Questions With 100% Correct Answers
\Q\.Globalization - ANSWER-✔The widening and deepening of interdependent relationships
among people from different nations
\Q\.International Business - ANSWER-✔Any commercial transaction between 2 or more
countries
\Q\.The Forces Behind the Current Extent of Globalization - ANSWER-✔1) Increase in application
and of technology (Improvements in transportation and communication networks)
2) Liberalization of cross-border trade and resource communication networks
3) Development of services that support international business activities (Banking,
transportation etc)
4) Growing consumer pressures (Consumer demand for foreign products and on MNC
behaviors)
5) Increased global competition (Born-global companies)
6) Changing political situations and government policies
7) expanded cross-national cooperation (WTO,IMF, NAFTA,EU, treaties and agreements)
\Q\.Born-global companies - ANSWER-✔companies that start out with a global focus because of
their founders' international experience
\Q\.Positive aspects of globalization (as decided by the class) - ANSWER-✔1) Specialization
(leads to lower costs and higher availability)
,2) Strengthening of political relationships
3) Spreading of culture
4) Lower costs/innovation
5) Sustainability
\Q\.Negative aspects of globalization - ANSWER-✔1. Higher income inequality
2. Poor labor standards/exploitation
3. Losing employment to outsourcing
4. Lower quality
5. Security issues
6. Environmental stress
\Q\.Three major negatives of globalization - ANSWER-✔1) Threats to national sovereignty
2) Emotional Stress
3) Growing income inequality and stress
\Q\.Threats to national sovereignty - ANSWER-✔- Sovereignty: a country's freedom to "act
locally" and without externally imposed restrictions
- Small countries feel threatened and overly dependent
- Cultural homogeneity threatens uniqueness
\Q\.Environmental stress - ANSWER-✔Depletion of resources/pollution/climate change
\Q\.Growing income inequality and stress - ANSWER-✔-Greater division between rich and poor
-Threat of job loss leads to personal stress
, \Q\.Factors affecting globalization - ANSWER-✔- Size of countries
- Per capita incomes
- Variance among globalization aspects
\Q\.size of countries - ANSWER-✔smaller countries tend to be more globalized than larger ones,
mainly because their smaller land masses and populations permit a lower variety of production.
\Q\.per capita incomes - ANSWER-✔Countries with higher per capita incomes tend to be more
globalized than those with lower ones because their citizens can better afford foreign products,
travel, and communications.
\Q\.Variance among globalization aspects - ANSWER-✔Although a country may rank as highly
globalized on one dimension, it may be low on another, such as the United States being high on
technological scales but low on economic ones.
\Q\.Reshoring is when - ANSWER-✔Production is offshored and then brought back home
\Q\.Positives of offshoring - ANSWER-✔chance to sell at lower costs, chance to sell more home
goods in host country, growth in host country creates more jobs at home, moving simple
production abroad boosts productivity from home
\Q\.Negatives of offshoring - ANSWER-✔- Lower costs do not lead to lower prices
- Jobs are lost at home
- Low wages put pressure on remaining home jobs
- Exploits host country labor
- Loss of control over suppliers
- Risk of losing technology due to lax IP protection