D270 Garcia Midterm Combo Exam
QUESTIONS AND CORRECT ANSWERS
Globalization - CORRECT ANSWER a process of broadening of interdependent
relationships among people who are divided into national borders
International business - CORRECT ANSWER Any commercial transactions between 2
or more countries
Percent of global production sold outside country of origin - CORRECT
ANSWER 25% (7% in 1950)
Examples of "have-not" countries in international trade - CORRECT ANSWER North
Korea, Iran, Cuba, Africa
Example of extremely dependent trade relationship - CORRECT ANSWER Mexico
and Canada reliant on USA
Countries with many strong trade partners - CORRECT ANSWER USA, China, Japan
Countries with one or no major trade partners - CORRECT ANSWER North Korea,
Iran, Cuba
The forces behind the current extent of globalization - CORRECT ANSWER -
Technological advances
-Liberalization of cross-border trade
-Development of services that support IB
-Growing consumer pressures
-Increased global competition
-Changing political situations
-Expanded cross-national cooperation
,Positive side of globalization - CORRECT ANSWER Poverty reduction
-Globalization has lifted millions out of poverty into the middle class
-Half the population expected to be middle class by 2020
Negative side of globalization - CORRECT ANSWER -Threatens national sovereignty
-Environmental stress
-Growing income inequality & personal stress
The stages of globalization - stage 1 - CORRECT ANSWER The Silk Road (200 BC-
1700s)
-Han dynasty
-Trade between East and West (spices, silk, gunpowder, etc.)
The stages of globalization - stage 2 - CORRECT ANSWER Rise of European colonial
empires to the end of WWII (1500-1945)
The stages of globalization - stage 3 - CORRECT ANSWER World Wars recovery and
modern MNE expansion (1950-1990s)
The stages of globalization - stage 4 - CORRECT ANSWER Anti-globalization
movement (1999-Present)
Forces against globalization - CORRECT ANSWER easy for people to compare
income/economic growth with other countries and blame globalization for the discrepancy
Drivers of increased globalization - CORRECT ANSWER -Computerization
-Data flows
-Transportation services
-Music streaming
, -Licensing
-Cross-border banking
-Franchising
-Tourism
Why do domestic firms go international? - CORRECT ANSWER -To expand sales
-To acquire resources
-Minimize risk
Physical/Societal factors of globalization - CORRECT ANSWER -Geographic
influences
-Political policies
-Legal policies
-Behavioral factors
-Economic forces
Difference between domestic and international business - CORRECT
ANSWER Decision making in IB is much more complex
-Level of internal control
-Level of involvement/mode
-Number of countries of expansion
-Differences among countries of expansion
Basic country analysis framework - CORRECT ANSWER -Socio/cultural
-Political/legal
-Economic/financial
-Infrastructure/Resources
Why country analysis? - CORRECT ANSWER -Decide most suitable countries
QUESTIONS AND CORRECT ANSWERS
Globalization - CORRECT ANSWER a process of broadening of interdependent
relationships among people who are divided into national borders
International business - CORRECT ANSWER Any commercial transactions between 2
or more countries
Percent of global production sold outside country of origin - CORRECT
ANSWER 25% (7% in 1950)
Examples of "have-not" countries in international trade - CORRECT ANSWER North
Korea, Iran, Cuba, Africa
Example of extremely dependent trade relationship - CORRECT ANSWER Mexico
and Canada reliant on USA
Countries with many strong trade partners - CORRECT ANSWER USA, China, Japan
Countries with one or no major trade partners - CORRECT ANSWER North Korea,
Iran, Cuba
The forces behind the current extent of globalization - CORRECT ANSWER -
Technological advances
-Liberalization of cross-border trade
-Development of services that support IB
-Growing consumer pressures
-Increased global competition
-Changing political situations
-Expanded cross-national cooperation
,Positive side of globalization - CORRECT ANSWER Poverty reduction
-Globalization has lifted millions out of poverty into the middle class
-Half the population expected to be middle class by 2020
Negative side of globalization - CORRECT ANSWER -Threatens national sovereignty
-Environmental stress
-Growing income inequality & personal stress
The stages of globalization - stage 1 - CORRECT ANSWER The Silk Road (200 BC-
1700s)
-Han dynasty
-Trade between East and West (spices, silk, gunpowder, etc.)
The stages of globalization - stage 2 - CORRECT ANSWER Rise of European colonial
empires to the end of WWII (1500-1945)
The stages of globalization - stage 3 - CORRECT ANSWER World Wars recovery and
modern MNE expansion (1950-1990s)
The stages of globalization - stage 4 - CORRECT ANSWER Anti-globalization
movement (1999-Present)
Forces against globalization - CORRECT ANSWER easy for people to compare
income/economic growth with other countries and blame globalization for the discrepancy
Drivers of increased globalization - CORRECT ANSWER -Computerization
-Data flows
-Transportation services
-Music streaming
, -Licensing
-Cross-border banking
-Franchising
-Tourism
Why do domestic firms go international? - CORRECT ANSWER -To expand sales
-To acquire resources
-Minimize risk
Physical/Societal factors of globalization - CORRECT ANSWER -Geographic
influences
-Political policies
-Legal policies
-Behavioral factors
-Economic forces
Difference between domestic and international business - CORRECT
ANSWER Decision making in IB is much more complex
-Level of internal control
-Level of involvement/mode
-Number of countries of expansion
-Differences among countries of expansion
Basic country analysis framework - CORRECT ANSWER -Socio/cultural
-Political/legal
-Economic/financial
-Infrastructure/Resources
Why country analysis? - CORRECT ANSWER -Decide most suitable countries
