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Exercises by:Kamal AL MASRI
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
Discussion ..Globalization can cause the loss of
national sovereignty. Discuss this idea.Globalization is not new. Discuss why.Explain how advances in technology
helps Globalization.Discuss the main dimensions of market
globalization.Discuss the main societal
consequences of market globalization.
International Business – Kamal AL MASRI - Exercises
2
Discussion ..List some firm-level
consequences of market globalization.
Explain how Globalization harms the natural environment.
Explain what are the effects of Globalization on National Culture.
International Business – Kamal AL MASRI - Exercises
3
True or false () Globalization and technological advances have
altered the international business landscape more than any other trends.
() The first wave of Globalization was fueled by Internet and other technologies.
() The last wave of Globalization was characterized by progress in ICT and rapid liberalization in emerging markets.
() Market liberalization and adoption of free markets are considered drivers of Market Globalization.
() Collectively, technological advances have greatly reduced the costs of doing business internationally.
International Business – Kamal AL MASRI - Exercises
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True or false () Globalization of markets refers to the ongoing
economic integration and growing interdependency of countries worldwide.
() Advances in technology reduces the cost of doing business internationally by allowing firms to interact cheaply with suppliers, distributors, and customers worldwide.
() Globalization allows firms to view the world as one large marketplace for goods, services, capital, labor, and knowledge.
() Worldwide reduction of barriers to trade and investment acted as a driver of Market Globalization.
International Business – Kamal AL MASRI - Exercises
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True or false () Advances in technology didn’t play any role in
Market Globalization. () Integration and interdependence of national
economies is one of the dimensions of Market Globalization.
() Market Globalization led to the convergence of buyer lifestyles and preferences.
() Market Globalization is characterized by rapid spread of financial or monetary crises from one country to another.
() Globalization can lead to the loss of national sovereignty.
International Business – Kamal AL MASRI - Exercises
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True or false () Offshoring can cause the flight of jobs. () Internationalization of the Firm’s Value Chain is one of
societal consequences of Globalization. () Globalization means less new business opportunities
for internationalizing firms. () Globalization means new risks and intense rivalry from
foreign competitors. () Globalization transformed many developing
economies from producers of low-value goods to higher-value goods, such as electronics and computers.
() ICTs opened the global marketplace to firms that historically lacked the resources to internationalize.
International Business – Kamal AL MASRI - Exercises
7
True or false () Globalization led to a rise of regional economic
integration blocs. () Growth of global investment and financial flows is a
sign of Globalization. () Nations should emphasize economic freedom and
participation in international trade and investment. () Economic freedom is the extent of government
interference in business, the strictness of the nation’s regulatory environment, and the ease with which economic activity can be carried out.
() Economic Freedom is generally associated with National Prosperity.
International Business – Kamal AL MASRI - Exercises
8
True or false () Value chain refers to the sequence of value-
adding activities performed by the firm in the process of developing, producing, and marketing a product or a service.
() Globalization allows the firm to internationalize its value chain, leading to various advantages.
() Market globalization compels firms to internationalize their value chain and access the benefits of international business.
() Internationalization of the Firm’s Value Chain helps increase efficiency, productivity, and flexibility of value chain activities.
International Business – Kamal AL MASRI - Exercises
9
True or false () The Great Depression marked the beginning
of the second phase of globalization. () The initial phase of globalization was
triggered in part by the introduction of the railroad.
() Firms that pursue internationalization as a strategic move tend to approach global competition more aggressively than do firms that internationalize for reactive reasons.
() Converging lifestyles and preferences worldwide help to promote traditional values in individual countries.
International Business – Kamal AL MASRI - Exercises
10
True or false () One contribution of the World Trade
Organization is to help maintain reduced trade barriers throughout the world.
() Industrialization implies that emerging market countries are increasing their dependence on low-cost labor
() Technological advances have helped make internationalization affordable for all sizes of firms.
() Globalization has led buyers to become more demanding and to shop for the best value worldwide.
International Business – Kamal AL MASRI - Exercises
11
The first phase of globalization was characterized by which of the following?
A) the rise of steel productionB) the growth of railroadsC) the spread of
electricityD) the rise of SMEs
International Business – Kamal AL MASRI - Exercises
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The third phase of globalization was triggeredby :
A) the end of World War IIB) the invention of
electricityC) the end of World War ID) economic growth in
emerging markets
International Business – Kamal AL MASRI - Exercises
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Which of the following reflects the major contribution of GATT to globalization?
A) strict controls on international currencies
B) worldwide economic downturn
C) reduction of barriers to international trade
D) advent of new communications technology
International Business – Kamal AL MASRI - Exercises
14
Over time, the GATT evolved into which of the following?
A) World BankB) International Monetary
FundC) World Trade
OrganizationD) NAFTA
International Business – Kamal AL MASRI - Exercises
15
Firms that are more successful at global competition display each of the following qualities except:
A) identifying foreign market opportunities aggressively
B) approaching internationalization from a reactive standpoint
C) actively pursuing partnerships with foreign firms
D) focusing intensively on building organizational capacities
International Business – Kamal AL MASRI - Exercises
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Value-chain activities are defined as which of the following?
A) the methods through which governments promote economic integration
B) the aggregate activities of internationally active firms
C) the process of designing a product for a global market
D) the sequence of value-adding activities performed by a firm
International Business – Kamal AL MASRI - Exercises
17
All of the following represent examples of regional economic integration blocs except:
A) World Trade OrganizationB) European UnionC) MercosurD) NAFTA
International Business – Kamal AL MASRI - Exercises
18
Global firms shift their manufacturing andprocurement to foreign locations in order to:
A) avoid the pressures of global competition
B) benefit from low labor costs
C) reduce the impact of regional recessions
D) avoid oversight by international agencies
International Business – Kamal AL MASRI - Exercises
19
Which of the following is not a driver of market globalization?
A) market liberalizationB) technological
advancesC) increased import tariffsD) economic
development
International Business – Kamal AL MASRI - Exercises
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