Chapter 1 Quiz

Which of the following actions was implemented in the Uruguay Round, finalized in December 1993?

establishment of the World Trade Organization

An international business is defined as

one that implements homogenous practices across countries.

The purpose of the U.N.'s Millennium Development Goals that were established in 2000 was to

reduce the number of people living in extreme poverty

The ________ is often seen as the lender of last resort.

International Monetary Fund

Opponents of globalization argue that falling trade barriers.

Opponents of globalization argue that falling trade barriers

Globalization resulted in a decrease in non-U.S. firms' investment across national borders.

False

Since the 1960s, a notable trend in the demographics of the multinational enterprise has been the rise of U.S. multinationals.

False

True or False: Cultural differences have no effect on the way an international firm conducts its business around the globe.

False

Which of the following expresses one of the reasons why managing an international business is different from managing a purely domestic business?

The range of problems confronted by a manager in a domestic business is wider and the problems more complex than those confronted by a manager in an international business.

Which of the following statements pertaining to changes in the global economy of the 21st century is true?

The world is moving toward an economic system that is more favorable for international business.

A small country is short on cash for much needed infrastructure development projects. It could go to the World Bank for assistance.

True

One concern frequently voiced by those opposed to globalization is that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies such as the United States and Western Europe.

True

Supporters of globalization believe that tougher environmental regulations and stricter labor standards are a natural aspect of economic progress.

True

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

True

The ________ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to promote economic development.

World Bank

Foreign direct investment occurs when a firm invests resources in

business activities outside its home country.

Which of the following factors contributed to the Great Depression of the 1930s?

countries progressively raising trade barriers against each other

Globalization has enabled organizations to reduce their costs of production by

creating manufacturing units in developing countries.

Globalization critics argue that the decline in unskilled wage rates is due to the

migration of low-wage manufacturing jobs offshore.

The stock of foreign direct investment refers to

the total cumulative value of foreign investments as a percentage of the country's GDP.