18 Questions
Which type of government policy is likely to reduce the complexity and cost of doing business in a foreign country?
Free Trade Agreements
What is the term for the seizure of foreign-owned assets by a government without payment of compensation to the owners?
Confiscation
What is the primary concern for businesses operating in a country with frequent changes in government?
Government stability
Which type of policy is likely to lead to a firm's loss of ownership or direct control?
Takeover
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?
Domestication
What is the primary impact of protectionism on international trade?
Increases complexity and cost of doing business
What is a major consequence of the growth of economic cooperation in the context of globalization?
Increased economic interdependence among nations
Which of the following is an example of regional economic integration?
A group of countries forms a free trade agreement
What is a major driver of cultural convergence in the context of globalization?
Improvements in transportation and logistics
What is a key characteristic of globalization in terms of financial markets?
Increased integration of financial markets across countries
What is a major implication of the increasing reliance of economies on each other?
Increased opportunities for international trade and investment
What is a key feature of economic integration in the context of globalization?
Increased economic interdependence among nations
What is one of the key parameters to assess the level of global integration?
Exports and imports as a percentage of GDP
Which of the following is a characteristic of a globalized sector?
The same groups of global companies dominate in all markets
What is a key indicator of global integration at the industry/sector scale?
Intensity of intersectoral trade with respect to the total world production of the sector
What is the KOF index used to determine?
Level of global integration
What is a factor that favors globalization?
Economies of scale
Which company is an example of a company with a high degree of global integration?
Inditex
Understand the concept of globalization, its impact on economies, and the factors driving it. This quiz covers the expansion of economic and social ties between countries, liberalization of markets, and the growth of economic cooperation. Test your knowledge of global trends and international business.
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