Global Business Chapter 1 Quiz

Since the 1960s, a notable trend in the demographics of the multinational enterprise has been the rise of U.S. multinationals. Group starts True or False

False

An international business is defined as Multiple Choice one that implements homogenous practices across countries. the basis for a multinational enterprise. a business that is restricted by U.N. regulations. any firm that engages in international trade.

any firm that engages in international trade.

Which of the following expresses one of the reasons why managing an international business is different from managing a purely domestic business? Multiple Choice The range of problems confronted by a manager in a domestic business is wider and the problems more complex than those confronted by a manager in an international business. International business transactions use the euro instead of the U.S. dollar. An international business does not need to contend with government intervention whereas a domestic business must work within the confines of its local government. An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.

An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.

Cultural differences have no effect on the way an international firm conducts its business around the globe. Group starts True or False

False

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

False

The ________ is often seen as the lender of last resort. Multiple Choice World Bank International Monetary Fund International Development Association World Trade Organization

International Monetary Fund

Which of the following statements pertaining to changes in the global economy of the 21st century is true? Multiple Choice Barriers to the free flow of goods, services, and capital have increased. Volume of global output has been growing more rapidly than cross-border trade and investment. National economies are becoming more independent. The world is moving toward an economic system that is more favorable for international business.

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

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

True

One concern frequently voiced by those opposed to globalization is that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies such as the United States and Western Europe. Group starts True or False

True

Supporters of globalization believe that tougher environmental regulations and stricter labor standards are a natural aspect of economic progress. Group starts True or False

True

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

True

The ________ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to promote economic development. Multiple Choice World Bank International Trade Center World Trade Organization United Nations

World Bank

Opponents of globalization argue that falling trade barriers Multiple Choice allow firms to move manufacturing activities to countries with lower wage rates. create manufacturing jobs in wealthy advanced economies. force countries to maintain manufacturing in their home countries regardless of wage rates. reduce the pool of global labor.

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

Foreign direct investment occurs when a firm invests resources in Multiple Choice competitor-based products. local agricultural production. production and service technologies that will enhance globalization. business activities outside its home country.

business activities outside its home country.

Which of the following factors contributed to the Great Depression of the 1930s? Multiple Choice artificial fixing of currency rate by China problems in the U.S. subprime mortgage lending market countries progressively raising trade barriers against each other outsourcing of manufacturing units to developed nations

countries progressively raising trade barriers against each other

Globalization has enabled organizations to reduce their costs of production by Multiple Choice differentiating material culture the world over. setting up barriers to cross-border trade. creating manufacturing units in developing countries. turning national economies into self-contained entities.

creating manufacturing units in developing countries.

Which of the following actions was implemented in the Uruguay Round, finalized in December 1993? Multiple Choice reduction in the protection for patents, trademarks, and copyrights establishment of the World Trade Organization extension of the GATT to cover consumer products enhancement of trade barriers

establishment of the World Trade Organization

Globalization critics argue that the decline in unskilled wage rates is due to the Multiple Choice migration of low-wage manufacturing jobs offshore. privatization of government owned enterprises. regulation of the global market by WTO. technology-induced shift toward skilled jobs.

migration of low-wage manufacturing jobs offshore.

The purpose of the U.N.'s Millennium Development Goals that were established in 2000 was to Multiple Choice reduce the number of people living in extreme poverty. increase the supply of consumer goods to developing countries. legitimize the globalization process. increase the employment rate across all nations.

reduce the number of people living in extreme poverty.

The stock of foreign direct investment refers to Multiple Choice the entry of funds into a country when foreigners make purchases in the country's stock and bond markets. the total cumulative value of foreign investments as a percentage of the country's GDP. movements of labor, capital, and other factors of production between countries. total export or import products from other countries.

the total cumulative value of foreign investments as a percentage of the country's GDP.