1. Which of the following best describes the concept of globalization in

the context of the global business environment?

A. The process of international integration arising from the interchange of

world views, products, ideas, and other aspects of cultures

B. The process of focusing solely on domestic markets and ignoring

international opportunities

C. The process of limiting expansion to neighboring countries only

D. The process of avoiding international trade altogether

Answer: A. The process of international integration arising from the

interchange of world views, products, ideas, and other aspects of cultures.

Rationale: Globalization refers to the increased interconnectedness and

interdependence of countries and businesses worldwide.

2. Which of the following is a key factor that drives businesses to expand

into international markets?

A. Lower labor costs in foreign countries

B. Political instability

C. Limited market opportunities in domestic markets

D. Currency exchange rate fluctuations

Answer: A. Lower labor costs in foreign countries. Rationale: Lower labor

costs in foreign countries can offer businesses a competitive advantage

and encourage expansion into international markets.

3. How can a global supply chain benefit an organization?

A. By increasing production costs

B. By reducing operational efficiency

C. By improving product quality

D. By limiting market reach

Answer: C. By improving product quality. Rationale: A global supply

chain can provide access to high-quality materials and processes that can

enhance the quality of the final product.

4. Which of the following is a challenge that organizations may face when

operating in international markets?