Management 302: Exam 1 Test
Questions with All Correct Solutions
2025-2026 Updated.
Globalization - Answer the shift toward a more integrated and interdependent world
economy.
Components of Globalization - Answer Globalization of Production & Globalization of
Markets
Globalization of Production - Answer sourcing of goods and services from locations around
the world to exploit national differences in the cost and quality of factors of production.
Globalization of Markets - Answer merging distinctly separate national markets into a global
market place.
Drivers of Globalization - Answer Declining Trade
Investment Barriers
Technological Change
Limits to Globalization of Production - Answer Managing a global web of suppliers and
production facilities is complex.
The costs of using a nation's factors of production can change.
Government policies and barriers to trade
Transportation costs
Exchange rate fluctuations
Resource availability
Limits to Globalization of Markets - Answer Significant differences still exist among national
markets.
The most global of markets are for industrial goods and materials that have universal
applicability.
, Risks in International Business - Answer Commercial: loss due to poorly developed or
executed business strategies, tactics, or procedures
Political: changes in governmental policies that adversely impact the profitability or value of a
firm
Economic: loss due to the adverse impact of fluctuations in exchange rates
Legal: loss due to contract violations, inadequate protection of property rights, and/or violations
of intellectual property rights
Cultural: loss due to culturally-based differences in customs, attitudes, values, language, and/or
religion
Positives of Globalization - Answer Lowers prices for goods and services
Stimulates economic growth
Promotes efficient resource utilization
Creates jobs
Concerns with Globalization - Answer Eliminates manufacturing jobs in wealthy, advanced
countries
Decreases wage rates of unskilled workers in advanced countries
May encourage companies to move to countries with fewer labor and environment regulations
Results in loss of national sovereignty
Trade Barrier - Answer a government policy or regulation that restricts international trade
Tariff - Answer duties imposed by a government on imported or exported goods
Non Tariff Barriers - Answer any governmental regulation, policy, or procedure, other than a
tariff that has the effect of impending international trade.
Beggar-Thy-Neighbor Trade Policy - Answer a trade policy that results in one trading partner
gaining an advantage at the expense of another nation
Outsourcing - Answer procuring from an outside supplier products or services which were
previously performed in-house
Questions with All Correct Solutions
2025-2026 Updated.
Globalization - Answer the shift toward a more integrated and interdependent world
economy.
Components of Globalization - Answer Globalization of Production & Globalization of
Markets
Globalization of Production - Answer sourcing of goods and services from locations around
the world to exploit national differences in the cost and quality of factors of production.
Globalization of Markets - Answer merging distinctly separate national markets into a global
market place.
Drivers of Globalization - Answer Declining Trade
Investment Barriers
Technological Change
Limits to Globalization of Production - Answer Managing a global web of suppliers and
production facilities is complex.
The costs of using a nation's factors of production can change.
Government policies and barriers to trade
Transportation costs
Exchange rate fluctuations
Resource availability
Limits to Globalization of Markets - Answer Significant differences still exist among national
markets.
The most global of markets are for industrial goods and materials that have universal
applicability.
, Risks in International Business - Answer Commercial: loss due to poorly developed or
executed business strategies, tactics, or procedures
Political: changes in governmental policies that adversely impact the profitability or value of a
firm
Economic: loss due to the adverse impact of fluctuations in exchange rates
Legal: loss due to contract violations, inadequate protection of property rights, and/or violations
of intellectual property rights
Cultural: loss due to culturally-based differences in customs, attitudes, values, language, and/or
religion
Positives of Globalization - Answer Lowers prices for goods and services
Stimulates economic growth
Promotes efficient resource utilization
Creates jobs
Concerns with Globalization - Answer Eliminates manufacturing jobs in wealthy, advanced
countries
Decreases wage rates of unskilled workers in advanced countries
May encourage companies to move to countries with fewer labor and environment regulations
Results in loss of national sovereignty
Trade Barrier - Answer a government policy or regulation that restricts international trade
Tariff - Answer duties imposed by a government on imported or exported goods
Non Tariff Barriers - Answer any governmental regulation, policy, or procedure, other than a
tariff that has the effect of impending international trade.
Beggar-Thy-Neighbor Trade Policy - Answer a trade policy that results in one trading partner
gaining an advantage at the expense of another nation
Outsourcing - Answer procuring from an outside supplier products or services which were
previously performed in-house
