International Business Ch. 1 - Globalization

One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and _____.

trade

The development of what two transportation modes has effectively reduced the size of our world, hence simplifying the transshipment from one mode of transport to another?

Commercial jets and super freighters

A company is involved in foreign direct investment when it

Invests in business activities outside of its home country

What is an accurate depiction of the World Bank?

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

Moore's Law predicts that

Microprocessor technology power will double approximately every 18 months

The doubling of the power of microprocessor technology while the costs of its production decreases by half is called ______ Law.

Moore's

By the year 2018, ____ of the world's population were Internet users.

More than half

What are the two macro factors that underlie the trend toward greater globalization?

Decline in trade barriers and technological change

The globalization of markets and production implies that

Domestic firms are facing intense competition from foreign firms

International trade occurs when a company

Exports goods or services to consumers in another country

True or False: The International Monetary Fund (IMF) is considered less controversial than the World Bank.

False

True or False: While there are a large number of nations that are members of the WTO, these nations account for only a small portion of world trade.

False

True or false: Small and medium-sized companies do not typically benefit from the globalization of markets.

False

Mallory's US-based lifestyle company decides to invest in an Italian company that specializes in health and wellness. This would be an example of

Foreign Direct Investment

In the 1960s, when a customer in the United States purchased a television, that television had been manufactured in the United States. Today, thanks to the fall of international trade barriers, televisions purchased in the United States might be manufactured in China or South Korea. This change has occurred as the result of _____.

globalization

As international trade expands, the economies of the world's nation-states are becoming ______.

more intertwined

What is an accurate description of the International Monetary Fund (IMF)?

The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil

Which organization would help out a cash-strapped government with a low-interest loan to help that country build new roads?

The World Bank

What global institution was established on October 24, 1945 and one of its key purposes is to maintain international peace and security?

United Nations

Which global institution is the successor to GATT?

World Trade Organization

Which organization is responsible for policing the rules of trade between nations and making sure countries adhere to the rules of trade treaties signed by member states?

World Trade Organization

The development of the microprocessor has lead to _____.

a reduction in the cost of global communications

The globalization of _____ refers to the fact that producers can source goods and services from anywhere in the world to take advantage of cost savings.

production

Which country has been the world's largest exporter since 2009?

China

What are three examples of factors of production?

-labor -land -capital

During the 1920s and 1930s, when high tariffs were placed on imported manufactured goods,

An increase in trade barriers resulted

What country has been the world's largest exporter since 2009?

China

In the years leading up to the Great Depression, what practice created a barrier to international trade?

High tariffs on imports of foreign goods

The national differences in the quality of factors of production help companies

Improve the quality or functionality of their product offering

The globalization of markets is facilitated by the:

Improvement in transportation technology

In terms of international business, what is a benefit of the Internet?

It makes it easier for buyers and sellers to connect

What is an accurate depiction of containerization?

It reduces the costs of shipping goods over long distances

What is an accurate description of microprocessors?

They can decode vast amounts of information

Why do companies engage in the globalization of production?

To lower their overall structure or improve the quality of their product offering

What statement accurately describes the current membership of the United Nations?

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

At the shipping port in Charleston, South Carolina, the large shipping boxes that arrive on superfreighters from Indonesia are unloaded directly onto a train car for transport within the United States. This demonstrates how _____ has simplified the transport of products from one mode of shipping to another.

containerization

______ refers to the shift toward economic international integration.

globalization

Historically, national markets were distinct and separate entities. Today, these separate national markets have merged. This process is known as _____.

the globalization of markets