Globalization Insights Quiz
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Questions and Answers

What are the two key facets of globalization?

  • Globalization of Trade and Globalization of Services
  • Globalization of Markets and Globalization of Production (correct)
  • Globalization of Workforce and Globalization of Investments
  • Globalization of Resources and Globalization of Capital

    • Which institution is primarily focused on overseeing trade agreements?

  • World Trade Organization (correct)
  • United Nations
  • World Bank
  • International Monetary Fund

    • Which of the following is a criticism of globalization related to environmental concerns?

  • Job Creation
  • Economic Growth
  • Increased Pollution (correct)
  • Cultural Exchange

    • Which factor is NOT typically associated with driving globalization?

    <p>Increase in National Regulations</p> Signup and view all the answers

    What is a primary outcome of the globalization of production?

    <p>Sourcing goods globally for cost efficiency</p> Signup and view all the answers

    What has been a significant effect of declining trade barriers since World War II?

    <p>Increased foreign direct investment (FDI)</p> Signup and view all the answers

    Which of the following is NOT a force driving globalization?

    <p>Economic Isolationism</p> Signup and view all the answers

    What is a major concern associated with globalization regarding income?

    <p>Widening income inequality</p> Signup and view all the answers

    What is the primary purpose of a mission statement in an MNE?

    <p>To communicate objectives and approaches to achieve the vision</p> Signup and view all the answers

    Which of the following correctly describes the concept of cost leadership?

    <p>Achieving lower operational costs than competitors</p> Signup and view all the answers

    In which strategy does an MNE aim to balance global integration and local responsiveness?

    <p>Transnational Strategy</p> Signup and view all the answers

    What is NOT a step in the strategic planning process?

    <p>Assign budgets</p> Signup and view all the answers

    Which resource type is defined as tangible and intangible assets?

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

    What strategy focuses on customizing products for local markets?

    <p>Localization Strategy</p> Signup and view all the answers

    Which of the following best describes the integration-responsiveness grid?

    <p>A framework illustrating decision-making in global operations</p> Signup and view all the answers

    Which example illustrates a company using an International Strategy?

    <p>Google leveraging its home-country capabilities in foreign markets</p> Signup and view all the answers

    Which of the following best defines 'core competencies'?

    <p>Unique strengths that provide a competitive advantage</p> Signup and view all the answers

    What is the primary consideration of a differentiation strategy?

    <p>Offering unique products or services</p> Signup and view all the answers

    What is the term for a situation where differing cultural practices clash, causing misunderstandings?

    <p>Cultural Collision</p> Signup and view all the answers

    Which stage is NOT part of the culture shock process?

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

    What should companies prioritize according to guidelines for cultural adjustment?

    <p>Assessing cultural differences</p> Signup and view all the answers

    What is a key characteristic of totalitarian regimes?

    <p>Censorship and suppression of opposition</p> Signup and view all the answers

    Which legal system is primarily based on written codes?

    <p>Civil Law</p> Signup and view all the answers

    What impacts foreign investment and trade according to the concept of corruption?

    <p>Reduces foreign investment</p> Signup and view all the answers

    Which political system is defined by government by the people, directly or through elected representatives?

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

    What is a common characteristic of collectivist states?

    <p>Prioritization of collective goals</p> Signup and view all the answers

    Which type of political risk involves the seizure of assets by the government?

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

    What is the philosophy behind individualism?

    <p>Freedom to pursue self-interests</p> Signup and view all the answers

    Which type of totalitarianism is characterized by religious rule?

    <p>Theocratic Totalitarianism</p> Signup and view all the answers

    What aspect of legal systems differs significantly between common law and civil law?

    <p>Complexity of contracts</p> Signup and view all the answers

    What should businesses develop among employees to manage cultural diversity effectively?

    <p>Cultural Intelligence (CQ)</p> Signup and view all the answers

    What are the three components of the Human Development Index (HDI)?

    <p>Health, Education, Income</p> Signup and view all the answers

    Which type of economic system is characterized by centralized control, often leading to inefficiencies?

    <p>Command Economy</p> Signup and view all the answers

    What is the primary role of patents in intellectual property protection?

    <p>Granting exclusive rights for inventions</p> Signup and view all the answers

    Which agreement requires WTO members to enforce intellectual property protection?

    <p>TRIPS Agreement</p> Signup and view all the answers

    How does Purchasing Power Parity (PPP) improve comparisons of living standards between countries?

    <p>Adjusts GDP for cost of living differences</p> Signup and view all the answers

    What is the shadow economy known for?

    <p>Reducing official GDP figures</p> Signup and view all the answers

    Which of the following is a significant factor affecting the economic development of a country?

    <p>Political systems</p> Signup and view all the answers

    In which type of economy is entrepreneurial success typically highest?

    <p>Market Economy</p> Signup and view all the answers

    What impact does strong property rights have on a country's economy?

    <p>Protects investments and fosters economic activity</p> Signup and view all the answers

    Which country exemplifies the impact of the shadow economy on GDP?

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

    Which of the following is NOT a consideration in assessing international business risks?

    <p>Home country taxes</p> Signup and view all the answers

    What role does education play in economic development?

    <p>Improves productivity and fosters growth</p> Signup and view all the answers

    What is a common outcome of operating in countries with corruption or human rights violations?

    <p>Lower ethical standards</p> Signup and view all the answers

    Which country’s legal framework supports property rights, significantly impacting its economic growth?

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

    What is the percentage of Greece's shadow economy relative to its GDP?

    <p>23%</p> Signup and view all the answers

    Which country is predicted to surpass the U.S. economy within a decade?

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

    What does Amartya Sen's framework for development emphasize?

    <p>Political participation and citizens' rights</p> Signup and view all the answers

    Which economic theory advocates for unrestricted trade without government intervention?

    <p>Free Trade Theories</p> Signup and view all the answers

    According to the Product Life Cycle Theory, what typically happens during the 'maturity' stage?

    <p>Production moves to lower-cost countries</p> Signup and view all the answers

    What is the main focus of the Human Development Index (HDI)?

    <p>Health, education, and income</p> Signup and view all the answers

    What does the term 'brain drain' refer to?

    <p>Loss of skilled workers from developing countries</p> Signup and view all the answers

    Countries that trade with each other typically have similar what, according to country-similarity theory?

    <p>Per capita incomes and preferences</p> Signup and view all the answers

    What role does innovation play in national competitive advantage?

    <p>Enhances efficiency and productivity</p> Signup and view all the answers

    Which theory suggests that large countries rely less on trade due to diverse resources?

    <p>Theory of Country Size</p> Signup and view all the answers

    What economic system focuses on government intervention and trade surpluses?

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

    What is the primary reason for labor mobility between countries?

    <p>Seeking higher wages and better opportunities</p> Signup and view all the answers

    What does the term 'factor mobility' refer to?

    <p>The movement of production factors like labor and capital</p> Signup and view all the answers

    Which of the following is NOT a measure used to evaluate economic development?

    <p>Market Isolation Index (MII)</p> Signup and view all the answers

    Which trade theory emphasizes the role of a nation's wealth and exports?

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

    What is a key challenge in international business related to cultural differences?

    <p>Cultural Distance</p> Signup and view all the answers

    Which approach to ethical behavior states that actions are inherently right or wrong regardless of their consequences?

    <p>Deontological ethics</p> Signup and view all the answers

    What is a concern regarding multinational enterprises (MNEs) and local businesses?

    <p>Displacing jobs in the host country</p> Signup and view all the answers

    Which ethical framework argues that ethical behavior is determined by the cultural context?

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

    What does the term 'Shared Value' refer to in business ethics?

    <p>Balancing employee welfare and profitability</p> Signup and view all the answers

    What is one impact of corruption in international business?

    <p>Higher operational costs</p> Signup and view all the answers

    What do corporate codes of ethics primarily provide for a company?

    <p>Framework for ethical behavior</p> Signup and view all the answers

    What is a primary motivation for implementing Corporate Social Responsibility (CSR) initiatives?

    <p>Protect brand reputation</p> Signup and view all the answers

    What concept refers to the obligation of businesses to contribute positively to society?

    <p>Corporate Social Responsibility</p> Signup and view all the answers

    Which example illustrates the application of sustainability in business practices?

    <p>GE’s Ecomagination initiative</p> Signup and view all the answers

    What is a disadvantage associated with labor conditions as discussed in international business ethics?

    <p>Exploitative working conditions</p> Signup and view all the answers

    Which legal framework in the U.S. prohibits bribing foreign officials?

    <p>Foreign Corrupt Practices Act</p> Signup and view all the answers

    Which of the following describes the 'Preconventional' level of moral development?

    <p>Choices driven by punishment or rewards</p> Signup and view all the answers

    What is one of the primary reasons companies engage in international business?

    <p>Access to larger markets</p> Signup and view all the answers

    Which mode of international business operations involves the ownership of operations in other countries?

    <p>Foreign direct investment</p> Signup and view all the answers

    What factor does NOT typically affect international business?

    <p>Weather patterns</p> Signup and view all the answers

    What is the impact of language as a cultural factor in international business?

    <p>Facilitates trade and preserves national identity</p> Signup and view all the answers

    What term describes cultural changes that occur by adopting new practices voluntarily?

    <p>Cultural Change by Choice</p> Signup and view all the answers

    Which of Hofstede's dimensions includes the acceptance of unequal power distribution?

    <p>Power Distance</p> Signup and view all the answers

    How do anti-globalization protests primarily highlight their concerns?

    <p>Focus on labor rights and environmental issues</p> Signup and view all the answers

    Which of the following best describes the concept of cultural diffusion?

    <p>Exchange of cultural elements between societies</p> Signup and view all the answers

    Which cultural dimension indicates a preference for achievement and success over quality of life?

    <p>Masculinity vs. Femininity</p> Signup and view all the answers

    What is a key characteristic of high-context cultures?

    <p>Implicit understanding and non-verbal cues</p> Signup and view all the answers

    Which of the following best reflects religion's role in business practices?

    <p>Influences consumption habits and work ethics</p> Signup and view all the answers

    What does the term 'cultural collision' refer to?

    <p>A situation where differing cultural values clash</p> Signup and view all the answers

    Which of the following is considered a challenge posed by multiple languages in business?

    <p>Translation errors and misinterpretations</p> Signup and view all the answers

    Which of the following statements about multinational enterprises (MNEs) is true?

    <p>They manage production or services in multiple countries.</p> Signup and view all the answers

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