M01: Ch 1 Knowledge Check

What is international​ business?

Any commercial transaction that crosses the borders of two or more countries

It is evident that most multinational firms support environmental laws that are practical for which one of the following​ reasons?

Companies recognize that healthy future markets require a sustainable approach to the business expansion for future local market for their goods and services.

Which one of the following can best describe born global​ firms?

Companies that adopt a global perspective and engages in international business from the start

Which one of these factors is a key driving force for globalization of market and​ production?

Falling barriers to trade and investment and technological innovation

Which one of the following is the main issue raised by critics of​ globalization?

It eliminates jobs and lowers wages in developed nations.

Which one of the following is claimed by supporters of​ globalization?

Openness of international trade increases​ production, wealth, and efficiency.

Which one of following options helps companies reduce costs when they sell consumer goods​ globally?

Standardizing certain marketing activities

Opponents of globalization argue that freer trade and​ companies' continuous tendency to reduce costs has led companies to move into lower wage cost locations. This has resulted in​ ________.

an increase in the wage gap between​ white-collar and​ blue-collar occupations in rich nations

International firm management is vastly different from the management of a purely domestic business because​ _________________.

companies must abide by the rules in every market in which they choose to operate

Globalization supporters argue that the people of many nations have become more​ educated, better​ informed, and more empowered. Supporters say globalization has been instrumental in spreading​ ________.

democracy

When IBM USA sources computer materials from different locations around the world to reduce the cost of​ production, this is called​ ________.

globalization of production

Globalization supporters argue that developing countries can boost incomes for its poorest citizens and reduce income inequality by​ ________.

integrating into the global economy

Jason has learned about some​ decision-making tools in his business class and is now using those tools in his workplace. Jason is utilizing the employability skill known as​ _____________.

knowledge application and analysis

GATT​ _______________, which led to the creation of the​ WTO?

lacked the power to enforce world trade rules

A​ nation's ability to enter into binding international agreements is referred to as having​ ________.

national sovereignty

Critics of the WTO and the IMF believe that these global​ organizations' policies cause the erosion of​ ________.

national sovereignty