IntBus 1

Which environmental concern has been found to rise steadily with higher-income levels? Multiple choice question. Sulfur dioxide pollution Lead concentrations Water quality Carbon dioxide emissions

Carbon dioxide emissions

Select all that apply Which of the following are notable trends in the demographics of multinational enterprises since the 1960s? (Check all that apply.) Multiple select question. The rise of non-U.S. multinationals The decline of non-U.S. multinationals The decline of mini-multinationals The growth of mini-multinationals

The rise of non-U.S. multinationals The growth of mini-multinationals

During the 1920s and 1930s, many of the world's nation-states put formidable trade barriers in place. What was the main reason behind these actions? Multiple choice question. To encourage domestic business to consider international trade To implement a first-mover advantage To enhance their ability to trade with foreign countries To protect domestic industries from foreign competition

To protect domestic industries from foreign competition

Select all that apply What are the four basic purposes of the United Nations? Multiple select question. Developing friendly relations between nations Maintaining international peace Creating a vibrant and sustainable economy Solving humanitarian, cultural, and social issues Being a center for harmonizing the actions of nations Fostering trade agreements between competitor nation

being a center for harmonizing the actions of nations developing friendly relations between nations maintaining international peace solving humanitarian, cultural, and social issues

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. Multiple choice question. JIT inventory containerization demographics factors of production

containerization

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 _____. Multiple choice question. globalization of production mini-multinational globalization of markets stock of FDI

globalization of markets

The division between rich and poor nations has ________ (increased or decreased) with the advent of globalization.

increased

As international trade expands, the economies of the world's nation-states are becoming ______. Multiple choice question. less interdependent more independent more intertwined less intertwined

more intertwined

If you were to describe the global economy of the twenty-first century, it would be accurate to say that Multiple choice question. more nations are becoming part of the developed world. fewer nations are adopting liberal economic policies. globalization limits a country's movement toward greater economic development. barriers to the free flow of goods have been increasing.

more nations are becoming part of the developed world.

Land, labor, capital, and energy are all examples of factors of _____. Multiple choice question. production preference markets tariffs

production

Supporters of globalization suggest that a solution to the problem of slow real income growth among the unskilled is _____. Multiple choice question. to provide higher levels of social aid to lower tax rates and allow for income equality to increase investments in education to automate production processes

to increase investments in education

The stock of foreign direct investment refers to the ______ of foreign investments. Multiple choice question. total cumulative value return of goods diminished value percentage of increase

total cumulative value

How did nation-states react to the economic environment of the 1920s and 1930s? Multiple choice question. Trade barriers were increased. Domestic firms were left unprotected from foreign competition. First-mover advantage was enhanced. Foreign direct investments were encourgaed

trade barriers were increased

What is an accurate description of the globalization of production? Multiple choice question. Making countries economically self-sufficient without requiring help from external sources Reducing the carbon footprint caused by the transportation of goods throughout the world Reducing cross-border trade due to increased barriers Locating each stage of production where it can be done most economically

Locating each stage of production where it can be done most economically

How have tariff rates for manufactured goods been affected by the global efforts of GATT? Multiple choice question. Tariff rates have been suspended by most democratic nations. Tariff rates tripled when GATT was implemented. Tariff rates were not affected by the GATT policies. Tariff rates fell significantly since 1950.

Tariff rates fell significantly since 1950.

During the 1960s, which country was the predominant world power in terms of foreign direct investment? Multiple choice question. The United States China The United Kingdom Germany

The Untied States

Which organization ensures that nation states comply to the rules associated with trade treaties signed by member states? Multiple choice question. The World Trade Organization The United Nations The World Bank The International Monetary Fund

The World Trade Organization

Select all that apply According to the critics of globalization, which of the following are results of falling trade barriers? (Check all that apply.) Multiple select question. The destruction of manufacturing jobs in advanced economies A depression of wages in developed nations Greater opportunities for manufacturing in developed countries A reduction in the pool of global labor

The destruction of manufacturing jobs in advanced economies A depression of wages in developed 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 false question. True False

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 United States and other long-established developed nations. True false question. True False

True

True or False: The International Monetary Fund (IMF) was established to ensure the stability of the international monetary system. True false question. True False

True

True or false: Containerization made the process of moving goods from one country to another less labor intensive. True false question. True False

True

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. Multiple choice question. United Nations World Bank International Monetary Fund G20

World Bank

Current trends indicate that, due to the emerging economies, the world is moving _____ an economic system that is more favorable for international business. Multiple choice question. further away from closer to

closer to

Globalization naturally leads to firms following each other around the world, which then _____. Multiple choice question. increases barriers to cross-border trade creates some uniformity across markets replaces conformity in markets with greater diversity in markets. reduces foreign direct investment

creates some uniformity across markets

The globalization of the world economy has resulted in a relative _____ in the dominance of U.S. firms in the global marketplace. Multiple choice question. upturn expansion decline increase

decline

In today's marketplace, distribution of production to separate locations has become more economical because transportation costs have _____. Multiple choice question. declined increased remained steady doubled

declined

Creating and managing a globally dispersed production system is made easier by the ______ in costs of information processing and communication. Multiple choice question. increase decrease elimination

decrease

Why are consumer products less likely than industrial products to be a source for the global marketplace? Multiple choice question. Differences in consumer tastes More expensive to promote industrial products Legal regulations prevent distribution of consumer goods Fewer consumers use industrial products

differences in consumer taste

What is a challenge faced by companies entering the global market? Multiple choice question. Diversity being replaced by uniformity Increased homogeneity of products across national markets Differences in consumer tastes and preferences Falling barriers to cross-border trade

differences in consumer taste and preference

One reason why a global market does not fully exist is _____. Multiple choice question. similarities in the business systems prevalent in national markets a decrease in the overhead expenses incurred by firms an increase in cross-border trade differences in legal regulations among national markets

differences in legal regulations among national markets

Critics of globalization protest in order to Multiple choice question. increase the number of enterprises that offshore their business activities. lower the barriers to cross-border investments. encourage a shift toward a more integrated and interdependent global economy. diminish the impact of the culture of multinational enterprises on the world.

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

The Johnson Automotive Group recently closed two of its U.S. 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 _____. Multiple choice question. factors of production first-mover advantages consumer preferences home-country advantage

factors of production

Influential economists, politicians, and business leaders who favor globalization argue that Multiple choice question. lowering trade barriers decreases the incomes of consumers. raising barriers to international investments will increase job opportunities in developing nations. falling barriers to international trade drive the economy toward greater prosperity. increasing cross-border investment will increase the prices for goods and services.

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

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 _____. Multiple choice question. centralization dynamism nationalism globalization

gloablization

What is one impact of globalization? Multiple choice question. Cross-border trade is restricted. Companies in global markets never confront the same firms as their competitors. Greater uniformity replaces diversity. Nations establish a self-sufficient economy without requiring external assistance.

greater uniformity replaces diversity

Studies exploring the share of labor in national income over the last two decades show that the share of national income accounted for by skilled labor has Multiple choice question. increased. decreased. remained about the same.

increased

Global markets for industrial goods such as oil and wheat are more typical than those for consumer products because _____. Multiple choice question. there are fewer consumer choices industrial goods serve universal needs there is greater homogeneity in consumer products industrial goods have similar pricing structures

industrial goods serve universal needs

The globalization of _____ is the term used to describe the merging of national markets into one large global place. Multiple choice question. institutions consumers production market

markets

The development of the microprocessor has Multiple choice question. increased the cost of technology overall. reduced the cost of global communications. limited the amount of information that can be shared. minimized technological advancements.

reduced the cost of global communications.

Global institutions are needed to _____. Multiple choice question. shift economic power away from national governments stabilize and monitor the global marketplace prevent firms from offshoring their production activities promote the raising of barriers to cross-trade and investment

stabilize and monitor the global market place

Within the past 10 years, China's share of world exports of goods and services ______ the United States. Multiple choice question. surpassed became equal to stayed behind

surpassed

Evidence suggests that _____ has impacted the declining share of national income enjoyed by labor more so than globalization has. Multiple choice question. infrastucture political structure technological change international trade

technological change

Advances in information processing and communication are two ways _____ has made the globalization of markets a reality. Multiple choice question. logistics technology production media

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 Multiple choice question. the lack of effective transportation modes. the faster economic growth of other economies. a return to isolationism. a significant drop in forward exchange rates.

the faster economic growth of other economies.

The ______ has developed into the information backbone of the global economy and reduced the constraints of location, scale, and time zone. Multiple choice question. WTO IMF Internet GATT

Internet

Which statement best describes the International Monetary Fund (IMF)? Multiple choice question. In return for loans, the IMF does not mandate nation states to adopt specific economic policies. The IMF is often seen as the lender of last resort to nation states whose economies are in turmoil. The IMF is less controversial than the World Bank. 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.

Advances in _____ technology make it possible for companies to outsource customer service operations to another country. Multiple choice question. sales consumer communication marketing

communication

The globalization of markets and production implies that Multiple choice question. there is a decrease in interdependency between nations. firms are limiting their production activities to their local regions. domestic firms are facing intense competition from foreign firms. there is a decrease in cross-border trade.

domestic firms are facing intense competition from foreign firms.

Those who support globalization argue that increasing globalization will Multiple choice question. reduce the incomes of consumers. decrease job opportunities in developing nations. result in lesser uniformity among countries. lead to reduced prices for goods and services.

lead to reduced prices for goods and services.

As the barriers to the free flow of goods, services, and capital fell during the 1970s, one motivation for foreign direct investment by non-U.S. firms was the desire to Multiple choice question. raise the barriers to cross-border investments. decrease their shares of world output. move production activities to more desirable locations. limit the use of communication technology.

move production activities to more desirable locations.

A(n) ______ is any entity that conducts business in at least two countries. Multiple choice question. transnational union intrastate corporation multinational enterprise conglomerate

multinational enterprise

Some demonstrations against globalization are based on the idea that falling barriers to international trade Multiple choice question. reduce interdependency between countries. reduce uniformity among national markets. increase the choice of goods and services to consumers. result in job losses in industries targeted by foreign competitors.

result in job losses in industries targeted by foreign competitors.

Companies rely on containerization to _____. Multiple choice question. determine exchange rates when collecting funds from foreign operations simplify the transfer of shipments from one form of transport to another integrate manufacturing operations outsource component parts from more than one country

simplify the transfer of shipments from one form of transport to another

What can be an impediment to the globalization of production? Multiple choice question. Containerization Transportation costs Consumer preferences Free trade

transportation costs

Moore's law predicts that Multiple choice question. computer power will double every 18 months. software is surpassing hardware in terms of speed and efficiency. software is getting slower more rapidly than hardware becomes faster. costs for production of microprocessors doubles continually.

computer power will double every 18 months.

Former communist nations present opportunities to Western international business as these nations show continued commitment to _____. Multiple choice question. tyranny democracy monarchy plutocracy

democracy

Critics of globalization protest in order to Multiple choice question. increase the number of enterprises that offshore their business activities. encourage a shift toward a more integrated and interdependent global economy. diminish the impact of the culture of multinational enterprises on the world. lower the barriers to cross-border investments.

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

The globalization of markets and production implies that Multiple choice question. there is a decrease in cross-border trade. domestic firms are facing intense competition from foreign firms. firms are limiting their production activities to their local regions. there is a decrease in interdependency between nations.

domestic firms are facing intense competition from foreign firms.

A U.S.-based shoe company has decided to invest in a British company that specializes in clasps and buckles. This would be an example of _____. Multiple choice question. repatriation market diversity foreign direct investment international trade

foreign direct investment

The International Monetary Fund and the World Bank are both examples of _____ that help govern the global business system. Multiple choice question. foreign markets mini-multinationals federal mandates global institutions

global institutions

When Jerry started his small appliance manufacturing company in the 1950s, every component part was made in the United States and the product was assembled in the United States. Today, he sources the components from China. The change at this company is an example of the _____. Multiple choice question. purchasing power parity globalization of production tragedy of the commons Sullivan principle

globalization of production

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 _____. Multiple choice question. gross domestic product gross national income live birth rates overall immigration rates

gross domestic product

The risks of doing business in countries that are facing revolutions are Multiple choice question. lower than in countries not facing revolutions. higher than in countries not facing revolutions. not impacted by the threat of revolution. the same as countries not facing revolutions.

higher than in countries not facing revolutions.

The risks of doing business in countries that are facing revolutions are Multiple choice question. the same as countries not facing revolutions. lower than in countries not facing revolutions. not impacted by the threat of revolution. higher than in countries not facing revolutions.

higher than in countries not facing revolutions.

The Uruguay Round negotiations resulted in Multiple choice question. establishing the G20 to police the international trading system. restricting GATT from covering services. reducing protection for patents, trademarks, and copyrights. lowering the trade barriers between various national markets.

lowering the trade barriers between various national markets.

Early outsourcing efforts were mostly limited to _____ activities while today numerous business activities can be outsourced. Multiple choice question. technology financial manufacturing communication

manufacturing

The change in the U.S. economic position since 1960 has been labeled a(n) _____ decline because it reflected the faster growing economy of several other economies. Multiple choice question. circular relative absolute linear

relative

Select all that apply 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.) Multiple select question. semi-trucks subways and railroads superfreighters commercial jets

superfreighters commercial jets

The decline of the United States' standing in industrial power since the 1960s is considered a relative decline because it is a reflection of Multiple choice question. the lack of effective transportation modes. the faster economic growth of other economies. a significant drop in forward exchange rates. a return to isolationism

the faster economic growth of other economies.

Paragon Corp., based in Ohio, sources goods from Southeast Asia to take advantage of labor cost savings. This company is benefiting from _____. Multiple choice question. domestic production a franchise operation intrastate investment the globalization of production

the globalization of production

How did nation-states react to the economic environment of the 1920s and 1930s? Multiple choice question. Foreign direct investments were encouraged. Domestic firms were left unprotected from foreign competition. Trade barriers were increased. First-mover advantage was enhanced.

trade barriers were increased

While the United States was the dominant industrial power in the early 1960s, by 2018, _____ took over that role. Multiple choice question. France China Italy Germany

China

Which of these companies is facing an impediment to the globalization of production? Multiple choice question. Jameson Grills buys component parts from a European company that will only ship via aircraft. U.S. law dictates that Tru-Brite Dental cannot send X-rays electronically to be read by an overseas company. Europe recently dropped its trade barriers and now Kleen-Source Corp. can take advantage of a low-cost supplier. Roll-Fast Skate Inc. plans to market its product globally but source parts domestically.

U.S. law dictates that Tru-Brite Dental cannot send X-rays electronically to be read by an overseas company.

According to the World Trade Organization, the COVID-19 pandemic will affect world trade and cross-border investment may fall by as much as _____. Multiple choice question. 75 percent 15 percent 90 percent 40 percent

40 percent

The United Nations was established by _____ countries committed to preserving peace through economic cooperation and trade support. Multiple choice question. 51 2 14 112

51

During the 1960s, U.S. firms created just over _____ of worldwide foreign direct investment and British firms were second accounting for just over 10 percent. Multiple choice question. 35 percent 80 percent 65 percent 20 percent

65

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 Multiple choice question. $25,000. $31,000. $1,000. $8,000.

8000

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. True false question. True False

False

The World Trade Organization (WTO) is the successor to ______. Multiple choice question. GATT the IMF G20 the United Nations

GATT

Which term refers to the shift toward a more integrated and interdependent world economy? Multiple choice question. Nationalism Globalization Democracy Isolationism

Globalization

Select all that apply Select the four facts that described the demographics of the global economy up until the 1960s. Multiple select question. U.S. dominance in the world economy and world trade Roughly half of the globe was off-limits to Western international business U.S. dominance in underdeveloped, third-world countries The dominance of large, multinational U.S. firms in the international business scene U.S. retraction from all global agreements U.S. dominance in world foreign direct investment

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

When NAFTA was first introduced, what was the biggest argument opponents presented? Multiple choice question. U.S. firms would move manufacturing to Mexico and feel free to pollute the air and employ child labor. Canadian firms would receive the most benefit because they would only be exporting goods and would not import from the United States or Mexico. Mexican citizens who had immigrated to the United States would be paid less than their counterparts back home. The United States would pay lower tariffs than both Mexico and Canada combined.

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

The negotiations called the _____, finalized in December 1993, established the World Trade Organization to police the international trading system. Multiple choice question. Free Trade Doha Talks G20 Agreement Uruguay Round

Uruguay Round

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.

Blank 1: skilled Blank 2: unskilled

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? Multiple choice question. Internet Transportation JIT inventories Tariffs

Internet

What is an accurate description of the World Bank? Multiple choice question. It focuses on helping developing countries to fight poverty through investments in the underlying structure of the country. It provides financial assistance only to countries whose currencies are losing value against those of other nations. It is more controversial than the International Monetary Fund (IMF). It was established to maintain order in the international monetary system.

It focuses on helping developing countries to fight poverty through investments in the underlying structure of the country.

What is one benefit of the Internet? Multiple choice question. It makes it easier to protect copyright materials. It can only be used by large businesses. It makes it easier for buyers and sellers to connect. It is independent of Moore's law.

It makes it easier for buyers and sellers to connect.

Based on rankings by Forbes in 2003, the second-largest source country of multinational enterprises was _____. Multiple choice question. the United Kingdom Japan China the United

Japan

What is an accurate description of the globalization of production? Multiple choice question. Reducing cross-border trade due to increased barriers Reducing the carbon footprint caused by the transportation of goods throughout the world Locating each stage of production where it can be done most economically Making countries economically self-sufficient without requiring help from external sources

Locating each stage of production where it can be done most economically

The doubling of the power of microprocessor technology while the costs of its production decreases by half is called ______ Law. Multiple choice question. Moore's Maslow's Keyne's Skinner's

Moore's

What are some companies reportedly considering regarding their production efforts and minimizing catastrophes like the COVID-19 pandemic? Multiple choice question. Increasing their production efforts to become the leader in their product line Moving production to an overseas location to take advantage of international opportunities Moving production closer to home to avoid future disruptions Stopping production of all goods and focusing on services

Moving production closer to home to avoid future disruptions

Trade agreements between nations are another way in which trade barriers have been reduced. Which statement accurately depicts the current state of trade agreements in the world? Multiple choice question. More nations are practicing isolationism than becoming involved in a trade agreement. Since the 1990s, trade agreements have increased dramatically. There are fewer trade agreements in place today than there were in the 1950s. While fewer nations are entering into trade agreements, they are lowering their barriers to trade through bartering.

Since the 1990s, trade agreements have increased dramatically

Trade agreements between nations are another way in which trade barriers have been reduced. Which statement accurately depicts the current state of trade agreements in the world? Multiple choice question. More nations are practicing isolationism than becoming involved in a trade agreement. There are fewer trade agreements in place today than there were in the 1950s. While fewer nations are entering into trade agreements, they are lowering their barriers to trade through bartering. Since the 1990s, trade agreements have increased dramatically.

Since the 1990s, trade agreements have increased dramatically.

What is an accurate description of microprocessors? Multiple choice question. They continue to increase in cost. They can decode vast amounts of information. Their power has been the same since their invention. Their main purpose is to regulate sales.

They can decode vast amounts of information.

Why would a company engage in the globalization of production? Multiple choice question. To lower their overall cost structure To increase the barriers to cross-border trade To foster government intervention To move closer to their competition

To lower their overall cost structure

True or false: While lowering trade barriers initially made global production possible, the advent of technology made globalization a reality. True false question. True False

True

Critics of globalization point out that free trade Multiple choice question. minimizes pollution in the world's poorer countries. provides developed nations with a cost advantage over developing nations. reduces job opportunities in developing nations where wages are much lower. allows firms to abuse the weak labor and environmental laws in developing countries.

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

The opponents of globalization argue that falling barriers to international trade will Multiple choice question. reduce job opportunities in developing nations where wages are much lower. increase service jobs around the world. prevent countries from being interdependent on one another. eliminate manufacturing jobs in wealthy economies.

eliminate manufacturing jobs in wealthy economies.

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

exports goods or services to consumers in another country