MKT 310 Globalization
What is an accurate description of microprocessors?
They can decode vast amounts of information.
Which of these companies is facing an impediment to the globalization of production?
US law dictates that Tru-Brite Dental cannot send X-rays electronically to be read by an overseas company.
The opponents of globalization argue that falling barriers to international trade will
eliminate manufacturing jobs in wealthy economies.
One impact of globalization is that _____.
greater uniformity replaces diversity
Early outsourcing efforts were mostly limited to _____ activities while today numerous business activities can be outsourced.
manufacturing
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.
The United Nations was established by _____ countries committed to preserving peace through economic cooperation and trade support.
51
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%
Which environmental concern has been found to rise steadily with higher-income levels?
Carbon dioxide emissions
We live in an ever-increasing knowledge society. How does this affect international trade?
Consumers know more about goods made worldwide which drives demand for those goods.
True or false: Experts forecast that world trade will continue to decline more rapidly than world production.
False
True or false: The first web browser was introduced to the public in the 1970s and started the explosive growth of the Internet in foreign transactions.
False introduced in 1994
Which organization did nations turn to for a coordinated policy response during the 2008-2009 financial crisis?
G20
The World Trade Organization (WTO) is the successor to ______.
GATT
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 description of the World Bank?
It focuses on helping developing countries to fight poverty through investments in the underlying structure of the country.
The text lists several reasons that stand out as the cause for economic stagnation in the world's poorest countries. What are three of those reasons?
Poor property rights protection War Totalitarian governments
Which of the following organizations ensures that nation-states comply to the rules associated with trade treaties signed by member states?
The World Trade Organization
According to the critics of globalization, which of the following result from falling trade barriers? (Select all that apply.)
The destruction of manufacturing jobs in advanced economies A depression of wages in developed nations
Why would a company engage in the globalization of production?
To lower their overall cost structure
What can be an impediment to the globalization of production?
Transportation costs
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: As emerging economies such as China, India, Russia, and Brazil continue to grow, forecasts predict a further relative decline in the share of world output and world exports accounted for by the US and other long-established developed nations.
True
True or False: The International Monetary Fund (IMF) was established to ensure the stability of the international monetary system.
True
True or False: The development of Internet technology has lowered the barriers that small firms face in building international sales
True
True or false: Containerization made the process of moving goods from one country to another less labor intensive.
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.
The ______ was established on October 24, 1945. Today, one of its key purposes is to maintain international peace and security
United Nations
Critics of globalization point out that free trade
allows firms to abuse the weak labor and environmental laws in developing countries.
Supporters of globalization say that critics do not understand that the benefits of free trade outweigh the
costs
Globalization leads to firms following each other around the world, thereby _____.
creating some uniformity across markets
In today's marketplace, distribution of production to separate locations has become more economical because transportation costs have _____.
declined
The G20 was originally established to _____.
formulate a coordinated policy response to financial crises
A country's stock of foreign direct investment is the total cumulative value of foreign investments that are taken as a percentage of that country's _____.
gross domestic product
The risks of doing business in countries that are facing revolutions is
higher than in countries not facing revolutions.
The globalization of markets is facilitated by the
improvement in transportation technology.
Since 1970, the average yearly outflow of foreign direct investment has _____.
increased
If you were to describe the global economy of the twenty-first century, it would be accurate to say that
more nations are becoming part of the developed world.
Technological innovation and low-cost transportation have _____ the cultural distance between countries.
reduced
A country with high _____ has a barrier to international trade.
tariffs on imports of foreign goods
Evidence suggests that _____ has impacted the declining share of national income enjoyed by labor more so than globalization has
technological change
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
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
Supporters of globalization suggest that a solution to the problem of slow real income growth among the unskilled is _____.
to increase investments in education
Those who support globalization argue that increasing globalization will
lead to reduced prices for goods and services.
The globalization of _____ is the term used to describe the merging of national markets into one large global place.
markets
As international trade expands, the economies of the world's nation-states are becoming ______.
more intertwined
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.
Companies rely on containerization to _____.
simplify the transfer of shipments from one form of transport to another
Advances in information processing and communication are two ways _____ has made the globalization of markets a reality.
technology
The stock of foreign direct investment refers to the ______ of foreign investments.
total cumulative value
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%
Based on rankings by Forbes in 2003, the second-largest source country of multinational enterprises was _____.
Japan
What is an accurate description of the globalization of production?
Locating each stage of production where it can be done most economically
The negotiations called the _____, finalized in December 1993, established the World Trade Organization to police the international trading system.
Uruguay Round
In terms of international business, which statement accurately describes Latin America?
While favorable economic trends have recently occurred, there is no guarantee that they will continue.
When global institutions were introduced in the 1940s, governments in struggling nations would turn to the _____ for low-interest loans needed for infrastructure projects such as building roads.
World Bank
The doubling of the power of microprocessor technology while the costs of its production decreases by half is called ______ Law. Multiple choice question. Skinner's
Moore's
Using the results from Figure 1.2 in the text, it is evident that as the number of regional trade agreements goes up, world trade across country borders tends to _____.
also go up
True or false: While lowering trade barriers initially made global production possible, the advent of technology made globalization a reality.
True
Creating and managing a globally dispersed production system is facilitated by the ______ in costs of information processing and communication.
decrease
Former communist nations present opportunities to Western international business as these nations show continued commitment to _____.
democracy
The four basic purposes of the United Nations include _____.(Check all that apply.)
developing friendly relations between nations solving humanitarian, cultural, and social issues being a center for harmonizing the actions of nations maintaining international peace
Why are consumer products less likely than industrial products to be a source for the global marketplace?
differences in consumer tastes
Critics of globalization protest in order to
diminish the impact of the culture of multinational enterprises on the world.
The globalization of markets and production implies that
domestic firms are facing intense competition from foreign firms.
In return for offering loans, the International Monetary Fund (IMF)
enforces its economic policies on nations.
Colin told the management team that the 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
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
The increasing number of trade agreements in place around the world creates a(n) _____ in world trade.
increase
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 International Monetary Fund (IMF) has been criticized for
minimizing a nation's sovereignty.
The problems faced while managing an international business are _____ complex than those faced while managing a purely domestic business.
more
Land, labor, capital, and energy are all examples of factors of _____.
production
Global institutions are needed to
stabilize and monitor the global marketplace.
From the 1990s until today, foreign direct investment inflows can best be described as
surging and slumping.
As of 2012, China's share of world exports of goods and services ______ the United States.
surpassed
Paragon Corp., based in Ohio, sources goods from Southeast Asia to take advantage of labor cost savings. This company is benefiting from _____.
the globalization of production
How did nation-states react to the economic environment of the 1920s and 1930s?
trade barriers were increased
What is a challenge faced by companies entering the global market?
Differences in consumer tastes and preferences
The division between rich and poor nations has (increased or decreased?) with the advent of globalization?
Increased
Boeing's rationale for outsourcing so much production to foreign suppliers is based on which two of the following factors, according to the text? (Check all that apply.)
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
Select the four facts that described the demographics of the global economy up until the 1960s. (Check all that apply.)
Roughly half of the globe being off-limits to Western international business U.S. dominance in world foreign direct investment U.S. dominance in the world economy and world trade The dominance of large, multinational U.S. firms in the international business scene
Detailed analysis of data over the last two decades shows that the share of national income enjoyed by (skilled or unskilled) labor has increased, suggesting that the fall in labor's share in national income is due to a fall in the share of (skilled or unskilled) labor.
Skilled Unskilled
During the 1960s, which country was the predominant world power in terms of foreign direct investment?
United States
While managing an international business, one of the tasks of managers is to
decide if it is ethical to accept the lower labor and environmental standards found in many less developed nations.
The globalization of the world economy has resulted in a relative _____ in the dominance of US firms in the global marketplace.
decline
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.
The International Monetary Fund and the World Bank are both examples of _____ that help govern the global business system.
global institutions
A manager in a(n) (international or domestic) business faces a wider and more complex range of problems than one in a(n) (international or domestic) business.
International Domestic
Select the four reasons that explain why managing an international business is different from managing a purely domestic business. (Check all that apply.)
International business must work within government limits The range of problems in international business is wider. Countries are different. International transactions involve converting money into different currencies.
Just a few decades ago, it would have cost a business much more money to find buyers in a foreign country. What has helped lower the cost of this process and allows buyers and sellers to easily find each other regardless of their location?
Internet
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.
In terms of innovation in transportation technology occurring since the 1950s, the development of _____ has essentially reduced the size of our entire world. (Check all that apply.)
commercial jets superfreighters
Advances in _____ technology make it possible for companies to outsource customer service operations to another country.
communication
A refrigerator parts manufacturer in China receives an order and loads the goods into a large receptacle that is then loaded on a ship headed for the United States. When the ship docks, this receptacle is placed onto a truck and the goods are delivered to a warehouse in Iowa. This scenario shows how _____ made the delivery of goods in the global marketplace much easier.
containerization
