International business the new realities 4th edition pdf download

International business the new realities 4th edition pdf download

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PDF Download Time-Saver Standards for Urban Design [Full Ebooks] by Donald Watson. D What is the average annual rate of employee turnover in the manufacturing industry? Answer: B Diff: 2: Moderate Skill: Application Objective: Understand technological advances and globalization AACSB: Analytic Skills 47 Technological advances have helped make internationalization affordable for all sizes of firms. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Understand technological advances and globalization AACSB: Analytical Thinking; Information Technology 13 Copyright © Pearson Education, Inc. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: Understand technological advances and globalization AACSB: Analytical Thinking; Information Technology 49 The "Arab Spring" in the Middle East was facilitated in large part by social media.

Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Understand technological advances and globalization AACSB: Analytical Thinking; Information Technology 50 While the number of containers transported internationally has decreased, the cost of transportation has increased dramatically. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: Understand technological advances and globalization AACSB: Analytical Thinking; Information Technology 14 Copyright © Pearson Education, Inc. Describe the impact of each area on business today. Answer: Perhaps the most important driver of market globalization has been technological advances in information, communications, manufacturing, and transportation. While globalization makes internationalization imperative, technological advances provide the means for it to happen. Information technology: Information technology IT is the science and process of creating and using information resources. Its effect on business has been revolutionary. The cost of computer processing fell by 30 percent per year during the past two decades and continues to fall.

IT creates competitive advantages by giving companies new ways to outperform rivals. IT benefits smaller firms too, allowing them to design and produce customized products they can target to narrow, cross-national market niches. Communications: The Internet, and Internet-dependent systems such as intranets, extranets, social media, and e-mail connect billions of people and companies. Marketers use the internet to promote the widest range of products and services to customers worldwide. Transmitting voice, data, and images is essentially costless, making Seoul, Stockholm, and San Jose next-door neighbors. South Korea has nearly percent Internet access and is among the fastest broadband networks worldwide. Koreans use their phones to pay bills, do banking, and watch news programs.

Manufacturing: Computer-aided design CAD of products, robotics, and production lines has transformed manufacturing, mainly by reducing production costs. Revolutionary developments facilitate low-scale and low-cost manufacturing. Firms can make products cost-effectively even in short production runs. Such developments benefit international business by allowing firms to more efficiently adapt products to individual foreign markets, profitably target small national markets, and compete more effectively with foreign competitors that enjoy cost advantages. Transportation: The development of fuel-efficient jumbo jets, giant ocean-going freighters, and new transportation technology have greatly reduced shipping times and costs. A consequence of a strong emphasis on traditional values worldwide B consequence of the loss of national sovereignty C driver and consequence of firm-level internationalization D prime cause of rising diseconomies of scale in emerging economies Answer: C Diff: 3: Hard Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 15 Copyright © Pearson Education, Inc.

A reduce trade and investment barriers B reduce private investments C adopt a hostile stance toward the private sector D hinder the cross-border flow of factors of production Answer: A Diff: 1: Easy Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 55 Which of the following is an example of a supranational institution? A increasing barriers to international trade and investment B creating supranational institutions to further reduce trade barriers C adopting different monetary and fiscal policies within the same regional economic integration blocs D standardizing consumer lifestyles and preferences Answer: B Diff: 1: Easy Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 16 Copyright © Pearson Education, Inc. A the consistently rising prices of consumer goods have led to a demand vacuum in the market B the distance between consumers worldwide has increased with the advent of technology C the raw materials, parts, and components sourced by professional buyers are very similar in design and structure D the globalization of services has adversely affected the quality of service worldwide Answer: C Diff: 2: Moderate Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 17 Copyright © Pearson Education, Inc.

A fragmentary monetary and fiscal policies across the borders B regional economic integration blocs C widespread violation of intellectual property rights law D violation of GATT provisions Answer: B Diff: 1: Easy Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 62 Governments have facilitated economic integration by lowering barriers to international trade and investment, harmonizing their monetary and fiscal policies within regional economic integration blocs. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 63 In a "common market," barriers to the cross-border flow of factors of production are removed.

Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 64 The globalization of capital refers to the aggregate activities of firms that gives rise to economic integration. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 65 Converging tastes of consumers worldwide promote traditional lifestyles. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 18 Copyright © Pearson Education, Inc. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Comprehend the dimensions of globalization AACSB: Analytical Thinking 67 In a short essay, discuss the impact of market globalization on consumer lifestyles and preferences around the world. Provide examples to illustrate your answer.

Answer: Around the world, consumers spend their money and time in similar ways. Many aspects of lifestyles and preferences are converging. Shoppers in New York, Paris and Shanghai increasingly demand similar household goods, clothing, automobiles, and electronics. Teenagers everywhere are attracted to iPods, Levi's jeans, and Hollywood movies. Major brands enjoy a global following encouraged by movies, global media, and the Internet. Movies such as Transformers and The Hunger Games have developed global audiences of fans. Convergence of preferences is also occurring in industrial markets, where professional buyers source raw materials, parts, and components that are increasingly standardized-that is, similar or identical in design and structure. A value chain B founders C internal stakeholders D top management Answer: A Diff: 1: Easy Skill: Concept Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking 69 Which of the following statements is true about value chain and international business?

A Exporting firms perform most of the downstream value chain activities in the home market. B Exporting firms perform most of the upstream value chain activities in the home market. C Exporting firms perform most of the upstream value chain activities abroad. D Exporting firms perform most of the research and product development and production abroad. Answer: B Diff: 2: Moderate Skill: Concept Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking 19 Copyright © Pearson Education, Inc. A rarely conducts research and development B performs most upstream value-chain activities abroad, when exporting C performs marketing activities such as pricing, promotion, and selling D performs most downstream activities in the home market, when exporting Answer: C Diff: 2: Moderate Skill: Concept Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking 71 Which of the following statements is true about the firm-level consequences of market globalization?

A The globalization of markets has narrowed down new business opportunities for internationalizing firms. B Globalization drives firms to relocate key value-adding activities to the most advantageous locations around the world. C A firm's value chain is not subject to internationalization. D Through offshoring, a firm relocates a major value-chain activity by establishing a factory or subsidiary in the home market. Answer: B Diff: 2: Moderate Skill: Concept Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking 72 Which of the following stages comes before procurement in a firm's value chain? A research and development B marketing C manufacturing D distribution Answer: A Diff: 1: Easy Skill: Concept Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking 73 Which of the following represents the final stage in a firm's value chain?

A marketing B procurement C research and development D sales and service Answer: D Diff: 1: Easy Skill: Concept Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking 20 Copyright © Pearson Education, Inc. Recently Acme has been investigating whether it would be beneficial to internationalize some of its value- chain activities. Acme hires a consulting group to help determine which, if any, value-chain activities could be conducted abroad to promote business growth. The consulting group identifies two health care software development companies in India that could provide programming services at a lower cost than Acme's current expenditures for programming. In addition, the consultants conduct international market research which shows that German health care companies have a strong demand for the type of software that Acme offers.

A sales B distribution C marketing D procurement Answer: D Diff: 1: Easy Skill: Application Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking 75 Which of the following would be most important for the consulting group to consider when deciding whether to recommend that Acme internationalize its sales efforts to Germany? A Will Acme save money on advertising by targeting small rather than large companies? B How intense is the competition from German companies offering similar products? C What type of training is received by programmers in software firms abroad? D Is employee empowerment culturally favored in Germany? Answer: B Diff: 1: Easy Skill: Critical Thinking Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking; Environments and Reflective Thinking 76 Which of the following would be most important for Acme to determine before outsourcing its programming services to India?

A What benefits have Indian companies gained historically from internationalizing their value- chain activities? B Do Indian businesses outsource value-chain activities to Europe? C Would the lower cost of outsourcing allow Acme to sustain a competitive advantage in its business operations? D Is either of the Indian health care companies interested in moving their operations abroad? Answer: C Diff: 1: Easy Skill: Critical Thinking Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking; Environments and Reflective Thinking 21 Copyright © Pearson Education, Inc.

Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Appreciate firm-level consequences of market globalization AACSB: Analytical Thinking 78 Market globalization compels firms to organize their sourcing, manufacturing, marketing, and other value-adding activities on a strictly local scale. A sovereignty B liberalization C interdependence D homogenization Answer: A Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 22 Copyright © Pearson Education, Inc. A insourcing B cultural imperialism C contagion D offshoring Answer: D Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 82 Which of the following is an example of offshoring? A Fahad, a resident of the UAE can share his views-data and information-about the country's construction industry with his friends in the U. B The IT support services for customers of Mayfair Inc.

based consumer electronics manufacturer, are based in India. C Treat Corp. is a food and beverage manufacturer based in Texas. It decided to move from Houston to Fort Worth in Texas to cut production costs. D Lin, a Chinese citizen, decides to move to the U. after her application for scholarship is accepted by a leading university in London. A refers to the informal economic sector B refers to the formal economic sector C is characterized by dominantly legal transactions D is regulated and monitored by public authorities Answer: A Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 23 Copyright © Pearson Education, Inc. A offshoring B McDonaldization C privatization D local nationalism Answer: D Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking Globalization Debate Scenario In his international business class, Professor Jang organizes a debate on the societal effects of market globalization.

Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position. A the dominating influence of market forces on the global economy B technological advances in computer-aided design of products C the political influence of large firms such as Walmart D the actual GDPs of underdeveloped economies Answer: A Diff: 2: Moderate Skill: Critical Thinking Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking; Environments and Reflective Thinking 86 Which of the following most likely supports Rina's argument over Juan's concerning wages and working conditions in developing countries?

A Most African countries today still suffer from low or negative GDP growth. B Vietnam has experienced a five-fold increase in wages as a result of the growth of the footwear industry there. C The move of Electrolux to Mexico cost Michigan 2, jobs. D Minimum wages should be established at set levels, regardless of the impact on the number of jobs. Answer: B Diff: 2: Moderate Skill: Critical Thinking Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking; Environments and Reflective Thinking 24 Copyright © Pearson Education, Inc.

A The intensity of environmental pollution is far greater in emerging economies than in undeveloped ones. B China's landscape was permanently altered by the construction of the Three Gorges Dam. C Environmental destruction tends to diminish in the long run, as economies develop. D Attempts at foreign cultural imperialism are often blocked by national governments. Answer: C Diff: 2: Moderate Skill: Critical Thinking Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking; Environments and Reflective Thinking 88 Which of the following statements most likely to counters Juan's argument concerning the homogenization of national cultures? A As globalization standardizes superficial aspects of life across national cultures, people resist these forces by insisting on their national identity and taking steps to protect it.

B Foreign values tend to shift not just superficial aspects of culture, but deeply held beliefs as well. C Material goods such as cell phones and computers are found in most homes throughout the world. D In most industries, domestic operation alone cannot sustain competitive business growth. Answer: A Diff: 2: Moderate Skill: Critical Thinking Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking; Environments and Reflective Thinking 89 In international economics, codetermination refers to the tendency for a financial or monetary crisis in one country to spread rapidly to other countries, due to integrated national economies. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 90 Large multinationals are not constrained by market forces because they can exert considerable influence on governments through lobbying.

Answer: FALSE Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 25 Copyright © Pearson Education, Inc. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 92 The first wave of offshoring began in the s with the exodus of service-sector jobs in credit card processing, software code writing, accounting, health care, and banking services. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 93 Countries that liberalize international trade and investment enjoy faster per-capita economic growth.

Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 94 Environmental destruction diminishes as economies develop, at least in the long run. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 95 As the influence of the Chinese economy grows over time, it is likely that Western countries will embrace some of China's cultural attitudes and behaviors. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 26 Copyright © Pearson Education, Inc.

How does globalization affect sovereignty? Answer: Sovereignty is defined as the ability of a nation to govern its own affairs. One country's laws cannot be applied or enforced in another country. Globalization can threaten national sovereignty in various ways. MNE activities can interfere with a government's ability to control its own economy, social structure, and political system. Some corporations are bigger than the economies of small nations. Walmart's internal economy-its total revenues-is larger than the GDP of many of the world's nations, including Israel, Greece, and Poland. Large multinational firms can apply a lot of pressure on governments through lobbying or campaign contributions.

MNEs frequently influence the legislative process. Corporate dominance of individual markets is rare. In reality, market forces generally dominate companies. For example, Ford, Chrysler, and General Motors once dominated the U. auto market. Today many more automotive firms compete in the United States. These include Toyota, Honda, Hyundai, Nissan, and BMW. Toyota now leads the global market in annual sales. Home-country market shares of domestic U. automakers have tumbled. To minimize globalization's harm and reap its benefits, governments should ensure the freedom to enter and compete in markets, protect private property, enforce the law, and support voluntary exchange through markets rather than through political processes.

Banks and financial institutions should be regulated appropriately. Transparency in the affairs of business and regulatory agencies is critical. Diff: 2: Moderate Skill: Concept Objective: Understand the societal consequences of globalization AACSB: Analytical Thinking 97 Discuss the effect of globalization on national culture. Answer: Globalization exerts strong pressures on national culture. Market liberalization exposes local consumers to global brands, unfamiliar products, and different values.

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