Overview of IB and its components

What is globalization?

• The process of localizing business activities in one country

• The integration of economies, cultures, and societies across the globe

• The restriction of trade between countries

• The promotion of domestic industries only

Which of the following is a driving force behind globalization?

• Advancements in technology

• Decreasing international trade agreements

• Reduction in cultural exchange

• Increasing political isolationism

Which of the following is NOT a characteristic of globalization?

• Free flow of goods and services

• Increased interdependence among nations

• A focus on self-sufficiency

• Rapid communication and information exchange

What does the term “global value chain” refer to?

• Exclusive domestic production of goods

• A series of steps for producing goods/services distributed across multiple countries

• A chain of retail stores selling global brands

• A network of local suppliers

What is one major disadvantage of globalization?

• Decreased international collaboration

• Environmental degradation due to increased industrialization

• Reduced access to foreign markets

• Decline in technological advancements

What is international business?

• A business model focused solely on domestic markets

• Conducting business transactions across national borders

• Limiting trade to regional partners

• Focusing on cultural preservation within one country

Which of the following is an example of a multinational corporation (MNC)?

• A local business operating within one country

• A company like Coca-Cola operating in multiple countries

• A small online business serving only domestic customers

• A government-owned organization with no foreign presence

The primary difference between domestic and international business is:

• The use of technology

• The legal, cultural, and economic environment

• The focus on profit-making

• The availability of local resources

Which of the following is a method of entering international markets?

• Exporting

• Licensing

• Joint ventures

• All of the above

What is the primary purpose of international trade agreements like the WTO?

• To restrict global trade

• To promote free and fair trade between countries

• To regulate domestic trade

• To focus on local economic growth