D270 Garcia Midterm Exam UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Globalization - CORRECT ANSWER The process of increasing interconnectedness
and interdependence among people and countries, transcending national borders.
International Business - CORRECT ANSWER Commercial transactions involving
goods, services, or resources between two or more countries.
Home company - CORRECT ANSWER The headquarters and ownership location of a
company.
Host company - CORRECT ANSWER A foreign business location where a company
invests or operates.
How do we measure globalization? - CORRECT ANSWER Physical trade
Physical Trade - CORRECT ANSWER The exchange of goods and services across
international borders, documented by companies.
Measuring trade openness - CORRECT ANSWER The percentage of a country's
production sold outside its borders, indicating the level of international trade.
World trade - CORRECT ANSWER The comparison of a country's exports and
imports to the total world production, reflecting its global trade involvement.
Restrictions levels on imports - CORRECT ANSWER The extent of barriers such as
tariffs and quotas imposed on imported goods, influencing international trade.
, Stages of globalization 1.0 - CORRECT ANSWER Refers to the ancient Silk Road era
(200 BC-1700s) facilitating trade between the East and West.
Stages of globalization 2.0 - CORRECT ANSWER Denotes the period from the rise of
European Colonial Empires to the end of WWII (1500-1945), shaping global trade dynamics.
Stages of globalization 3.0 - CORRECT ANSWER Represents the post-World Wars
recovery and the expansion of modern multinational enterprises (1950-1990s), driving global
economic integration.
Stages of globalization 4.0 - CORRECT ANSWER Characterizes the contemporary
period marked by the anti-globalization movement and modern deglobalization (1999-
present).
Pros of globalization - CORRECT ANSWER Advantages include enhanced
connectivity, idea sharing, talent recruitment, access to global resources, and healthy
competition.
Cons of globalization - CORRECT ANSWER Disadvantages encompass job
displacement, political conflicts, pandemics, exploitation, and lack of uniformity.
Threats to national sovereignty - CORRECT ANSWER Concerns related to the
perceived erosion of small countries' autonomy, cultural homogeneity, and the perception of
immigrants as a threat.
Environmental stress - CORRECT ANSWER Challenges such as resource depletion,
pollution, and climate change resulting from global economic activities.
Growing income equality and stress - CORRECT ANSWER The widening gap
between the rich and poor, leading to increased job insecurity and social tension.
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Globalization - CORRECT ANSWER The process of increasing interconnectedness
and interdependence among people and countries, transcending national borders.
International Business - CORRECT ANSWER Commercial transactions involving
goods, services, or resources between two or more countries.
Home company - CORRECT ANSWER The headquarters and ownership location of a
company.
Host company - CORRECT ANSWER A foreign business location where a company
invests or operates.
How do we measure globalization? - CORRECT ANSWER Physical trade
Physical Trade - CORRECT ANSWER The exchange of goods and services across
international borders, documented by companies.
Measuring trade openness - CORRECT ANSWER The percentage of a country's
production sold outside its borders, indicating the level of international trade.
World trade - CORRECT ANSWER The comparison of a country's exports and
imports to the total world production, reflecting its global trade involvement.
Restrictions levels on imports - CORRECT ANSWER The extent of barriers such as
tariffs and quotas imposed on imported goods, influencing international trade.
, Stages of globalization 1.0 - CORRECT ANSWER Refers to the ancient Silk Road era
(200 BC-1700s) facilitating trade between the East and West.
Stages of globalization 2.0 - CORRECT ANSWER Denotes the period from the rise of
European Colonial Empires to the end of WWII (1500-1945), shaping global trade dynamics.
Stages of globalization 3.0 - CORRECT ANSWER Represents the post-World Wars
recovery and the expansion of modern multinational enterprises (1950-1990s), driving global
economic integration.
Stages of globalization 4.0 - CORRECT ANSWER Characterizes the contemporary
period marked by the anti-globalization movement and modern deglobalization (1999-
present).
Pros of globalization - CORRECT ANSWER Advantages include enhanced
connectivity, idea sharing, talent recruitment, access to global resources, and healthy
competition.
Cons of globalization - CORRECT ANSWER Disadvantages encompass job
displacement, political conflicts, pandemics, exploitation, and lack of uniformity.
Threats to national sovereignty - CORRECT ANSWER Concerns related to the
perceived erosion of small countries' autonomy, cultural homogeneity, and the perception of
immigrants as a threat.
Environmental stress - CORRECT ANSWER Challenges such as resource depletion,
pollution, and climate change resulting from global economic activities.
Growing income equality and stress - CORRECT ANSWER The widening gap
between the rich and poor, leading to increased job insecurity and social tension.
