Globalization & International Business
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Questions and Answers

Which type of government policy is likely to reduce the complexity and cost of doing business in a foreign country?

  • Tax regulations
  • Free Trade Agreements (correct)
  • Foreign investment policies
  • Protectionism

What is the term for the seizure of foreign-owned assets by a government without payment of compensation to the owners?

  • Takeover
  • Domestication
  • Expropriation
  • Confiscation (correct)

What is the primary concern for businesses operating in a country with frequent changes in government?

  • Political risk
  • Trade policies
  • Government policies
  • Government stability (correct)

Which type of policy is likely to lead to a firm's loss of ownership or direct control?

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

What is the term for the partial ownership transfer of a foreign-owned company, where companies are urged to prioritize local production and retain a large share of the profit within the country?

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

What is the primary impact of protectionism on international trade?

<p>Increases complexity and cost of doing business (D)</p> Signup and view all the answers

What is a major consequence of the growth of economic cooperation in the context of globalization?

<p>Increased economic interdependence among nations (D)</p> Signup and view all the answers

Which of the following is an example of regional economic integration?

<p>A group of countries forms a free trade agreement (A)</p> Signup and view all the answers

What is a major driver of cultural convergence in the context of globalization?

<p>Improvements in transportation and logistics (B)</p> Signup and view all the answers

What is a key characteristic of globalization in terms of financial markets?

<p>Increased integration of financial markets across countries (D)</p> Signup and view all the answers

What is a major implication of the increasing reliance of economies on each other?

<p>Increased opportunities for international trade and investment (B)</p> Signup and view all the answers

What is a key feature of economic integration in the context of globalization?

<p>Increased economic interdependence among nations (C)</p> Signup and view all the answers

What is one of the key parameters to assess the level of global integration?

<p>Exports and imports as a percentage of GDP (B)</p> Signup and view all the answers

Which of the following is a characteristic of a globalized sector?

<p>The same groups of global companies dominate in all markets (A)</p> Signup and view all the answers

What is a key indicator of global integration at the industry/sector scale?

<p>Intensity of intersectoral trade with respect to the total world production of the sector (A)</p> Signup and view all the answers

What is the KOF index used to determine?

<p>Level of global integration (A)</p> Signup and view all the answers

What is a factor that favors globalization?

<p>Economies of scale (A)</p> Signup and view all the answers

Which company is an example of a company with a high degree of global integration?

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

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