International Business Chapter 1 (NOVA)

The G20 is comprised of ___________ from the 19 largest economies in the world.

finance ministers

The stock of foreign direct investment has ___________ in the United States, China, Japan, and the United Kingdom since 1995.

increased

A(n) ______________ business is any firm that engages in cross-border trade or investment.

international

What are the four purposes of the United Nations according to its charter?

maintain international peace and security develop friendly relations among nations cooperate in solving international problems be a center for harmonizing the actions of nations

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

more intertwined

Select the four reasons that explain why managing an international business is different from managing a purely domestic business.

* The range of problems in international business is wider * International transactions involve converting money into different currencies * Countries are different * International business must work within government limits

Transportation costs _____________ a potential impediment to globalization of production.

ARE

In terms of transportation technology, the development of ___________ has effectively reduced the size of our world.

Commercial Jets Superfreighters

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

Decline in trade barriers Technological changes

Select the four facts that describe the demographics of the global economy up until the 1960's.

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

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

Foreign direct investment is

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

Internet

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.

Foreign direct investment

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:

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

Which one of the following statements is TRUE about microprocessors?

The can decode vast amounts of information

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

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

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

Which of the following is a concern voiced by critics of globalization?

Which of the following organizations is responsible for policing the rules of trade between nations and making sure countries adhere to the rules of the trade treaties?

World Trade Organization

What is the best description of the globalization of markets?

bringing traditionally separate national markets into one cohesive marketplace

Company XYZ, based in Idaho, sources goods from Southeast Asia to take advantage of labor costs savings. This is an example of___________.

the globalization of production

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

Which of the following statements is TRUE about containerization?

It reduces the costs of shipping goods over long distances

What are three examples of factors of production?

Land Capital Labor

Moore's Law

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

Totalitarian governments Poor Property Rights protection Prolonged Civil War

The text lists several reasons that stand out as the cause for economic stagnation in the world's poorest countries, including which three of the following?

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

multinational enterprise