The document consists of exercises by Kamal Al Masri discussing various aspects of globalization, including its effects on national sovereignty, technology's role, and market integration. It contains true or false questions and multiple-choice options that assess understanding of globalization's dimensions, consequences for economies and cultures, and shifts in the international business landscape. Additionally, there are questions regarding historical phases of globalization and the role of entities like the World Trade Organization.

1. Exercises by:
Kamal AL MASRI
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

2. Discussion ..
Globalization can cause the loss of
national sovereignty. Discuss this idea.
Globalization is not new. Discuss why.
Explain how advances in technology
helps Globalization.
Discuss the main dimensions of market
globalization.
Discuss the main societal
consequences of market
globalization.
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3. Discussion ..
List some firm-level
consequences of market
globalization.
Explain how Globalization harms
the natural environment.
Explain what are the effects of
Globalization on National
Culture.
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4. True or false
 () Globalization and technological advances have
altered the international business landscape more than
any other trends.
 () The first wave of Globalization was fueled by Internet
and other technologies.
 () The last wave of Globalization was characterized by
progress in ICT and rapid liberalization in emerging
markets.
 () Market liberalization and adoption of free markets are
considered drivers of Market Globalization.
 () Collectively, technological advances have greatly
reduced the costs of doing business internationally.
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5. True or false
 () Globalization of markets refers to the ongoing
economic integration and growing
interdependency of countries worldwide.
 () Advances in technology reduces the cost of
doing business internationally by allowing firms
to interact cheaply with suppliers, distributors,
and customers worldwide.
 () Globalization allows firms to view the world as
one large marketplace for goods, services,
capital, labor, and knowledge.
 () Worldwide reduction of barriers to trade and
investment acted as a driver of Market
Globalization.
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6. True or false
 () Advances in technology didn’t play any role in
Market Globalization.
 () Integration and interdependence of national
economies is one of the dimensions of Market
Globalization.
 () Market Globalization led to the convergence
of buyer lifestyles and preferences.
 () Market Globalization is characterized by rapid
spread of financial or monetary crises from one
country to another.
 () Globalization can lead to the loss of national
sovereignty.
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7. True or false
 () Offshoring can cause the flight of jobs.
 () Internationalization of the Firm’s Value Chain is one of
societal consequences of Globalization.
 () Globalization means less new business opportunities
for internationalizing firms.
 () Globalization means new risks and intense rivalry from
foreign competitors.
 () Globalization transformed many developing
economies from producers of low-value goods to
higher-value goods, such as electronics and computers.
 () ICTs opened the global marketplace to firms that
historically lacked the resources to internationalize.
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8. True or false
 () Globalization led to a rise of regional economic
integration blocs.
 () Growth of global investment and financial flows is a
sign of Globalization.
 () Nations should emphasize economic freedom and
participation in international trade and investment.
 () Economic freedom is the extent of government
interference in business, the strictness of the nation’s
regulatory environment, and the ease with which
economic activity can be carried out.
 () Economic Freedom is generally associated with
National Prosperity.
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9. True or false
 () Value chain refers to the sequence of value-
adding activities performed by the firm in the
process of developing, producing, and
marketing a product or a service.
 () Globalization allows the firm to internationalize
its value chain, leading to various advantages.
 () Market globalization compels firms to
internationalize their value chain and access the
benefits of international business.
 () Internationalization of the Firm’s Value Chain
helps increase efficiency, productivity, and
flexibility of value chain activities.
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10. True or false
 () The Great Depression marked the beginning
of the second phase of globalization.
 () The initial phase of globalization was
triggered in part by the introduction of the
railroad.
 () Firms that pursue internationalization as a
strategic move tend to approach global
competition more aggressively than do firms that
internationalize for reactive reasons.
 () Converging lifestyles and preferences
worldwide help to promote traditional values in
individual countries.
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11. True or false
 () One contribution of the World Trade
Organization is to help maintain reduced trade
barriers throughout the world.
 () Industrialization implies that emerging market
countries are increasing their dependence on
low-cost labor
 () Technological advances have helped make
internationalization affordable for all sizes of
firms.
 () Globalization has led buyers to become
more demanding and to shop for the best value
worldwide.
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12. The first phase of globalization was
characterized by which of the following?
A) the rise of steel
production
B) the growth of railroads
C) the spread of
electricity
D) the rise of SMEs
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13. The third phase of globalization was triggered
by :
A) the end of World War II
B) the invention of
electricity
C) the end of World War I
D) economic growth in
emerging markets
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14. Which of the following reflects the major
contribution of GATT to globalization?
A) strict controls on
international currencies
B) worldwide economic
downturn
C) reduction of barriers to
international trade
D) advent of new
communications technology
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15. Over time, the GATT evolved into which of the
following?
A) World Bank
B) International Monetary
Fund
C) World Trade
Organization
D) NAFTA
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16. Firms that are more successful at global
competition display each of the following
qualities except:
A) identifying foreign market
opportunities aggressively
B) approaching
internationalization from a reactive
standpoint
C) actively pursuing partnerships
with foreign firms
D) focusing intensively on building
organizational capacities
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17. Value-chain activities are defined as which of
the following?
A) the methods through which
governments promote economic
integration
B) the aggregate activities of
internationally active firms
C) the process of designing a
product for a global market
D) the sequence of value-adding
activities performed by a firm
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18. All of the following represent examples of
regional economic integration blocs except:
A) World Trade
Organization
B) European Union
C) Mercosur
D) NAFTA
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19. Global firms shift their manufacturing and
procurement to foreign locations in order to:
A) avoid the pressures of
global competition
B) benefit from low labor
costs
C) reduce the impact of
regional recessions
D) avoid oversight by
international agencies
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20. Which of the following is not a driver of market
globalization?
A) market liberalization
B) technological
advances
C) increased import tariffs
D) economic
development
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