Question 1

LindaLoel Corp.extensively uses the technique of scenario planning.Scenario planning is the identification and assessment of risks and the preparation to minimize the impact of high-risk,unfortunate events.

Accepted Answer

Scenario planning is a strategic planning method used to create flexible long-term plans by considering various possible future scenarios, not specifically focused on risk assessment or minimizing impacts of high-risk events.

Question 2

Business leaders should focus on the top two tiers of the global economic pyramid because the base of the pyramid (BoP)does not offer many economic opportunities.

Accepted Answer

The base of the pyramid (BoP) represents a large market with significant untapped potential, offering opportunities for innovation and growth by addressing the needs of low-income consumers.

Question 3

Semiglobalization is the perfect balance of total isolation and total globalization,offering a single,right way of doing business around the globe.

Accepted Answer

Semiglobalization refers to a state where both global integration and local differentiation coexist, allowing for multiple ways of doing business rather than a single, uniform approach.

Question 4

George and John are both managers at Routen Plan Inc.based in Washington,but only George receives a significant international premium compensation as he is an expatriate manager of Routen Plan,Germany.

Accepted Answer

George receives international premium compensation because he is an expatriate manager in Germany, while John is not, indicating that George works abroad and qualifies for such compensation.

Question 5

Semiglobalization suggests that barriers to market integration at borders are high,but not high enough to insulate countries from each other completely.

Accepted Answer

Semiglobalization refers to a state where countries are neither completely isolated nor fully integrated, indicating that while there are significant barriers to market integration, they are not insurmountable.

Question 6

SchulzRobb Inc.,a company based in England,engages in foreign direct investment in other countries such as India,Japan,and Brazil.SchulzRobb is a multinational enterprise.

Accepted Answer

A multinational enterprise (MNE) is a company that has operations in more than one country, typically through foreign direct investment. Since SchulzRobb Inc. invests in countries like India, Japan, and Brazil, it qualifies as an MNE.

Question 7

Individuals who make less than $2000 a year comprise the base of the pyramid (BoP).

Accepted Answer

Individuals who make less than $2000 a year are considered to be at the base of the pyramid (BoP).

Question 8

Which of the following is true of emerging economies?
A) They grow only their absolute gross domestic product (GDP).
B) Collectively,they command 48 percent of world trade.
C) They have uniform high-speed growth.
D) Collectively,they contribute approximately 90 percent of the global gross domestic product.

Accepted Answer

Emerging economies collectively command a significant portion of world trade, around 48 percent, but they do not uniformly grow at high speed, nor do they contribute 90 percent of the global GDP.

Question 9

According to the Pendulum view on globalization,globalization is very recent and one-directional.

Accepted Answer

The Pendulum view on globalization suggests that globalization is a dynamic process that swings back and forth, rather than being recent and one-directional.

Question 10

_____ is the sum of value added by residents,households,and government operating in an economy.
A) Foreign direct investment
B) Purchasing power parity
C) Gross domestic product
D) Intermediate consumption

Accepted Answer

Gross domestic product (GDP) is the sum of value added by residents, households, and government operating in an economy.

Question 11

Which of the following describes international business?
A) Firms collaborating with domestic entrants
B) Firms selling their businesses completely to foreign companies
C) Firms engaging in business abroad
D) Firms belonging to and doing business in emerging economies

Accepted Answer

International business involves firms engaging in commercial transactions across national borders, which includes activities such as exporting, importing, and foreign direct investment.

Question 12

Which of the following statements is true of foreign direct investment?
A) It is the act of buying an ownership stake within a country that provides capital.
B) It is the process of investing in,controlling,and managing value-added activities in other countries.
C) It is the process of tracking an index or measuring of a foreign market.
D) It is the act of investing in a foreign-owned company within a country.

Accepted Answer

Foreign direct investment (FDI) involves investing in, controlling, and managing value-added activities in other countries, distinguishing it from mere portfolio investment.

Question 13

An Ecuadorian firm doing business in a neighboring,Spanish speaking,Latin American country faces a lower liability of foreignness than a Dutch firm doing business in the same country.

Accepted Answer

An Ecuadorian firm shares cultural, linguistic, and regional similarities with neighboring Latin American countries, reducing the liability of foreignness compared to a Dutch firm, which lacks these commonalities.

Question 14

Which of the following statements is true of the emerging economies?
A) They grow only their absolute gross domestic product (GDP).
B) They attract 60 percent of foreign direct investment (FDI)inflows and generate 40 percent FDI outflows.
C) They always manage to repeat their extraordinary growth sprint.
D) They contribute approximately 90 percent of the global gross domestic product.

Accepted Answer

Emerging economies attract a significant portion of global FDI inflows and also contribute to FDI outflows, reflecting their growing influence in the global economy.

Question 15

BRIC is an acronym for the emerging economies of _____.
A) Britain,Russia,India,and China
B) Brazil,Romania,India,and Chile
C) Belgium,Romania,Indonesia,and Chile
D) Brazil,Russia,India,and China

Accepted Answer

BRIC stands for Brazil, Russia, India, and China, which are considered major emerging national economies.

Question 16

After WWII,major Western nations committed to global trade and investment.Between the 1950s and 1970s most non-western countries followed suit by adopting the view of a globalized world economy.

Accepted Answer

Most non-Western countries initially pursued protectionist and inward-looking economic policies, such as import substitution industrialization, rather than embracing globalization immediately after WWII.

Question 17

Which of the following statements is true of purchasing power parity (PPP)?
A) It is the sum of value added by residents and households operating in an economy.
B) It is the management of value-added activities in other countries.
C) It is an investment made by firms within an industry in other countries.
D) It is an adjustment to reflect the differences in cost of living among different countries.

Accepted Answer

Purchasing power parity (PPP) is an economic theory that allows the comparison of the purchasing power of various world currencies to one another, adjusting for differences in cost of living and inflation rates.

Question 18

Croulene Corp,an American company,starts its operations in China.Croulene has an inherent disadvantage in China because of its nonnative status.This is an example of a liability of foreignness.

Accepted Answer

The liability of foreignness refers to the inherent disadvantages that foreign firms experience in a host country due to their nonnative status, such as cultural, economic, and institutional differences.

Question 19

Formal institutions include culture,ethics,and values.

Accepted Answer

Formal institutions refer to established laws, regulations, and official procedures, while culture, ethics, and values are considered informal institutions.

Question 20

If the largest MNE,Walmart,were an independent country,it would be the 27th largest economy in the world.

Accepted Answer

Walmart's revenue is substantial enough that if it were considered a country, its economic size would rank around the 27th largest in the world, based on comparisons with national GDPs.

Quiz 1: Globalizing Business

LindaLoel Corp.extensively uses the technique of scenario planning.Scenario planning is the identification and assessment of risks and the preparation to minimize the impact of high-risk,unfortunate events.

Business leaders should focus on the top two tiers of the global economic pyramid because the base of the pyramid (BoP)does not offer many economic opportunities.

Semiglobalization is the perfect balance of total isolation and total globalization,offering a single,right way of doing business around the globe.

George and John are both managers at Routen Plan Inc.based in Washington,but only George receives a significant international premium compensation as he is an expatriate manager of Routen Plan,Germany.

Semiglobalization suggests that barriers to market integration at borders are high,but not high enough to insulate countries from each other completely.

SchulzRobb Inc.,a company based in England,engages in foreign direct investment in other countries such as India,Japan,and Brazil.SchulzRobb is a multinational enterprise.

Individuals who make less than $2000 a year comprise the base of the pyramid (BoP).

Which of the following is true of emerging economies?

According to the Pendulum view on globalization,globalization is very recent and one-directional.

_____ is the sum of value added by residents,households,and government operating in an economy.

Which of the following describes international business?

Which of the following statements is true of foreign direct investment?

An Ecuadorian firm doing business in a neighboring,Spanish speaking,Latin American country faces a lower liability of foreignness than a Dutch firm doing business in the same country.

Which of the following statements is true of the emerging economies?

BRIC is an acronym for the emerging economies of _____.

After WWII,major Western nations committed to global trade and investment.Between the 1950s and 1970s most non-western countries followed suit by adopting the view of a globalized world economy.

Which of the following statements is true of purchasing power parity (PPP) ?

Croulene Corp,an American company,starts its operations in China.Croulene has an inherent disadvantage in China because of its nonnative status.This is an example of a liability of foreignness.

Formal institutions include culture,ethics,and values.

If the largest MNE,Walmart,were an independent country,it would be the 27th largest economy in the world.