All the statements below are correct except:

Â	Â	Globalization means the shift toward a more integrated and interdependent world economy
Â	Â	Globalization is the trend toward greater economic, cultural, political, and technological interdependence among nations.
Â	Â	Globalization is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before.
Â	Â	Globalization necessitates companies conduct research and development at their headquarters and use their innovations and inventions worldwide.

2.5 points

Question 2

All of the following except one have been a major force in advancing globalization in recent decades? The exception is:

Â	Â	decreasing prices of natural resources
Â	Â	liberalization of cross-border trade
Â	Â	increase in and expansion of technology
Â	Â	homogenization of material culture

2.5 points

Question 3

Which of the following statements correctly describes the difference between an international business and multinational enterprise (MNE)?

Â	Â	An international business, unlike a multinational enterprise, needs to have manufacturing units in at least two foreign nations
Â	Â	An international business, unlike a multinational enterprise, needs to manufacture products or provide services that target a global market
Â	Â	An international business, unlike a multinational enterprise, need not customize its products to the requirements of national markets
Â	Â	An international business, unlike a multinational enterprise, need not invest directly in operations in other countries

2.5 points

Question 4

Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects the increasing internationalization of business corporations.

True

False

2.5 points

Question 5

The slogan (view) that says, Ac€A?globalization is here to stayAc€?? is likely based on the belief that ________.

Â	Â	international organizations will replace nation-states
Â	Â	protesters against globalization will be persuaded to change their views
Â	Â	people want more global homogeneity of cultures
Â	Â	Technological advances in transportation and communications are highly persistent

2.5 points

Question 6

Imported flowers are now a stronger competitor to U.S. grown flowers in the U.S. market. Which of the following is likely the MOST important factor for this increase in imports?

Â	Â	more effective production techniques
Â	Â	advances in communication systems
Â	Â	advances in transportation and logistics
Â	Â	cross-national cooperation

2.5 points

Question 7

One of the global trends is that governments continue to relax restrictions on cross-border trade or resource movements. Which of the following best explains this trend?

Â	Â	Most countries face shortages of workers, so they seek immigrants who can help them produce more.
Â	Â	Governments believe that this will decrease the need to make their own companies more innovative.
Â	Â	Governments believe that domestic producers will become more efficient as a result of foreign competition.
Â	Â	Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary.

2.5 points

Question 8

Which of the following boosted the ability of small companies selling traditional products to compete in the global market place?

Â	Â	the barriers to trade that restrict their products from crossing domestic boundaries
Â	Â	technology that lowers the costs and difficulties of global communication
Â	Â	increased investment by foreign competitors in domestic markets
Â	Â	government policies that seek to regulate the flow of capital across national borders

2.5 points

Question 9

Which of the following is an example of globalization of production?

Â	Â	A US consumers who import food products from Mexico
Â	Â	A French company which sells wine to a US restaurant owner.
Â	Â	A Japanese company that builds a car manufacturing facility in Kentucky.
Â	Â	A Swiss watch manufacturer that builds a manufacturing facility in Switzerland

2.5 points

Question 10

Although the World Trade Organization's has dispute settlement system, it has no ability to penalize offending nations.

True

False

2.5 points

Question 11

Critics and supporters of globalization believe that the overall gains that accrue to national economies are worth the lost livelihoods of some workers.

True

False

2.5 points

Question 12

Critics of globalization argue that it eliminates jobs in developed nations.

True

False

2.5 points

Question 13

The president of a country who won an election believes that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. However, he does not think of himself as a communist, but as a socialist. Which of the following statements about the president is true?

Â	Â	He does not believe that a violent revolution is needed to seize control over resources.
Â	Â	He does not think that political dissidents should go unpunished.
Â	Â	He believes that the pricing of goods should be left to the discretion of workers.
Â	Â	All of the above.

2.5 points

Question 14

Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses?

Â	Â	capitalism
Â	Â	communism
Â	Â	tribalism
Â	Â	socialism

2.5 points

Question 15

Consider that you are hired as a legal expert of corporation considering the possibility of building a new manufacturing facility in two foreign countries in order to lower labor and production costs. Which of the following factors should you consider when evaluating the legal systems of the countries?

Â	Â	the profits made by local companies in the countries
Â	Â	the prevalence of crime in the two countries
Â	Â	the profits made by international companies in other countries
Â	Â	the resolution of contractual dispute with local vendors

2.5 points

Question 16

Which of the following statements is true of a country whose legal system is based on civil law?

Â	Â	The law is based on religious teachings and is enforced by the country's religious leaders.
Â	Â	The law is flexible and its interpretations differ with situations.
Â	Â	The law is based on a detailed set of written rules that constitute a legal code.
Â	Â	The law is interpreted on the basis of tradition, precedent and usage.

2.5 points

Question 17

Which of the following, demonstrates that a country has an unstable business environment?

Â	Â	Its business laws are inflexible and cannot be interpreted according to the comfort of government officials.
Â	Â	Its government does not enforce product liability laws or protect individual property rights.
Â	Â	Its activities are bound by several multilateral agreements conducted with neighboring countries.
Â	Â	Its private sector comprises independently owned firms that exist to make profits.

2.5 points

Question 18

Consider that you are an investor who wants to invest in a country that has a high gross national income (GNI) per capita. Which of the following countries would most likely qualify as a prospective country for your investment?

Â	Â	Mexico
Â	Â	India
Â	Â	Japan
Â	Â	China

2.5 points

Question 19

Which of the following measures the extent to which a country equitably provides its people with a long and healthy life, an education, and a decent standard of living?

Â	Â	category development index
Â	Â	gross national product index
Â	Â	purchasing power index
Â	Â	human development index

2.5 points

Question 20

Which of the following grants an inventor of a product or process that excludes others from making, using, or selling the invention?

Â	Â	patent
Â	Â	trademark
Â	Â	watertight
Â	Â	copyright

2.5 points

Question 21

Your company is conducting a research on new markets by comparing countries in terms of their human development index (HDI) scores. The company wishes to expand into a market where individuals experience a very high level of total well-being. Which of the following countries would the company most likely choose?

Â	Â	Norway
Â	Â	Russia
Â	Â	China
Â	Â	United States

2.5 points

Question 22

Which of the following economic system allows the state to set prices in certain sectors, own businesses, limit private enterprise, restrict investment by foreigners, and restrict international trade.

Â	Â	Free market system.
Â	Â	Socialist system
Â	Â	Communist system
Â	Â	Mixed economic system

2.5 points

Question 23

The relative ability of two countries' currencies to buy the same basket of goods in those two countries is called ________.

Â	Â	gross national product
Â	Â	gross domestic product
Â	Â	purchasing power
Â	Â	purchasing power parity

2.5 points

Question 24

Many believe that the U.S. companies dominate much of the international entertainment media, which largely shows U.S. products and lifestyles as glamorous and appealing. This situation would most likely be used as an example of ________.

Â	Â	the stronger work ethic typical of developed countries
Â	Â	the spread of high-context cultures
Â	Â	cultural fragmentation
Â	Â	cultural imperialism

2.5 points

Question 25

Which of the following best describes a result of cultural collision in international business?

Â	Â	A company implements practices that are less effective than intended.
Â	Â	Local employees are overlooked for promotions by home country managers.
Â	Â	Expatriate managers rely too heavily on local employees for negotiating business deals.
Â	Â	Foreign and domestic companies make adjustments for the local culture and legal environment.

2.5 points

Question 26

Businesses are interested to know a society attitude toward material accumulation to determine to what extent the market can support production activities.

True

False

2.5 points

Question 27

Suppose you are the manager of a firm that has operations in Tokyo. Which of the following would most likely motivate your Japanese employees?

Â	Â	"employee-of-the-month" programs
Â	Â	extensive vacation time
Â	Â	on-the-job challenges
Â	Â	good health benefits

2.5 points

Question 28

According to Hofstede's model of national culture, people generally prefer little consultation between superiors and subordinates in cultures where ________ is high.

Â	Â	power distance
Â	Â	fatalism
Â	Â	individualism
Â	Â	self-actualization

2.5 points

Question 29

In societies where trust is high, ________.

Â	Â	people tend to be more future-oriented
Â	Â	business costs are typically lower
Â	Â	people tend to be more fatalistic
Â	Â	family businesses are dominant

2.5 points

Question 30

MNEs that operate in societies with ________   (HofstedeAc€?cs dimensions of culture) are well advised to provide structure and order in the work place.

Â	Â	Low power distance scores
Â	Â	High uncertainty avoidance scores
Â	Â	Low individualism scores
Â	Â	High masculinity scores

2.5 points

Question 31

State two major forces that underlie the expansion of globalization.

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5 points

Question 32

What benefits might a company obtain from the globalization of markets?

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5 points

Question 33

Briefly explain what technological change means for a firm (state the benefits)

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5 points

Question 34

State and briefly explain the forms of risks of doing business in a country.

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5 points

Question 35

Briefly explain how you would evaluate the overall attractiveness of a country as a potential market