Question 1

What are some of the challenges faced by managers of an international business?

Accepted Answer

Managing an international business is ch...

Question 2

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) B) and D)
G) A) and B)

Question 3

Today,outsourcing efforts are confined to manufacturing activities.

Accepted Answer

A) True 
 B)False

Question 4

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 D)
G) All of the above

Question 5

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land.This practice demonstrates the

Accepted Answer

A)  globalization of production.
B)  globalization of markets.
C)  dislocation of a developing nation's economy.
D)  restriction on foreign direct investment.
E)  regulation of the environment.F) A) and C)
G) A) and B)

Question 6

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

Accepted Answer

The lowering of trade barriers made glob...

Question 7

What are mini-multinationals?

Accepted Answer

A)  multinational firms from relatively small countries in terms of area
B)  multinationals from the developing nations of the world
C)  multinational firms that operate in only one foreign country
D)  medium-sized and small multinationals
E)  subsidiaries of large multinationals in foreign countriesF) B) and D)
G) None of the above

Question 8

The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations.

Accepted Answer

A) True 
 B)False

Question 9

A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward

Accepted Answer

A)  supranational organizations such as the World Trade Organization.
B)  the communist states of eastern Europe and central Asia.
C)  the medium-size and small U.S.multinationals.
D)  the national governments of the countries participating in globalization.
E)  nations that have authoritarian forms of government.F) A) and D)
G) A) and C)

Question 10

In the context of international trade and investment,describe how the former communist nations of Europe and Asia have been changing.

Accepted Answer

Many of the former communist nations of ...

Question 11

Which of the following identifies the motivation for much of the foreign direct investment by non-U.S.firms?

Accepted Answer

A)  desire to disperse production activities to optimal locations
B)  need to suppress emerging economies such as China,India,and Brazil
C)  demand for skilled workers in foreign nations
D)  lack of adequate environmental regulations
E)  establishment of multinational treatiesF) B) and E)
G) All of the above

Question 12

Briefly trace the history of the G20 and describe its current role in international business.

Accepted Answer

Established in 1999,the G20 comprises th...

Question 13

In general,as countries get richer,they enact tougher environmental and labor regulations.

Accepted Answer

A) True 
 B)False

Question 14

As a result of globalization,companies rarely need to customize marketing strategies,product features,and operating practices in different countries.

Accepted Answer

A) True 
 B)False

Question 15

Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the

Accepted Answer

A)  migration of low-wage manufacturing jobs offshore.
B)  technology-induced shift toward jobs that require significant education and skills.
C)  increased supply of highly skilled workers.
D)  increasing demand for unskilled workers.
E)  reducing national differences in the cost of labor between developed and developing nations.F) C) and E)
G) A) and B)

Question 16

What is a multinational enterprise? What have been the two most notable trends in the demographics of the multinational enterprise since the 1960s?

Accepted Answer

A multinational enterprise is any busine...

Question 17

Royal Teas,a U.K.-based company employing just 30 people worldwide,generates $1.5 million in revenues of which 60 percent comes from exports to Asian countries.In this context,Royal Teas is most likely classified as a

Accepted Answer

A)  large domestic firm.
B)  mini-multinational firm.
C)  greenfield firm.
D)  foreign firm.
E)  multinational giant.F) A) and D)
G) A) and B)

Question 18

Which of the following refers to the total cumulative value of foreign investments?

Accepted Answer

A)  Purchasing power parity
B)  Multipoint pricing
C)  Stock of foreign direct investment
D)  Switch trading
E)  Bill of ladingF) A) and B)
G) A) and C)

Question 19

Why was the World Bank set up?

Accepted Answer

A)  to preserve peace through international cooperation
B)  to promote economic development
C)  to maintain order in the international monetary system
D)  to formulate a coordinated policy response to financial crises
E)  to police the world trading systemF) C) and E)
G) B) and E)

Question 20

One result of the Uruguay Round was the creation of the United Nations.

Accepted Answer

A) True 
 B)False

Exam 1: Globalization

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

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

Which of the following is a power of the WTO?

Correct AnswerverifiedShow Answer

What are some of the challenges faced by managers of an international business?

Correct AnswerverifiedManaging an international business is ch...View AnswerShow Answer

Today,outsourcing efforts are confined to manufacturing activities.

Correct AnswerverifiedShow Answer

In the context of international trade and investment,describe how the former communist nations of Europe and Asia have been changing.

Correct AnswerverifiedMany of the former communist nations of ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

In general,as countries get richer,they enact tougher environmental and labor regulations.

Correct AnswerverifiedShow Answer

Why was the World Bank set up?

Correct AnswerverifiedShow Answer

What are mini-multinationals?

Correct AnswerverifiedShow Answer

One result of the Uruguay Round was the creation of the United Nations.

Correct AnswerverifiedShow Answer

Which of the following identifies the motivation for much of the foreign direct investment by non-U.S.firms?

Correct AnswerverifiedShow Answer

Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the

Correct AnswerverifiedShow Answer

What is a multinational enterprise? What have been the two most notable trends in the demographics of the multinational enterprise since the 1960s?

Correct AnswerverifiedA multinational enterprise is any busine...View AnswerShow Answer

Royal Teas,a U.K.-based company employing just 30 people worldwide,generates $1.5 million in revenues of which 60 percent comes from exports to Asian countries.In this context,Royal Teas is most likely classified as a

Correct AnswerverifiedShow Answer

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land.This practice demonstrates the

Correct AnswerverifiedShow Answer

The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations.

Correct AnswerverifiedShow Answer

Briefly trace the history of the G20 and describe its current role in international business.

Correct AnswerverifiedEstablished in 1999,the G20 comprises th...View AnswerShow Answer

A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward

Correct AnswerverifiedShow Answer

As a result of globalization,companies rarely need to customize marketing strategies,product features,and operating practices in different countries.

Correct AnswerverifiedShow Answer

Which of the following refers to the total cumulative value of foreign investments?

Correct AnswerverifiedShow Answer

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The lowering of trade barriers made glob...
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Managing an international business is ch...
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Many of the former communist nations of ...
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A multinational enterprise is any busine...
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Established in 1999,the G20 comprises th...
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