MGMT 3050: Chapter 1

Question 1

_______ benefits Apple by helping it sell the same iPod models worldwide with little or no modification.

Answer 1

Globalization

Question 2

Products brought into a country that are acquired from organizations located abroad are called ________, whereas ________ are goods or services produced or based in one country that are sold abroad.

Answer 2

Imports; exports

Question 3

Convergence in buyer preferences in markets around the world is called ________, whereas ________ refers to the dispersal of production activities to locations around the world.

Answer 3

Globalization of markets; globalization of production

Question 4

Two forces expanding globalization are ________ and ________.

Answer 4

Falling barriers to trade and investment; technological innovation

Question 5

The value of all goods and services produced by a domestic economy over a one-year period is called ________.

Answer 5

Gross domestic product (GDP)

Question 6

When measuring globalization, a factor that makes some countries more global than others is ________.

Answer 6

Personal contact

Question 7

From the start of the First World War to the end of the Cold War, there was a geographic divide between East and West and an ideological divide between ________.

Answer 7

Communism and capitalism

Question 8

The World Bank was created to provide financing for ________.

Answer 8

National economic development efforts

Question 9

Opponents to globalization argue that it ________.

Answer 9

Eliminates jobs in developed nations

Question 10

Globalization opponents say it causes environmental conditions and regulations to ________.

Answer 10

Globalization opponents say it causes environmental conditions and regulations to ________.

Question 11

The branch of the globalization debate concerned with a gap in average incomes between rich and poor nations is called ________.

Answer 11

Inequality between nations

Question 12

A _______ is a business that has direct investments (in the form of marketing or manufacturing subsidiaries) abroad in multiple countries.

Answer 12

Multinational corporation

Question 13

Key characteristics of born-global firms are an innovative culture and ________.

Answer 13

Knowledge-based organizational capabilities

Question 14

The ________ is a dynamic, integrated system that weaves together four distinct elements and makes international business unique.

Answer 14

Global business environment

Question 15

International business management differs from management of a(n) ________ in nearly all respects.

Answer 15

Purely domestic company

Question 16

The use of computer networks to purchase, sell, or exchange goods and services, service customers, collaborate with partners, and transact within a company is called e-synergy.

Answer 16

False

Question 17

The trend toward decreasing dependence among nations and economies is called globalization.

Answer 17

False

Question 18

A benefit of the globalization of production is the ability to access resources abroad that are unavailable or more costly in the home country.

Answer 18

True

Question 19

The World Trade Organization (WTO) agreements and smaller, regional trade pacts have slowed world trade and cross-border investment significantly.

Answer 19

True

Question 20

Gross domestic product (GDP) is the value of all goods and services produced by a country’s domestic economy over a one-year period.

Answer 20

True

Question 21

Small firms were among the first to use the Internet as a global marketing tool.

Answer 21

True

Question 22

Globalization protesters believe the overall gains from globalization that accrue to national economies are worth the lost jobs that might result for individuals.

Answer 22

False

Question 23

Protesters blame denationalization for causing a “race to the bottom” in labor standards and the environment.

Answer 23

False

Question 24

Globalization may actually increase inequality because poor nations open to world trade and investment appear to grow faster than rich nations.

Answer 24

False

Question 25

Globalization supporters say it has spread democracy worldwide, while those opposed to globalization say it undercuts democracy.

Answer 25

True

Question 26

Although globalization may cause political and economic ideologies to diverge, deeper elements of culture may not be as easily affected.

Answer 26

False

Question 27

It is common for large companies’ business deals such as mergers and acquisitions to be valued in the billions of dollars.

Answer 27

True

Question 28

The born-global firm is a company that takes a global perspective on its market and engages in international business from or near its inception.

Answer 28

True

Question 29

No business can become completely immune to events in the global business environment.

Answer 29

True

Question 30

The dynamic nature of globalization increases competition for companies as they begin to see the entire world as an opportunity.

Answer 30

True