Question 1

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

Accepted Answer

Globalization refers to the increasing interconnectedness and interdependence of economies, societies, and cultures around the world. This process has been accelerated by the reduction of trade and investment barriers, such as tariffs and quotas, which make it easier for companies to do business across borders. The development of new technologies, especially digital technologies like the Internet, has also facilitated globalization by enabling faster and more efficient communication, collaboration, and commerce between people and organizations in different parts of the world.

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.

Accepted Answer

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.

Accepted Answer

International transfers of resources are an important part of international business. They can include the movement of people for work, the licensing or sale of intellectual property, and the transfer of contracts or debts between companies in different countries. These transactions can have significant economic and legal implications, and are a key focus of international business law and policy.

Question 4

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

Accepted Answer

The government of a country can be considered a stakeholder in a business venture if they have a direct or indirect interest in the success or failure of the venture. This could be due to factors such as tax revenue, employment opportunities, environmental regulations, or national security concerns.

Question 5

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

Accepted Answer

Friedman argues that globalization has gone through three stages throughout history, with the current stage being the third.

Question 6

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

Accepted Answer

Standardization of operations within and across markets allows for greater efficiency in global operations, as processes can be streamlined and costs can be reduced through economies of scale. Therefore, the statement is true.

Question 7

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

Accepted Answer

Globalization involves the integration of economies and production processes across national boundaries, as well as the exchange of goods, services, and ideas. Therefore, it cannot be defined solely in terms of markets but must also include 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.

Accepted Answer

This definition of a stakeholder is incorrect. A stakeholder is any individual or group who has an interest or concern in the success of a business or project, including employees, customers, suppliers, shareholders, and the community. They may have varying levels of influence and involvement in decision-making, but their focus is not solely on turning an idea into a profitable product through risk-taking and innovation.

Question 9

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

Accepted Answer

Strategic management involves analyzing a firm's internal and external environment and making decisions that will lead to improved performance and competitive advantage. Therefore, it is primarily focused on understanding and addressing the factors that impact 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.

Accepted Answer

Stakeholder analysis refers to the process of identifying and analyzing the stakeholders involved in a project or venture to understand their interests, needs, and potential impact on the project. It does not necessarily involve the implementation of new ideas or ventures, although it may inform the development of such plans.

Question 11

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

Accepted Answer

International business refers to any commercial transaction that involves the exchange of goods or services beyond the borders of a single country. It includes activities such as importing and exporting, foreign direct investment, and multinational corporations operating in multiple countries.

Question 12

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

Accepted Answer

Even if an organization only produces and sells its products in one country, international business can still be relevant due to factors like global competition, supply chain sourcing, and potential for future market expansion.

Question 13

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

Accepted Answer

Foreign direct investment (FDI) is a type of investment where a firm from one country invests assets into a foreign country's buildings, equipment, or organizations. It involves establishing or acquiring a company in the foreign country, and this can be done through mergers, acquisitions, joint ventures, or greenfield investments. FDI is different from portfolio investment, where investors buy stocks, bonds, or other financial instruments in foreign companies without taking direct control or ownership of them.

Question 14

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

Accepted Answer

Conducting stakeholder analysis helps global business professionals understand the perspectives and interests of stakeholders in different countries, which can impact the development and execution of corporate strategy.

Question 15

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

Accepted Answer

Strategic management and entrepreneurship are crucial components of international business as they provide insights into managing resources, developing business strategies, and identifying opportunities for growth and expansion. An understanding of these concepts can help in making informed decisions related to international business operations.

Question 16

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

Accepted Answer

The answer of The second stage of global development began...

Question 17

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

Accepted Answer

The social and environmental performance of an organization is becoming increasingly important and valued by consumers, shareholders, and other stakeholders. Ignoring these factors in pursuit of profits can lead to negative backlash and harm the long-term sustainability of the organization.

Question 18

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

Accepted Answer

The flat-world view is typically attributed to Thomas Friedman, not Milton Friedman.

Question 19

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

Accepted Answer

According to the general definition of a business, it is an entity engaged in commerce with the goal of earning a profit. Therefore, the statement is true.

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.

Accepted Answer

In his book "The World is Flat," Friedman describes Globalization 1.0 as being driven by countries' ability to extract and utilize natural resources during the Industrial Revolution.

Quiz 1: Introduction