Deck 1: Introduction

Question 1

Globalization is fueled largely by declining trade and investment barriers and new technologies, such as the Internet.

Answer 1

True

Question 2

Google locates its computer-server farms close to wind farms that produce power because it is one of the cheapest sources of electricity.

Answer 2

False

Question 3

International transfers of resources, such as people, intellectual property, and contractual assets or liabilities, do not form a part of international business.

Answer 3

False

Question 4

The government of any country is generally not considered to be a stakeholder in any business venture.

Question 5

Many people consider globalization a modern phenomenon, but according to Friedman, this is its third stage.

Question 6

The greater the level of standardization in operations, both within and across markets, the greater is the possibility of global efficiency.

Question 7

Globalization can be defined only in terms of markets but not in terms of production.

Question 8

A stakeholder refers to a person within an established business who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation.

Question 9

Strategic management is mainly concerned with the determinants of a firm's performance.

Question 10

Stakeholder analysis refers to the recognition of opportunities and the use of resources to implement innovative ideas for new, thoughtfully planned ventures.

Question 11

International business relates to any situation where the production or distribution of goods or services crosses country borders.

Question 12

International business would not be relevant to an organization if it only produced and sold its products in one country.

Question 13

Foreign direct investment means that a firm is investing assets directly into a foreign country's buildings, equipment, or organizations.

Question 14

Global business professionals conduct stakeholder analysis in order to understand how operations in different countries impact the overall corporate strategy.

Question 15

The knowledge of both strategic management and entrepreneurship enhances one's understanding of international business.

Question 16

The second stage of global development began with advances in global electronic interconnectivity that allowed individuals to communicate as never before.

Question 17

The social or environmental performance of an organization is irrelevant as long as it is earning profits.

Question 18

The flat-world view is largely credited to Milton Friedman.

Question 19

A business can be a person or organization engaged in commerce with the aim of achieving a profit.

Question 20

The first stage of global development, what Friedman calls "Globalization 1.0," was characterized by how much industrial power countries could produce and apply.

Question 21

A(n) _____ is defined as an individual whose interests may be affected as the result of what another individual or organization does.

A) intrapreneur
B) entrepreneur
C) stakeholder
D) strategist
E) importer

Question 22

_____ refers to a technique used to identify and assess the importance of key people, groups of people, or institutions that may significantly influence the success of a project or business.

A) Entrepreneurship
B) Strategic management
C) SWOT
D) Stakeholder analysis
E) Intrapreneurship

Question 23

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

A) SWOT
B) Globalization
C) Entrepreneurship
D) Strategic management
E) Intrapreneurship

Question 24

_____ refers to the cross-border exchanges of goods, services, or resources between two or more nations.

A) Strategic management
B) International business
C) Intrapreneurship
D) Entrepreneurship
E) SWOT

Question 25

The ideas of entrepreneurship can be applied to:

A) only existing organizations.
B) only new ventures.
C) ventures, old and new.
D) only private enterprises.
E) governments only.

Question 26

Strategic management is concerned with the:

A) social performance of an organization.
B) environmental performance of an organization.
C) economic performance of an organization.
D) generation of human capital for an organization.
E) overall performance of the organization.

Question 27

The aim of an organization to make, distribute, and sell the finest quality products with a continued commitment to promoting business practices that respect the Earth and the environment would constitute the _____ of the organization.

A) political mission
B) social mission
C) product mission
D) environmental mission
E) economic mission

Question 28

The SWOT tool helps one to take stock of:

A) the marketing expenditure of an organization.
B) the strategies that are implemented by an organization.
C) an organization's external characteristics only.
D) an organization's external and internal characteristics.
E) an organization's internal characteristics only.

Question 29

_____ refers to developing a new product or service in an already existing business.

A) Entrepreneurship
B) Strategic management
C) SWOT
D) Globalization
E) Intrapreneurship

Question 30

_____ is defined as the recognition of opportunities and the use of resources to implement innovative ideas for new, thoughtfully planned ventures.

A) SWOT
B) Entrepreneurship
C) Intrapreneurship
D) Globalization
E) Strategic management

Question 31

Ethics is the same as following culturally accepted norms.

Question 32

Foreign direct investment means that a firm is:

A) investing assets into a foreign country's share market.
B) investing assets directly into a foreign country's organizations.
C) loaning out interest free sums to a foreign country for infrastructural development.
D) investing government funds to accelerate urban development of a foreign country.
E) allowing its foreign competitors to make use of its infrastructural facilities.

Question 33

A(n) _____ is defined as somebody who sells products and services that are sourced from other countries.

A) intrapreneur
B) entrepreneur
C) exporter
D) importer
E) stakeholder

Question 34

Social and natural science can provide important data to help us make better ethical choices.

Question 35

Global business professionals conduct stakeholder analysis in order to understand the:

A) financial implications of conducting business in foreign countries.
B) strategies required to overcome political and legal barriers in business.
C) human capital skills required to face the challenges of a fast changing market.
D) impact of operations in different countries on the overall corporate strategy.
E) nature of the competition operating in the globalized market.

Question 36

Open-sourcing refers to providing basic software online for free.

Question 37

Business profit is typically gauged in:

A) financial terms.
B) social terms.
C) moral terms.
D) political terms.
E) human terms.

Question 38

_____ is the body of knowledge that answers questions about the development and implementation of good strategies.

A) Entrepreneurship
B) Strategic management
C) SWOT
D) Intrapreneurship
E) Strategy

Question 39

Work-flow software ensures that complex projects with more interdependent parts can be worked on collaboratively from anywhere.

Question 40

A(n) _____ is defined as somebody who sells products and services in foreign countries that are sourced from its home country.

A) entrepreneur
B) importer
C) stakeholder
D) exporter
E) intrapreneur

Question 41

Globalization actually fostered the development of NGOs because:

A) governments sponsored NGO activity to undermine rival countries.
B) international social activism became much more profitable.
C) many problems could not be solved within a single nation.
D) economic colonization undermined the authority of the national governments.
E) international social activism became much more visible.

Question 42

Home sourcing refers to:

A) organizations dealing with goods required in homes.
B) organizations allowing people to work at home.
C) organizations sourcing raw materials from the parent country.
D) organizations sourcing out activities to other countries.
E) organizations maintaining activities in-house rather than outsourcing.

Question 43

Offshoring refers to:

A) allowing people to work at home.
B) firms devising new service combinations to improve service.
C) acquisition and distribution of goods.
D) providing basic software online for free.
E) moving part of a manufacturing or service process to a cheaper destination.

Question 44

The Kyoto Protocol is an agreement aimed at:

A) reducing poverty by 2050.
B) eliminating tariff barriers in agricultural products.
C) merging the economies of East Asia.
D) combating global warming among participating countries.
E) ensuring inclusive economic growth for all member countries.

Question 45

According to Friedman, the present stage of global development is the:

A) first stage.
B) fourth stage.
C) second stage.
D) third stage.
E) fifth stage.

Question 46

_____ refers to a period which was characterized by the growth of European mercantile stock companies.

A) Globalization 2.0
B) Globalization 3.0
C) Globalization 1.0
D) Multiculturalism
E) Strategic management

Question 47

The choice of foreign location, at times, generates unique benefits for the organization, referred to as:

A) global efficiency.
B) location advantages.
C) local responsiveness.
D) foreign direct investment.
E) entrepreneurship.

Question 48

Google locates its computer-server farms, the technological backbone of its massive Internet services, close to _____ that produce hydroelectric power because it is one of the cheapest sources of electricity.

A) solar power stations
B) urban centers
C) dams
D) wind farms
E) thermal power stations

Question 49

International business professor Pankaj Ghemawat is of the view that one needs to use a "CAGE" analysis to study the:

A) impact of outsourcing on the U.S. industry.
B) profitability of providing basic software online for free.
C) barriers to cross-border economic activity.
D) economic viability of devising new service combinations to improve service.
E) methods to reduce acquisition and distribution costs of goods.

Question 50

_____ include(s) any nonprofit, voluntary citizens' groups that are organized on a local, national, or international level.

A) The International Monetary Fund
B) Government organizations
C) Nongovernmental organizations
D) The World Economic Forum
E) The World Trade Organization

Question 51

The first stage of global development, according to Friedman, was characterized by:

A) the growth of European mercantile stock companies.
B) the ascension of multinational companies.
C) advances in global electronic interconnectivity.
D) the introduction of modern communications and cheaper shipping costs.
E) how much industrial power countries could produce and apply.

Question 52

_____ is the organization, or agency, through which a political unit exercises its authority, controls and administers public policy, and directs and controls the actions of its members or subjects.

A) The government
B) NGO
C) The World Social Forum
D) The World Economic Forum
E) Rotary International

Question 53

The _____ is an agreement signed by the governments of the United States, Canada, and Mexico to create a trade bloc in North America to reduce or eliminate tariffs among the member countries and thus facilitate trade.

A) G-3 Free Trade Agreement
B) Trans-Pacific Strategic Economic Partnership
C) Central American Integration System
D) North American Free Trade Agreement
E) Pacific Accord

Question 54

The _____ is an agreement between participating governments and companies to eliminate child labor in the production of soccer balls in Pakistan.

A) Atlanta Agreement
B) Cancun Agreement
C) Aarhus Convention
D) Alpine Convention
E) Bonn Agreement

Question 55

The World Social Forum:

A) was organized as an answer to World Economic Forum.
B) consists of all for-profit governmental organizations.
C) aims to promote capitalism in the African countries.
D) was formed to counter the United Nations.
E) aims to counterbalance the economic dominance of Asia.

Question 56

Globalization 2.0 was characterized by:

A) the growth of European mercantile stock companies.
B) major software advances.
C) how much industrial power countries could produce and apply.
D) advances in global electronic interconnectivity.
E) nations dominating global expansion.

Question 57

The United Nations (UN) can be termed as a(n):

A) nongovernmental organization.
B) scientific organization.
C) economic organization.
D) umbrella organization.
E) supraorganization.

Question 58

_____ refers to providing basic software online free that gives everyone source code, thus accelerating collaboration and software development.

A) Home sourcing
B) Open-sourcing
C) Outsourcing
D) Offshoring
E) Insourcing

Question 59

Firms use employees worldwide and send specific work to the most qualified, cheapest labor, wherever it is. This is termed as:

A) offshoring.
B) insourcing.
C) open-sourcing.
D) outsourcing.
E) in-forming.

Question 60

United Parcel Service (UPS) uses its logistics expertise to help clients create new businesses. This would be termed as:

A) insourcing.
B) outsourcing.
C) home sourcing.
D) offshoring.
E) open-sourcing.

Question 61

When a firm makes a choice about foreign operations, it is a trade-off between local responsiveness and global efficiency. Explain.

Question 62

What are the activities undertaken by the international operations arm of an organization?

Question 63

The field of _____ is a branch of philosophy that seeks virtue.

A) religion
B) ethics
C) law
D) psychology
E) sociology

Question 64

Would international business be relevant to an organization if it only produced and sold its products in one country?

Question 65

The multidomestic view is a metaphor for viewing the world's markets as:

A) a capitalistic tool catering to the needs of the rich and the powerful.
B) an entity ridden with barriers and therefore unreceptive to globalization.
C) a homogeneous entity where cultural differences do not affect the outcome of business.
D) being more different than similar, such that the playing field differs in respective markets.
E) a level playing field in terms of commerce, where all competitors have an equal opportunity.

Question 66

Which of the following refers to the approach which ensures that an action contributes most to the quality of life of the people affected?

A) Common good approach
B) Rights-based approach
C) Virtue approach
D) Utilitarian approach
E) Justice approach

Question 67

What is SWOT analysis?

Question 68

What are nongovernmental organizations (NGOs) and why were they formed?

Question 69

_____ encompasses a full range of cross-border exchanges of goods, services, or resources between two or more nations.

Question 70

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

Question 71

What are the three stages of global development as enumerated by Thomas Friedman in his 2005 bestseller, "The World Is Flat"?

Question 72

Apart from the company management, who might be the other international business stakeholders associated with a multinational organization?

Question 73

The virtue approach refers to the approach which ensures that an action:

A) contributes most to the quality of life of the people affected.
B) treats people fairly.
C) results in the greatest good for the greatest number of people.
D) respects the rights of everyone involved.
E) embodies the character strengths that one values.

Question 74

_____ ensures that complex projects with more interdependent parts can be worked on collaboratively from anywhere.

A) Home sourcing
B) Offshoring
C) Insourcing
D) Work-flow software
E) Open-sourcing

Question 75

Define international business.

Question 76

The _____ approach ensures that an action treats people fairly.

A) virtue
B) justice
C) rights-based
D) common good
E) utilitarian

Question 77

Who is a stakeholder and what is stakeholder analysis?

Question 78

Ethics as a concept is neither a slave to law nor to science. Explain.

Question 79

Define globalization.

Question 80

The rights-based approach ensures that an action:

A) would result in the greatest good for the greatest number of people.
B) treats people fairly.
C) respects the rights of everyone involved.
D) embodies the character strengths that one values.
E) contributes most to the quality of life of the people affected.