GMS 522 CHAPTER 1 EXAM
QUESTIONS AND ANSWERS
Environmental factors of globalization (4) - Answer-1. Reduced global barriers, rapid
technological evolution
2. Successive rounds of multilateral trade negotiations under GATT/WTO
3. Internet and other communication technologies
4. Changes in government policies (e.g. China's Go Out policy of the late 1990s)
Competitive factors of globalization (3) - Answer-1. Firms may need to enter new
markets in order to match the moves of competitors.
2. Firms may need to enter new markets to follow major customers.
3. Firms may expand abroad to reduce the impact of competition from foreign firms in
their domestic market.
Dreher's KOF Index (3) - Answer-Measures globalization based on three dimensions:
1. Economic integration: trade and investment flows
2. Political integration: diffusion of gov't policies (no. of embassies, no. of peace keeping
missions, etc.)
3. Social integration: flow of ideas and movement of people.
Examples of backlash against globalization (6) - Answer-1. Street demonstrations in
Seattle attempt to shut down WTO meeting.
2. Protests at the World Economic forum meeting in Davos, Switzerland in 2000.
3. Protestors clash with police at the Summit of the Americas meeting in Quebec City,
April 2001.
4. G8 meeting in Genoa, Italy turns violent in 2001. Protestor killed.
5. G20 meeting in London in 2009 yet another protestor dies.
6. The Occupy Movement (2011) started in Zuccotti Park in Wall Street's Financial
district and spread across the world.
Regiocentric - Answer-Activities and business strategies coordinated within defined
regions (e.g. Europe, Asia, etc.)
Geocentric - Answer-Views the world as a global market but recognizes the importance
of catering to local cultural differences. Offers standardized products with adaptation.
Ethnocentric management orientation - Answer-Head office makes important decisions,
focuses on home market.
Polycentric management - Answer-Foreign subsidiaries have control over marketing,
production, and technology.
QUESTIONS AND ANSWERS
Environmental factors of globalization (4) - Answer-1. Reduced global barriers, rapid
technological evolution
2. Successive rounds of multilateral trade negotiations under GATT/WTO
3. Internet and other communication technologies
4. Changes in government policies (e.g. China's Go Out policy of the late 1990s)
Competitive factors of globalization (3) - Answer-1. Firms may need to enter new
markets in order to match the moves of competitors.
2. Firms may need to enter new markets to follow major customers.
3. Firms may expand abroad to reduce the impact of competition from foreign firms in
their domestic market.
Dreher's KOF Index (3) - Answer-Measures globalization based on three dimensions:
1. Economic integration: trade and investment flows
2. Political integration: diffusion of gov't policies (no. of embassies, no. of peace keeping
missions, etc.)
3. Social integration: flow of ideas and movement of people.
Examples of backlash against globalization (6) - Answer-1. Street demonstrations in
Seattle attempt to shut down WTO meeting.
2. Protests at the World Economic forum meeting in Davos, Switzerland in 2000.
3. Protestors clash with police at the Summit of the Americas meeting in Quebec City,
April 2001.
4. G8 meeting in Genoa, Italy turns violent in 2001. Protestor killed.
5. G20 meeting in London in 2009 yet another protestor dies.
6. The Occupy Movement (2011) started in Zuccotti Park in Wall Street's Financial
district and spread across the world.
Regiocentric - Answer-Activities and business strategies coordinated within defined
regions (e.g. Europe, Asia, etc.)
Geocentric - Answer-Views the world as a global market but recognizes the importance
of catering to local cultural differences. Offers standardized products with adaptation.
Ethnocentric management orientation - Answer-Head office makes important decisions,
focuses on home market.
Polycentric management - Answer-Foreign subsidiaries have control over marketing,
production, and technology.
