Business VSU ch1
Which of the following statements reflect workers' fears regarding the impact of globalization on labor?
-Globalization reduces wages in the United States. -Workers in developed countries fear that jobs migrate to developing nations where labor costs are lower. -Developing countries fear the imposition of demanding labor standards within their borders will be a barrier to free trade.
Between 1991 and 2020, the United States saw an increase of nearly Blank______ in nonfarm jobs.
40%
Despite globalization, the number of people living in extreme poverty in sub-Saharan Africa rose nearly ______ between 1990 and 2018.
50%
How does the foreign environment operate differently than the domestic environment?
Forces in the foreign environment have different values. Forces in the foreign environment are difficult to assess. Forces in the foreign environment are interrelated.
Which one of the following was a multinational company by the 1920s?
Ford Motor Company
______ business denotes the operations of a company outside its home market.
Foreign
______ is the best strategy for advancing the world's economic development.
Free trade
Which statements are true regarding the link between free trade and jobs?
Free trade promotes more jobs. Free trade can cause companies to go out of business. Free trade promotes new, better jobs.
Which of the following are typical arguments against globalization?
Globalization has worsened labor standards. Globalization produces uneven results across nations. Globalization has been linked to a decline in environmental conditions.
Which statements are true regarding a multinational enterprise (MNE)?
It is composed of entities in more than one nation. It operates under a decision-making system that allows a common strategy. It operates under a decision making system that allows coherent policies.
Which sectors of human life were profoundly impacted by the emerging international trading system? (
Politics Public health Arts Agriculture
What was one of the first U.S. companies to own foreign production facilities, have worldwide distribution networks, and market its products under global brands?
Singer Manufacturing Company
Which of the following are negative affects of the North American Free Trade Agreement?
Substantial increases in population along the U.S.-Mexican border Substantial increases in air pollution along the U.S.-Mexican border Substantial increases in ground water pollution along the U.S.-Mexican border
The levels of foreign direct investment and exporting have Blank______ in recent years.
been increasing rapidly
Internal forces are also called _________ forces.
controllable
Production, finance, and marketing are all examples of Blank______ forces.
controllable
Management moving production or other parts of the company's value chain to countries where wages are lower is an example of ______ drivers
cost
Select the five major drivers of internationalization listed in the text.
cost technological competitive political market
The world development indicators from the World Bank show that the number of people living in extreme poverty has:
declined from 35 percent of the world's population in 1990 to 10.7 percent in 2013.
The ________ environment is all the uncontrollable forces originating in the home country that surround and influence the development of the company.
domestic
Data suggest that the liberation of trade has improved Blank______.
education life expectancy health poverty rate
The term ________ means all the forces influencing the life and development of the firm.
environment
Sanctions being placed on Russia and Russian companies in response to Russia's actions in Ukraine is an example of: Multiple choice question.
forces in the foreign environment being interrelated.
What commonly used variable measures where and how fast internationalization is taking place?
foreign direct investment
What term refers to direct investments in equipment, structures, and organizations in a foreign country at a level sufficient to obtain significant management control?
foreign direct investment
The Blank______ environment refers to all the Blank______ forces originating outside the home country that surround and influence the firm. Multiple choice question.
foreign; uncontrollable
Critics of globalization point to which two factors as fueling the spread of the COVID-19 global pandemic?
increasing interconnectedness of nations the international movement of people and products
The forces influencing the life and development of the firm are classified into which two categories?
internal and external
Economic globalization refers to the tendency toward an international integration and independency of which of the following?
labor goods technology information capital
A supplier that moves locations to be closer to an original equipment manufacturer is an example of a ______ driver. Multiple choice question.
market
An accounting firm establishing foreign operations in markets in which their principal accounts are located to prevent competitors from gaining access to this accounts is an example of a ______ driver.
market
Labor standards in developed nations tend to be ______ than in developing nations.
more rigorous
Preferential trading arrangements such as the USMCA and the European Union are ______ drivers.
political
The trend toward the unification and socialization of the global community is considered a ______ driver.
political
Which of the following are benefits of a globalized product line?
reduced inventory costs reduced development costs reduced production costs
The definition of international business includes:
service industries foreign manufacturing international trade
Which of the following regions have not experienced economic success despite efforts to liberalize and privatize their economies?
sub-Saharan Africa Latin America
Which of the following is NOT a negative effect of the North American Free Trade Agreement?
substantial decrease in production facilities along the U.S.-Mexican border
Cable and satellite TV systems in Europe and Asia that allow an advertiser to reach numerous countries is an example of a ______ driver.
technological
Global communications networks that enable manufacturing workers to coordinate production and design functions worldwide are an example of a_______ driver.
technological
Management has no direct control over Blank______, although it can exert influence over them.
uncontrollable forces
Foreign business denotes the operations of a company Blank______.
within a foreign country
