EXAMINATION TEST 2026 FULL SOLVED
QUESTIONS AND SOLUTIONS
◉ Worldwide interconnections in virtually every sphere of activity
including the spread of products, technology, information, and job
opportunities. Globalization can result in blurred boundaries
between nations, organizations, and investors. Answer:
Globalization
◉ The action of buying and selling goods and services. Answer:
trade
◉ Financial assets such as funds but also equipment, facilities, and
other means of production Answer: capital
◉ To obtain goods or services from an outside or foreign supplier
Answer: outsource
◉ Not for profit organizations that are independent of the
government and are active in humanitarian causes Answer:
nongovernmental organizations (NGOs)
,◉ Which type of globalization refers to the international movement
of goods, capital, and services? Answer: Economic
◉ Protects inventions and improvements to existing inventions for a
limited period of time in exchange for detailed public disclosure of
those inventions Answer: patents
◉ 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 Answer: copyrights
◉ 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 Answer: trademarks
◉ A useful or valuable thing; something you own such as building,
inventory, or cash Answer: assets
◉ Being responsible for a debt or financial obligation, something
you owe Answer: liabilities
◉ A monetary contract between parties Answer: financial
instrument
,◉ A large corporation incorporated in one country which produces
or sells goods or services in various countries Answer: multinational
firms
◉ 5 stages of going global Answer: Stage 1 ~ Market Entry
Stage 2 ~ Product Specialization
Stage 3 ~ Value Chain Disaggregation
Stage 4 ~ Value Chain Reengineering
Stage 5 ~ Creation of New Markets
◉ A proportionate savings in costs gained by an increased level of
production Answer: Economies of scale
◉ To develop efficiencies in terms of variety not volume Answer:
Economies of scope
◉ 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?
Answer: Cost
◉ 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? Answer: Infrastructure
◉ A method that provides tools for organizations to increase
performance and decrease process variation Answer: Six Sigma
◉ Which factor of CAGE addresses differences in country size that
affect barriers to globalization? Answer: Economics
◉ Measures the inequality among values of a frequency distribution
such as levels of income Answer: Gini coefficient
◉ Measures how well nations are doing at achieving long, happy,
sustainable lives Answer: Happy Planet Index
◉ Which argument is used by critics who wish to discourage
movement towards globalization? Answer: Increases the wealth of
the rich and not the poor
◉ The total value of goods and services provided in a country in a
one-year period Answer: gross domestic product (GDP)