Question

1)Which of the following is a driver of globalization?

a) Trade barriers and controls on inflows of foreign direct investment

b) Weak competition

c) Technological advance

d) Economies of scale are being exploited to the maximum

2) Globalization is beneficial for firms because
a) It protects them against foreign competition

b) It cushions them from the effect of events in other countries

c) It open up new market opportunities

d) It increases the risk and uncertainty of operating in a globalizing world economy

3) The interest facilities globalization by

a) Making it more difficult to contact potential customers abroad.

b) Cutting the cost for firms of communicating across borders

c) Making it harder to send money from one country to another

d) Making it easier for government to censor the information received by their citizens from abroad.

4) What might western food MNCs encounter when launching operations in Africa or the Middle East?

a) No language barriers.

b) Customer tastes the same as those of their domestic customers.

c) Corruption. d) Well-developed road and rail links

5) Globalization can create problems for business because:

a) It can result in more competition.

b) It reduces vulnerability to political risk and uncertainty when operating abroad.

c) It means that they can increase prices.

d) All of the options given are correct.

6) A company that establishes a new operation in foreign country has made a
A) An acquisition
B) A merger
C) A greenfield investment
D) A joint venture

7) Which of the following statements is true?

a) Over the years, there has been a marked decrease in the stock and flow of FDI

b) Over the years, there has been a marked increase in the stock and flow of FDI

c) Over the years, there has been a marked decrease in the stock and an increase in the flow of FDI

d) Over the years, there has been a marked increase in the stock and an decrease in the flow of FDI

8) Advantages that arise from using resource endowments or assets that are tied to a particular location and that a firm finds valuable to combine with its own unique assets are
a) First mover advantages

b) Location advantages

c) Externalities

d) Proprietary advantages

9) Benefits of FDI include all of the following except

a) The resource transfer effect

b) The employment effect

c) The balance of payments effect

d) National sovereignty and autonomy

10) Crities of the view that regionalization will prevail over globalization base their argument on the belief that __________.

A) Regionalization is a transition stage toward globalization,
B) Neighbouring counties are more apt to disagree politically than countries that are distant from each other,
C) Neighbouring countries are too geographically similar to have many different goods to trade with each other,
D) Business in non-territorial is not regional.

11) True or False? In spite of cultural differences, people working abroad are often to do business successfully while still retaining their own cultural habits.

12) True or False? A danger in relying on cultural distance to judge to degree of necessary cultural adjustment is that important subtleties might be overlooked.

13) True or False? A potential problem of polycentrism is failure to introduce innovative superiority.

14) True or False? Successful ethnocentric behaviour may occur when an MNE sells to outliers in a society whose cultures are similar to those of the MNE`s home country.

15) True or False? A widely successful strategy for introducing change into a foreign country is to introduce many changes simultaneously.

16) What is the best way to enter a foreign market? Mention some advantages and disadvantages.  

Answer 1

1. C. Technological advances.

Driver of globalization means what drives towards globalization. Technological advances has been helping firms take their business across borders.

2. C. It opens up new opportunities.

Globalization for firms helps open new potential for markets and growth which means they have more opportunities opened up.

3. B. Cutting the costs for firms of communicating across borders.

Internet facilities like Skype, emails has been helping companies cutting down communications costs For a decade now.

4. C. Corruption.

In countries like Asia, Africa, corruption has been seen as the most common roadblock for MNCs. Since corruption prevents easy entry and setup.