International Business Chapter 1 Quiz

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Questions and Answers

Which of the following best describes a flattening world in the context of international business?

A world where trade is restricted by national policies.

A world where technology and globalization have leveled the playing field. (correct)

A world where geographical barriers have increased competition.

A world where local businesses are thriving independently.

What challenge does international business face in a flattening world?

Reduction in consumer demand due to market saturation.

Higher costs of production due to labor shortages.

Navigating diverse regulatory environments. (correct)

Increased product differentiation between international markets.

What role does technology play in a flattening world?

It leads to increased job losses in all sectors.

It minimizes communication challenges across borders. (correct)

It acts as a barrier to entry for international firms.

It restricts access to information for businesses.

Which of the following is NOT a factor contributing to the flattening of the world?

Strict international trade regulations. (D) Signup and view all the answers

What is one significant opportunity presented by a flattening world for international businesses?

Access to emerging markets with growth potential. (D) Signup and view all the answers

What is a stakeholder in the context of international business?

An individual or organization that may be affected by the actions of others (C) Signup and view all the answers

What does stakeholder analysis help organizations to accomplish?

Assess the importance of key people, groups, or institutions (D) Signup and view all the answers

Which of the following best describes an exporter?

Sells products and services sourced from the home country in foreign nations (A) Signup and view all the answers

What are location advantages in international business?

Favorable conditions related to market choices and resources (A) Signup and view all the answers

Which statement regarding globalization is accurate?

Different opinions exist on its impact on national identities. (D) Signup and view all the answers

What does the flat-world view imply about international commerce?

All global competitors have an equal footing. (A) Signup and view all the answers

Which event marked the beginning of Globalization 1.0 according to Thomas Friedman?

Columbus’s discovery of the New World (A) Signup and view all the answers

During which period did Globalization 2.0 occur?

1800-2000 (D) Signup and view all the answers

What is one of the factors that contributed to making the world 'flat'?

The decline of investment barriers (B) Signup and view all the answers

What does the term 'offshoring' refer to?

Moving business processes to other countries. (C) Signup and view all the answers

Which of the following describes insourcing?

Bringing outsourced services back in-house. (C) Signup and view all the answers

What role did workflow software play in globalization?

It fostered collaboration among different applications. (B) Signup and view all the answers

What is one of the driving factors of globalization discussed?

The influx of billions of people seeking prosperity. (D) Signup and view all the answers

How does the multidomestic view differ from the flat-world view?

It sees global markets as more diverse and unique. (C) Signup and view all the answers

Which of the following best defines international business?

All cross-border exchanges of goods, services, or resources between two or more nations. (D) Signup and view all the answers

What does strategic management primarily focus on?

The development and implementation of effective strategies to improve firm performance. (A) Signup and view all the answers

Which of the following forms of international business involves direct investment in foreign assets?

Foreign direct investment. (D) Signup and view all the answers

What does the SWOT analysis help an organization assess?

Internal characteristics, external environmental conditions, strengths, weaknesses, opportunities, and threats. (B) Signup and view all the answers

Which of the following statements about entrepreneurship is true?

An entrepreneur recognizes opportunities and uses resources for new ventures. (D) Signup and view all the answers

Who can be considered a stakeholder in international business?

Anyone with an interest in the business, including employees, customers, and the community. (A) Signup and view all the answers

What is the 'flattening world perspective' in the context of globalization?

A viewpoint that emphasizes the interconnectedness and interdependence of global markets. (A) Signup and view all the answers

Which of the following is NOT a factor that influences the complexities of business ethics in international settings?

Limited technology access. (B) Signup and view all the answers

What does the CAGE analytical framework assess?

Cultural, administrative, geographic, and economic disparities between countries. (B) Signup and view all the answers

Which of the following best describes 'intrapreneurship'?

Innovation and risk-taking within an established business to develop new products. (D) Signup and view all the answers

Which of the following is a potential form that international businesses can take?

Joint ventures, franchises, and multinational corporations. (B) Signup and view all the answers

What is meant by 'the multidomestic perspective' in globalization?

A strategy that focuses on local markets and adapts products to meet local demands. (D) Signup and view all the answers

Why might stakeholder analysis be important in international business?

It provides insight into the needs and expectations of various parties involved. (D) Signup and view all the answers

Which factor is NOT part of globalization in terms of markets?

Strict import regulations. (D) Signup and view all the answers

Study Notes

International Business: Opportunities and Challenges in a Flattening World

The book is titled "International Business: Opportunities and Challenges in a Flattening World, 1e"
Authored by Mason Carpenter and Sanjyot P. Dunung
Published by Flat World Knowledge in 2011.
The book is licensed under Creative Commons Attribution-Noncommercial-ShareAlike 3.0.

Learning Objectives (Chapter 1)

Define international business.
Understand the relationship between strategic management and international business.
Understand the relationship between entrepreneurship and international business.
Identify stakeholders in international business.
Define stakeholder analysis.
Recognize that stakeholders include more than suppliers and customers.
Understand different forms of international business (e.g., exporting, importing, foreign direct investment).
Understand how governments and NGOs can be international businesses.
Understand the flattening world perspective in the globalization debate.
Understand the multidomestic perspective in the globalization debate.
Understand the CAGE analytical framework.
Understand the field of business ethics.
Explain why business ethics are challenging in international settings.

Globalization

Globalization is the shift toward a more interdependent and integrated global economy.
In terms of markets, trade barriers are falling, and buyer preferences are changing.
In terms of production, companies can easily source goods and services from other countries.

International Business Definition

International business includes all cross-border exchanges of goods, services, or resources between two or more nations.
Such exchanges can include international transfers of resources like people, intellectual property, contractual assets, or liabilities.
International business entities range from large multinational firms with global operations to small, individual businesses involved in exporting or importing.

Strategic Management and Entrepreneurship

Strategic management involves the knowledge of developing and implementing effective strategies, primarily focusing on achieving a firm's performance objectives in a central, integrated, and externally-oriented manner.
SWOT (Strengths, Weaknesses, Opportunities, and Threats) assessment is a strategic management tool to analyze internal characteristics (strengths and weaknesses) and external environmental conditions (opportunities and threats) for an organization.
Entrepreneurship is the act of recognizing opportunities, addressing needs, and using resources to implement innovative ideas for new business ventures.
Intrapreneurship is a form of entrepreneurship occurring within existing businesses, where individuals are responsible for turning ideas into profitable products via assertive risk-taking and innovation.

Who is Interested in International Business?

Individuals or organizations are interested in international business if it impacts them positively or negatively.
Stakeholders are individuals or organizations with interests potentially affected by actions of another individual or organization.
Stakeholder analysis identifies and assesses the significance of key people, groups, and institutions influencing an activity's, project's, or business's success.

Forms of International Business

Business in global commerce aims to make a profit.
Importers purchase and sell goods from foreign countries.
Exporters sell goods or services to foreign countries.
Foreign direct investment is investing in foreign assets like structures, equipment, and organizations within a country.
Location advantages in foreign markets can include access to raw materials, lower labor costs, better suppliers, and key customers.

Ethics and International Business

Ethics seeks to explore virtue and morality by defining right and wrong conduct.
Business ethics examines the morality of business activities, determining if business conduct is ethically sound.
Core challenges of ethical standards include their basis and practical application.

The Flattening World

The "flat-world view" describes a world where the global playing field is level.
The "multidomestic view" highlights the distinct characteristics of each market.
Globalization, according to Thomas Friedman, is categorized into three phases:
- Globalization 1.0 (1492-1800), marked by exploration and colonization.
- Globalization 2.0 (1800-2000), characterized by major corporations and globalizing operations
- Globalization 3.0 (Present), marked by major software advancements and allowing individuals worldwide to cooperate.
Friedman has identified key events shaping globalization's evolution

CAGE Framework

The CAGE framework is a tool to understand country and regional differences.
It assesses the distances between countries through cultural, administrative, geographic, and economic dimensions.

How the world got flat

Friedman identifies ten major events that shaped the 'flat' world.
These include the fall of the Berlin Wall, the rise of the internet, the development of workflow software, and the rise of outsourcing.

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Description

Test your understanding of International Business concepts as outlined in Chapter 1 of 'International Business: Opportunities and Challenges in a Flattening World.' This quiz covers definitions, relationships, and key stakeholders in the field of international business. Dive in to assess your knowledge of strategic management and the various forms of international business.