Global Business Dynamics and International Management Review Quiz

The global economy is primarily dominated by the economic powerhouses of North America, western Europe, and Asia, which drive a significant portion of global trade and economic activity.

Developing countries and regions often provide opportunities for economic growth due to various factors such as an expanding workforce, emerging markets, and untapped resources.

European Unification aims to boost Europe's economic power by creating a single market and removing trade barriers.

The correct answer is False as the European Union (EU) is responsible for correcting structural issues within Europe, not Asia or any other external entity.

The correct answer mentions the specific challenges presented by the competitive and regulatory environment in the EU, highlighting the importance of understanding and navigating these aspects for managers and employees to be successful.

China's rapid economic growth and industrialization have positioned it to become a global leader in the production and consumption of various goods.

China and Canada are the top two countries that import the most into the US based on trade data. Mexico and Japan, Germany and South Korea, as well as India and United Kingdom are also significant trade partners of the US but do not hold the top two spots in terms of imports.

The U.S. mainly exports to Canada first, followed by Mexico. The other options provided are not the top two countries for U.S. exports.

NAFTA was a landmark trade agreement that eliminated most tariffs and other trade barriers on products and services traded among the United States, Canada, and Mexico. The European Union (EU), Association of Southeast Asian Nations (ASEAN), and MERCOSUR are separate trade agreements involving different countries or regions.

APEC members' economies collectively account for a significant portion of the world output (GDP) and world trade, making them key players in the global economy.

The correct answer is CEMEX; 27%. CEMEX is a global building materials company that has 22% of its employees and 27% of its sales in the US, and conducts management meetings in English due to majority not speaking Spanish.

The consequences of a global economy include an expansion of international trade, an increase in foreign direct investment, deeper penetration of imports into large economies, and increased competition from foreign companies. Isolationism, a decrease in technological advancements, and limited access to global markets are not typically associated with the consequences of a global economy.

The correct answer highlights the impact of free trade on opening up previously protected markets, leading to increased opportunities. The incorrect answers provide alternative reasons that do not accurately reflect the current business environment.

The correct answer highlights the challenges of globalization and diverse cultures that managers have to deal with in today's environment.

The correct answer highlights the impact of cost-efficient overseas competitors on the increasing competitiveness in the environment. The incorrect answers provide alternative reasons that do not directly address this key factor.

Outsourcing refers to the practice of hiring an outside company to perform services or create goods that could traditionally be done in-house. Insourcing is the opposite, where activities are brought in-house. Offshoring involves moving business operations to a different country. Decentralizing refers to dispersing decision-making authority throughout an organization.

Offshoring refers to moving work to other countries for various reasons such as lower costs. Outsourcing involves contracting a third-party to perform tasks or services. Insourcing is the opposite of outsourcing, where activities are handled internally. Nearshoring involves moving work to nearby countries for benefits such as cultural similarity and timezone alignment.

Trade allows countries to specialize in producing goods they are most efficient at, leading to increased production, lower prices, and a wider variety of goods available for consumers.

The correct answer is 3 million jobs offshored in the US by 2015, as per the information provided.

The correct answer explains that job decline is not primarily coming from off-shoring but rather from innovation leading to the need for fewer workers.

Offshoring has both advantages and disadvantages that need to be carefully considered before implementing this strategy.

The Vertical Axis of an integration-responsiveness grid represents the degree of global integration, as it focuses on how multinational corporations standardize organizational processes and products across different countries.

The horizontal axis of an integration-responsiveness grid typically represents the degree of local responsiveness of a company's operations. It shows how adapted the company's products or services are to the specific needs and preferences of the local market.

Universal needs refer to the phenomenon of consumers across different countries having similar preferences for a product, driving the need for a global strategy.

Global integration is driven by the interconnectedness of the global economy and the need to stay competitive in a rapidly changing world. Universal needs, cost pressures, and competition all play key roles in shaping global integration strategies.

Global integration involves recognizing similarities between international markets and incorporating them into a unified global strategy, as opposed to isolating or ignoring international markets.

Local responsiveness refers to the need for businesses to adapt their products, services, and operations to meet the specific demands of local markets. This includes considerations such as consumer preferences, cultural differences, governmental regulations, and distribution channels. Currency exchange rates, technological advancements, and climate change regulations are not traditionally considered pressures arising from local responsiveness.

In an international model, organizations primarily focus on leveraging their core capabilities to enter foreign markets. Multinational, global, and transnational models differ in their approaches to managing operations and resources across borders.