Chpt 1 Questions

Which of the following is a challenge faced by companies entering the global market?

Differences in consumer tastes and preferences.

The G20 was originally established to________.

Formulate a coordinated policy response to financial crisis.

Which organization attempted to present a coordinated policy response during the global economic downturn of 2008-2009?

G20

One impact of globalization is that

Greater uniformity replaces diversity.

_______ to foreign direct investment make it difficult to achieve the globalization of markets and production.

Increased barriers

Global markets for industrial goods such as oil and wheat are more typical then those for consumer products because ___

Industrial goods serve universal needs.

Foreign direct investment occurs when a(n)

Investment is made by a company based in one country into a company or entity based in another country.

Which of the following statements is TRUE about the International Monetary Fund (IMF)?

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

Why do companies engage in the globalization of production?

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

True or False: The United Nations focuses of basic fundamental issues, such as refugee protection, sustainable development and disaster relief.

True

The ____ was established on October 24, 1945. Today, one of its key purposes is to maintain international peace and security.

United Nations

When global institutions were introduced in the 1940s, governments in struggling nations would turn to the _____ for low-interest loans needed for infrastructure projects such as building roads.

World Bank

The obstacles to globalization include

differences in legal regulations among national markets

In return to offering loans, the International Monetary Fund (IMF)

enforces its economic policies on nations.

Marilyn's U.S.-based shoe company has decided to invest in a British company that specializes in clasps and buckles. This would be an example of

foreign direct investment

The IMF and the World Bank are both examples of _____ that help govern the global business system.

global institutions

It is common practice for people today to use products that come from many nations across the world. This shift toward an interdependent world economy is called ___

globalization

The Internet has allowed firms to outsource service activities to ___ producers in other nations.

low-cost

Land, labor, capital and energy are all examples of factors of

production

Global Institutions are needed to

stabilize and monitor the global marketplace.

The United Nations was established by ____ countries committed to preserving peace through economic cooperation and trade support.

51