BUS-D 270 EXAM 1 QUESTIONS WITH VERIFIED ANSWERS
Globalization - Answers - process of relationships among people who are divided into
national borders
Broad Globalization - Answers - Transfer of people, goods, ideas, religions,
political/legal services, diseases, etc... across national borders
Business Globalization - Answers - Reduction of barriers on movement of goods,
services, capital, technology, and people across national borders
Forces behind current extent of globalization - Answers - 1.) increase in and application
of technology (improvements in transportation and communication networks)
2.)Liberalization of cross border trade and resource movements (govt easing
restrictions)
3.) Development of services that support international business activities
(transportation, banking, etc)
4.) Growing consumer pressures (consumer demand for foreign products)
5.) Increased global competition
6.) Changing political situations and government policies
7.) Expand cross national cooperation (WTO, IMF, NAFTA, EU, treaties/agreements)
Middle Class - Answers - Having enough money to cover basic needs like food, shelter,
clothing, and still having enough left to cover luxuries like fancy food, TV, automobile,
home improvements, and education.
Globalization has lifted millions out of __________ and into the middle class since WW2
- Answers - poverty
By 2020, half of the world's population will be __________ - Answers - middle class
An additional 190 million (2.5%) will make up the __________ - Answers - mega rich
negative side of globalization - Answers - 1.) threats to national sovereignty
2.) environmental stress
3.) growing income inequality
Threats to national sovereignty - Answers - -"all politics is local"
-small countries feel threatened/overly dependent
-cultural homogeneity threatens uniqueness
Environmental Stress - Answers - -Depletion of planet's limited resources
-Pollution/contamination
-emission of greenhouse gasses
, Growing income inequality - Answers - greater division between rich and poor
Stages of Globalization - Answers - 1.) Silk Road (200 BC-1700s)
-Birth of Han dynasty and trade between east and west in spices, silk, gunpowder,
paper, etc.
2.) Rise of EU Colonization (Empires to end WW2 1500s-1945)
-Exploration and colonization of new lands
3.) World Wars recovery and modern MNE expansion (1950-1990s)
-Golden age of G-7 FDI expansion, export-led development
4.) Anti globalization movement (1999-present)
-rise of financial crisis, income inequality
Emerging economies gaining wealth (forces against globalization) - Answers - If
emerging (poorer) economies are gaining wealth, it must mean the industrialized
(richer) countries are falling behind.
Wealth of workers in different countries (forces against globalization) - Answers - If the
blue collar, less educated workers in industrialized (richer) countries are not gaining
wealth as fast as those in emerging (poorer) countries, it must be due to globalization
and unfair trade practices.
Why domestic firms go international - Answers - -To expand sales (growth and
efficiency)
-To acquire resources (not everything can be found at home)
-Minimize risk
Why does globalization matter to future managers and to consumers - Answers - -
Larger market for sales beyond borders
-Tap a wider availability of resources
-Understand and respond to competition
-Understand and respond to non-business stakeholders (Sovereignty, environmental
stress, growing income inequality)
-Expanded career opportunities
International vs. Domestic business - Answers - -Decision making in international
business much more complex
-Complexity increases with level of internal control desired, level of involvement/mode of
operation, number of countries of expansion, and differences among countries of
expansion.
Owned, domestic - Answers - made in house, at home
Owned, abroad - Answers - off-shored
Not owned, domestic - Answers - outsourced (at home)
Globalization - Answers - process of relationships among people who are divided into
national borders
Broad Globalization - Answers - Transfer of people, goods, ideas, religions,
political/legal services, diseases, etc... across national borders
Business Globalization - Answers - Reduction of barriers on movement of goods,
services, capital, technology, and people across national borders
Forces behind current extent of globalization - Answers - 1.) increase in and application
of technology (improvements in transportation and communication networks)
2.)Liberalization of cross border trade and resource movements (govt easing
restrictions)
3.) Development of services that support international business activities
(transportation, banking, etc)
4.) Growing consumer pressures (consumer demand for foreign products)
5.) Increased global competition
6.) Changing political situations and government policies
7.) Expand cross national cooperation (WTO, IMF, NAFTA, EU, treaties/agreements)
Middle Class - Answers - Having enough money to cover basic needs like food, shelter,
clothing, and still having enough left to cover luxuries like fancy food, TV, automobile,
home improvements, and education.
Globalization has lifted millions out of __________ and into the middle class since WW2
- Answers - poverty
By 2020, half of the world's population will be __________ - Answers - middle class
An additional 190 million (2.5%) will make up the __________ - Answers - mega rich
negative side of globalization - Answers - 1.) threats to national sovereignty
2.) environmental stress
3.) growing income inequality
Threats to national sovereignty - Answers - -"all politics is local"
-small countries feel threatened/overly dependent
-cultural homogeneity threatens uniqueness
Environmental Stress - Answers - -Depletion of planet's limited resources
-Pollution/contamination
-emission of greenhouse gasses
, Growing income inequality - Answers - greater division between rich and poor
Stages of Globalization - Answers - 1.) Silk Road (200 BC-1700s)
-Birth of Han dynasty and trade between east and west in spices, silk, gunpowder,
paper, etc.
2.) Rise of EU Colonization (Empires to end WW2 1500s-1945)
-Exploration and colonization of new lands
3.) World Wars recovery and modern MNE expansion (1950-1990s)
-Golden age of G-7 FDI expansion, export-led development
4.) Anti globalization movement (1999-present)
-rise of financial crisis, income inequality
Emerging economies gaining wealth (forces against globalization) - Answers - If
emerging (poorer) economies are gaining wealth, it must mean the industrialized
(richer) countries are falling behind.
Wealth of workers in different countries (forces against globalization) - Answers - If the
blue collar, less educated workers in industrialized (richer) countries are not gaining
wealth as fast as those in emerging (poorer) countries, it must be due to globalization
and unfair trade practices.
Why domestic firms go international - Answers - -To expand sales (growth and
efficiency)
-To acquire resources (not everything can be found at home)
-Minimize risk
Why does globalization matter to future managers and to consumers - Answers - -
Larger market for sales beyond borders
-Tap a wider availability of resources
-Understand and respond to competition
-Understand and respond to non-business stakeholders (Sovereignty, environmental
stress, growing income inequality)
-Expanded career opportunities
International vs. Domestic business - Answers - -Decision making in international
business much more complex
-Complexity increases with level of internal control desired, level of involvement/mode of
operation, number of countries of expansion, and differences among countries of
expansion.
Owned, domestic - Answers - made in house, at home
Owned, abroad - Answers - off-shored
Not owned, domestic - Answers - outsourced (at home)
