Globalization and Its Types
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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</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</p> Signup and view all the answers

    Which of the following is NOT a pull factor?

    <p>War</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</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</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</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</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</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</p> Signup and view all the answers

    What is the primary concern associated with exchange rate fluctuations?

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

    What is sovereign debt typically issued in?

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

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

    <p>Telecom infrastructure</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</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.</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</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</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</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</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</p> Signup and view all the answers

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