CH2 - International Business The New Realities 3e(Cavusgil Chapter 2 Globalization of Markets and the of the Firm 1 Nationalization refers to the

CH2 - International Business The New Realities 3e(Cavusgil...

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International Business: The New Realities, 3e (Cavusgil)Chapter 2: Globalization of Markets and the Internationalization of the Firm1) Nationalization refers to the gradual integration and growing interdependence of national economies.Answer: FALSEDifficulty: EasySkill: ConceptObjective: 2-1AACSB: Dynamics of the global economy2) The initial phase of globalization was triggered by the introduction of the railroads and ocean transport. Answer: TRUEDifficulty: EasySkill: ConceptObjective: 2-1AACSB: Dynamics of the global economy3) The Great Depression marked the beginning of the second phase of globalization. Answer: FALSEDifficulty: EasySkill: ConceptObjective: 2-1AACSB: Dynamics of the global economy4) The third phase of globalization was triggered by the development of personal computers, the Internet, and Web browsers.Answer: FALSEDifficulty: EasySkill: ConceptObjective: 2-1AACSB: Dynamics of the global economy5) Firms expand abroad solely as a reaction to market globalization.Answer: FALSEDifficulty: EasySkill: ConceptObjective: 2-2AACSB: Dynamics of the global economy
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6) Firms often internationalize proactively, in order to pursue new markets, find lower-cost inputs, or obtain other advantages.Answer: TRUEDifficulty: EasySkill: ConceptObjective: 2-2AACSB: Dynamics of the global economy7) Firms that pursue internationalization as a strategic move tend to approach global competition more aggressively than do firms that internationalize on a purely reactive basis. Answer: TRUEDifficulty: EasySkill: ConceptObjective: 2-2AACSB: Dynamics of the global economy8) Offshoring and the flight of jobs are prime drivers of market globalization.Answer: FALSEDifficulty: EasySkill: ConceptObjective: 2-2AACSB: Dynamics of the global economy9) Globalization of production activities and services is a dimension of market globalization.Answer: TRUEDifficulty: EasySkill: ConceptObjective: 2-2AACSB: Dynamics of the global economy10) 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: TRUEDifficulty: EasySkill: ConceptObjective: 2-3AACSB: Dynamics of the global economy11) In a "common market," barriers to the cross-border flow of factors of production are removed.Answer: TRUEDifficulty: EasySkill: ConceptObjective: 2-3AACSB: Dynamics of the global economy
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12) The globalization of capital refers to the aggregate activities of firms that gives rise to economic integration.Answer: FALSEDifficulty: EasySkill: ConceptObjective: 2-3AACSB: Dynamics of the global economy13) Converging tastes of consumers worldwide promote traditional lifestyles and values in individual countries.
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