BUSMHR 2000 PRACTICE EXAM 2025/2026 QUESTIONS
WITH SOLUTIONS RATED A+
✔✔Advances in Technology - ✔✔Perhaps the most important driving force of market
globalization has been technological advances in information, communications,
manufacturing, and transportation.
✔✔Interdependence - ✔✔Supranational institutions include such organizations as the
World Bank, International Monetary Fund (IMF), and World Trade Organization (WTO).
✔✔WTO - ✔✔the world's largest international economic organization, with 164 member
states representing over 96% of global trade and global GDP
✔✔globalization of capital - ✔✔extends economic activities across the globe
✔✔globalization of capital, firms and governments buy and sell large volumes of
national currencies, and foreign stocks represent a major source of equity and debt
financing - ✔✔Growth of Global Investment and Financial Flows
✔✔Convergence of Buyer Lifestyles and Preferences - ✔✔Consumers around the world
from New York to Paris, and Shanghai increasingly demand similar things. Business are
standardizing on a global scale in terms of products and processes (from parts, IT,
services, etc.)
✔✔Globalization of Production - ✔✔Intense global competition is forcing to reduce their
costs of production. Companies cut costs and prices through economies of scale and
standardization of finished products.
✔✔Globalization of Services - ✔✔The services sector-banking, hospitality, retailing, and
other service industries- is undergoing widespread internationalization too.
✔✔Internationalization of the Firm's Value Chain - ✔✔The most direct consequence of
market globalization on the firm's value chain.
✔✔The sequence of value-adding activities the firms performs in the course of
developing, producing, marketing, and servicing a product. - ✔✔What is a firm's value
chain?
✔✔Each value-adding activity in the firm's value chain is subject to internationalization;
that is, it can be performed in locations outside the home country. The value-chain
concept is therefore useful in international business because it helps clarify what
activities are performed where in the world. - ✔✔Internationalization of the Firm's Value
Chain
, ✔✔Contagion - ✔✔The Rapid Spread of Monetary and Financial Crises
✔✔Contagion - ✔✔the tendency of a financial of a financial or monetary crisis in one
country to spread rapidly to other countries due to the ongoing integration of national
economies
✔✔Loss of National Sovereignty - ✔✔MNEs can interfere with a government's ability to
control it's economy, social structure, and political system. Some corporations are
bigger than the economies of small nations!
✔✔Offshoring - ✔✔the relocation of manufacturing and other value-chain activities and
other value-chain activities to cost-effective locations abroad.
✔✔Reshoring - ✔✔the return of manufacturing and services back to the home country.
✔✔Effect on the poor - ✔✔as nations' economies develop and per-capita income rise,
globalization can worsen income inequality.
✔✔Societal Consequences of Market Globalization - ✔✔globalization promotes
manufacturing and economic activity that results in increased pollution. Stakeholders
demand companies engage in ESG concerns.
✔✔Effect on Sustainability - ✔✔Alcan in Canada, Kirin in Japan (beverages), are
examples of firms that embrace practices that protect the environment, often at the
expense of profits.
✔✔Effects on national culture - ✔✔cultural values are affected given the increased
globalization of markets and internationalization of firms. Increased globalization
exposes local consumers to global brands from different cultures.
✔✔culture - ✔✔values, beliefs, customs, arts, and other products of human thought and
work that characterize a people of a given society
✔✔cross-cultural risk - ✔✔a situation or event in which a cultural misunderstanding puts
some human value at stake
✔✔Socialization - ✔✔The process of learning the rules and behavioral patterns
appropriate for living in one's own society
✔✔acculturation - ✔✔The process of adjusting and adapting to a culture other than
one's own.
✔✔Anthropologists - ✔✔use the iceberg metaphor to call attention to the many
dimensions of culture, some obvious and some not so obvious.
WITH SOLUTIONS RATED A+
✔✔Advances in Technology - ✔✔Perhaps the most important driving force of market
globalization has been technological advances in information, communications,
manufacturing, and transportation.
✔✔Interdependence - ✔✔Supranational institutions include such organizations as the
World Bank, International Monetary Fund (IMF), and World Trade Organization (WTO).
✔✔WTO - ✔✔the world's largest international economic organization, with 164 member
states representing over 96% of global trade and global GDP
✔✔globalization of capital - ✔✔extends economic activities across the globe
✔✔globalization of capital, firms and governments buy and sell large volumes of
national currencies, and foreign stocks represent a major source of equity and debt
financing - ✔✔Growth of Global Investment and Financial Flows
✔✔Convergence of Buyer Lifestyles and Preferences - ✔✔Consumers around the world
from New York to Paris, and Shanghai increasingly demand similar things. Business are
standardizing on a global scale in terms of products and processes (from parts, IT,
services, etc.)
✔✔Globalization of Production - ✔✔Intense global competition is forcing to reduce their
costs of production. Companies cut costs and prices through economies of scale and
standardization of finished products.
✔✔Globalization of Services - ✔✔The services sector-banking, hospitality, retailing, and
other service industries- is undergoing widespread internationalization too.
✔✔Internationalization of the Firm's Value Chain - ✔✔The most direct consequence of
market globalization on the firm's value chain.
✔✔The sequence of value-adding activities the firms performs in the course of
developing, producing, marketing, and servicing a product. - ✔✔What is a firm's value
chain?
✔✔Each value-adding activity in the firm's value chain is subject to internationalization;
that is, it can be performed in locations outside the home country. The value-chain
concept is therefore useful in international business because it helps clarify what
activities are performed where in the world. - ✔✔Internationalization of the Firm's Value
Chain
, ✔✔Contagion - ✔✔The Rapid Spread of Monetary and Financial Crises
✔✔Contagion - ✔✔the tendency of a financial of a financial or monetary crisis in one
country to spread rapidly to other countries due to the ongoing integration of national
economies
✔✔Loss of National Sovereignty - ✔✔MNEs can interfere with a government's ability to
control it's economy, social structure, and political system. Some corporations are
bigger than the economies of small nations!
✔✔Offshoring - ✔✔the relocation of manufacturing and other value-chain activities and
other value-chain activities to cost-effective locations abroad.
✔✔Reshoring - ✔✔the return of manufacturing and services back to the home country.
✔✔Effect on the poor - ✔✔as nations' economies develop and per-capita income rise,
globalization can worsen income inequality.
✔✔Societal Consequences of Market Globalization - ✔✔globalization promotes
manufacturing and economic activity that results in increased pollution. Stakeholders
demand companies engage in ESG concerns.
✔✔Effect on Sustainability - ✔✔Alcan in Canada, Kirin in Japan (beverages), are
examples of firms that embrace practices that protect the environment, often at the
expense of profits.
✔✔Effects on national culture - ✔✔cultural values are affected given the increased
globalization of markets and internationalization of firms. Increased globalization
exposes local consumers to global brands from different cultures.
✔✔culture - ✔✔values, beliefs, customs, arts, and other products of human thought and
work that characterize a people of a given society
✔✔cross-cultural risk - ✔✔a situation or event in which a cultural misunderstanding puts
some human value at stake
✔✔Socialization - ✔✔The process of learning the rules and behavioral patterns
appropriate for living in one's own society
✔✔acculturation - ✔✔The process of adjusting and adapting to a culture other than
one's own.
✔✔Anthropologists - ✔✔use the iceberg metaphor to call attention to the many
dimensions of culture, some obvious and some not so obvious.
