Quiz 3 - Globalization

What is the primary goal of globalization?

• To limit international trade

• To enhance economic interdependence among countries

• To restrict the movement of capital and knowledge

• To promote domestic businesses only

Which stage of globalization involves companies expanding their markets internationally?

• Individuals collaborating globally

• Internationalization of countries

• Companies moving to international markets

• Cultural adaptation of businesses

Which of the following is NOT a classification of a country’s economy?

• Developed economies

• Emerging economies

• Declining economies

• Developing economies

What is the main characteristic of a country with high power distance?

• Employees challenge authority frequently

• People accept and respect hierarchical structures

• There is little distinction between leaders and subordinates

• Managers make decisions based on employee votes

Why might a company choose exporting as a market entry strategy?

• It requires low investment and involves less risk

• It provides full control over branding and distribution

• It eliminates the need for marketing in a foreign country

• It allows the company to directly own production facilities abroad

Which of the following best defines a strategic alliance?

• A company sells its products to a foreign country through distributors

• Two firms agree to share resources for mutual benefit

• A company fully owns and controls a business in another country

• A local firm in a foreign market is allowed to manufacture a company’s product

What is a major disadvantage of licensing as a market entry strategy?

• The licensing firm has little control over its product and brand

• It requires high initial investment and financial risk

• It prevents firms from entering multiple markets

• It is only applicable to technology-related businesses

Which country is considered an emerging economy?

• USA

• CHINA

• SUDAN

• GERMANY

What is an example of a Greenfield venture?

• A company sets up its own factory in a foreign country

• A firm signs an agreement to distribute its products abroad

• wo companies form a partnership to expand into a new market

• A company licenses its brand to a foreign manufacturer

Which market entry strategy involves direct investment in a foreign country?

• Exporting

• Licensing

• Strategic alliances

• Wholly owned subsidiaries