement in international business is establishing a multinational firm creating a wholly owned subsidiary licensing franchising

establishing a multinational firm

17. You pay Burger King for the right to set up a location in Barcelona under the corporate headquarters' guidance and regulation. This is an example of franchising a wholly owned subsidiary a joint venture exporting

franchising

6. Free exchange of ideas contributes to greater business innovation decreased competition fewer choices for consumers more instances of outsourcing

greater business innovation

10. Environmental degradation occurs because of decreased competition nationalism increased production offshoring

increased production