International Business The New Realities 4th Edition By Cavusgil - Test Bank

International Business: The New Realities, 4e (Cavusgil)

Chapter 2   Globalization of Markets and the Internationalization of the Firm

1) Which of the following is characteristic of globalization of markets?

A) lack of skilled labor

B) conservatism

C) declining trade barriers

D) diminishing gap between the rich and the poor

Answer:  C

Diff:  1: Easy

Skill:  Concept

Objective:  2-1: Understand market globalization as an organizing framework

AACSB:  Analytical Thinking

2) The first phase of globalization was characterized by the ________.

A) rise of steel production

B) rise of SMEs

C) dominance of MNEs in the agricultural industry

D) growth of railroads

Answer:  D

Diff:  1: Easy

Skill:  Concept

Objective:  2-1: Understand market globalization as an organizing framework

AACSB:  Analytical Thinking

3) The ________ phase of globalization began around 1900 and was associated with the rise of electricity and steel production.

A) first

B) second

C) third

D) fourth

Answer:  B

Diff:  1: Easy

Skill:  Concept

Objective:  2-1: Understand market globalization as an organizing framework

AACSB:  Analytical Thinking

4) 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) the Great Depression

Answer:  A

Diff:  1: Easy

Skill:  Concept

Objective:  2-1: Understand market globalization as an organizing framework

AACSB:  Analytical Thinking

5) Which of the following reflects the major contribution of GATT to globalization?

A) It instituted strict controls on international currencies.

B) It simplified patent and copyright laws.

C) It reduced barriers to international trade and investment.

D) It eliminated the divide between the rich and the poor.

Answer:  C

Diff:  1: Easy

Skill:  Concept

Objective:  2-1: Understand market globalization as an organizing framework

AACSB:  Analytical Thinking

6) The fourth phase of globalization is characterized by ________.

A) the rise of railroads and ocean transport

B) the reduction of barriers to trade by Western industrialized countries

C) the initiation of the Marshall Plan to reconstruct Europe

D) the enormous growth of cross-border trade and investment

Answer:  D

Diff:  1: Easy

Skill:  Concept

Objective:  2-1: Understand market globalization as an organizing framework

AACSB:  Analytical Thinking

Internationalization Conference (Scenario)

At a conference on business internationalization strategies, representatives of three different businesses meet to discuss a joint venture between their companies. Business A is located in a country that internationalized during the second phase of globalization. Business B is based in a country that internationalized during the third phase of globalization. Business C is located in an emerging market country.

7) The representative from Business A is most likely from ________.

A) China

B) United Kingdom

C) Mexico

D) Brazil

Answer:  B

Diff:  2: Moderate

Skill:  Application

Objective:  2-1: Understand market globalization as an organizing framework

AACSB:  Analytical Thinking