MGCR 382 FINAL FINAL EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST 2025
Globalization - Answers - The widening set of interdependent relationships among people from
different parts of the world.
How has geographic distance shrunk? - Answers - Containerization (shipping of containers)
- Telecommunication advancement
Containerization (shipping of containers) - Answers - Before container shipping, port costs often
accounted for nearly half of total international shipping costs.
Flat World Hypothesis - Answers - World is flattening and shrinking due to the internet and tech.
- Increase opportunity and intensified global competition.
- Lowers logistics costs due to global value chains.
- aka globalism is good.
Spiky World Hypothesis - Answers - Economic landscape has steep peaks and valleys.
- There is an uneven distribution of innovation.
- Clusters of industry matter.
- Uneven population distribution.
- Impact on inequality varies by time period and how it is measured.
- aka Globalism is bad.
Geographic Distance - Answers - Natural resources are present in some locations and not
others.
- Talent is concentrated in some locations.
- Transportation costs are not uniform even within a country.
- Communications and coordination costs rise with global operations.
Economic Distance - Answers - Differences in consumer incomes, costs, and human and natural
resources.
,- Purchasing power varies between and within countries, if big enough can be a disadvantage.
- Wages vary between countries, a large difference can be an advantage
Largest firms ranked by market cap - Answers - Tech firms rank high
Largest firms ranked by total sales - Answers - Petroleum firms ranks high
Largest firms ranked by assets - Answers - Financial institutions rank high
5 Myths of Globalization - Answers - Globalization is new
- Globalization is extensive
- Globalization is unavoidable
- Globalization erases geo distance
- Globalization erases econ distance.
3 Ways to Measure Income - Answers - National accounts (GDP)
- Household income surveys
- Satellite nightime luminosity.
- There could be discrepancies between the measures.
What motivates firms to go global? - Answers - Expand sales
- Aquire resources
- Diversify to reduce risks
- To learn (acquiring knowledge)
Is it possible to have a decline in absolute level of poverty along with increased inequality? -
Answers - Yes
Partial Globalization Perspective - Answers - High portion of subsidiaries of top multinational
corporations tend to be located in home country or in home regional trading block.
- Foreign-born people constitute on average only 3% of the population of the top 50 most
populous countries.
, Trends in World Distribution of Income - Answers - Decrease in absolute and relative amount of
people below poverty line.
- There have been regional differences in shift in absolute poverty.
- Increased poverty in sub-Saharan Africa
- Decline in Asia, ME and SA
4 Income Levels - Answers - Level 1 = $2/day
- Level 2 = $5.50/day (MOST PEOPLE)
- Level 3 = $8/day
- Level 4 = $32/day
International Business - Answers - Consists of all commercial transactions that take place
between two or more countries.
- Involves two or more set of laws, cultures and currency.
-
Modes of IB Transactions - Answers - Goods and service imports and exports.
- Investments and financial capital flows.
Institutional and Physical Factors of IB - Answers - Geographic influences
- Cultural factors
- Political policies and legal practices
- Economic forces
Competitive Factors of IB - Answers - Competitive product strategy
- Company resources and experience
- Competitors in each market.
7 Forces Driving Globalization - Answers - Increase in and application of technology
Globalization - Answers - The widening set of interdependent relationships among people from
different parts of the world.
How has geographic distance shrunk? - Answers - Containerization (shipping of containers)
- Telecommunication advancement
Containerization (shipping of containers) - Answers - Before container shipping, port costs often
accounted for nearly half of total international shipping costs.
Flat World Hypothesis - Answers - World is flattening and shrinking due to the internet and tech.
- Increase opportunity and intensified global competition.
- Lowers logistics costs due to global value chains.
- aka globalism is good.
Spiky World Hypothesis - Answers - Economic landscape has steep peaks and valleys.
- There is an uneven distribution of innovation.
- Clusters of industry matter.
- Uneven population distribution.
- Impact on inequality varies by time period and how it is measured.
- aka Globalism is bad.
Geographic Distance - Answers - Natural resources are present in some locations and not
others.
- Talent is concentrated in some locations.
- Transportation costs are not uniform even within a country.
- Communications and coordination costs rise with global operations.
Economic Distance - Answers - Differences in consumer incomes, costs, and human and natural
resources.
,- Purchasing power varies between and within countries, if big enough can be a disadvantage.
- Wages vary between countries, a large difference can be an advantage
Largest firms ranked by market cap - Answers - Tech firms rank high
Largest firms ranked by total sales - Answers - Petroleum firms ranks high
Largest firms ranked by assets - Answers - Financial institutions rank high
5 Myths of Globalization - Answers - Globalization is new
- Globalization is extensive
- Globalization is unavoidable
- Globalization erases geo distance
- Globalization erases econ distance.
3 Ways to Measure Income - Answers - National accounts (GDP)
- Household income surveys
- Satellite nightime luminosity.
- There could be discrepancies between the measures.
What motivates firms to go global? - Answers - Expand sales
- Aquire resources
- Diversify to reduce risks
- To learn (acquiring knowledge)
Is it possible to have a decline in absolute level of poverty along with increased inequality? -
Answers - Yes
Partial Globalization Perspective - Answers - High portion of subsidiaries of top multinational
corporations tend to be located in home country or in home regional trading block.
- Foreign-born people constitute on average only 3% of the population of the top 50 most
populous countries.
, Trends in World Distribution of Income - Answers - Decrease in absolute and relative amount of
people below poverty line.
- There have been regional differences in shift in absolute poverty.
- Increased poverty in sub-Saharan Africa
- Decline in Asia, ME and SA
4 Income Levels - Answers - Level 1 = $2/day
- Level 2 = $5.50/day (MOST PEOPLE)
- Level 3 = $8/day
- Level 4 = $32/day
International Business - Answers - Consists of all commercial transactions that take place
between two or more countries.
- Involves two or more set of laws, cultures and currency.
-
Modes of IB Transactions - Answers - Goods and service imports and exports.
- Investments and financial capital flows.
Institutional and Physical Factors of IB - Answers - Geographic influences
- Cultural factors
- Political policies and legal practices
- Economic forces
Competitive Factors of IB - Answers - Competitive product strategy
- Company resources and experience
- Competitors in each market.
7 Forces Driving Globalization - Answers - Increase in and application of technology
