int bus ch 1- globalization

According to the critics of globalization, what are two results from falling trade barriers?

-The destruction of manufacturing jobs in advanced economies -A depression of wages in developed nations

Select the four facts that described the demographics of the global economy up until the 1960s.

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

There have been two notable trends in the demographics of multinational enterprises since the 1960s. These include _____.

-the growth of mini-multinationals -the rise of non-US multinationals

During the 1960s, US firms created just over _____ of worldwide foreign direct investment and British firms were second accounting for just over 10 percent.

65%

During the 1960s, which country was the predominant world power in terms of foreign direct investment?

USA

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 industrial power.

Critics of globalization point out that free trade

allows firms to abuse the weak labor and environmental laws in developing countries

One concern voiced by critics of globalization is that

an interdependent global economy shifts economic power away from national governments and toward organizations such as the United Nations.

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: While lowering trade barriers initially made global production possible, the advent of technology made globalization a reality.

True

When NAFTA was first introduced, what was the biggest argument opponents presented?

U.S. firms would move manufacturing to Mexico and feel free to pollute the air and employ child labor.

Critics of globalization protest in order to

diminish the impact of the culture of multinational enterprises on the world.

The opponents of globalization argue that falling barriers to international trade will

eliminate manufacturing jobs in wealthy economies.

International trade occurs when a firm _____.

exports goods or services to consumers in another country.

The Johnson Automotive Group recently closed two of its US manufacturing facilities and opened a new facility in Asia to take advantage of lower labor costs and savings in energy costs. The company made this change in order to benefit from _____.

factors of production

Influential economists, politicians, and business leaders who favor globalization argue that

falling barriers to international trade drive the economy toward greater prosperity.

A United States-based shoe company has decided to invest in a British company that specializes in clasps and buckles. This would be an example of

foreign direct investment.

The International Monetary Fund and the World Bank are both examples of _____ that help govern the global business system.

global institutions

It is common practice for people today to use products that are produced or assembled in various nations around the world. This is a reflection of _____.

globalization

Renata is traveling across Europe and is surprised to find Starbucks, McDonald's, and Coca-Cola in nearly every city she visits. This shows a convergence of consumer tastes which creates a _____.

globalization of markets

According to the supporters of globalization, falling barriers to international investment Multiple choice question.

help to create employment opportunities in countries that participate in the global trading system.

The division between rich and poor nations has ____________ with the advent of globalization?

increased

A(n) ______ business is any firm that engages in cross-border trade or investment.

international

Brite-Way Lighting is based in California and sells products within the United States as well as to ten foreign countries. Brite-Way Lighting is an example of a(n) _____ business.

international

The globalization of _____ is the term used to describe the merging of national markets into one large global place.

markets

As the barriers to the free flow of goods, services, and capital fell during the 1970s, one motivation for foreign direct investment by non-US firms was the desire to

move production activities to more desirable locations.

A(n) ______ is any entity that conducts business in at least two countries.

multinational enterprise

Land, labor, capital, and energy are all examples of factors of _____.

production

Some demonstrations against globalization are based on the idea that falling barriers to international trade

result in job losses in industries targeted by foreign competitors.

Global institutions are needed to

stabilize and monitor the global marketplace.

Advances in information processing and communication are two ways _____ has made the globalization of markets a reality.

technology

The decline of the United States standing in industrial power since the 1960s, is considered a relative decline because it is a reflection of

the faster economic growth of other economies

According to critics of globalization, increased free trade and investment over the past few decades have

broadened the gap between the rich and poor nations.