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MGCR 382 FINAL exam with complete solutions 2024_2025
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MGCR 382 FINAL exam with complete solutions 2024_2025
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MGCR 382 FINAL exam with completesolutions 2024/2025
Globalization - ANSWER-- The widening set of interdependent relationships
among people from different parts of the world.
How has geographic distance shrunk? - ANSWER-- Containerization (shipping of
containers)
- Telecommunication advancement
Containerization (shipping of containers) - ANSWER-- Before container shipping,
port costs often accounted for nearly half of total international shipping costs.
Flat World Hypothesis - ANSWER-- World is flattening and shrinking due to the
internet and tech.
- Increase opportunity and intensified global competition.
- Lowers logistics costs due to global value chains.
- aka globalism is good.
Spiky World Hypothesis - ANSWER-- Economic landscape has steep peaks and
valleys.
- There is an uneven distribution of innovation.
- Clusters of industry matter.
- Uneven population distribution.
- Impact on inequality varies by time period and how it is measured.
,- aka Globalism is bad.
Geographic Distance - ANSWER-- Natural resources are present in some
locations and not others.
- Talent is concentrated in some locations.
- Transportation costs are not uniform even within a country.
- Communications and coordination costs rise with global operations.
Economic Distance - ANSWER-- Differences in consumer incomes, costs, and
human and natural resources.
- Purchasing power varies between and within countries, if big enough can be a
disadvantage.
- Wages vary between countries, a large difference can be an advantage
Largest firms ranked by market cap - ANSWER-- Tech firms rank high
Largest firms ranked by total sales - ANSWER-- Petroleum firms ranks high
Largest firms ranked by assets - ANSWER-- Financial institutions rank high
5 Myths of Globalization - ANSWER-- Globalization is new
- Globalization is extensive
- Globalization is unavoidable
- Globalization erases geo distance
- Globalization erases econ distance.
3 Ways to Measure Income - ANSWER-- National accounts (GDP)
- Household income surveys
- Satellite nightime luminosity.
,- There could be discrepancies between the measures.
What motivates firms to go global? - ANSWER-- Expand sales
- Aquire resources
- Diversify to reduce risks
- To learn (acquiring knowledge)
Is it possible to have a decline in absolute level of poverty along with increased
inequality? - ANSWER-- Yes
Partial Globalization Perspective - ANSWER-- High portion of subsidiaries of top
multinational corporations tend to be located in home country or in home
regional trading block.
- Foreign-born people constitute on average only 3% of the population of the top
50 most populous countries.
Trends in World Distribution of Income - ANSWER-- Decrease in absolute and
relative amount of people below poverty line.
- There have been regional differences in shift in absolute poverty.
- Increased poverty in sub-Saharan Africa
- Decline in Asia, ME and SA
4 Income Levels - ANSWER-- Level 1 = $2/day
- Level 2 = $5.50/day (MOST PEOPLE)
- Level 3 = $8/day
- Level 4 = $32/day
International Business - ANSWER-- Consists of all commercial transactions that
take place between two or more countries.
- Involves two or more set of laws, cultures and currency.
, -
Modes of IB Transactions - ANSWER-- Goods and service imports and exports.
- Investments and financial capital flows.
Institutional and Physical Factors of IB - ANSWER-- Geographic influences
- Cultural factors
- Political policies and legal practices
- Economic forces
Competitive Factors of IB - ANSWER-- Competitive product strategy
- Company resources and experience
- Competitors in each market.
7 Forces Driving Globalization - ANSWER-- Increase in and application of
technology
- Liberalization of cross-border trade and resource movements
- Development of services that support international business
- Growth of consumer pressures
- Increase in global competition.
- Changes in political situations and government policies.
- Expansion of cross-national cooperation.
Potential Costs of Globalization - ANSWER-- Threats to national sovereignty
- Economic growth and environmental stress
- Growing income and inequality and personal stress.
Forms of Exporting - ANSWER-- Indirect
- Direct
- Intra-corporate transfers
Advantages of MNC - ANSWER-- Knowledge
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