Which negative outcome on political systems comes from globalization? - ANSWER-Creation of isolationist policies
Which factor results in a higher rate
... [Show More] of globalization? - ANSWER-Reduced trade barriers
What are the four factors in Ghemawat's CAGE analysis? - ANSWER-Culture, Administration, Geography, Economy
What is a major drawback to the home country when companies outsource manufacturing jobs to countries with lower worker wages? - ANSWER-Loss of manufacturing jobs
A country has a characteristic traditional economic system with poor infrastructure and limited economic opportunity. What is the impact of this system on the process of globalization? - ANSWER-The globalization process is at a disadvantage as the country has a lower standard of living.
What is a characteristic of a market economy? - ANSWER-Productivity and profitability are increasing.
Which impact does Islamic law directly have on businesses? - ANSWER-It forbids charging interest.
Which institution helps to maintain availability of global funding? - ANSWER-International Monetary Fund
What is the current focus of the World Bank? - ANSWER-Improving quality of life
For which concern has the World Trade Organization been criticized? - ANSWER-Influence of free trade policies on labor rights
How is the Special Drawing Right of the International Monetary Fund (IMF) valued? - ANSWER-It is based on the value of the five most significant members' currencies.
Two countries agree to open their borders to international business transactions with one another without tariffs.How does this affect global business? - ANSWER-It leads to developing free trade policies with strategic partners.
A country uses its mature technology infrastructure to produce a good.What is the impact of this infrastructure on trade? - ANSWER-It will create barriers to entry for other nations.
What was the economic impact of the North American Free Trade Agreement (NAFTA)? - ANSWER-The shift of jobs away from low comparative advantage industries
A company that is located in Country A would like to sell products in Country B. The government of Country B is pushing for a tariff-based international trade agreement on the product. What is the reasoning behind Country B's decision? - ANSWER-Country B seeks to protect its economy and give it the opportunity for long-term expansion.
Countries A and B participate in trade agreements that allow free trade among participant countries. However, Country A imposed quotas on several imported products to protect its domestic products. What is the effect, if any, on the domestic prices of these products? - ANSWER-Increases
Two countries decide to open up trade with each other. What is likely to happen when trade opens up? - ANSWER-Jobs will increase in comparative advantage industries.
What is the purpose of a country implementing trade protectionism? - ANSWER-To protect an infant industry
Country A and Country B are trying to mend their relationship. A company from Country A would like to invest in a company in Country B. Which action by Country B will help these two countries meet their goal? - ANSWER-Provide tax exemptions
Which level of regional economic integration affects members of a trading bloc? - ANSWER-Unified trading policies with non-members
What is a drawback of creating regional trade agreements? - ANSWER-They create shifts in employment and resource allocation.
The United States-Mexico- Canada Agreement (USMCA), a modification of the North American Free Trade Agreement (NAFTA), broadened the scope of free-trade between member nations and tightened restrictions in the region. Which regulation was established by this new agreement? - ANSWER-Almost half of all automobile parts must be made by a labor force that earns a minimum of $16 per hour by 2023.
A U.S. capital investment firm is researching new markets to enter to diversify its portfolio. The director of foreign investments presented a pitch to the board of directors encouraging entry into the Costa Rican telecommunications market by investing in local companies in the region through acquisition. Which alliance supports this director's suggestion? - ANSWER-Central America Free Trade Agreement
A firm based in Country A manufactures its products in Country B and pays the manufacturing employees in the currency in which they are located. Which currency situation will result in the maximum profit for the firm? - ANSWER-The currency in Country A is strong relative to the currency in Country B.
Which drawback is associated with regional economic integration? - ANSWER-Increased exclusive internal trade
Which factor contributes to the creation of a monopoly? - ANSWER-Control of natural resources
Which convention provides gap fillers for terms that may not be expressly stated in agreements between two companies? - ANSWER-Contracts for the International Sale of Goods
Which laws are violated by practices such as price-fixing, price discrimination, restraints, and monopolization? - ANSWER-Anti-trust
An international company's consumers are demanding that the owners make socially ethical business decisions concerning their packaging, but the company is finding that the suggested green modifications are increasing the costs of producing the product.Which concern is this company facing by meeting these ethical demands? - ANSWER-Decreased profitability
A business is entering a global market at the same time it has been trying to improve its level of corporate social responsibility (CSR). Which CSR goal should this company remember during this process? - ANSWER-Increase shareholder trust via high ethical standards
A company would like to expand its corporate social responsibility (CSR) initiatives to a global level. Which strategy should the company use to meet this goal? - ANSWER-Engage stakeholders on the issue of air quality
An individual is encouraged to provide a small, quiet fee to local officials to get some critical work done overseas for a global office. The individual was told that this would greatly expedite the work. The individual took that advice, and the work was completed, but the manager in the United States was upset with the action and called the individual to discuss the matter. What is the most challenging aspect of this individual's ethical dilemma? - ANSWER-Ethical behaviors are not standardized across the world.
A CEO of a multinational corporation tells employees that they are expected to follow the organization's values, remember the mission, and adapt behaviors to be in alignment with the vision and mission, regardless of the situation.Which ethical standard is being stressed by this company? - ANSWER-Code of ethics
An international company has employees divided into departments related to designated areas of the business, such as marketing, production, human resources, information technology, and customer service. What is the organizational structure of this company? - ANSWER-Functional
Which organizational structure is common in international high-tech and engineering firms that have projects of limited lengths of time where employees can be put on different teams to maximize ingenuity? - ANSWER-Matrix
Which organizational structure helps increase employee creativity, productivity, and mutual accountability? - ANSWER-Teams
A community has the skills and ability to access computers and the internet but does not value that form of technology. A company is trying to change the situation in order to facilitate increased online transactions. Which stage of the digital divide is the company hoping to correct? - ANSWER-Empowerment
A global furniture company competes in three areas: furniture manufacturing, furniture refinishing, and commercial furniture design.Which type of departmentalization does this company use? - ANSWER-Product
A multinational corporation (MNC) with headquarters in the United States is seeking to limit its supply chain to U.S. companies so that decision-making authority is localized at the highest level of the organization. What is a result of using this decision-making structure? - ANSWER-There is increased consistency in operations.
A global company wants to share and store business information online 24/7 for employees so they can access the items when they are not physically in the office. Which tool should the company use for this purpose? - ANSWER-Cloud-based file share
A manufacturing facility would like to consider the use of artificial intelligence deep learning. Which practice illustrates the use of this approach? - ANSWER-Machines become familiar with common defects in products.
A company wants to hold a direct operating presence in a foreign country, so it buys a company in the target country and runs the operations. Which type of business agreement is this company using? - ANSWER-Subsidiary
A multinational beverage company decides to export products into a new market in order to grow its business. Exporting products was determined to be one of the cheapest methods of market entry for this company; however, the company realizes there are some disadvantages to exporting. Which challenge is this company likely facing by exporting its products? - ANSWER-Costs of transporting goods is high.
A multinational company hires a distributor to manage the distribution of products in a new international market that it recently entered. Which entry strategy is the company using? - ANSWER-Exporting
A company located in the United States ships its products to a country overseas. Frequent bad weather causes significant delays, thus leading to reduced profits. As a result, the company wants to encourage leadership to consider adding a location in this overseas country. Which strategy solves this problem? - ANSWER-Decentralized manufacturing
As a company enters a foreign market, it provides assets, takes on all of the responsibility, and assumes significant risk.What is this market entry strategy? - ANSWER-Greenfield venture
A company has entered several foreign markets and maintains the same branding in all of them. What is the term for this marketing strategy? - ANSWER-Standardization
A company would like to have a direct operating presence in a foreign country but is concerned about exposing the company to high levels of risk associated with this entry strategy. Which entry strategy is the company considering? - ANSWER-Subsidiary
Which national cultural dimension refers to how agreeably a society accepts hierarchical differences between people in the global workplace? - ANSWER-Power distance
A senior manager from the head office of a company based in the United States is assigned to work in its overseas office in Indonesia where significant emphasis is placed on workplace harmony. The manager ensures that the local culture and language is understood and is often perceived as an insider who follows the normal traditions. How will the cultural dimensions of the local country influence the manager's evaluation? - ANSWER-The senior manager would be given a very favorable performance evaluation.
Which national cultural dimension in global business refers to the amount of ambiguity a society is willing to accept? - ANSWER-Uncertainty avoidance
A company is interested in working with the technology that will allow consumers to privately and securely store personal information such as social security and credit card numbers, making it accessible around the world. Which piece of technology is of interest to this company? - ANSWER-Blockchain
An international business experienced significant changes due to advances in global technology such as autonomous cars, 3D printing, biometrics, nanotechnology, and quantum computing. Which era caused this impact on the business? - ANSWER-Fourth Industrial Revolution
An international company works with many economic sectors and notices that one sector in particular is slower to adopt artificial intelligence, which limits their opportunities on a global scale. Which economic sector shows this slower pace? - ANSWER-Education
A company is exploring a new peer-to-peer network technology that allows businesses to operate internationally with significantly less risk of data breaches. Which technology is this company exploring? - ANSWER-Blockchain
A new start-up company wants to conne [Show Less]