Managing in a Global Business Environment Study Guide
for FVC1 V4 and D080 V3
Technology - Social Media Platform
Transportation - Commercial Air Travel
Cooperation - International Monetary Fund (IMF)
Not a Driver - Wealth Inequality
Globalization - 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?
Outsourcing - A manager seeks to reduce production costs for a product by moving the production to a
country with lower labor costs.
What is the term for the movement of jobs from a high-cost labor country to a low-cost labor country?
Economic - Which type of globalization refers to the international movement of goods, capital, and
services?
Profitability - 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?
Direct investment - A CEO decides to expand the company's business internationally by purchasing
production capability in another country, including the foreign country's buildings and equipment.
Which type of market entry is the CEO using?
Cost - Which type of globalization driver is the CEO seeking to use?
Infrastructure - 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?
Globalization 1.0 - This is the least desirable level of globalization to deal with due to a lack of
transportation and technology options.
Globalization 2.0 - This stage of globalism leads to more access to delivering goods on a worldwide
platform due to advances in transportation.
Globalization 3.0 - This is the most desirable level of globalism due to advances in technology and
communication, making global interactions and transaction smoother.
Economics - Which factor is an element of a CAGE analysis when assessing barriers to cross-border
activity?
Economics - Which factor of CAGE addresses differences in country size that affect barriers to
globalization?
It increases the wealth of the rich rather than the poor. - Which argument is used by critics who wish to
discourage movement towards globalization?
Anarchism - Individuals control political activities, and the government has no control over these
activities.
Totalitarianism - A centralized government creates oppressive policies based on ideas from powerful
leadership.
Direct democracy - The government provides a method of voting for the people of a country, not for
elected officials.
Restrictions on freedom of speech - Which accommodation should an American multinational company
make to conduct business in China?
, What is a free trade zone? - A geographic region in which a county will reduce restrictions that might
prevent or reduce trade
Which term describes a government giving a tax break to a producer to increase their global
competitiveness? - Subsidies
Industrialized - Prevalent formation of new markets with possibility of saturation.
Less-developed - Focus on agriculture and raw materials with limited imports.
Developing - Growing population which leads to long-term growth potential.
Which type of economy is decentralized and allows firms and households to participate in global trade
with minimum governmental interference? - Market
What type of economy is centered on families or tribes where little to no global trade is practiced? -
Traditional
Socialism - A system in which the government controls the means of production and regulates global
trade.
Capitalism - A system in which the means of production is controlled by private owners who can choose
to participate in global trade.
Communism - A system in which all property is publicly owned and the government controls global
trade.
Which type of law system is based on a code and focuses on how the law is applied to the facts? - Civil
Which law is based on tradition and precedent given that judicial rulings can stand as precedents for
future cases? - Common
Which law system can vary from community to community and is found in countries without strong formal
justice systems? - Customary
In which law system does a judge decide the applicable law for the case as a jury determines the facts? -
Common
Which type of globalization is represented by Sure Start expanding into South America, Europe, and
Asia? - Economic
Sure Start is starting a new division for rechargeable batteries in different parts of the world.
What was the globalization driver of this decision? - Competition
Which antiglobalization argument could lead to Sure Start continuing to maintain its current factories
instead of moving them to Asia? - Factory workers fear their jobs will be moved to another country.
Which action should the U.S. government take to encourage Sure Start to keep electric battery production
in the country? - Impose tariffs on batteries made in Vietnam
Which economic system facilitates the global expansion of Sure Start? - Market
Which type of risk will a company reduce if they offer a warranty to the purchasers of the battery in case
of failure? - Legal
Which activity of the International Monetary Fund (IMF) impacts policymaking? - Being owned and
directed by the governments of the member nations.
What is a characteristic of the International Monetary Fund (IMF)? - The IMF is a cooperative insitiution
and provides more effective currency exchange.
What was the initial purpose of the International Monetary Fund (IMF) in phase one, prior to 1973? -
Regulated currency exchange between nations.
How does the International Monetary Fund (IMF) impact international organizations and governments? -
It reduces funding for social programs.
What is a common name for the International Bank for Reconstruction and Development? - World Bank
What was the first loan that the World Bank made after the end of World War II? - To France to rebuild
its infrastructure.
Which criticism is associated with the World Bank? - The developed countries of U.S. and Europe have
too much control over its decisions.
Which criticism is made about the World Bank? - It does not consider how funding projects will affect
the environment.
What was one of the results of the Uruguay Round of the World Trade Organization negotiations? -
Decrease in tariffs
Which organization was formed after World War II to encourage international commerce? - World Trade
Organization
Which criticism is made about the World Trade Organization (WTO)? - It protects developed countries
more than developing countries.
for FVC1 V4 and D080 V3
Technology - Social Media Platform
Transportation - Commercial Air Travel
Cooperation - International Monetary Fund (IMF)
Not a Driver - Wealth Inequality
Globalization - 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?
Outsourcing - A manager seeks to reduce production costs for a product by moving the production to a
country with lower labor costs.
What is the term for the movement of jobs from a high-cost labor country to a low-cost labor country?
Economic - Which type of globalization refers to the international movement of goods, capital, and
services?
Profitability - 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?
Direct investment - A CEO decides to expand the company's business internationally by purchasing
production capability in another country, including the foreign country's buildings and equipment.
Which type of market entry is the CEO using?
Cost - Which type of globalization driver is the CEO seeking to use?
Infrastructure - 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?
Globalization 1.0 - This is the least desirable level of globalization to deal with due to a lack of
transportation and technology options.
Globalization 2.0 - This stage of globalism leads to more access to delivering goods on a worldwide
platform due to advances in transportation.
Globalization 3.0 - This is the most desirable level of globalism due to advances in technology and
communication, making global interactions and transaction smoother.
Economics - Which factor is an element of a CAGE analysis when assessing barriers to cross-border
activity?
Economics - Which factor of CAGE addresses differences in country size that affect barriers to
globalization?
It increases the wealth of the rich rather than the poor. - Which argument is used by critics who wish to
discourage movement towards globalization?
Anarchism - Individuals control political activities, and the government has no control over these
activities.
Totalitarianism - A centralized government creates oppressive policies based on ideas from powerful
leadership.
Direct democracy - The government provides a method of voting for the people of a country, not for
elected officials.
Restrictions on freedom of speech - Which accommodation should an American multinational company
make to conduct business in China?
, What is a free trade zone? - A geographic region in which a county will reduce restrictions that might
prevent or reduce trade
Which term describes a government giving a tax break to a producer to increase their global
competitiveness? - Subsidies
Industrialized - Prevalent formation of new markets with possibility of saturation.
Less-developed - Focus on agriculture and raw materials with limited imports.
Developing - Growing population which leads to long-term growth potential.
Which type of economy is decentralized and allows firms and households to participate in global trade
with minimum governmental interference? - Market
What type of economy is centered on families or tribes where little to no global trade is practiced? -
Traditional
Socialism - A system in which the government controls the means of production and regulates global
trade.
Capitalism - A system in which the means of production is controlled by private owners who can choose
to participate in global trade.
Communism - A system in which all property is publicly owned and the government controls global
trade.
Which type of law system is based on a code and focuses on how the law is applied to the facts? - Civil
Which law is based on tradition and precedent given that judicial rulings can stand as precedents for
future cases? - Common
Which law system can vary from community to community and is found in countries without strong formal
justice systems? - Customary
In which law system does a judge decide the applicable law for the case as a jury determines the facts? -
Common
Which type of globalization is represented by Sure Start expanding into South America, Europe, and
Asia? - Economic
Sure Start is starting a new division for rechargeable batteries in different parts of the world.
What was the globalization driver of this decision? - Competition
Which antiglobalization argument could lead to Sure Start continuing to maintain its current factories
instead of moving them to Asia? - Factory workers fear their jobs will be moved to another country.
Which action should the U.S. government take to encourage Sure Start to keep electric battery production
in the country? - Impose tariffs on batteries made in Vietnam
Which economic system facilitates the global expansion of Sure Start? - Market
Which type of risk will a company reduce if they offer a warranty to the purchasers of the battery in case
of failure? - Legal
Which activity of the International Monetary Fund (IMF) impacts policymaking? - Being owned and
directed by the governments of the member nations.
What is a characteristic of the International Monetary Fund (IMF)? - The IMF is a cooperative insitiution
and provides more effective currency exchange.
What was the initial purpose of the International Monetary Fund (IMF) in phase one, prior to 1973? -
Regulated currency exchange between nations.
How does the International Monetary Fund (IMF) impact international organizations and governments? -
It reduces funding for social programs.
What is a common name for the International Bank for Reconstruction and Development? - World Bank
What was the first loan that the World Bank made after the end of World War II? - To France to rebuild
its infrastructure.
Which criticism is associated with the World Bank? - The developed countries of U.S. and Europe have
too much control over its decisions.
Which criticism is made about the World Bank? - It does not consider how funding projects will affect
the environment.
What was one of the results of the Uruguay Round of the World Trade Organization negotiations? -
Decrease in tariffs
Which organization was formed after World War II to encourage international commerce? - World Trade
Organization
Which criticism is made about the World Trade Organization (WTO)? - It protects developed countries
more than developing countries.
