Question 1

The minimum that a firm has to do to engage in international business is to:

Accepted Answer

A)  export or import products from other countries.
B)  invest directly in operations in another country.
C)  establish joint ventures or strategic alliances with companies in other countries.
D)  export low-wage manufacturing jobs to companies in other countries.
E)  develop franchises and subsidiaries in other countries.F) C) and D)
G) A) and E)

Question 2

The 1993 Uruguay Round:

Accepted Answer

A)  increased trade and investment barriers.
B)  excluded the trade of services from international trade.
C)  transformed the World Trade Organization into the GATT.
D)  provided enhanced protection for patents, trademarks, and copyrights.
E)  promoted the worldwide rise of communism.F) A) and E)
G) A) and D)

Question 3

Which of the following best exemplifies foreign direct investment (FDI) ?

Accepted Answer

A)  Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia, Philippines, and Australia.
B)  Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.
C)  Delicate Love, a reputable florist company in Holland, exports tulips and roses throughout the globe.
D)  Samantha started an Italian restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Italy.
E)  Yin and Yang Inc., a Chinese firm, supplies buttons and zippers to major denim brands in the United Kingdom.F) A) and E)
G) B) and D)

Question 4

Which of the following is a power of the WTO?

Accepted Answer

A)  It can restrict the membership of nations in other supranational organizations such as the United Nations.
B)  It can grant loans to cash-strapped governments in poor nations.
C)  It supersedes IMF and has complete authority over IMF's actions.
D)  It can issue a ruling instructing a member-state to change trade policies that violate GATT regulations.
E)  It can make decisions related to international trade without considering the collective interests of member-states.F) C) and D)
G) D) and E)

Question 5

The Uruguay Round extended GATT to cover services as well as manufactured goods.

Accepted Answer

A) True 
 B)False

Question 6

The advent of containerization has:

Accepted Answer

A)  made the economies of the world's nation-states less intertwined.
B)  made moving goods from one mode of transport to another extremely labor-intensive.
C)  significantly lowered the costs of shipping goods over long distances.
D)  slowed down the globalization of markets and production.
E)  increased costs of coordinating and controlling a global organization.F) C) and D)
G) A) and D)

Question 7

According to the UN Charter, one of the four purposes of the UN is to:

Accepted Answer

A)  be a center for harmonizing the actions of nations.
B)  encourage high tariffs on imports of manufactured goods.
C)  provide enhanced protection for patents.
D)  promote the establishment of multinational treaties.
E)  facilitate globalization of production.F) All of the above
G) A) and D)

Question 8

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Accepted Answer

A) True 
 B)False

Question 9

Briefly discuss the ways in which technological change has affected globalization.

Accepted Answer

The lowering of trade barriers made glob...

Question 10

Which of the following was a part of the agenda of the Doha Round of talks launched by the WTO?

Accepted Answer

A)  Limiting the use of antidumping laws
B)  Abolishing the International Monetary Fund
C)  Increasing tariffs on industrial goods, services, and agricultural products
D)  Persuading member governments to cut defense spending
E)  Establishing GATT as a replacement for the WTOF) B) and D)
G) D) and E)

Question 11

The World Trade Organization, the International Monetary Fund and its sister institution the World Bank, and the United Nations were all created by voluntary agreement between individual nation-states.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an argument put forth by critics of the IMF?

Accepted Answer

A)  It increases barriers to the free flow of goods and investment across national borders.
B)  It provides assistance only to developing nations and completely ignores the developed nations.
C)  It is not powerful enough to ensure that the nation-states adhere to the rules laid down in trade treaties.
D)  It promotes the rise of communism across the globe.
E)  It usurps the sovereignty of nation-states by telling governments what economic policies they must adopt.F) A) and E)
G) C) and E)

Question 13

Which of the following services CANNOT be outsourced to foreign nations?

Accepted Answer

A)  Debugging software
B)  Handling consumer queries
C)  Transcribing medical files
D)  Interpreting MRI scans
E)  Delivering closing arguments for a lawsuitF) B) and C)
G) A) and E)

Question 14

Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from developing nations to their home countries where labor costs were lower.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor, energy, land, and capital?

Accepted Answer

A)  Globalization of markets
B)  Containerization of production
C)  Dispersal of production
D)  Globalization of production
E)  Industrialization of marketsF) D) and E)
G) B) and D)

Question 16

Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former communist nations of East Europe and central Asia?

Accepted Answer

A)  The high levels of economic development in these countries
B)  The signs of growing unrest and totalitarian tendencies seen in these countries
C)  A strong commitment to market-based economic systems seen in these countries
D)  The collapse of communism in these countries
E)  Low returns involved in doing business in these countriesF) A) and B)
G) A) and C)

Question 17

Silver Fire Electric Inc., a U.S.-based company, has productive activities in more than two countries. As a result, it would be most appropriate to refer to Silver Fire Electric as what type of enterprise?

Accepted Answer

A)  Greenfield
B)  Universal
C)  Private
D)  Multinational
E)  PublicF) A) and B)
G) A) and C)

Question 18

The motive behind the high tariffs imposed by nations on imports of manufactured goods, prior to World War II, was to:

Accepted Answer

A)  deter any possible attempts to promote communism.
B)  protect domestic industries from foreign competition.
C)  prevent the occurrence of the Great Depression.
D)  safeguard patents, copyrights, and trademarks.
E)  promote the trade of services over the trade of manufactured goods.F) B) and E)
G) D) and E)

Question 19

Which of the following has increased in the United States as a result of globalization?

Accepted Answer

A)  Unemployment rate
B)  Price of goods and services
C)  Demand for unskilled workers
D)  Standard of living
E)  Income equality between workers in skilled and unskilled sectorsF) A) and E)
G) A) and D)

Question 20

Michelle, an Italian fashion designer, sells her merchandise by exporting them to the United States, United Kingdom, and Brazil. According to this information, Michelle is most likely involved in:

Accepted Answer

A)  foreign direct investment.
B)  globalization of production.
C)  international trade.
D)  multinational enterprise.
E)  outsourcing.F) B) and E)
G) A) and D)

Exam 1: Globalization

The World Trade Organization, the International Monetary Fund and its sister institution the World Bank, and the United Nations were all created by voluntary agreement between individual nation-states.

Correct AnswerverifiedShow Answer

Which of the following has increased in the United States as a result of globalization?

Correct AnswerverifiedShow Answer

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Correct AnswerverifiedShow Answer

The motive behind the high tariffs imposed by nations on imports of manufactured goods, prior to World War II, was to:

Correct AnswerverifiedShow Answer

Silver Fire Electric Inc., a U.S.-based company, has productive activities in more than two countries. As a result, it would be most appropriate to refer to Silver Fire Electric as what type of enterprise?

Correct AnswerverifiedShow Answer

The minimum that a firm has to do to engage in international business is to:

Correct AnswerverifiedShow Answer

Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from developing nations to their home countries where labor costs were lower.

Correct AnswerverifiedShow Answer

Briefly discuss the ways in which technological change has affected globalization.

Correct AnswerverifiedThe lowering of trade barriers made glob...View AnswerShow Answer

The advent of containerization has:

Correct AnswerverifiedShow Answer

Which of the following was a part of the agenda of the Doha Round of talks launched by the WTO?

Correct AnswerverifiedShow Answer

Which of the following best exemplifies foreign direct investment (FDI) ?

Correct AnswerverifiedShow Answer

Which of the following is a power of the WTO?

Correct AnswerverifiedShow Answer

According to the UN Charter, one of the four purposes of the UN is to:

Correct AnswerverifiedShow Answer

The Uruguay Round extended GATT to cover services as well as manufactured goods.

Correct AnswerverifiedShow Answer

The 1993 Uruguay Round:

Correct AnswerverifiedShow Answer

Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former communist nations of East Europe and central Asia?

Correct AnswerverifiedShow Answer

Which of the following is an argument put forth by critics of the IMF?

Correct AnswerverifiedShow Answer

Which of the following services CANNOT be outsourced to foreign nations?

Correct AnswerverifiedShow Answer

Which of the following refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor, energy, land, and capital?

Correct AnswerverifiedShow Answer

Michelle, an Italian fashion designer, sells her merchandise by exporting them to the United States, United Kingdom, and Brazil. According to this information, Michelle is most likely involved in:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The lowering of trade barriers made glob...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified