MGMT 350 EXAM 1

Select all that apply What are the four purposes of the United Nations according to its charter? be a center for harmonizing the actions of nations maintain international peace and security promote equal distribution of wealth among nations develop friendly relations among nations be the lender of last resort cooperate in solving international problems

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

When a company invests in a company or entity outside its home country, it is participating in entrepreneurship. foreign direct investment. logistics. intrastate financing.

foreign direct investment.

A(n) Blank______ is any business that has productive activities in two or more countries. multinational enterprise transnational union intrastate corporation conglomerate

multinational enterprise

While U.S. firms accounted for about two-thirds of foreign direct investment in the 1960s, as of 2019, U.S. firms accounted for Blank______. less than 2% more than 90% about 41% around 28%

around 28%

True or false: Small and medium-sized companies do not typically benefit from the globalization of markets.

False: Reason: Companies of all sizes benefit from the globalization of markets. In the U.S. alone, more than 300,000 smaller firms accounted for 98% of companies that exported in 2017.

Select all that apply What are three examples of factors of production? Sales Land Capital Advertising Labor

Land Capital Labor

Globalization of Production

Sourcing goods to take advantage of differences in cost and quality of factors of production. - Factors of production Early outsourcing was confined to manufacturing. - Modern communications technology has advancedoutsourcing today for service activities.

What is an accurate description of the International Monetary Fund (IMF)? In return for loans, the IMF does not mandate nation-states to adopt specific economic policies. The IMF is considered less controversial than the World Bank. The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil. Unlike the World Trade Organization, the IMF does not usurp the sovereignty of nation-states.

The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil.

What statement accurately describes the current membership of the United Nations? Today, very few nations have become members of the United Nations. Today, nearly every nation in the world belongs to the United Nations. Only the developing countries belong to the United Nations. Only the developed countries belong to the United Nations.

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

What is an example of a regional trade agreement that has reduced trade barriers between nations? USMCA IMF WTO GDP

USMCA

What is the best description of the globalization of markets? an economically independent market that operates without competition introduction of increased trade barriers to limit cross-border trade division of an existing market into smaller, independent market segments bringing traditionally separate national markets into one cohesive marketplace

bringing traditionally separate national markets into one cohesive marketplace

What are the two macro factors that underlie the trend toward greater globalization? (check all that apply) decline in trade barriers introduction of mass transit global form of currency technological change

decline in trade barriers

International trade occurs when a company removes a foreign supplier from its supply chain. purchases a foreign company. exports goods or services to consumers in another country. invests in business activities outside its home country.

exports goods or services to consumers in another country.

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 Blank______. customization isolationism domestication globalization

globalization

The outward stock of foreign direct investment has Blank______ for the world as a whole since 1995. decreased increased

increased

What are the two macro factors that underlie the trend toward greater globalization? (select all that apply) technological change introduction of mass transit global form of currency decline in trade barriers

technological change decline in trade barriers

Some U.S. hospitals outsource radiology work to India. This is possible because of advancements in ______. technology tariffs customer service legislation

technology

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. True or False

false

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 false question. True or False?

true

At some point, rising income levels lead to demands for greater environmental protection and, as a result, pollution levels fall. A study by Grossman and Krueger found this generally occurred before per capita income levels reached $31,000. $25,000. $8,000. $1,000.

$8,000.

The G20 is comprised of Blank______ from the 19 largest economies in the world. the presidents legal representatives finance ministers transportation directors

finance ministers

Half a century ago, which country dominated world foreign direct investment? Russia China United Kingdom United States

United States

In terms of economic growth, current indicators suggest that developing nations will see the greatest growth increases. more developed nations will invest in the poor nations. developed nations will suffer from a lack of growth. there will be stagnation among the world's poorest nations.

there will be stagnation among the world's poorest nations.

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 diminished value cross-border flow percentage of increase

total cumulative value

According to the critics of globalization, increased free trade and investment over the past few decades have widened the gap between the rich and poor nations. prevented countries from being interdependent on one another. reduced job opportunities in developing nations. decreased the selection of goods and services available to consumers.

widened the gap between the rich and poor nations.

Hanson Housewares Inc., based in Tennessee, sources goods from Southeast Asia to take advantage of labor cost savings. This is an example of Blank______. licensing intrastate investment the globalization of production the tragedy of the commons

the globalization of production

In the years leading up to the Great Depression, what practice created a barrier to international trade? High demand of products High tariffs on imports of foreign goods High quality of service activities High political stability across countries

High tariffs on imports of foreign goods

Select the four facts that describe the demographics of the global economy a half a century ago. (Check all that apply.) Dominance of large, multinational U.S. firms in the international business scene U.S. dominance in the world economy and world trade U.S. dominance in underdeveloped third-world countries U.S. dominance in world foreign direct investment Roughly half of the globe was off-limits to Western international business More than three-quarters of the globe had become Westernized

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

Globalization of Markets

The merging of historically distinct and separate national markets into one huge global marketplace Falling barriers to cross-border trade and investment. Global tastes. Benefits small and large companies. Significant differences between national markets.• Products that serve universal needs are global, such as oil. Competitors may not change among nations.

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 140. 500. 25. 300.

300

One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and Blank______. time targets taxes trade

trade