International Business Management Exam Practice Solution Manual
Globalization - Answers worldwide interconnections in virtually every sphere of activity including the
spread of products, technology, information, and job opportunities. this can result in blurred boundaries
between nations, organizations, and investors
trade and transactions, capital and investment movements, the migration and movement of people, and
the dissemination of knowledge - Answers four fundamental aspects of globalization
trade - Answers the action of buying and selling goods and services
capital - Answers financial assets such as funds but also equipment, facilities, and other means of
production
outsource - Answers to obtain goods or services from an outside or foreign supplier
globalization - Answers Members of a work team are from many different countries. They share their
thoughts on developing a strategy to market a product in several different countries.
What is the term for the international integration of the team members' exchange of worldviews and
ideas to develop the strategy?
social media platforms - Answers example of technology as a driver of globalization
commercial air travel - Answers example of transportation as a driver of globalization
cultural trends - Answers example of connection as a driver of globalization
wealthy inequity - Answers example of something that is not a driver of globalization
nongovernmental organizations - Answers not for profit organizations that are interdependent of the
government and are active in humanitarian causes
Economic - Answers Which type of globalization refers to the international movement of goods, capital,
and services?
patents - Answers protects inventions and improvements to existing inventions for a limited period of
time in exchange for detailed public disclosure of those inventions
copyrights - Answers a government authority or license giving the owner of an invention the right to
exclude others from making or selling the invention for a set period of time
trademarks - Answers protection for any word, name, symbol, device, or any combination used in
commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured
or sold by others
,assets - Answers a useful or valuable thing; something you own such as building, inventory, or cash
liabilities - Answers being responsible for a debt or financial obligation, something you owe
financial instrument - Answers a monetary contract between parties
multinational firms - Answers a large corporation incorporated in one country which produces or sells
goods or services in various countries
supply chain - Answers the sequence of processes involved in the production and distribution of a
commodity
market entry - Answers companies enter new countries
product specialization - Answers full production to a single, low-cost location
value chain disaggregation - Answers complete each activity in the most advantageous location
value chain reengineering - Answers companies seek further cost savings, substituting lower cost labor
for capital
creation of new markets - Answers market expansion
profitability - Answers The CEO of an international company reminds the executive vice presidents that
while the company may do good while performing corporate social responsibilities, the business has one
ultimate goal since it is engaged in commercial activities with corporate shareholders.
Which ultimate goal is the CEO emphasizing to the executive vice presidents?
opportunities for scale - Answers cost advantages due to an increase in the amount of output and a
decrease in the cost per unit
economies of scale - Answers a proportionate savings in costs gained by an increased level of production
scope - Answers to develop efficiencies in terms of variety not volume
cost - Answers A CEO seeks to better use the economies of scale and scope of production to increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use?
infrastructure - Answers A CEO is discussing an expansion of production of a company's highly perishable
dairy line in a country that can offer low labor costs and good internet connections. The country has no
highways, and roads are poorly maintained.
,Which challenge to international business expansion do the road conditions present?
Six Sigma - Answers a method that provides tools for organizations to increase performance and
decrease process variation
human capital - Answers the education and skills of workers
Globalization 1.0 - Answers this is the least desirable level of globalization to deal with due to a lack of
transportation and technology options
Globalization 2.0 - Answers this stage of globalism leads to more access to delivering goods on a
worldwide platform due to advances in transportation
Globalization 3.0 - Answers this is the most desirable level of globalism due to advances in technology
and communication, making global interactions and transactions smoother
economics - Answers Which factor is an element of a CAGE analysis when assessing barriers to cross-
border activity?
Economics - Answers Which factor of CAGE addresses differences in country size that affect barriers to
globalization?
Gini coefficient - Answers measures the inequality among values of a frequency distribution such as
levels of income
Happy Planet Index - Answers measures how well nations are doing at achieving long, happy,
sustainable lives
it increases the wealth of the rich rather than the poor - Answers Which argument is used by critics who
wish to discourage movement towards globalization?
anarchism - Answers individuals control political activities, and the government has no control over
these activities
dictatorship - Answers a centralized gov't creates oppressive policies based on ideas from powerful
leadership
democracy - Answers the gov't provides a country's citizens the freedom and rights to vote for political
leaders
oligarchy - Answers a small, elite group of people hold the power
restrictions on freedom of speech - Answers Which accommodation should an American multinational
company make to conduct business in China?
, gross domestic product (GDP) - Answers the total value of goods and services provided in a country in a
one-year period
gross national product (GNP) - Answers the total value of goods and services provided by a country, both
inside and outside of its borders, in a one-year period
underground economies - Answers economic transactions that are deemed illegal
market - Answers Which type of economy is decentralized and allows firms and households to
participate in global trade with minimum governmental interference?
mixed economic system - Answers this system protects private property and is driven by self-interest,
and the government can intervene in the market as needed
market economic system - Answers this system's production is controlled by private owners who can
choose to participate in global trade
command economic system - Answers this system's property is publicly owned, and the government
controls economic production
civil - Answers Which type of legal system is based on a code and focuses on how the law is applied to
the facts?
common - Answers Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases?
customary - Answers Which legal system can vary from community to community and is found in
countries without strong formal justice systems?
common - Answers In which legal system does a judge decide the applicable law for the case as a jury
determines the facts?
economic - Answers Which type of globalization is represented by Sure Start expanding into South
America, Europe, and Asia?
competition - Answers Sure Start is starting a new division for rechargeable batteries in different parts of
the world.
What was the globalization driver of this decision?
Factory workers fear their jobs will be moved to another country - Answers Which antiglobalization
argument could lead to Sure Start continuing to maintain its current factories instead of moving them to
Asia?
Globalization - Answers worldwide interconnections in virtually every sphere of activity including the
spread of products, technology, information, and job opportunities. this can result in blurred boundaries
between nations, organizations, and investors
trade and transactions, capital and investment movements, the migration and movement of people, and
the dissemination of knowledge - Answers four fundamental aspects of globalization
trade - Answers the action of buying and selling goods and services
capital - Answers financial assets such as funds but also equipment, facilities, and other means of
production
outsource - Answers to obtain goods or services from an outside or foreign supplier
globalization - Answers Members of a work team are from many different countries. They share their
thoughts on developing a strategy to market a product in several different countries.
What is the term for the international integration of the team members' exchange of worldviews and
ideas to develop the strategy?
social media platforms - Answers example of technology as a driver of globalization
commercial air travel - Answers example of transportation as a driver of globalization
cultural trends - Answers example of connection as a driver of globalization
wealthy inequity - Answers example of something that is not a driver of globalization
nongovernmental organizations - Answers not for profit organizations that are interdependent of the
government and are active in humanitarian causes
Economic - Answers Which type of globalization refers to the international movement of goods, capital,
and services?
patents - Answers protects inventions and improvements to existing inventions for a limited period of
time in exchange for detailed public disclosure of those inventions
copyrights - Answers a government authority or license giving the owner of an invention the right to
exclude others from making or selling the invention for a set period of time
trademarks - Answers protection for any word, name, symbol, device, or any combination used in
commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured
or sold by others
,assets - Answers a useful or valuable thing; something you own such as building, inventory, or cash
liabilities - Answers being responsible for a debt or financial obligation, something you owe
financial instrument - Answers a monetary contract between parties
multinational firms - Answers a large corporation incorporated in one country which produces or sells
goods or services in various countries
supply chain - Answers the sequence of processes involved in the production and distribution of a
commodity
market entry - Answers companies enter new countries
product specialization - Answers full production to a single, low-cost location
value chain disaggregation - Answers complete each activity in the most advantageous location
value chain reengineering - Answers companies seek further cost savings, substituting lower cost labor
for capital
creation of new markets - Answers market expansion
profitability - Answers The CEO of an international company reminds the executive vice presidents that
while the company may do good while performing corporate social responsibilities, the business has one
ultimate goal since it is engaged in commercial activities with corporate shareholders.
Which ultimate goal is the CEO emphasizing to the executive vice presidents?
opportunities for scale - Answers cost advantages due to an increase in the amount of output and a
decrease in the cost per unit
economies of scale - Answers a proportionate savings in costs gained by an increased level of production
scope - Answers to develop efficiencies in terms of variety not volume
cost - Answers A CEO seeks to better use the economies of scale and scope of production to increase the
international company's profits.
Which type of globalization driver is the CEO seeking to use?
infrastructure - Answers A CEO is discussing an expansion of production of a company's highly perishable
dairy line in a country that can offer low labor costs and good internet connections. The country has no
highways, and roads are poorly maintained.
,Which challenge to international business expansion do the road conditions present?
Six Sigma - Answers a method that provides tools for organizations to increase performance and
decrease process variation
human capital - Answers the education and skills of workers
Globalization 1.0 - Answers this is the least desirable level of globalization to deal with due to a lack of
transportation and technology options
Globalization 2.0 - Answers this stage of globalism leads to more access to delivering goods on a
worldwide platform due to advances in transportation
Globalization 3.0 - Answers this is the most desirable level of globalism due to advances in technology
and communication, making global interactions and transactions smoother
economics - Answers Which factor is an element of a CAGE analysis when assessing barriers to cross-
border activity?
Economics - Answers Which factor of CAGE addresses differences in country size that affect barriers to
globalization?
Gini coefficient - Answers measures the inequality among values of a frequency distribution such as
levels of income
Happy Planet Index - Answers measures how well nations are doing at achieving long, happy,
sustainable lives
it increases the wealth of the rich rather than the poor - Answers Which argument is used by critics who
wish to discourage movement towards globalization?
anarchism - Answers individuals control political activities, and the government has no control over
these activities
dictatorship - Answers a centralized gov't creates oppressive policies based on ideas from powerful
leadership
democracy - Answers the gov't provides a country's citizens the freedom and rights to vote for political
leaders
oligarchy - Answers a small, elite group of people hold the power
restrictions on freedom of speech - Answers Which accommodation should an American multinational
company make to conduct business in China?
, gross domestic product (GDP) - Answers the total value of goods and services provided in a country in a
one-year period
gross national product (GNP) - Answers the total value of goods and services provided by a country, both
inside and outside of its borders, in a one-year period
underground economies - Answers economic transactions that are deemed illegal
market - Answers Which type of economy is decentralized and allows firms and households to
participate in global trade with minimum governmental interference?
mixed economic system - Answers this system protects private property and is driven by self-interest,
and the government can intervene in the market as needed
market economic system - Answers this system's production is controlled by private owners who can
choose to participate in global trade
command economic system - Answers this system's property is publicly owned, and the government
controls economic production
civil - Answers Which type of legal system is based on a code and focuses on how the law is applied to
the facts?
common - Answers Which law is based on tradition and precedent given that judicial rulings can stand as
precedents for future cases?
customary - Answers Which legal system can vary from community to community and is found in
countries without strong formal justice systems?
common - Answers In which legal system does a judge decide the applicable law for the case as a jury
determines the facts?
economic - Answers Which type of globalization is represented by Sure Start expanding into South
America, Europe, and Asia?
competition - Answers Sure Start is starting a new division for rechargeable batteries in different parts of
the world.
What was the globalization driver of this decision?
Factory workers fear their jobs will be moved to another country - Answers Which antiglobalization
argument could lead to Sure Start continuing to maintain its current factories instead of moving them to
Asia?
