2-3 The Global Business Environment

Which of the following is a true statement about globalization:

• It is a purely economic term.

• It has had a minimal impact on the world.

• Its pace is slowing down.

• It involves the flow of ideas across national borders.

The technology that has had the most influence on globalization has been

• television.

• the internet.

• inexpensive phone service.

• wireless connections.

How has the ability to travel more freely contributed to globalization?

• It breaks down political barriers between countries.

• It escalates competition between businesses.

• It helps enable the spread of culture and ideas.

• It promotes a sense of nationalism.

Which of the following is a true statement about globalization and political barriers:

• The world is much more politically open than it used to be.

• Many countries are sealed off from the rest of the world due to communism.

• The United States has very few trading partnerships with other countries.

• In the future, there will be more political barriers between countries.

Globalization can be an advantage for businesses because it

• can contribute to a phenomenon called brain drain.

• increases direct competition.

• can help them cut costs for certain resources.

• inhibits the ideas of other businesses.

Free exchange of ideas contributes to

• more instances of offshoring.

• fewer choices for consumers.

• decreased competition.

• greater business innovation.

How has globalization affected consumers?

• It has increased competition among them.

• It has given them a bigger and better variety of products to choose from.

• It has made them more closed-minded toward other cultures and ethnicities.

• It has helped them save on taxes.

Brain drain occurs when

• a country loses talented employees to better opportunities in other countries.

• consumers spend too much time shopping online.

• businesses outsource jobs to other countries.

• people who speak different languages try to communicate with one another.

Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of.

• exporting

• nationalism

• environmental degradation

• offshoring

Environmental degradation occurs because of

• increased production

• offshoring

• nationalism

• decreased competition