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BUSI 3250 Auburn Exam 1 | Certified
Questions With Verified Answers
Transnational corporations-correct-answer-enterprise made up of entities in more
than one nation, operating under decision making system that allows a common
strategy
Foreign Direct Investment (FDI)-correct-answer-direct investments in a foreign
country large enough to obtain management control
Drivers leading towards Internationalization of Business-correct-answer-political,
technological, market, cost, competitive
political drivers-correct-answer--trends toward unification and socialization of the
global economy
-concerns about protectionism by host country markets
technological drivers-correct-answer--advances in technology - increased flow of
ideas and information
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-smaller companies can communicate with customers abroad
-computer based communication may enhance virtual integration
market drivers-correct-answer--as firms internalize, they become global
customers
-firms go abroad to prevent foreign suppliers from accessing their customers
cost drivers-correct-answer-going abroad can lower costs of goods sold
competitive drivers-correct-answer--defend home markets by distracting
competitors
-guarantee supply of key raw materials
Concerns with Globalization-correct-answer--has produced uneven results across
nations and people
-has had effects on labor and labor standard
-contributed to decline in environmental and health conditions
BUSI 3250 Auburn Exam 1 | Certified
Questions With Verified Answers
Transnational corporations-correct-answer-enterprise made up of entities in more
than one nation, operating under decision making system that allows a common
strategy
Foreign Direct Investment (FDI)-correct-answer-direct investments in a foreign
country large enough to obtain management control
Drivers leading towards Internationalization of Business-correct-answer-political,
technological, market, cost, competitive
political drivers-correct-answer--trends toward unification and socialization of the
global economy
-concerns about protectionism by host country markets
technological drivers-correct-answer--advances in technology - increased flow of
ideas and information
, 2|Page
-smaller companies can communicate with customers abroad
-computer based communication may enhance virtual integration
market drivers-correct-answer--as firms internalize, they become global
customers
-firms go abroad to prevent foreign suppliers from accessing their customers
cost drivers-correct-answer-going abroad can lower costs of goods sold
competitive drivers-correct-answer--defend home markets by distracting
competitors
-guarantee supply of key raw materials
Concerns with Globalization-correct-answer--has produced uneven results across
nations and people
-has had effects on labor and labor standard
-contributed to decline in environmental and health conditions
