Ghauri, P., Strange, R., & Cooke, F. L. (2021). Flashcards
Research on international business: The new realities. International Business Review, 30(2), 101794: 1-11
According to the article, what is one of the major reasons why populism and economic nationalism have gained traction in recent years?
A decline in globalization’s impact on developed economies
Slowbalization
A term describing the slowdown of globalization due to rising protectionism, economic nationalism, and disruptions like the COVID-19 pandemic. Unlike full deglobalization, slowbalization refers to a more regionalized and cautious approach to global trade.
Populism and Econopmic Nationalism
The article describes populism as a political discourse that gained momentum in events like Brexit and Trump’s “America First” policy. It is linked to the idea of sovereignty of the people, often positioning “the people” against elites and foreign influence.
Economic nationalism is related but distinct—it emphasizes national sovereignty in economic policies, prioritizing domestic industries over free trade. The article highlights how this has led to protectionist trade policies, FDI restrictions, and reshoring of production to home countries. These trends challenge globalization and impact multinational enterprises (MNEs) by increasing political and regulatory risks.
What is a key challenge posed by digital technologies in international business?
a) Increased costs of global transactions
b) Reduced efficiency in global value chains
c) The rise of digital monopolies with significant market power
d) The declining importance of intangible assets in business strategies
c.
Multinational Enterprises (MNEs) as Political Actors
MNEs exert power beyond economic influence, shaping government policies, regulations, and trade agreements.
What factor has led to increased scrutiny of foreign direct investment (FDI) in many host countries?
a) Concerns over intellectual property rights
b) National security concerns and the influence of state-controlled enterprises
c) The collapse of the global banking system
d) Rising labor costs in developed economies
b.
What does the article suggest as a necessary area of research in international business moving forward?
The role of MNEs in addressing social and environmental challenges
What are the “four new realities” that IB business scholars should focus on according to the article?
A) Economic growth, Economic Integration, Digitalization and Globalization
B) Populism, Environmental Sustainability, New Digital Technologies and Global Governanceon Economic Growth
C) Economic Nationalism and Populism, Sustainable Development, New Digital Technologies and Changing power dynamics
C.
How has the rise of populism and economic nationalism affected international trade?
A) It has encouraged more countries to join joint ventures
B) Post-acquisitions are no longer seen as attractive because of the greater threat of tariffs
C) Resultedin greater protectionism, limiting trade and foreign investments.
C
What is a significant consequence of changing power relationships in IB?
A) MNEs are becoming less influential in global markets
B) The balance of power is shifting solely toward developing countries
C) MNEs are increasingly seen as political actors influencing government policies
C
The article discusses the concept of “de-risking” in the context of multinational enterprises (MNEs). What does that term refer to?
A) MNEs reducing their reliance on digital technologies to avoid cybersecurity risks.
B) MNEs relocating production activities to reduce dependency on a single country or region.
C) MNEs avoiding investments in emerging markets to minimize financial losses.
D) MNEs focusing solely on domestic markets to avoid international competition.
B
ccording to the article, what is one of the main challenges multinational enterprises (MNEs) face in addressing climate change and sustainable development goals (SDGs)?
A) The lack of consumer interest in sustainable products.
B) The absence of widespread international regulation on social and environmental issues.
C) The decline of global value chains due to populism.
D) The inability of MNEs to generate profits while pursuing sustainability.
B
According to the article, which of the following best explains the relationship between populism and nationalism in the context of international business?
A) Populism and nationalism are entirely unrelated concepts.
B) Populism focuses on the sovereignty of people, while nationalism focuses on the sovereignty of the nation.
C) Nationalism is a subset of populism and cannot exist independently.
D) Populism and nationalism are synonymous and interchangeable in international business discussions.
B
