 |
| 1 | |
Globalization refers to the shift toward a more integrated and interdependent world economy. |
| | A) | True |
| | B) | False |
|
|
|
| 2 | |
Today's global markets consist largely of industrial and material goods that really meet world demand; consumer products play a secondary role. |
| | A) | True |
| | B) | False |
|
|
|
| 3 | |
The Internet and the World Wide Web have enabled enterprises to coordinate and control a globally dispersed production system in a way that was not possible 20 years ago. |
| | A) | True |
| | B) | False |
|
|
|
| 4 | |
The stock of foreign direct investment has become one of the most actively traded securities in world financial markets, including the New York Stock Exchange. |
| | A) | True |
| | B) | False |
|
|
|
| 5 | |
For approximately the last half century, two important trends have been the rise of non-U.S. multinational firms and the growth of mini-multinational enterprises. |
| | A) | True |
| | B) | False |
|
|
|
| 6 | |
The ___________________ refers to the merging of historically distinct and separate national markets into one huge global marketplace. |
| | A) | World Trade Organization |
| | B) | World Wide Web market |
| | C) | globalization of markets |
| | D) | globalization of production |
|
|
|
| 7 | |
The newest of the institutions created by individual nation-states voluntarily and whose functions are established in international treaties is ____________________. |
| | A) | the United Nations |
| | B) | the World Trade Organization |
| | C) | the World Bank |
| | D) | the IMF |
|
|
|
| 8 | |
_______________________ is when a firm invests resources in business activities outside its home country. |
| | A) | Capital intensive investment |
| | B) | Overseas selective borrowing |
| | C) | Venture capital development |
| | D) | Foreign direct investment |
|
|
|
| 9 | |
In late 2001, the WTO launched a round of talks to liberalize trade further by focusing on agricultural issues, cross-border flows of investments and limiting the use of antidumping laws. These stalled talks are named after the location in which they began and are known as: |
| | A) | the Uruguay Round. |
| | B) | the Seattle meeting. |
| | C) | the Doha talks. |
| | D) | the Bretton Woods meeting. |
|
|
|
| 10 | |
Even with the dominance of large, complex organizations in international business, one of the trends today is the ________________________. |
| | A) | growth of mini-multinationals |
| | B) | emergence of third-world countries as net lenders of funds |
| | C) | decline of the Internet as a way to lower barriers facing firms |
| | D) | continuing reluctance of Chinese firms to participate in international business |
|
|
|
| 11 | |
Which of the following reflects the trends of the global economy in the 21st Century? |
| | A) | Globalization is not inevitable. |
| | B) | The skill, scope and authority of world institutions mean global financial shocks and challenges to global business systems will be mild and short-lived and will eventually disappear. |
| | C) | There will be little change in the current leaders in world trade. |
| | D) | The adoption of liberal economic policies will likely continue everywhere throughout the world because of their undeniable success. |
|
|
|
| 12 | |
Recent studies by the Organization for Economic Cooperation and Development (OECD) have concluded that for most countries, real income levels have _____________. |
| | A) | increased for the wealthiest citizens but not for the poor |
| | B) | increased for the poor but not for the wealthiest |
| | C) | increased for all levels |
| | D) | decreased for all levels |
|
|
|
| 13 | |
A number of economic studies predict that as income levels rise, so do pollution levels. This is known as a ___________________________, which shows that resource waste ratios increase until greater environmental protections take hold and begin to reverse the pollution with the exception of carbon dioxide levels. |
| | A) | hump-shaped relationship |
| | B) | upward sloping projection |
| | C) | cost-push demand curve |
| | D) | evolutionary "J" curve |
|
|
|
| 14 | |
National sovereignty concerns raised by critics of globalization include: |
| | A) | trade is becoming more complex and requires expertise and experience of market leaders like the U.S. |
| | B) | development is so fundamentally important to poorer countries that their national sovereignty concerns cannot be allowed to stand in the way of the interests of the world business community as a whole. |
| | C) | unelected bureaucrats now impose policies on democratically elected governments of nation-states. |
| | D) | supranational organizations like the WTO should be given powers to enforce agreements once a majority of countries agrees to the agreements. |
|
|
|
| 15 | |
Where to locate production activities to minimize cost, the ethics implications of lower labor costs and environmental standards, coordination of widely dispersed production facilities and choices among entry modes are among the concerns of: |
| | A) | managers and executives of large domestic companies. |
| | B) | international business managers. |
| | C) | small business managers and owners who establish exit strategies to enable putting their enterprise up for acquisition by international firms. |
| | D) | public policy managers and government officials responsible for international trade. |
|
|
.