question

The shift toward a more integrated and interdependent world economy is referred to as globalization

answer

T

question

A company does not need a large size to facilitate, and benefit from, the globalization of markets

answer

T

question

Companies hope to lower their overall cost structure or improve the quality or functionality of their product offering through globalization of production

answer

T

question

The most global markets currently are markets for consumer products

answer

F

question

Outsourcing is a process that is limited to manufacturing enterprises

answer

F

question

The World Bank has focused on policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties

answer

F

question

The World Bank is known as the lender of the last resort

answer

F

question

One of the UN's central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development

answer

T

question

The Uruguay Round, finalized in Dec 1993, reduced protection for patents, trademarks, and copyrights.

answer

F

question

Rivers Inc., a US based sports apparel manufacturer, sets up a production unit in China to take advantage of the lower labor costs there. This is an example of a foreign direct investment

answer

T

question

World Bank gives an aid of 100 million dollars to Kenya for creating rural health care facilities. This is an example of foreign direct investment

answer

F

question

The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market

answer

T

question

According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950

answer

T

question

The expansion of world trade implies that nations are becoming less dependent on each other for important goods and services

answer

F

question

The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding their home markets protected from foreign competitors

answer

F

question

Globalization of markets has resulted in greater differentiation of consumer tastes and preferences

answer

F

question

A multinational enterprise (MNE) is any business that exports or imports products from other countries

answer

F

question

A current trend in international business is the decline of medium-sized and small multinationals, known as mini-multinationals

answer

F

question

The globalization of the world economy has resulted in a relative increase in the dominance of US firms in the global marketplace

answer

F

question

Recent evidence indicated that the solution to the problem of stagnant incomes among the unskilled is to be found in increasing government regulation of markets

answer

F

question

According to supporters of free trade, as countries get richer they commit greater violation of environmental and labor regulations

answer

F

question

According to critics of globalization, today's interdependent global economy limits a nation's national sovereignty

answer

T

question

Critics of globalization suggest that over the last century, the gap between the rich and poor nations of the world has shrunken

answer

F

question

Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by globalizing their markets. This involves

answer

Privatizing state-owned enterprises

question

Consequence of globalization

answer

increasing outsourcing of services

question

Enabled globalization of markets

answer

falling barriers to cross border trade

question

Hinders globalization of consumer goods market

answer

national differences in tastes and preferences

question

globalization of markets results in markets becoming

answer

less diverse

question

A US investment firm, Fin-Smart, set up a customer service call center in India to take advantage of the lower labor costs. This is called

answer

outsourcing

question

Early outsourcing efforts were primarily confined to

answer

horizontal integration

question

Not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe

answer

reduced tariffs on imports of manufactured goods

question

The General Agreement on Tariffs and Trade (GATT) was responsible for

answer

policing global marketplace

question

The ____ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states

answer

World Trade Organization (WTO)

question

The World Trade Organization promotes

answer

lowering of barriers to cross-border trade and investment

question

The International Monetary Fund

answer

it is seen as the lender of last resort to nation-states whose economies are in turmoil

question

What was est. on Oct 24, 1945, by 51 countries committed to preserving peace through international cooperation and collective security

answer

United Nations

question

What occurs when a firm exports services to consumers in another country

answer

International Trade

question

Not a consequence of the reduction in trade barriers and restrictions on FDI since 1950

answer

Nations are becoming more independent of each other for important goods and services

question

The relative decline of the United States in the share of world output and world exports reflects ___

answer

the growth in the economic development of the world economy

question

Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects ___

answer

the increasing internationalization of business corporations

question

Which county has been the largest recipient of foreign direct investment and received about 60 billion to 100 billion a year in inflows in 2004-2009

answer

China

question

A multinational enterprise (MNE) is a firm that ___

answer

has production units in more than two countries

question

FDI statement

answer

there was a growth of FDI between 2004-2007

question

In the last two decades, Latin American countries like Brazil, Mexico, and Chile have ___

answer

welcomed foreign investment

question

Risk associated with globalization

answer

global financial contagion

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Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers

answer

is due to technological changes that create greater demand for skilled workers

question

Globalization is criticized because it increases the power of

answer

supranational organizations over nation-states

question

An international business, unlike a MNE,

answer

need not invest directly in operations in other countries

question

True about an international business

answer

an international business must find ways to work within the limits imposed by government intervention

question

A number of econometric studies have found consistent evidence of a hump-shaped relationship between income levels and pollution levels. According to this, as an economy grows and income levels rise

answer

after a while the pollution levels decrease

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