MGMT 461 Exam 1 Questions with Verified Answers Latest Version 2025
Multinational Corporations - Answers Business has direct investments abroad in multiple countries
born global firm - Answers company that adopts a global perspective and engages in international
business from or near inception
-become competitors in less than 3 years
globalization - Answers trend toward greater economic, cultural, political, and technological
interdependence among national institutions and economies
internationalization - Answers entities cooperating across national boundaries
globalization of markets - Answers convergence in buyer preferences in markets around the world
globalization of production - Answers dispersal of production activities worldwide to minimize costs or
maximize quality
global products - Answers products marketed in all countries essentially without any changes
Benefits of globalization of markets - Answers -reduces market costs
-creates new market opportunities
-levels uneven income streams
-local buyers' needs
-global sustainability
sustainability - Answers development that meets the needs of the present without compromising the
ability of future generations to meet their needs
Benefits of globalization of production - Answers -access lower-cost workers
-access technical expertise
-access production inputs
2 main forces underlying the globalization of markets and production - Answers -falling barriers to trade
and investment
-technological innovations
General Agreement on Tariffs and Trade (GATT) - Answers treaty designed to promote free trade by
reducing both tariffs and non tariff barriers to international trade
, World Trade Org (WTO) - Answers International organization that enforces the rules of international
trade
-replaced the institution of the GATT but absorbed all of the former GATT agreements
World Bank - Answers agency created to provide financing for national economic development efforts
International Monetary Fund (IMF) - Answers agency created to regulate fixed exchanged rates and to
enforce the rules of international monetary system
Gross Domestic Product - Answers value of all goods and services produced by a domestic economy over
a one-year period
-excludes nations income from exports imports and international operations of its companies
Gross National Product - Answers value of all goods and services produced by a country's domestic and
international activities over a one-year period
Technological innovations driving globalization - Answers -ebusiness
-email and videoconferencing
-internet
-company intra and extra nets
-advancements in transportation technology
extranet - Answers gives distributors and suppliers access to a company's database so they can place
orders or restock
Flaws of globalization (jobs and wages) - Answers -eliminates jobs in developed nations
-lowers wages is developed nations
-exploits workers in developing nations
for globalization (jobs and wages) - Answers -increases wealth and efficiency in all nations
-generates labor market flexibility in developed nations
-advances the economies of developing nations
3 main focuses of debated over income inequality - Answers -inequality within nations
-inequality between nations
-global inequality
Multinational Corporations - Answers Business has direct investments abroad in multiple countries
born global firm - Answers company that adopts a global perspective and engages in international
business from or near inception
-become competitors in less than 3 years
globalization - Answers trend toward greater economic, cultural, political, and technological
interdependence among national institutions and economies
internationalization - Answers entities cooperating across national boundaries
globalization of markets - Answers convergence in buyer preferences in markets around the world
globalization of production - Answers dispersal of production activities worldwide to minimize costs or
maximize quality
global products - Answers products marketed in all countries essentially without any changes
Benefits of globalization of markets - Answers -reduces market costs
-creates new market opportunities
-levels uneven income streams
-local buyers' needs
-global sustainability
sustainability - Answers development that meets the needs of the present without compromising the
ability of future generations to meet their needs
Benefits of globalization of production - Answers -access lower-cost workers
-access technical expertise
-access production inputs
2 main forces underlying the globalization of markets and production - Answers -falling barriers to trade
and investment
-technological innovations
General Agreement on Tariffs and Trade (GATT) - Answers treaty designed to promote free trade by
reducing both tariffs and non tariff barriers to international trade
, World Trade Org (WTO) - Answers International organization that enforces the rules of international
trade
-replaced the institution of the GATT but absorbed all of the former GATT agreements
World Bank - Answers agency created to provide financing for national economic development efforts
International Monetary Fund (IMF) - Answers agency created to regulate fixed exchanged rates and to
enforce the rules of international monetary system
Gross Domestic Product - Answers value of all goods and services produced by a domestic economy over
a one-year period
-excludes nations income from exports imports and international operations of its companies
Gross National Product - Answers value of all goods and services produced by a country's domestic and
international activities over a one-year period
Technological innovations driving globalization - Answers -ebusiness
-email and videoconferencing
-internet
-company intra and extra nets
-advancements in transportation technology
extranet - Answers gives distributors and suppliers access to a company's database so they can place
orders or restock
Flaws of globalization (jobs and wages) - Answers -eliminates jobs in developed nations
-lowers wages is developed nations
-exploits workers in developing nations
for globalization (jobs and wages) - Answers -increases wealth and efficiency in all nations
-generates labor market flexibility in developed nations
-advances the economies of developing nations
3 main focuses of debated over income inequality - Answers -inequality within nations
-inequality between nations
-global inequality
