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BUSI 3250 Auburn Exam 1; Actual Exam
Questions With Correct Answers
an international company (IC) is a company headquartered in another nation -
Correct-answer-false
As used in the text, the term environment means all the forces influencing the life
and development of the firm - Correct-answer-true
political drivers - Correct-answer--trends toward unification and socialization of
the global economy
-concerns about protectionism by host country markets
technological drivers - Correct-answer--advances in technology - increased flow of
ideas and information
-smaller companies can communicate with customers abroad
-computer based communication may enhance virtual integration
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market drivers - Correct-answer--as firms internalize, they become global
customers
-firms go abroad to prevent foreign suppliers from accessing their customers
cost drivers - Correct-answer-going abroad can lower costs of goods sold
competitive drivers - Correct-answer--defend home markets by distracting
competitors
-guarantee supply of key raw materials
Concerns with Globalization - Correct-answer--has produced uneven results
across nations and people
-has had effects on labor and labor standard
-contributed to decline in environmental and health conditions
arguments supporting globalization - Correct-answer--free trade enhances
socioeconomic development
-free trade promotes more and better jobs
BUSI 3250 Auburn Exam 1; Actual Exam
Questions With Correct Answers
an international company (IC) is a company headquartered in another nation -
Correct-answer-false
As used in the text, the term environment means all the forces influencing the life
and development of the firm - Correct-answer-true
political drivers - Correct-answer--trends toward unification and socialization of
the global economy
-concerns about protectionism by host country markets
technological drivers - Correct-answer--advances in technology - increased flow of
ideas and information
-smaller companies can communicate with customers abroad
-computer based communication may enhance virtual integration
, 2|Page
market drivers - Correct-answer--as firms internalize, they become global
customers
-firms go abroad to prevent foreign suppliers from accessing their customers
cost drivers - Correct-answer-going abroad can lower costs of goods sold
competitive drivers - Correct-answer--defend home markets by distracting
competitors
-guarantee supply of key raw materials
Concerns with Globalization - Correct-answer--has produced uneven results
across nations and people
-has had effects on labor and labor standard
-contributed to decline in environmental and health conditions
arguments supporting globalization - Correct-answer--free trade enhances
socioeconomic development
-free trade promotes more and better jobs
