International Business Ch. 1 - Globalization
One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and _____.
trade
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?
Commercial jets and super freighters
A company is involved in foreign direct investment when it
Invests in business activities outside of its home country
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.
Moore's Law predicts that
Microprocessor technology power will double approximately every 18 months
The doubling of the power of microprocessor technology while the costs of its production decreases by half is called ______ Law.
Moore's
By the year 2018, ____ of the world's population were Internet users.
More than half
What are the two macro factors that underlie the trend toward greater globalization?
Decline in trade barriers and technological change
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
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
True or false: Small and medium-sized companies do not typically benefit from the globalization of markets.
False
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
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
As international trade expands, the economies of the world's nation-states are becoming ______.
more intertwined
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
What global institution was established on October 24, 1945 and one of its key purposes is to maintain international peace and security?
United Nations
Which global institution is the successor to GATT?
World Trade Organization
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
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 country has been the world's largest exporter since 2009?
China
What are three examples of factors of production?
-labor -land -capital
During the 1920s and 1930s, when high tariffs were placed on imported manufactured goods,
An increase in trade barriers resulted
What country has been the world's largest exporter since 2009?
China
In the years leading up to the Great Depression, what practice created a barrier to international trade?
High tariffs on imports of foreign goods
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
In terms of international business, what is a benefit of the Internet?
It makes it easier for buyers and sellers to connect
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
Why do companies engage in the globalization of production?
To lower their overall structure or improve the quality of their product offering
What statement accurately describes the current membership of the United Nations?
Today, nearly every nation in the world belongs to the United Nations
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
______ refers to the shift toward economic international integration.
globalization
Historically, national markets were distinct and separate entities. Today, these separate national markets have merged. This process is known as _____.
the globalization of markets
