Chapter 1 Smartbook Int'l Bus

Which country has been the world's largest exporter since 2009?

China

The ________ is often seen as the lender of last resort.

International Monetary Fund

What is an accurate depiction of the World Bank?

It focuses on helping developing countries fight poverty through investments in the underlying structure of the country.

In terms of international business, what is a benefit of the Internet?

It makes it easier for buyers and sellers to connect.

What is an accurate depiction of containerization?

It reduces the costs of shipping goods over long distances.

What are three examples of factors of production?

Land, labor, and capital

The doubling of the power of microprocessor technology while the costs of its production decreases by half is called ______ Law.

Moore's

A small country is short on cash for much needed infrastructure development projects. It could go to the World Bank for assistance. True or False

TRUE

Why do companies engage in the globalization of production?

To lower their overall cost structure or improve the quality of their product offering

What statement accurately describes the current membership of the United Nations?

Today, nearly every nation in the world belongs to the United Nations.

Today, nearly every nation in the world belongs to the United Nations. True or False

TrUe

One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and _____.

Trade

What global institution was established on October 24, 1945 and one of its key purposes is to maintain international peace and security?

United Nations

Which organization is responsible for policing the rules of trade between nations and making sure countries adhere to the rules of trade treaties signed by member states?

World Trade Organization

The development of the microprocessor has lead to _____.

a reduction in the cost of global communications

Opponents of globalization argue that falling trade barriers

allow firms to move manufacturing activities to countries with lower wage rates.

During the 1920s and 1930s, when high tariffs were placed on imported manufactured goods,

an increase in trade barriers resulted.

What is the best description of the globalization of markets?

bringing traditionally separate national markets into one cohesive marketplace

Foreign direct investment occurs when a firm invests resources in

business activities outside its home country.

The development of what two transportation modes has effectively reduced the size of our world, hence simplifying the transshipment from one mode of transport to another?

commercial jets and superfreighters

At the shipping port in Charleston, South Carolina, the large shipping boxes that arrive on superfreighters from Indonesia are unloaded directly onto a train car for transport within the United States. This demonstrates how _____ has simplified the transport of products from one mode of shipping to another.

containerization

The globalization of markets and production implies that

domestic firms are facing intense competition from foreign firms.

Which of the following actions was implemented in the Uruguay Round, finalized in December 1993?

establishment of the World Trade Organization

International trade occurs when a company

exports goods or services to consumers in another country.

Mallory's US-based lifestyle company decides to invest in an Italian company that specializes in health and wellness. This would be an example of

foreign direct investment.

In the 1960s, when a customer in the United States purchased a television, that television had been manufactured in the United States. Today, thanks to the fall of international trade barriers, televisions purchased in the United States might be manufactured in China or South Korea. This change has occurred as the result of _____.

globalization

The national differences in the quality of factors of production help companies Multiple choice question.

improve the quality or functionality of their product offering.

The globalization of markets is facilitated by the:

improvement in transportation technology.

A company is involved in foreign direct investment when it

invests in business activities outside of its home country.

Moore's Law predicts that

microprocessor technology power will double approximately every 18 months.

As international trade expands, the economies of the world's nation-states are becoming ______.

more intertwined

By the year 2018, ____ of the world's population were Internet users.

more than half

What are the two macro factors that underlie the trend toward greater globalization?

technological change and decline in trade barriers

Historically, national markets were distinct and separate entities. Today, these separate national markets have merged. This process is known as _____.

the globalization of markets

Company ABC, based in Tennessee, sources goods from Southeast Asia to take advantage of labor cost savings. This is an example of _____.

the globalization of production

What is an accurate description of microprocessors?

They can decode vast amounts of information.

In the years leading up to the Great Depression, what practice created a barrier to international trade?

High tariffs on imports of foreign goods

True or false: Small and medium-sized companies do not typically benefit from the globalization of markets.

FALSE

Globalization resulted in a decrease in non-U.S. firms' investment across national borders. True or False

FaLsE

True or False: While there are a large number of nations that are members of the WTO, these nations account for only a small portion of world trade.

False

True or False: The International Monetary Fund (IMF) is considered less controversial than the World Bank.

Falseeee

______ refers to the shift toward economic international integration.

GLOBALIZATION

What is an accurate description of the International Monetary Fund (IMF)?

The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil.

The ________ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to promote economic development.

The World Bank and IMF

Which organization would help out a cash-strapped government with a low-interest loan to help that country build new roads?

The World Bankkkk

Which global institution is the successor to GATT?

The World Trade Organization

Which of the following statements pertaining to changes in the global economy of the 21st century is true?

The world is moving toward an economic system that is more favorable for international business.