Global Business Challenges and Strategies

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What is one challenge organizations face due to poor infrastructure in developing countries?

Improved customer relationships
Increased market opportunities
Enhanced worker productivity
Higher operational costs (correct)

How does globalization affect the economics of various industries?

It eliminates the need for regulatory compliance.
It promotes economic isolation among countries.
It creates uniform customer preferences across regions. (correct)
It reduces the competitive landscape.

What key factor does the CAGE framework identify as reducing economic exchange between countries?

Market size variation
Technological advancements
Political alignment
Cultural differences (correct)

Which statement best describes Pankaj Ghemawat's view of globalization?

The world is semi-globalized and multi-domestic. (B) Signup and view all the answers

What role do government policies play in global strategy?

They can create uneven playing fields internationally. (C) Signup and view all the answers

What is meant by the 'world is flat' concept in relation to global business?

Global connections are increasingly equalized. (A) Signup and view all the answers

What was the agreement that replaced NAFTA in 2019?

United States Mexico Canada Agreement (D) Signup and view all the answers

Which element of globalization is affected by administrative similarities between countries?

Trade flows (A) Signup and view all the answers

What is a key characteristic of a customs union?

All members share the same external tariff (C) Signup and view all the answers

In Ghemawat's view, what should workers facing dislocation from globalization focus on?

Refining skills that cannot be delegated offshore (A) Signup and view all the answers

Which of the following is an example of a common market?

Common Market for Eastern and Southern Africa (COMESA) (B) Signup and view all the answers

What is a potential drawback of a common market?

Worker migration to countries with highest wages (A) Signup and view all the answers

What is an economic union characterized by?

Shared currency and harmonized economic policies (A) Signup and view all the answers

Which of the following best describes a political union?

Member countries collectively behaving as a single country (D) Signup and view all the answers

What is the relationship between a customs union and its member countries?

Business and job opportunities may shift to more productive countries (D) Signup and view all the answers

What organization is responsible for setting monetary policy in the Eurozone?

European Central Bank (D) Signup and view all the answers

What is the primary advantage of a functional organizational structure?

Enhanced operational efficiency and specialization (D) Signup and view all the answers

What characterizes a divisional organizational structure?

Separation of employees into departments based on product areas or regions (B) Signup and view all the answers

What is a common disadvantage of functional organizational structures?

Tunnel vision due to the isolation of groups (C) Signup and view all the answers

What happens to a U.S. financial investor's return if the U.S. dollar strengthens while investing abroad?

Returns will be lower than expected. (C) Signup and view all the answers

Which of the following best describes internal auditing?

An investigation of employee compliance with policies (B) Signup and view all the answers

What defines a floating exchange rate?

Its value fluctuates based on market demand and supply. (B) Signup and view all the answers

In a pegged float exchange rate regime, what allows the currency’s value to change?

It fluctuates within a specified band. (B) Signup and view all the answers

What does the term 'conflict of interest' refer to?

Ethical challenges arising from multiple competing interests (B) Signup and view all the answers

What is the impact of appreciating currency on a country’s export market?

Exports become more expensive for foreign buyers. (A) Signup and view all the answers

What is a key aspect of discrepancies in accounting?

Unintentional errors in financial records (A) Signup and view all the answers

How is a fixed exchange rate determined?

By comparing it to a basket of foreign currencies. (A) Signup and view all the answers

Which statement is true regarding grease payments?

They are small inducements to expedite decisions and transactions (C) Signup and view all the answers

Which of the following correctly defines a whistleblower?

A person who reveals unethical or illegal activities within an organization (A) Signup and view all the answers

Which option describes the nature of a currency that is categorized as floating?

It can change based on market forces. (C) Signup and view all the answers

What effect does a depreciation of currency have on foreign investments?

It decreases the rate of return when converting back. (D) Signup and view all the answers

In a crawling band exchange rate system, what allows for adjustments to the national currency's value?

Regular government interventions based on economic conditions. (A) Signup and view all the answers

What is the primary function of copyrights?

To give the inventor the right to exclude others from using the invention (D) Signup and view all the answers

What does the World Intellectual Property Organization (WIPO) focus on?

Building a global IP infrastructure and respect for IP (B) Signup and view all the answers

Which of the following best describes corporate social responsibility (CSR)?

A company's commitment to societal obligations and ethical standards (C) Signup and view all the answers

How do cultural differences impact the establishment of ethical codes in business?

Cultural norms can cause varying interpretations of ethics across countries (C) Signup and view all the answers

Which of the following statements regarding trademark protection is accurate?

Trademarks help identify and distinguish goods of different sellers. (D) Signup and view all the answers

What unethical practice was Odebrecht involved in?

Paying kickbacks to politicians for securing contracts (C) Signup and view all the answers

What distinguishes ethical consumerism from traditional consumerism?

Ethical consumerism considers a company's ethical profile in purchasing decisions. (B) Signup and view all the answers

Which aspect of international intellectual property law does WIPO primarily address?

Global policies related to intellectual property (B) Signup and view all the answers

What is the main focus of the Push Model in supply chain management?

Product needs (D) Signup and view all the answers

Which HR strategy emphasizes local hiring for foreign subsidiaries?

Polycentric (C) Signup and view all the answers

What does cultural agility primarily involve?

Understanding multiple local contexts (A) Signup and view all the answers

In the context of HRM, who is classified as a Host-country National?

A local citizen employed by a foreign subsidiary (A) Signup and view all the answers

What is the primary purpose of performance evaluations in organizations?

To assess employee work competencies (C) Signup and view all the answers

Which term describes the transition process for employees returning to their home countries?

Repatriation (C) Signup and view all the answers

What is the distinction between primary and secondary sources?

Primary sources are firsthand accounts, while secondary sources interpret original information. (A) Signup and view all the answers

What defines a geocentric HR strategy?

Employing the best candidates regardless of origin (A) Signup and view all the answers

Developing Country Challenges

Organizations face infrastructure limitations (poor roads, unreliable power) and technology gaps (lack of training or equipment) in developing countries, increasing operating costs and risks.

Globalization Convergence

Customer needs across countries are increasingly similar, leading to globalized markets.

Globalization's Economic Impact

Globalization creates opportunities for economies of scale and standardization in certain industries.