Globalization and Its Types

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

Questions and Answers

What is the primary reason why Nike outsources its production to Asian countries?

  • To access new markets
  • To take advantage of more efficient production
  • To access technology and skills
  • To reduce production costs (correct)

What is the term for the expansion of a company into foreign markets to increase revenue?

  • Pull factor
  • Globalization of markets (correct)
  • PESTLE analysis
  • Globalization of production

Which of the following is an example of a push factor?

  • Access to technology and skills
  • Proximity to key resources
  • New markets
  • Deterioration in home business environments (correct)

What is the purpose of a PESTLE analysis?

<p>To provide a comprehensive understanding of external macro-environmental forces (C)</p> Signup and view all the answers

What is the term for the movement of products, people, money, companies, and information across national boundaries?

<p>Globalization (A)</p> Signup and view all the answers

Which of the following is NOT a pull factor?

<p>War (B)</p> Signup and view all the answers

What type of internationalization involves a company having its branded products produced by another company in a foreign location?

<p>Outsourcing (B)</p> Signup and view all the answers

Which of the following is an example of Foreign Direct Investment (FDI)?

<p>Tesla opening a factory in Shanghai, China (C)</p> Signup and view all the answers

What type of internationalization involves the sale of products in a country other than the one in which they were made?

<p>Exporting (A)</p> Signup and view all the answers

What type of agreement involves a company using the brand, products, and business form of another firm under a license?

<p>Franchising (D)</p> Signup and view all the answers

What is the primary reason BMW joined forces with the Brilliance Auto Group to create BMW Brilliance?

<p>Due to local laws (C)</p> Signup and view all the answers

Which of the following companies is an example of a company that has invested in a foreign country through Foreign Direct Investment (FDI)?

<p>Tesla (B)</p> Signup and view all the answers

What is the primary concern associated with exchange rate fluctuations?

<p>Changes in import prices (B)</p> Signup and view all the answers

What was the primary objective of the International Monetary Fund (IMF) during the Bretton Woods System?

<p>To maintain a fixed exchange rate system (C)</p> Signup and view all the answers

What is the primary criticism of the World Bank's infrastructure projects?

<p>Lack of focus on environmental impact (B)</p> Signup and view all the answers

What is sovereign debt typically issued in?

<p>Reserve currency (A)</p> Signup and view all the answers

What was the outcome of Argentina's borrowing from international capital markets in the 1990s?

<p>Accumulation of sovereign debt liabilities (D)</p> Signup and view all the answers

What is comparative advantage, in the context of international trade?

<p>An advantage in producing a product with greater relative advantage (D)</p> Signup and view all the answers

According to Porter's Theory of Competitive Advantage, which of the following is NOT one of the four major factors of international competitiveness?

<p>Government intervention (D)</p> Signup and view all the answers

What is one reason for government intervention in international trade, as illustrated by the Huawei case study?

<p>To protect jobs and industries (D)</p> Signup and view all the answers

Why did the United States fear Huawei, according to the case study?

<p>Because its founder was a Chinese army engineer (D)</p> Signup and view all the answers

What is one of Huawei's major products, according to the case study?

<p>Telecom infrastructure (A)</p> Signup and view all the answers

What was a concern about Huawei's 5G technology, according to the United Kingdom?

<p>It would allow the Chinese government to shut down networks (D)</p> Signup and view all the answers

What is the primary difference between populism and authoritarianism?

<p>Populism portrays 'the people' as a morally good force, while authoritarianism does not. (D)</p> Signup and view all the answers

What is the primary advantage of a pegged exchange rate system?

<p>Forces monetary discipline and reduces speculation (D)</p> Signup and view all the answers

What is the primary reason the gold standard broke down?

<p>Countries restricted gold transfers during World War I (D)</p> Signup and view all the answers

Which of the following is a characteristic of a floating exchange rate system?

<p>The exchange rate is determined by the relative supply and demand of other currencies (C)</p> Signup and view all the answers

What is the primary difference between a fixed exchange rate and a pegged exchange rate?

<p>A fixed exchange rate is determined by the market, while a pegged exchange rate is set by the government (A)</p> Signup and view all the answers

Why might a country choose to adopt a floating exchange rate system?

<p>To maintain monetary policy autonomy (C)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Globalization 101
6 questions

Globalization 101

MagicVuvuzela avatar
MagicVuvuzela
Importance of International Markets
24 questions

Importance of International Markets

HeartwarmingLightYear1429 avatar
HeartwarmingLightYear1429
Globalización y Economía Mundial
15 questions
Use Quizgecko on...
Browser
Browser