Chapter 1 – Globalizing Business

BRIC is an acronym for the emerging economies of Britain, Russia, India and China.
1. True
2. False
The two core perspectives of international business are the institution-based view and the resource-based view.
1. True
2. False
The most fundamental question in international business is: What determines the success and failure of a firm's foreign entry?
1. True
2. False
The liability of outsidership is the inherent advantage that foreign firms experience in host countries because of their non-native status,
1. True
2. False
Purchasing power parity (PPP) is an adjustment made to the GDP to reflect differences in the cost of living.
1. True
2. False
Which of the following does not create a ‘liability of outsidership’?
1. lack of experience in a country
2. being a foreigner
3. Lack of business networks
4. being a native
What is defined as ‘a process leading to greater interdependence and mutual awareness (reflexivity) among economic, political and social units in the world, and among actors in general’?
1. Europeanization
2. EU Integration
3. Globalization
4. International Trade
The “base of the pyramid” refers to which group of people?
1. Southern Europeans
2. North Africans
3. People earning less than €2,000 a year
4. People earning less than €2,000 a month
____ refers to “the identification and assessment of risks and the preparation to minimize the impact of high-risk unfortunate events”.
1. Scenario planning
2. Risk management
3. Political risk
4. Loss accounting
Environmentalists, human rights activists and consumer groups often organize themselves in _____.
1. Political parties
2. Firms
3. Non-governmental organizations
4. non-firm organizations

Chapter 1 – Globalizing Business

Quiz