Exam 1 MKT310

A refrigerator parts manufacturer in China receives an order and loads the goods into a large receptacle that is then loaded on a ship headed for the United States. When the ship docks, this receptacle is placed onto a truck and the goods are delivered to a warehouse in Iowa. This scenario shows how _____ made the delivery of goods in the global marketplace much easier. containerization demographics factors of production JIT inventory

containerization

In today's marketplace, distribution of production to separate locations has become more economical because transportation costs have _____. doubled declined increased remained steady

declined

The political economy of a country refers to the interaction of the political, economic, and _____ systems of a country. education social legal business

democracy

What is a challenge faced by companies entering the global market? Increased homogeneity of products across national markets Falling barriers to cross-border trade Differences in consumer tastes and preferences Diversity being replaced by uniformity

differences in consumer tastes an preferences

A country's stock of foreign direct investment is the total cumulative value of foreign investments that are taken as a percentage of that country's _____. live birth rates gross domestic product overall immigration rates gross national income

gdp

The International Monetary Fund and the World Bank are both examples of _____ that help govern the global business system. federal mandates foreign markets mini-multinationals global institutions

global institutions

Renata is traveling across Europe and is surprised to find Starbucks, McDonald's, and Coca-Cola in nearly every city she visits. This shows a convergence of consumer tastes which creates a _____. stock of FDI globalization of markets globalization of production mini-multinational

globalization of markets

When Jerry started his small appliance manufacturing company in the 1950s, every component part was made in the USA and the product was assembled in the USA. Today, he sources the components from China. The change at this company is an example of the _____. tragedy of the commons purchasing power parity globalization of production Sullivan principle

globalizations of production

Supporters of globalization suggest that a solution to the problem of slow real income growth among the unskilled is _____. to increase investments in education to lower tax rates and allow for income equality to provide higher levels of social aid

increase investment in education

Global markets for industrial goods such as oil and wheat are more typical than those for consumer products because _____. there are fewer consumer choices industrial goods serve universal needs industrial goods have similar pricing structures there is greater homogeneity in consumer products

industrial goods serve universal needs

A(n) ______ business is any firm that engages in cross-border trade or investment. international intranational supranational transnational

international

Foreign direct investment occurs when a(n) expatriate manager is sent to work in a foreign subsidiary but is directed by the home company. investment is made by a company based in one country into a company or entity based in another country. stock holding is presented in both domestic and foreign currency. firm exports goods or services to consumers in another country.

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

In the early 1960s, the US was the world's dominant industrial power. How does the US position compare today? It has diminished in power. It is the only nation to see a decrease in power. It is about the same. It has grown significantly.

it has diminished in power

What is one benefit of the Internet? It makes it easier to protect copyright materials. It makes it easier for buyers and sellers to connect. It can only be used by large businesses. It is independent of Moore's law.

it makes it easier for buyers and sellers to connect

Based on rankings by Forbes in 2003, the second-largest source country of multinational enterprises was _____. the United States China the United Kingdom Japan

japan

Those who support globalization argue that increasing globalization will result in lesser uniformity among countries. decrease job opportunities in developing nations. reduce the incomes of consumers. lead to reduced prices for goods and services.

lead to reduced prices for goods and services

The political economy of a country refers to the interaction of the political, economic, and _____ systems of a country. education social legal business

legal

Early outsourcing efforts were mostly limited to _____ activities while today numerous business activities can be outsourced. financial technology manufacturing communication

manufacturing

The International Monetary Fund (IMF) has been criticized for lowering the barriers to cross-border trade. calculating factors of production. minimizing a nation's sovereignty. helping only those nations that wish to undertake infrastructure investment.

minimizing a nations sovereignty

A(n) ______ is any entity that conducts business in at least two countries. conglomerate intrastate corporation transnational union multinational enterprise

multinational enterprise

In the late 1970s, the communist version of socialism was at its highest point. This has declined dramatically today with old-style communism found most notably in only _____. China the Soviet Union North Korea Germany

north korea

Plato would have agreed that society should be stratified into classes and ______ were best suited to rule society. the wealthy religious leaders philosophers and soldiers lawyers and physicians

philosophers and soldiers

The system of government in a nation is called the ______ system. political economic social parliamentary

political

The term ______ refers to the interconnection of the political, economic, and legal systems of a country. transnational political economy cultural values economic development

political economy

Land, labor, capital, and energy are all examples of factors of _____. tariffs preference markets production

production

Some demonstrations against globalization are based on the idea that falling barriers to international trade increase the choice of goods and services to consumers. reduce uniformity among national markets. reduce interdependency between countries. result in job losses in industries targeted by foreign competitors.

result in job losses in industries targeted by foreign competitors.

The four basic purposes of the United Nations include _____.(Check all that apply.) solve humanitarian, cultural and social issues maintain international peace be a center for harmonizing the actions of nations develop friendly relations between nations create a vibrant, sustaining economy foster trade agreements between competitor nations

solve humanitarian, cultural and social issues maintain international peace be a center for harmonizing the actions of nations develop friendly relations between nations

In the early 20th century, communists differed from social democrats in that communists believed in establishment of a non-totalitarian society. encouraging individual freedom. a strategy of revolutionary action. commitment to democratic means.

strategy of revolutionary action

In terms of transportation technology occurring since the 1950s, the development of _____ has essentially reduced the size of our entire world. (Check all that apply.) semi-trucks subways and railroads superfreighters commercial jets

superfreighters and commercial jets

A country with high _____ has a barrier to international trade. political stability across countries tariffs on imports of foreign goods quality of service activities demand of products

tarrifs

Evidence suggests that _____ has impacted the declining share of national income enjoyed by labor more so than globalization has. political structure international trade technological change infrastucture

technological change

Why would a company engage in the globalization of production? To increase the barriers to cross-border trade To foster government intervention To lower their overall cost structure To move closer to their competition

to lower their overall cost structure

The stock of foreign direct investment refers to the ______ of foreign investments. total cumulative value return of goods percentage of increase diminished value

total cumulatice value

What can be an impediment to the globalization of production? containerization free trade transportation costs consumer preferences

transportation costs

True or False: The development of Internet technology has lowered the barriers that small firms face in building international sales. True False

true

During the 1960s, which country was the predominant world power in terms of foreign direct investment? United Kingdom Germany United States China

united states

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 G20 United Nations International Monetary Fund

world bank

The World Trade Organization (WTO) is the successor to ______. the UN G20 GATT the IMF

GAAT

Which statement best describes the International Monetary Fund (IMF)? Unlike the World Trade Organization, the IMF does not usurp the sovereignty of nation-states. The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil. In return for loans, the IMF does not mandate nation-states to adopt specific economic policies. The IMF is less controversial than the World Bank.

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

The United Nations was established by _____ countries committed to preserving peace through economic cooperation and trade support. 51 2 14 112

51

During the 1960s, US firms created just over _____ of worldwide foreign direct investment and British firms were second accounting for just over 10 percent. 80% 65% 20% 35%

65

What is an accurate description of the World Bank? It provides financial assistance only to countries whose currencies are losing value against those of other nations. It focuses on helping developing countries to fight poverty through investments in the underlying structure of the country. It is more controversial than the International Monetary Fund (IMF). It was established to maintain order in the international monetary system.

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

The text lists several reasons that stand out as the cause for economic stagnation in the world's poorest countries. What are three of those reasons? Totalitarian governments War Poor property rights protection Free trade Globalization

Totalitarian governments War Poor property rights protection

Using the results from Figure 1.2 in the text, it is evident that as the number of regional trade agreements goes up, world trade across country borders tends to _____. also go up have a downward trend

also go up

One concern voiced by critics of globalization is that globalization increases the wage rates of unskilled workers in advanced countries. falling barriers to cross-border trade and investment reduce job opportunities in developing nations where wages are much lower. an interdependent global economy shifts economic power away from national governments and toward organizations such as the United Nations. with globalization, companies are likely to move their operations to countries with more stringent labor and environment regulations.

an interdependent global economy shifts economic power away from national governments and toward organizations such as the United Nations.

According to critics of globalization, increased free trade and investment over the past few decades have reduced job opportunities in developing nations. decreased the selection of goods and services available to consumers. prevented countries from being interdependent on one another. broadened the gap between the rich and poor nations.

broadened the gap between rich and poor nations

refers to a political system that values the needs of society over that of an individual. Individualism Plutocracy Monarchy Collectivism

collectivism

The opponents of globalization argue that falling barriers to international trade will reduce job opportunities in developing nations where wages are much lower. Rationale: Falling barriers to trade would increase job opportunities in developing nations prevent countries from being interdependent on one another. increase service jobs around the world. eliminate manufacturing jobs in wealthy economies.

eliminate manufacturing jobs in wealthier countries

True or False: According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.

false

True or false: Experts forecast that world trade will continue to decline more rapidly than world production. True False

false

True or false: The first web browser was introduced to the public in the 1970s and started the explosive growth of the Internet in foreign transactions. True False

false it was introduced in 1994