Chapter 19 Multiple choice questions

. The current phase of Globalization was triggered by:

the end of World War II.

the end of World War I.

economic growth in the BRIC economies.

the invention of electricity.

. A value chain is most accurately described as:

a premium retail chain selling luxury goods at value prices.

a system of manufacturers and service suppliers whoadd value to a product or service.

a discount retailing chain.

an auditing process that controls cash flow.

. Which of the following is not an example of market failure?

The failure to produce merit goods.

The failure to maximize profits.

The failure to produce public goods.

The failure to internalize externalities.

. Emerging economies are characterized by:

higher than average growth rates.

low to middle levels of per capita income.

recently established institutions supporting economic development.

all of the above.

. Global economic institutions exist to:

promote multilateral treaties that facilitate the global business system.

help manage the global business system.

help regulate the global business system.

all of the above.

. Globalization has the most direct impact on which of the following?

The firm's global sourcing contracts.

The offshoring potential of particular activities.

The firm's entire value chain.

The research and development costs facing the firm.

. Which of the following is likely to have contributed to the rise in intra-industry trade?

Increases in consumer demand for product variety.

Policies of economic austerity.

The fall in the price of oil.

The global financial crisis of 2008.

. Contract manufacturing offers a low control and shared ownership mode of operation. Which of the following is/are disadvantages of contract manufacturing?

The danger that a contract manufacturer may become a future competitor.

Low labour costs mean low productivity.

The quality of production cannot be assured.

All of the above.

. What are the five primary activities of the value chain model?

Inbound logistics, Operations, Outbound Logistics, Marketing and Sales, and Technology Development.

Inbound logistics, Operations, Outbound Logistics, Marketing and Sales, and Service.

Inbound logistics, Operations, Infrastructure, HR Management, and Service.

Inbound logistics, Procurement, Outbound Logistics, Marketing and Sales, and Service.

. Services can be:

neither imported nor exported since they are intangible.

imported and exported.

imported but not exported.

exported but not imported.

Chapter 19 Multiple choice questions

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