NEW version test bank for international business - the new realities- 3rd edition

International Business: The New Realities, 3e (Cavusgil) 1) Nationalization refers to the gradual integration and growing interdependence of national economies. Difficulty: Easy Skill: Concept Objective: 2-1 2) The initial phase of globalization was triggered by the introduction of the railroads and ocean transport. Difficulty: Easy Skill: Concept AACSB: Dynamics of the global economy 3) The Great Depression marked the beginning of the second phase of globalization. Answer: FALSE Skill: Concept Objective: 2-1 4) The third phase of globalization was triggered by the development of personal computers, the Internet, and Web browsers. Difficulty: Easy Skill: Concept AACSB: Dynamics of the global economy 5) Firms expand abroad solely as a reaction to market globalization. Answer: FALSE Skill: Concept Objective: 2-2 6) Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages. Difficulty: Easy Skill: Concept AACSB: Dynamics of the global economy 7) Firms that pursue internationalization as a strategic move tend to approach global competition more aggressively than do firms that internationalize on a purely reactive basis. Difficulty: Easy Skill: Concept Objective: 2-2 8) Offshoring and the flight of jobs are prime drivers of market globalization. Answer: FALSE Skill: Concept Objective: 2-2 9) Globalization of production activities and services is a dimension of market globalization. Answer: TRUE Skill: Concept Objective: 2-2 10) Governments have facilitated economic integration by lowering barriers to international trade and investment, harmonizing their monetary and fiscal policies within regional economic Answer: TRUE Difficulty: Easy Objective: 2-3 11) In a "common market," barriers to the cross-border flow of factors of production are removed. Difficulty: Easy Skill: Concept AACSB: Dynamics of the global economy 12) The globalization of capital refers to the aggregate activities of firms that gives rise to economic integration. Answer: FALSE Difficulty: Easy Skill: Concept AACSB: Dynamics of the global economy 13) Converging tastes of consumers worldwide promote traditional lifestyles and values in individual countries. Difficulty: Easy Skill: Concept Objective: 2-3 14) Companies strive to drive down prices through economies of scale, by standardizing what they sell. Difficulty: Easy Skill: Concept AACSB: Dynamics of the global economy 15) Falling trade barriers are facilitated by the WTO. Answer: TRUE Skill: Concept Objective: 2-4 16) The end of the Cold War in 1989 hindered the forces of market liberalization in Eastern Europe. Difficulty: Easy Skill: Concept AACSB: Dynamics of the global economy 17) Industrialization implies that emerging markets are increasing their dependence on low-cost labor. Difficulty: Easy Skill: Concept Objective: 2-4 18) Technological advances have helped make internationalization affordable for all sizes of firms. Answer: TRUE Difficulty: Easy Skill: Concept Objective: 2-5