D270 Midterm Garcia Exam QUESTIONS
AND CORRECT ANSWERS
Globalization - CORRECT ANSWER The widening and deepening of interdependent
relationships among people from different nations
International Business - CORRECT ANSWER Any commercial transaction between 2
or more countries
The Forces Behind the Current Extent of Globalization - CORRECT ANSWER 1)
Increase in application and of technology (Improvements in transportation and
communication networks)
2) Liberalization of cross-border trade and resource communication networks
3) Development of services that support international business activities (Banking,
transportation etc)
4) Growing consumer pressures (Consumer demand for foreign products and on MNC
behaviors)
5) Increased global competition (Born-global companies)
6) Changing political situations and government policies
7) expanded cross-national cooperation (WTO,IMF, NAFTA,EU, treaties and agreements)
Born-global companies - CORRECT ANSWER companies that start out with a global
focus because of their founders' international experience
Positive aspects of globalization (as decided by the class) - CORRECT ANSWER 1)
Specialization (leads to lower costs and higher availability)
2) Strengthening of political relationships
3) Spreading of culture
4) Lower costs/innovation
5) Sustainability
,Negative aspects of globalization - CORRECT ANSWER 1. Higher income inequality
2. Poor labor standards/exploitation
3. Losing employment to outsourcing
4. Lower quality
5. Security issues
6. Environmental stress
Three major negatives of globalization - CORRECT ANSWER 1) Threats to national
sovereignty
2) Emotional Stress
3) Growing income inequality and stress
Threats to national sovereignty - CORRECT ANSWER - Sovereignty: a country's
freedom to "act locally" and without externally imposed restrictions
- Small countries feel threatened and overly dependent
- Cultural homogeneity threatens uniqueness
Environmental stress - CORRECT ANSWER Depletion of resources/pollution/climate
change
Growing income inequality and stress - CORRECT ANSWER -Greater division
between rich and poor
-Threat of job loss leads to personal stress
Factors affecting globalization - CORRECT ANSWER - Size of countries
- Per capita incomes
- Variance among globalization aspects
, size of countries - CORRECT ANSWER smaller countries tend to be more globalized
than larger ones, mainly because their smaller land masses and populations permit a lower
variety of production.
per capita incomes - CORRECT ANSWER Countries with higher per capita incomes
tend to be more globalized than those with lower ones because their citizens can better afford
foreign products, travel, and communications.
Variance among globalization aspects - CORRECT ANSWER Although a country may
rank as highly globalized on one dimension, it may be low on another, such as the United
States being high on technological scales but low on economic ones.
Reshoring is when - CORRECT ANSWER Production is offshored and then brought
back home
Positives of offshoring - CORRECT ANSWER chance to sell at lower costs, chance to
sell more home goods in host country, growth in host country creates more jobs at home,
moving simple production abroad boosts productivity from home
Negatives of offshoring - CORRECT ANSWER - Lower costs do not lead to lower
prices
- Jobs are lost at home
- Low wages put pressure on remaining home jobs
- Exploits host country labor
- Loss of control over suppliers
- Risk of losing technology due to lax IP protection
Why do firms go international? - CORRECT ANSWER To expand sales (growth and
efficiency)
To acquire resources(not everything can be found at home)
- Labor, products, components services
AND CORRECT ANSWERS
Globalization - CORRECT ANSWER The widening and deepening of interdependent
relationships among people from different nations
International Business - CORRECT ANSWER Any commercial transaction between 2
or more countries
The Forces Behind the Current Extent of Globalization - CORRECT ANSWER 1)
Increase in application and of technology (Improvements in transportation and
communication networks)
2) Liberalization of cross-border trade and resource communication networks
3) Development of services that support international business activities (Banking,
transportation etc)
4) Growing consumer pressures (Consumer demand for foreign products and on MNC
behaviors)
5) Increased global competition (Born-global companies)
6) Changing political situations and government policies
7) expanded cross-national cooperation (WTO,IMF, NAFTA,EU, treaties and agreements)
Born-global companies - CORRECT ANSWER companies that start out with a global
focus because of their founders' international experience
Positive aspects of globalization (as decided by the class) - CORRECT ANSWER 1)
Specialization (leads to lower costs and higher availability)
2) Strengthening of political relationships
3) Spreading of culture
4) Lower costs/innovation
5) Sustainability
,Negative aspects of globalization - CORRECT ANSWER 1. Higher income inequality
2. Poor labor standards/exploitation
3. Losing employment to outsourcing
4. Lower quality
5. Security issues
6. Environmental stress
Three major negatives of globalization - CORRECT ANSWER 1) Threats to national
sovereignty
2) Emotional Stress
3) Growing income inequality and stress
Threats to national sovereignty - CORRECT ANSWER - Sovereignty: a country's
freedom to "act locally" and without externally imposed restrictions
- Small countries feel threatened and overly dependent
- Cultural homogeneity threatens uniqueness
Environmental stress - CORRECT ANSWER Depletion of resources/pollution/climate
change
Growing income inequality and stress - CORRECT ANSWER -Greater division
between rich and poor
-Threat of job loss leads to personal stress
Factors affecting globalization - CORRECT ANSWER - Size of countries
- Per capita incomes
- Variance among globalization aspects
, size of countries - CORRECT ANSWER smaller countries tend to be more globalized
than larger ones, mainly because their smaller land masses and populations permit a lower
variety of production.
per capita incomes - CORRECT ANSWER Countries with higher per capita incomes
tend to be more globalized than those with lower ones because their citizens can better afford
foreign products, travel, and communications.
Variance among globalization aspects - CORRECT ANSWER Although a country may
rank as highly globalized on one dimension, it may be low on another, such as the United
States being high on technological scales but low on economic ones.
Reshoring is when - CORRECT ANSWER Production is offshored and then brought
back home
Positives of offshoring - CORRECT ANSWER chance to sell at lower costs, chance to
sell more home goods in host country, growth in host country creates more jobs at home,
moving simple production abroad boosts productivity from home
Negatives of offshoring - CORRECT ANSWER - Lower costs do not lead to lower
prices
- Jobs are lost at home
- Low wages put pressure on remaining home jobs
- Exploits host country labor
- Loss of control over suppliers
- Risk of losing technology due to lax IP protection
Why do firms go international? - CORRECT ANSWER To expand sales (growth and
efficiency)
To acquire resources(not everything can be found at home)
- Labor, products, components services
