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

    What is the KOF index used to determine?

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

    What is a factor that favors globalization?

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

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

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

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