1
The process whereby national economies and business systems are becoming deeply interlinked with each other is called:
A)
globalization.
B)
glocalization.
C)
internationalization.
D)
global linking.
2
Which of the following statements identifies a key difference between a market economy and a socialist economy?
A)
In a market economy there is more government intervention than in a socialist economy.
B)
In a market economy prices are set by the interaction of supply and demand, while in a socialist economy the prices are set by the state.
C)
In a market economy most large businesses are state owned, while in a socialist economy only small businesses are state owned.
D)
In a market economy private producers are excluded from certain commercial activities, while in a socialist economy there are no exclusions for private producers.
3
According to data from the World Trade Organization, from 1970 to 2004 the volume of world merchandise trade expanded almost:
A)
26-fold.
B)
10 percent.
C)
double.
D)
10-fold.
4
Which of the following is an example of the globalization of production?
A)
Coca-Cola sells their soft drinks worldwide.
B)
Hospitals outsource some radiology work to India.
C)
Caterpillar and Komatsu both sell earthmoving equipment worldwide.
D)
Boeing sells jet planes to firms in Japan.
5
The constraints limiting the pace of globalization include which of the following?
A)
protectionist countertrends
B)
national differences in consumer behavior
C)
national differences in business systems
D)
All of the above limit the pace of globalization.
6
Protectionist countertrends to globalization include:
A)
the idea that international trade promotes economic growth and raises living standards.
B)
the argument that international trade destroys jobs.
C)
the suggestion that open foreign markets help the American economy.
D)
lower barriers to cross-border trade in agriculture.
7
Any business that has productive activities in two or more countries is called a:
A)
multilocational enterprise.
B)
multinational enterprise.
C)
multiglobal enterprise.
D)
multilevel firm.
8
Which of the following statements is most consistent with market expansion through globalization?
A)
By serving domestic and international markets a firm may be able to utilize its production facilities less intensively.
B)
Different locations around the world are more or less suitable for performing different business activities.
C)
Valuable skills are developed first at overseas and then transferred to foreign operations.
D)
When managers at a firm have built a valuable competency or skill, going global is often the best way to maximize the return on their investment.
9
Which of the following is a decision that must be made when a firm goes global?
A)
local standardization or global customization
B)
how best to manage subsidiaries
C)
whether to operate under host country or home country laws
D)
in a publicly traded firm, which sets of accounting practices to use
10
Which of the following statements about global standardization is most accurate?
A)
An enterprise realizes substantial scale economies.
B)
An enterprise varies some aspect of its products but not its marketing messages.
C)
An enterprise varies some aspect of its marketing messages but not its products.
D)
An enterprise is taking into account local business systems and culture.
What is the best description of the globalization of markets?
**globalization of markets refers to the merging of historically distinct and separate national markets into one huge global market place. **firms promote the trend by offering the same basic products world wide .
Which country has the world's biggest economy quizlet?
The United States has the world's largest economy and is the world's largest producer and consumer of goods.
Which two items have reduced the cultural distance between countries?
Technological innovations and low-cost transportation have reduced the cultural distance between countries and are bringing about some convergence of consumer tastes and preferences.
Which country has seen their share of world output increases the most from 1960 to today?
From 1960 to today, China's share of world output increased from a trivial amount to 17.1 percent, making it the world's largest economy in terms of its share in world output (the United States is still the largest economy overall).