MODULE 1: Globalization Fundamentals
1. Which driver of globalization is an example of Technology?
A) Cultural Trends
B) Social Media Platforms
C) Wealth Inequity
D) Commercial Air Travel
Correct Answer: B
Rationale: Social media platforms are a technology driver of globalization. The internet gave rise
to the creation of social media platforms that encourage cultural exchange between citizens of
nation states. These platforms enable instantaneous global communication, information
sharing, and cultural exchange across borders. Cultural Trends (A) is a connection driver. Wealth
Inequity (C) is a negative outcome, not a driver. Commercial Air Travel (D) is a transportation
driver. Technology drivers facilitate the flow of information and ideas globally.
2. Which driver of globalization is an example of Transportation?
A) Cultural Trends
B) Social Media Platforms
C) Wealth Inequity
D) Commercial Air Travel
Correct Answer: D
Rationale: Commercial air travel is a transportation driver of globalization. The rise of
commercial air travel allowed goods to move between countries quickly. Transportation drivers
reduce the time and cost of moving goods, people, and services across borders. Cultural Trends
(A) is a connection driver. Social Media Platforms (B) is a technology driver. Wealth Inequity (C)
,is a negative outcome. Transportation advancements like air travel, container shipping, and
improved logistics have been fundamental to globalization.
3. Which driver of globalization is an example of Connection?
A) Cultural Trends
B) Social Media Platforms
C) Wealth Inequity
D) Commercial Air Travel
Correct Answer: A
Rationale: Cultural trends are a connection driver of globalization. Cultural trends such as
music, art, clothing, and industry are connecting people more than ever. These cultural flows
create shared experiences and understanding across borders. Social Media Platforms (B) is a
technology driver. Wealth Inequity (C) is a negative outcome. Commercial Air Travel (D) is a
transportation driver. Connection drivers facilitate the exchange of ideas, values, and cultural
practices.
4. Which is not an example of a driver of globalization?
A) Cultural Trends
B) Social Media Platforms
C) Wealth Inequity
D) Commercial Air Travel
Correct Answer: C
Rationale: Wealth inequity is NOT a driver of globalization; it is a negative result of
globalization. Drivers of globalization include technology (social media), transportation
(commercial air travel), and connection (cultural trends). Wealth inequity is a consequence that
critics point to when arguing against globalization—it is an outcome, not a cause. Understanding
the distinction between drivers and outcomes is essential for analyzing globalization's impacts.
5. 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?
A) Job Availability
B) Globalization
C) Outsourcing
D) Wealth Inequality
Correct Answer: B
Rationale: Globalization is the international integration arising from the interchange of
worldviews, products, ideas, and other aspects of culture. The team's cross-cultural exchange of
ideas to develop a better product strategy represents globalization in action. Job Availability (A)
is not the term. Outsourcing (C) is moving operations to other countries. Wealth Inequality (D) is
a negative outcome. The ability to collectively develop a better product strategy occurs through
cross-cultural exchange.
6. Which type of globalization refers to the international movement of goods, capital, and
services?
A) Economic
B) Anti
C) Social
D) Cultural
Correct Answer: A
Rationale: Economic globalization refers to the international movement of goods, capital, and
services. The movement of goods and services internationally through trade and trade
agreements is economic globalization. As the world becomes smaller, increased movement of
goods across borders occurs along with trade agreements. Social (C) and cultural (D)
globalization involve the exchange of ideas and values. Anti-globalization (B) is opposition to the
process.
7-11. Five Stages of Going Global
Match the definition to the correct term as part of the Five Stages of Going Global:
, Term Definition
Market Entry B. Companies enter new countries
Product Specialization E. Full production to a single, low-cost location
Value Chain Disaggregation A. Complete each activity in the most advantageous location
Value Chain Reengineering D. Companies seek further cost savings, substituting lower cost labor for capita
Creation of New Markets C. Market expansion
Rationale: The Five Stages of Going Global represent the evolution of international business
strategy:
• Market Entry is the first stage, where companies initially enter foreign markets.
• Product Specialization involves concentrating production in the most efficient location.
• Value Chain Disaggregation distributes different activities across multiple countries.
• Value Chain Reengineering seeks deeper cost savings through labor substitution.
• Creation of New Markets represents expansion into new market opportunities.
12. 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?
A) Stakeholder satisfaction
B) Cultural exchange
C) Profitability
D) Exporting
Correct Answer: C
Rationale: Ultimately, a company is engaged in commerce to achieve profitability. Business
profit is gauged in financial and economic terms. However, some level of sustained financial and
1. Which driver of globalization is an example of Technology?
A) Cultural Trends
B) Social Media Platforms
C) Wealth Inequity
D) Commercial Air Travel
Correct Answer: B
Rationale: Social media platforms are a technology driver of globalization. The internet gave rise
to the creation of social media platforms that encourage cultural exchange between citizens of
nation states. These platforms enable instantaneous global communication, information
sharing, and cultural exchange across borders. Cultural Trends (A) is a connection driver. Wealth
Inequity (C) is a negative outcome, not a driver. Commercial Air Travel (D) is a transportation
driver. Technology drivers facilitate the flow of information and ideas globally.
2. Which driver of globalization is an example of Transportation?
A) Cultural Trends
B) Social Media Platforms
C) Wealth Inequity
D) Commercial Air Travel
Correct Answer: D
Rationale: Commercial air travel is a transportation driver of globalization. The rise of
commercial air travel allowed goods to move between countries quickly. Transportation drivers
reduce the time and cost of moving goods, people, and services across borders. Cultural Trends
(A) is a connection driver. Social Media Platforms (B) is a technology driver. Wealth Inequity (C)
,is a negative outcome. Transportation advancements like air travel, container shipping, and
improved logistics have been fundamental to globalization.
3. Which driver of globalization is an example of Connection?
A) Cultural Trends
B) Social Media Platforms
C) Wealth Inequity
D) Commercial Air Travel
Correct Answer: A
Rationale: Cultural trends are a connection driver of globalization. Cultural trends such as
music, art, clothing, and industry are connecting people more than ever. These cultural flows
create shared experiences and understanding across borders. Social Media Platforms (B) is a
technology driver. Wealth Inequity (C) is a negative outcome. Commercial Air Travel (D) is a
transportation driver. Connection drivers facilitate the exchange of ideas, values, and cultural
practices.
4. Which is not an example of a driver of globalization?
A) Cultural Trends
B) Social Media Platforms
C) Wealth Inequity
D) Commercial Air Travel
Correct Answer: C
Rationale: Wealth inequity is NOT a driver of globalization; it is a negative result of
globalization. Drivers of globalization include technology (social media), transportation
(commercial air travel), and connection (cultural trends). Wealth inequity is a consequence that
critics point to when arguing against globalization—it is an outcome, not a cause. Understanding
the distinction between drivers and outcomes is essential for analyzing globalization's impacts.
5. 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?
A) Job Availability
B) Globalization
C) Outsourcing
D) Wealth Inequality
Correct Answer: B
Rationale: Globalization is the international integration arising from the interchange of
worldviews, products, ideas, and other aspects of culture. The team's cross-cultural exchange of
ideas to develop a better product strategy represents globalization in action. Job Availability (A)
is not the term. Outsourcing (C) is moving operations to other countries. Wealth Inequality (D) is
a negative outcome. The ability to collectively develop a better product strategy occurs through
cross-cultural exchange.
6. Which type of globalization refers to the international movement of goods, capital, and
services?
A) Economic
B) Anti
C) Social
D) Cultural
Correct Answer: A
Rationale: Economic globalization refers to the international movement of goods, capital, and
services. The movement of goods and services internationally through trade and trade
agreements is economic globalization. As the world becomes smaller, increased movement of
goods across borders occurs along with trade agreements. Social (C) and cultural (D)
globalization involve the exchange of ideas and values. Anti-globalization (B) is opposition to the
process.
7-11. Five Stages of Going Global
Match the definition to the correct term as part of the Five Stages of Going Global:
, Term Definition
Market Entry B. Companies enter new countries
Product Specialization E. Full production to a single, low-cost location
Value Chain Disaggregation A. Complete each activity in the most advantageous location
Value Chain Reengineering D. Companies seek further cost savings, substituting lower cost labor for capita
Creation of New Markets C. Market expansion
Rationale: The Five Stages of Going Global represent the evolution of international business
strategy:
• Market Entry is the first stage, where companies initially enter foreign markets.
• Product Specialization involves concentrating production in the most efficient location.
• Value Chain Disaggregation distributes different activities across multiple countries.
• Value Chain Reengineering seeks deeper cost savings through labor substitution.
• Creation of New Markets represents expansion into new market opportunities.
12. 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?
A) Stakeholder satisfaction
B) Cultural exchange
C) Profitability
D) Exporting
Correct Answer: C
Rationale: Ultimately, a company is engaged in commerce to achieve profitability. Business
profit is gauged in financial and economic terms. However, some level of sustained financial and
