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globalization opportunities for firms

1. Globalization has __________ the opportunities for a firm to expand its revenues by selling around the world and __________ its costs by producing in nations where key inputs are cheap.
A) reduced, reduced
B) increased, increased
C) increased, reduced
D) reduced, increased

2. The two main components of globalization are:
A) the globalization of markets and the globalization of production
B) the globalization of production and the globalization of finance
C) the standardization of technology and the globalization of markets
D) the globalization of finance and the globalization of accounting

3. The most global of markets is in what area?
A) Services
B) Consumer goods
C) Industrial goods
D) Intellectual capital

4. The most global of markets are not markets for __________, where national differences in tastes and preferences are still often important enough to act as a brake on globalization.
A) services
B) consumer goods
C) insurance and banking
D) industrial goods
5. _______ is an understanding of how cultural differences across and within nations can affect the way in which business is practiced.
A) Cross-cultural literacy
B) Cultural business sensitivity
C) Cross-national awareness
D) Cross-border sensitivity

6. __________ are shared assumptions about how things ought to be.
A) Norms
B) Values
C) Principles
D) Ideals

7. In the 1960s and 1970s, class divisions led to a high level of industrial disputes and raised the costs of doing business in
A) Germany.
B) Great Britain.
C) Japan.
D) United States.

8. _______ are the two central components of culture.
A) Ethics and laws
B) Values and norms
C) Religious beliefs and family tradition
D) Class consciousness and social mobility

9. _________ occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10 percent or more in a foreign business entity.
A) Cross-boarder international investment
B) Foreign direct investment
C) Reciprocal foreign investment
D) International capital investment

10. Once a firm undertakes FDI, it becomes a(n)
A) international conglomerate.
B) multinational enterprise.
C) synergistic enterprise.
D) cross-cultural enterprise.

11. FDI takes on two main forms. They are:
A) green-field investments and acquiring or merging with an existing firm
B) alliances and joint ventures
C) acquiring or merging with an existing firm and joint ventures
D) alliances and green-field investments

12. A(n) _______ is a company that conducts business in more than one country.
A) cross-cultural enterprise
B) synergistic enterprise
C) multinational enterprise
D) international conglomerate

13. The term __________ is often used loosely to embrace a variety of arrangements between actual or potential competitors including cross-shareholding deals, licensing arrangements, formal joint ventures, and informal cooperative arrangements.
A) strategic alliances
B) competitive associations
C) tactical partnerships
D) cooperative interrelationships

14. The choice of what foreign market to enter , according to the textbook, should be driven by an assessment of:
A) relative long-run growth and profit potential.
B) geographic proximity and friendliness of host government.
C) climate and economic stability of host government.
D) friendliness of host government and profit potential.

15. The biggest danger associated with a strategic alliance is that:
A) managing alliances is very time consuming
B) a firm may give away more than it receives
C) a firm may lose employees to its alliance partners
D) a firm may incur substantial legal costs to set up its alliances

16. The advantages frequently associated with entering a market early are commonly known as:
A) inaugural advantages.
B) first-mover advantages.
C) initial-entrant premiums.
D) proactive-mover benefits.

17. A critical aspect of the _____ function is identifying gaps in the market so that new products can be developed to fill those gaps.
A) materials management
B) finance
C) operations
D) marketing

18. When markets are divided by sex, age, income, race, or education, they are segmented by
A) geography.
B) economic factors.
C) psychological factors.
D) demography.

19. A critical element of a firm's marketing mix is its ____ strategy, which is the means it chooses for delivering the product to the consumer.
A) materials management
B) communications
C) logistics
D) distribution

20. The number of intermediaries between the product (or manufacturer) and the consumer is referred to as
A) channel length.
B) channel distance.
C) channel exclusivity.
D) channel reach.

21. The activities an organization carries out to utilize its ____ effectively is referred to as human resource management.
A) customers
B) external stakeholders
C) human resources
D) suppliers

22. Compensation practices varying from country to country, labor laws prohibiting union organization, and the strong pursuit of equal employment legislation are all complexities in
A) customers orientation.
B) external stakeholders.
C) human resources.
D) supplier confidence.

23. Ted Thomas is a manager for XYZ International Inc. Ted's job requires him to deal with the differences in equal employment legislation between each country. Ted could be considered to be a(n)
A) external manager.
B) account manager.
C) human resource manager.
D) expatriate.

24. A(n) _____ manager is a citizen of one country who is working abroad in one of his or her firm's subsidiaries.
A) expatriate
B) cross-divisional
C) cross-cultural
D) ethnocentric

25. A(n) ______ strategy makes sense if a firm has a valuable core competence that indigenous competitors in foreign markets lack.
A) global
B) international
C) multidomestic
D) transnational

26. The distinguishing feature of _______ firms is that they extensively customize both their product offerings and their marketing strategy to match national conditions.
A) multidomestic
B) global
C) transnational
D) international

27. Firms pursuing a(n) _______ strategy orient themselves toward achieving maximum local responsiveness.
A) international
B) domestic
C) multidomestic
D) global

28. Which of the following is not a typical characteristic of multidomestic firms?
A) Extensively customize both their product offerings and their marketing strategy to match different national conditions
B) Try to establish a complete set of value creation activities in each major national market in which they do business
C) Have a low cost structure
D) Do a poor job of leveraging core competencies within the firm

29. With membership of 191 countries, the _______________ was established to preserve peace through international cooperation and collective security.
A) World Monetary Fund
B) The International Monetary Fund
C) International bank
D) United Nations

30. The __________ is a treaty designed to remove barriers to the free flow of goods, services, and capital between nations.
A) Global Agreement on Tariffs and Commerce
B) United Nations Treaty on Trade
C) General Agreement on Tariffs and Trade
D) Multi-National Agreement on Tariffs and Commerce

Define globalization. List the major drivers of globalization. Explain some effects of globalization.

What is country risk analysis? How is this analysis conducted? Is country risk analysis an effective tool in determining the desirability of establishing a manufacturing site or other mode of entry?


Solution Preview

The response address the queries posted in 935 words with references.

//Here we will discuss about the present environment's significant concept "Globalizations" which is at increasing advancement in different nations. Along with its definition, we will discuss about its major drivers and their implications.//

Globalization is basically a procedure of developing the associations and interdependence in the world's various markets and establishments. This procedure of globalization in present competitive environment has quickened observably, with great advancements in technology, which had made it easier for individuals to move, communicate and do business internationally (Globalization). The substantial current drivers of globalization are as follows:

Declining Trade and Investment Barriers: In present times, for doing businesses in different nations most of the countries are reducing trade barriers and consistently these countries are moving out restrictions to foreign direct investment. All these recent trends are facilitating the globalization. The letting down of barriers to external trade is altering the organizations to analyze the world as their potential market in despite of a single country as their potential market.
Technological Change: Another imperative driver of globalization is the advanced technological changes that include the progress of the microprocessor, which has altered the volatile development of high-energy, low-priced computation and increased amount of information that can easily be worked on by a number of individuals and organizations. The development of microprocessor has also directed a number of developments in telecommunications expertise, which has prominently decreased the costs of global communications that has proved as a significant advantage for increased globalization. Another noteworthy technological change is the paramount growth of internet and World Wide Web, which has increased the globalization in a momentous manner (Wheelen & Hunger, 2004).
//Above, we discussed about the globalizations and its major drivers. Now, as per the directions, we will discuss about the effects of globalizations, which are numerous.//

The effects of Globalization are multiple, ...

Solution Summary

The response address the queries posted in 935 words with references.