MGMT 4660 INT. MGMT EXAM 1 (1-4) || WITH
ERRORLESS SOLUTIONS 100%.
Global business environment is facing unprecedented changes correct answers rise of new
multinationals hailing from emerging markets in the BRIC
several other countries present tremendous potential for growth
global business environment is seeing emergence of significant middle class in Africa
the integrated market presents challenges such as war, terrorism, recession, it also presents
significant correct answers opportunities for most companies
multinational management correct answers the formulation of strategies and the design of
management systems that successfully take advantage of international opportunities and that
respond to international threats
successful multinational managers are correct answers executives w/ ability and motivation to
meet and beat the challenges of mult. mgmt
multinational company correct answers broadly defined as any company that engages in business
functions beyond its domestic borders
all types of companies
most are multinational corporations-companies pblicly owned through stocks
largest multinationals are all public corps
many of the largest corporations are in the correct answers petroleum industry
the top global multinationals are located in (p.5) correct answers the U.S. and Western Europe.
not just concentrated in major western cities.
activities that make a company multinational correct answers international sales-company
produces in own country and sells in another
globalization correct answers the trend whereby the world's economies are becoming borderless
and interlinked
companies more likely to competer anywhere, source their raw material or research and
development anywhere, and produce their products anywhere
globalization is producing such worrisome effects as correct answers natural resource scarcity,
environmental pollution, nega- tive social impacts, and increased interdependence of the world's
economies.
widening gap between rich and poor countries
benefits of globalization correct answers resulting in lower prices in many countries as
multinationals become more efficient
,benefiting many emerging markets such as india and china because these countries enjoy greater
availability of jobs and better access to tech
major reason why new companies from countries such as Mexico, Brazil, China, India, and
South Korea are among the new dominant global competitors.
key trends driving globalization of the world economy correct answers falling borders, growing
cross-border trade and investment, rise of global products and global customers, growing use of
internet and sophisticated information technology, privatizations of formerly government-owned
companies, the emer- gence of new competitors in the world market, and the rise of global
standards for quality and production.
developed countries correct answers have mature economies w/ substantial per-capita GDPs and
international trade and investments
Developing countries correct answers Hong Kong, singapore, Taiwan, have economies that have
grown extensively overt the past two decades, yet have sometimes struggled
transition countries correct answers central and Eastern Europe, countries that have changed
from gov't-controlled, mostly Communist, economic systems to free market or capitalistic
systems
emerging markets correct answers currently economies that are growing rapidly
markets that present tremendous opportunities for all multinationals
have about 5/6ths of world's population w. only half of the output.
purchasing power increasing steadily
Prominent countries such as India, China, Brazil, and Russia correct answers are considered to
be emerging
strongest -emerging economies
many countries of BRIC have suffered tremendous slowdown
countries such as Colombia, Indonesia, Kenya, Malaysia, etc. are correct answers enjoying key
structural conditions that are conductive to growth
Age breakdown of population correct answers p. 91947,
general agreement on tariffs and trade (GATT) correct answers several nations began negotiating
to limit worldwide tariffs and encourage free trade. At that time, worldwide tariffs averaged 45
percent. Seven rounds of tariff negotiations reduced the average worldwide tariffs on
manufactured goods from 45 percent to less than 7 percent.
World Trade Organization (WTO) correct answers The WTO provides a formal structure for
continued negotiations and for settling trade disputes among nations.
150 nations in the WTO, up from 92 when the 1986 GATT talks began, including 29 of the UN-
classified least-developed countries. Thirty other countries, including Russia, seek WTO
, membership. Since 1995, tariffs on industrial products have fallen from an average of 6.3 percent
to 3.8 percent
Doha round (p.10) correct answers The latest trade negotiations continue the tradition of
lowering trade barriers to facilitate trade between countries.14 The most recent trade talks
occurred in December of 2013 and resulted in the "Bali Package." All 157 members of the WTO
participated in the talks and agreed on a number of issues among which the following are most
critical: (1) trade facilitation whereby all member states agree to sim- plify customs procedures
to make trade faster, easier, and more efficient, and (2) duty- free, quota-free access for least
developed nations to export to wealthier countries
aguments for WTO correct answers Since the early GATT agreements, world trade has grown at
more than four times the output of the world's gross domestic product. This suggests that the
world's economies are increasingly more intertwined and mutually stimulated.
arguments against WTO correct answers WTO favors the developed nations because it is more
difficult for poorer nations to compete in an unregulated world. Environmentalists note that free
trade encourages large multinational compa- nies to move environmentally damaging production
to poorer and often environmen- tally sensitive countries; that is, commercial interests have
priority over the environment, health, and safety. Labor unions see free trade leading to the
migration of jobs from higher-wage countries to lower-wage countries.
regional trade agreements correct answers free trade areas, are agreements among groups of
nations to reduce tariffs and to develop similar technical and economic standards. Such
agreements have usually led to more trade among the member nations. Some argue that these
agreements are the first step toward complete globalization. Others criti- cize the agreements as
benefiting only trade group members and being harmful for the poorer nations left out of the
agreements, such as the Caribbean countries that are not North American Free Trade Agreement
(NAFTA) members.
Although they do benefit member countries the most, such agreements are more politically
manageable than worldwide trade agreements.
the three largest agreements account for nearly half of the world's trade correct answers EU,
NAFTA, and APEC.
European Union correct answers includes 28 members,
EU originated after World War II with the main premise that if the countries became
economically interdependent through trade and collaboration, they would stop being in conflict.
the EU took off in 1992, when countries allowed goods and services to move across borders
without customs duties and quo- tas. More recently, EU member countries adopted a unified
currency called euro. EU member countries currently represent 450 million individuals and
an .area of signifi- cant economic importance.
North American Free Trade Agreement (p.11) correct answers links the United States, Canada,
and Mexico in an economic bloc that allows the relatively free exchange of goods and ser- vices.
After the agreement went into effect in the early 1990s, all three countries experi- enced
