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Microsoft power point exos ib 2nd ed

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Exercises International Business: The New Realities
Cavusgil, Knight, and Riesenberger
Chapter 2 Globalization

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Microsoft power point exos ib 2nd ed

  1. 1. Exercises by: Kamal AL MASRI Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
  2. 2. Discussion .. Globalization can cause the loss of national sovereignty. Discuss this idea. Globalization is not new. Discuss why. Explain how advances in technology helps Globalization. Discuss the main dimensions of market globalization. Discuss the main societal consequences of market globalization. International Business – Kamal AL MASRI - Exercises 2
  3. 3. Discussion .. List some firm-level consequences of market globalization. Explain how Globalization harms the natural environment. Explain what are the effects of Globalization on National Culture. International Business – Kamal AL MASRI - Exercises 3
  4. 4. True or false  () Globalization and technological advances have altered the international business landscape more than any other trends.  () The first wave of Globalization was fueled by Internet and other technologies.  () The last wave of Globalization was characterized by progress in ICT and rapid liberalization in emerging markets.  () Market liberalization and adoption of free markets are considered drivers of Market Globalization.  () Collectively, technological advances have greatly reduced the costs of doing business internationally. International Business – Kamal AL MASRI - Exercises 4
  5. 5. True or false  () Globalization of markets refers to the ongoing economic integration and growing interdependency of countries worldwide.  () Advances in technology reduces the cost of doing business internationally by allowing firms to interact cheaply with suppliers, distributors, and customers worldwide.  () Globalization allows firms to view the world as one large marketplace for goods, services, capital, labor, and knowledge.  () Worldwide reduction of barriers to trade and investment acted as a driver of Market Globalization. International Business – Kamal AL MASRI - Exercises 5
  6. 6. True or false  () Advances in technology didn’t play any role in Market Globalization.  () Integration and interdependence of national economies is one of the dimensions of Market Globalization.  () Market Globalization led to the convergence of buyer lifestyles and preferences.  () Market Globalization is characterized by rapid spread of financial or monetary crises from one country to another.  () Globalization can lead to the loss of national sovereignty. International Business – Kamal AL MASRI - Exercises 6
  7. 7. True or false  () Offshoring can cause the flight of jobs.  () Internationalization of the Firm’s Value Chain is one of societal consequences of Globalization.  () Globalization means less new business opportunities for internationalizing firms.  () Globalization means new risks and intense rivalry from foreign competitors.  () Globalization transformed many developing economies from producers of low-value goods to higher-value goods, such as electronics and computers.  () ICTs opened the global marketplace to firms that historically lacked the resources to internationalize. International Business – Kamal AL MASRI - Exercises 7
  8. 8. True or false  () Globalization led to a rise of regional economic integration blocs.  () Growth of global investment and financial flows is a sign of Globalization.  () Nations should emphasize economic freedom and participation in international trade and investment.  () Economic freedom is the extent of government interference in business, the strictness of the nation’s regulatory environment, and the ease with which economic activity can be carried out.  () Economic Freedom is generally associated with National Prosperity. International Business – Kamal AL MASRI - Exercises 8
  9. 9. True or false  () Value chain refers to the sequence of value- adding activities performed by the firm in the process of developing, producing, and marketing a product or a service.  () Globalization allows the firm to internationalize its value chain, leading to various advantages.  () Market globalization compels firms to internationalize their value chain and access the benefits of international business.  () Internationalization of the Firm’s Value Chain helps increase efficiency, productivity, and flexibility of value chain activities. International Business – Kamal AL MASRI - Exercises 9
  10. 10. True or false  () The Great Depression marked the beginning of the second phase of globalization.  () The initial phase of globalization was triggered in part by the introduction of the railroad.  () Firms that pursue internationalization as a strategic move tend to approach global competition more aggressively than do firms that internationalize for reactive reasons.  () Converging lifestyles and preferences worldwide help to promote traditional values in individual countries. International Business – Kamal AL MASRI - Exercises 10
  11. 11. True or false  () One contribution of the World Trade Organization is to help maintain reduced trade barriers throughout the world.  () Industrialization implies that emerging market countries are increasing their dependence on low-cost labor  () Technological advances have helped make internationalization affordable for all sizes of firms.  () Globalization has led buyers to become more demanding and to shop for the best value worldwide. International Business – Kamal AL MASRI - Exercises 11
  12. 12. The first phase of globalization was characterized by which of the following? A) the rise of steel production B) the growth of railroads C) the spread of electricity D) the rise of SMEs International Business – Kamal AL MASRI - Exercises 12
  13. 13. The third phase of globalization was triggered by : A) the end of World War II B) the invention of electricity C) the end of World War I D) economic growth in emerging markets International Business – Kamal AL MASRI - Exercises 13
  14. 14. Which of the following reflects the major contribution of GATT to globalization? A) strict controls on international currencies B) worldwide economic downturn C) reduction of barriers to international trade D) advent of new communications technology International Business – Kamal AL MASRI - Exercises 14
  15. 15. Over time, the GATT evolved into which of the following? A) World Bank B) International Monetary Fund C) World Trade Organization D) NAFTA International Business – Kamal AL MASRI - Exercises 15
  16. 16. Firms that are more successful at global competition display each of the following qualities except: A) identifying foreign market opportunities aggressively B) approaching internationalization from a reactive standpoint C) actively pursuing partnerships with foreign firms D) focusing intensively on building organizational capacities International Business – Kamal AL MASRI - Exercises 16
  17. 17. Value-chain activities are defined as which of the following? A) the methods through which governments promote economic integration B) the aggregate activities of internationally active firms C) the process of designing a product for a global market D) the sequence of value-adding activities performed by a firm International Business – Kamal AL MASRI - Exercises 17
  18. 18. All of the following represent examples of regional economic integration blocs except: A) World Trade Organization B) European Union C) Mercosur D) NAFTA International Business – Kamal AL MASRI - Exercises 18
  19. 19. Global firms shift their manufacturing and procurement to foreign locations in order to: A) avoid the pressures of global competition B) benefit from low labor costs C) reduce the impact of regional recessions D) avoid oversight by international agencies International Business – Kamal AL MASRI - Exercises 19
  20. 20. Which of the following is not a driver of market globalization? A) market liberalization B) technological advances C) increased import tariffs D) economic development International Business – Kamal AL MASRI - Exercises 20

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