IBUS 410 Exam 1 Study Guide || Answered Perfectly 100%.
Globalization correct answers The shift toward a more INTEGRATED and
INTERDEPENDENT world economy.
main drivers of globalization correct answers -decline in barriers
-technological change
Decline in barriers (Main driver of globalization) correct answers -the DECLINE IN BARRIERS
to the free flow of goods, services, and capital that has occurred since the end of World War II.
-Since 1950, average TARIFFS have fallen significantly
-Countries have OPENED their markets to FDI.
Technological change (Main driver of globalization) correct answers -microprocessors and
telecommunications
-the internet and WorldWide Web
transportation technology
Globalization of Production correct answers Firms SOURCE goods and services from locations
around the globe to capitalize on NATIONAL DIFFERENCES in the cost and quality of
FACTORS OF PRODUCTION like land, labor, energy, and capital
Globalization of Production pt. 2 correct answers -COMPANIES CAN:
-Lower their overall cost structure
-Improve the quality or functionality of their product offering
Globalization of Markets correct answers -Historically distinct and separate national markets are
merging
,Global Market correct answers -Falling TRADE BARRIERS make it easier to sell globally.
-Consumers' tastes and preferences are CONVERGING on some global norm.
-Firms promote the trend by offering the same basic products worldwide.
What does Globalization mean for firms? correct answers - LOWER BARRIERS to trade and
investment mean firms can:
- view the world, rather than a single country, as their market
- base production in the OPTIMAL LOCATION for that activity
Technological change means: correct answers -lower transportation costs
-lower information processing and communication costs
-low cost global communication networks
-low-cost transportation
-global communication networks and global media
Changing demographics of the global economy (4 trends) correct answers 1. the changing
WORLD OUTPUT and WORLD TRADE Picture
2. the changing FOREIGN DIRECT INVESTMENT Picture
3. the changing NATURE OF THE MULTINATIONAL ENTERPRISE
4. the changing WORLD ORDER
Multinational Enterprise (MNE) correct answers -Any business that has productive activities in 2
OR MORE COUNTRIES
Since the 1960s, there has been: correct answers -A rise in NON-US multinationals
-a growth of MINI-MULTINATIONALS (SMEs)
, The process of globalization is: correct answers -creating opportunities and challenges for
business managers
Managing an INTERNATIONAL business differs from managing a DOMESTIC business
because: correct answers -Country difference
-complexity
-government intervention
-converting money
What is a political economy? correct answers -the political economy of a nation refers to how the
POLITICAL, ECONOMIC, AND LEGAL SYSTEMS of a country are interdependent
-they interact and influence each other
-they affect the level of economic well-being in the nation
What is a Political System? correct answers -Political system refers to THE SYSTEM OF
GOVERNMENT in a nation.
Political System (Assesses according to): correct answers -the degree to which the country
emphasizes COLLECTIVISM as opposed to INDIVIDUALISM
-the degree to which the country is DEMOCRATIC or TOTALITARIAN
What is an Economic System? (3 types of economic systems) correct answers 1. Market
economies
2. Command economies
3. Mixed economies
Market economies correct answers - all productive activities are PRIVATELY OWNED and
production is determined by the interaction of SUPPLY AND DEMAND.
-government encourages free and fair competition between private producers
Globalization correct answers The shift toward a more INTEGRATED and
INTERDEPENDENT world economy.
main drivers of globalization correct answers -decline in barriers
-technological change
Decline in barriers (Main driver of globalization) correct answers -the DECLINE IN BARRIERS
to the free flow of goods, services, and capital that has occurred since the end of World War II.
-Since 1950, average TARIFFS have fallen significantly
-Countries have OPENED their markets to FDI.
Technological change (Main driver of globalization) correct answers -microprocessors and
telecommunications
-the internet and WorldWide Web
transportation technology
Globalization of Production correct answers Firms SOURCE goods and services from locations
around the globe to capitalize on NATIONAL DIFFERENCES in the cost and quality of
FACTORS OF PRODUCTION like land, labor, energy, and capital
Globalization of Production pt. 2 correct answers -COMPANIES CAN:
-Lower their overall cost structure
-Improve the quality or functionality of their product offering
Globalization of Markets correct answers -Historically distinct and separate national markets are
merging
,Global Market correct answers -Falling TRADE BARRIERS make it easier to sell globally.
-Consumers' tastes and preferences are CONVERGING on some global norm.
-Firms promote the trend by offering the same basic products worldwide.
What does Globalization mean for firms? correct answers - LOWER BARRIERS to trade and
investment mean firms can:
- view the world, rather than a single country, as their market
- base production in the OPTIMAL LOCATION for that activity
Technological change means: correct answers -lower transportation costs
-lower information processing and communication costs
-low cost global communication networks
-low-cost transportation
-global communication networks and global media
Changing demographics of the global economy (4 trends) correct answers 1. the changing
WORLD OUTPUT and WORLD TRADE Picture
2. the changing FOREIGN DIRECT INVESTMENT Picture
3. the changing NATURE OF THE MULTINATIONAL ENTERPRISE
4. the changing WORLD ORDER
Multinational Enterprise (MNE) correct answers -Any business that has productive activities in 2
OR MORE COUNTRIES
Since the 1960s, there has been: correct answers -A rise in NON-US multinationals
-a growth of MINI-MULTINATIONALS (SMEs)
, The process of globalization is: correct answers -creating opportunities and challenges for
business managers
Managing an INTERNATIONAL business differs from managing a DOMESTIC business
because: correct answers -Country difference
-complexity
-government intervention
-converting money
What is a political economy? correct answers -the political economy of a nation refers to how the
POLITICAL, ECONOMIC, AND LEGAL SYSTEMS of a country are interdependent
-they interact and influence each other
-they affect the level of economic well-being in the nation
What is a Political System? correct answers -Political system refers to THE SYSTEM OF
GOVERNMENT in a nation.
Political System (Assesses according to): correct answers -the degree to which the country
emphasizes COLLECTIVISM as opposed to INDIVIDUALISM
-the degree to which the country is DEMOCRATIC or TOTALITARIAN
What is an Economic System? (3 types of economic systems) correct answers 1. Market
economies
2. Command economies
3. Mixed economies
Market economies correct answers - all productive activities are PRIVATELY OWNED and
production is determined by the interaction of SUPPLY AND DEMAND.
-government encourages free and fair competition between private producers
