IB_Globalization

_____ refers to the shift toward a more integrated and interdependent world economy

• Outsourcing

• International marketing

• Privatization

• Globalization

Which of the following is a consequence of globalization?

• decreasing interdependence between national economies

• increasing outsourcing of services

• differentiating of material culture

• increasing barriers to cross-border trade

Globalization of markets results in markets becoming

• more interdependent

• less diverse

• more protected

• less competitive

Which of the following factors hinders globalization of consumer goods market?

• national differences in tastes and preferences

• higher production costs in developed nations

• homogenization of material culture

• increased outsourcing of goods and services

The downside of increased globalization is

• global financial contagions are less likely

• a severe crisis in one region can affect the entire globe

• one nation may become too powerful

• No downside

To be classified as an MNE, a company must have productive activities in at least ------- countries

• two

• three

• four

• five

How does managing an international business differ from managing a domestic business?

• International managers are more experiences

• Countries differ in their cultures and systems

• Countries want to do business with their neighbors

• Countries want to keep their transactions simple

Which of the following is true regarding international business?

• All MNEs are international business

• Only firms that export products are international business

• Only firms that invest abroad are international business

• All international businesses are MNEs

Outsourcing is a process that is limited to manufacturing enterprises

• True

• False