bus5 187 -Global Dimension Business (chapter 1 )
Some U.S. hospitals outsource radiology work to India. This is a recent advancement that is possible because of advancements in
technology
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 are three examples of factors of production?
Capital, Labor, Land
Among developing nations, ______ has been the largest recipient of foreign direct investment.
China
Based on current trends, the economy of _____ could ultimately be larger than that of the United States.
China
True or False: The International Monetary Fund (IMF) is considered less controversial than the World Bank.
False
True or false: Small and medium-sized companies do not typically benefit from the globalization of markets.
False
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 globalization of markets?
National differences in tastes and preferences for consumer products is an important factor that acts as a brake on globalization.
Boeing outsources a large portion of its production. For example, for its most recent jet airliner (the 787), nearly ______ of the total value of the aircraft is outsourced to foreign companies.
65%
A(n) ______ is any business that has productive activities in two or more countries.
multinational enterprise
Through the 1960s, 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
The G20 is comprised of ______ from the 19 largest economies in the world.
finance ministers
In return for offering loans, the International Monetary Fund (IMF)
enforces its economic policies on nations.
Influential economists, politicians, and business leaders who favor globalization argue that
falling barriers to international trade drive the economy toward greater prosperity.
Mallory's US-based lifestyle company decides to invest in an Italian company that specializes in health and wellness. This would be an example of
foreign direct investment.
What are the two macro factors that underlie the trend toward greater globalization?
technological change decline in trade barriers
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.
The presence of McDonald's in Tokyo, the opportunity to easily buy iPads in Rio and Berlin, and the ready availability of Gap jeans in Paris as well as San Francisco are examples of
the emergence of global markets for consumer products.
What statement accurately describes the current membership of the United Nations?
Today, nearly every nation in the world belongs to the United Nations.
When nations lowered trade barriers it made the globalization of markets a possibility. What was needed to make this possibility a reality?
technology
When a company invests in a company or entity outside its home country, it is participating in
foreign direct investment.
The G20 was originally established to
formulate a coordinated policy response to financial crises in developing countries
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 commercial jets
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
Which argument favors globalization?
Lowering international trade barriers raises the incomes of consumers.
Which statement accurately describe the global economy in the twenty-first century?
More nations are becoming part of the developed world.
Select the four facts that describe the demographics of the global economy up until the 1960s. (Check all that apply.)
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 Dominance of large, multinational U.S. firms in the international business scene
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 organization would help out a cash-strapped government with a low-interest loan to help that country build new roads?
The World Bank
Which global institution is the successor to GATT?
The World Trade Organization
What is the best way to characterize the impact of existing impediments to globalization?
The impediments make it difficult for companies to maximize production activities.
When examining the data from 1960 to 2018, how does the value of the world economy compare to the value of international trade?
The value of international trade had a greater increase.
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 can decode vast amounts of information.
What are two implications that are derived from the fact that the volume of world trade has been growing faster than world GDP?
+ the world has become significantly wealthier in recent decades + more companies are dispersing production processes to different locations around the globe
The series of democratic revolutions that swept the communist world, led to the downfall of the Soviet Union, and opened markets in other nations occurred around _____.
1990
______ refers to the shift toward economic international integration.
Globalization
refers to the shift toward economic international integration.
Globalization
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 terms of conducting international business in China, it can be said that
In terms of conducting international business in China, it can be said that
Boeing's rationale for outsourcing so much production to foreign suppliers is based on which two factors, according to the text?
Increasing the chance to win significant orders from airlines in those countries Using suppliers that are the best in the world at a particular activity
The ______ has developed into the information backbone of the global economy and reduced the constraints of location, scale, and time zone.
Internet
What is an accurate depiction of the World Bank?
It focuses on helping developing countries fight poverty through investments in the underlying structure of the country.
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.
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
While U.S. firms accounted for about two-thirds of foreign direct investment in the 1960s, as of 2019, U.S. firms account for
around 28%
The International Monetary Fund (IMF) has been criticized for
compromising the jurisdiction and decision-making powers of the receiving country.
At the shipping port in Charleston, South Carolina, 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
As figures for 2019 reflect, the globalization of the world economy has resulted in a relative _____ in the dominance of U.S. firms in the global marketplace.
decline
Colin told the management team that their Ohio-based company should produce the textiles for the new line of jackets in China because it would allow them to price the clothing line lower, which would then give consumers more money to spend on other items. Colin is making an argument for ______.
free trade
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
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.
Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations to developing nations with _____.
lower labor costs
Which country has been the world's largest exporter since 2009?
China
What is a challenge faced by companies entering the global market?
Differences in consumer tastes and preferences
In terms of international business, what is a benefit of the Internet?
It makes it easier for buyers and sellers to connect.
What are the four purposes of the United Nations according to its charter?
be a center for harmonizing the actions of nations develop friendly relations among nations maintain international peace and security cooperate in solving international problems
True or False: Supporters of globalization argue that bodies such as the World Trade Organization and the United Nations exist to serve the collective interests of member states, not to subvert those interests.
True
True or False: The development of Internet technology has lowered the barriers that small firms face in building international sales.
True
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.
The development of the microprocessor has lead to _____.
a reduction in the cost of global communications
While it is known for its peacekeeping role, the United Nations devotes nearly 70% of its work toward promoting conditions of
a vibrant global economy.
Supporters of globalization say that critics do not understand that the benefits of free trade outweigh the
costs.
Due to globalization, firms follow each other around the world, thereby
creating some uniformity across markets.
Distribution of production to separate locations has become more economical for companies because transportation costs have _____.
declined
Creating and managing a globally dispersed production system is facilitated by the ______ real costs of information processing and communication.
decrease in
What is an example of an obstacle to globalization?
differences in legal regulations among national markets
The globalization of markets and production implies that
domestic firms are facing intense competition from foreign firms.
International trade occurs when a company
exports goods or services to consumers in another country.
The risks of doing business in countries that are facing revolutions is
higher than in countries not facing revolutions.
The national differences in the quality of factors of production help companies
improve the quality or functionality of their product offering.
When describing the value of FDI over the last 30 years, it can be said that
it has grown significantly.
The purpose of the Uruguay Round negotiations was to
lower the trade barriers between various national markets.
Moore's Law predicts that
microprocessor technology power will double approximately every 18 months.
As international trade expands, the economies of the world's nation-states are becoming ______.
more intertwined
Based on the fact that the volume of world trade has been growing faster than world GDP implies that the economies of the world's nation-states are becoming
more intertwined.
By the year 2018, ____ of the world's population were Internet users.
more than half
As the barriers to the free flow of goods, services, and capital fell during the 1970s, one motivation for foreign direct investment by non-U.S. firms was the desire to
move production activities to more desirable locations.
One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and _____.
trade
Historically, national markets were distinct and separate entities. Today, these separate national markets have merged. This process is known as _____.
the globalization of markets