Global Dimension of Bus: Chp 1

There has been two notable trends in the demographics of multinational enterprises in the last 50 years. These include___

rise of non-U.S. multinationals, growth of mini-multinationals

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?

superfreighters and commerical jets

The text notes that there are two macro factors fueling the trend toward greater globalization. These two factors focus on a decline in trade barriers and

technological change

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

technological change, decline in trade barriers

The outward stock of foreign direct investment refers to the ______ of foreign investments by firms domiciled in a nation outside of that nation's borders.

total cumulative value

What is one concern voiced by critics of globalization?

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

What is the best description of the globalization of markets?

Bringing previously separate markets into on market

In terms of conducting international business in China, it can be said that

China represents a large -- basically untapped -- market.

The______ has developed into the information backbone of the global economy and reduced the constraints of location, scale, and time zone.

Internet

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

Moore's

Which statement accurately describes the global economy in the twenty-first century?

More nations are becoming part of the developed world.

What issue might be raised at an antiglobalization demonstration?

Falling barriers to international trade results in job losses in those industries targeted by foreign competitors.

One outcome of the globalization of markets is a decrease in the intensity of competition among companies.

False

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

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

Those who promote the idea of free trade say that one way for the world's poorest countries to improve their situation is to___

adopt economic policies based on free market economies

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

an increase in trade barriers resulted.

Critics of globalization protest in order to____

diminish the impact of the culture of multinational enterprises on the world

The globalization of markets and production implies that

domestic firms are facing intense competition from foreign firms.

The opponents of globalization argue that falling barriers to international trade

eliminate manufacturing jobs in wealthy economies.

International trade occurs when a company

exports goods or services to consumers in another country.

Influential economists, politicians, and business leaders who favor globalization argue that

falling barriers to international trade drive the economy toward greater prosperity.

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

An_________ business is any firm that engages in cross-border trade or investment.

international

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.

Which global institution is the successor to GATT?

The World Trade Organization

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

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

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 is an example of a regional trade agreement that has reduced trade barriers between nations?

USMCA

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

United Nations

Half a century ago, which country dominated world foreign direct investment?

United States

The trade agreement called the______, finalized in December 1993, established the World Trade Organization to police the international trading system.

Uruguay Round

What is an accurate depiction of Latin America when considering international business?

While favorable economic trends have recently occurred, there is no guarantee that they will continue.

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

Moore's Law predicts that

microprocessor technology power will double approximately every 18 months.

A(n)______ is any business that has productive activities in two or more countries.

multinational enterprise (MNE)

The globalization of______ refers to the fact that producers can source goods and services from anywhere in the world to take advantage of cost savings.

production

The decline of the United States' standing as a dominant industrial power is considered a(n)______ decline because it reflects the faster economic growth of other economies.

relative

Select the four facts that describe the demographics of the global economy a half a century ago.

- U.S. dominance in world foreign direct investment - U.S. dominance in the world economy and world trade - Roughly half of the globe was off-limits to Western international business - Dominance of large, multinational U.S. firms in the international business scene

In the early 1990s there were fewer than 50 bilateral and regional trade agreements between two or more nations. This has changed today as there are about

300

By the year 2020,______ of the world's population were Internet users.

62%

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

High tariffs on imports of foreign goods

In the early 1960s, the U.S. was the world's dominant industrial power. How does the U.S. position compare today?

It has diminished in power.

What is an accurate depiction of containerization?

It reduces the costs of shipping goods over long distances.

What is an accurate description of microprocessors?

They provide a low-cost way to process large amounts of information.

Which environmental concern has been found to rise steadily with higher-income levels?

carbon dioxide emissions

Current trends indicate that, due to the emerging economies, the world is moving______ an economic system that is more favorable for international business.

closer to

At the shipping port in Savannah, Georgia, 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

Opponents of globalization are concerned that manufacturing jobs will be moved to more____countries

developing

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

foreign direct investment.

When a company invests in a company or entity outside its home country, it is participating in

foreign direct investment.

The national differences in the quality of factors of production help companies

improve the quality or functionality of their product offering.

The globalization of markets is facilitated by the

improvement in transportation technology.

The outward stock of foreign direct investment has______ for the world as a whole since 1995.

increased

A company is involved in foreign direct investment when it

invests in business activities outside of its home country.

Those who support globalization argue that increasing globalization will

lead to reduced prices for goods and services.

The purpose of the Uruguay Round negotiations was to

lower the trade barriers between various national markets.