MKT 310 CH 1

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%

What is a challenge faced by companies entering the global market?

Differences in consumer tastes and preferences

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

______ refers to the shift toward economic international integration.

Globalization

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

In the early 1960s, the US was the world's dominant industrial power. How does the US position compare today?

It has diminished in power.

Which statement best describes the International Monetary Fund (IMF)?

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

What is an accurate description of microprocessors?

They can decode vast amounts of information.

Why would a company engage in the globalization of production?

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

Select the four facts that describe the demographics of the global economy up until the 1960s. (Check all that apply.)

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

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 negotiations called the _____, finalized in December 1993, established the World Trade Organization to police the international trading system.

Uruguay Round

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.)

Using suppliers that are the best in the world at a particular activity Increasing the chance to win significant orders from airlines in those countries

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

Which organization verifies that nation-states comply to the rules associated with trade treaties signed by member states?

World Trade Organization

In terms of 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

Moore's Law predicts that

computer power will approximately double every 18 months.

What can be an impediment to the globalization of production?

consumer preferences

What can be an impediment to the globalization of production?

consumer preferences Rationale: this would be an impediment to the globalization of markets but not the globalization of production

Globalization leads to firms following each other around the world, thereby _____

creating some uniformity across markets

Why are consumer products less likely than industrial products to be a source for the global marketplace?

differences in consumer tastes

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.

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

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

The G20 was originally established to _____.

formulate a coordinated policy response to financial crises

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

global institutions

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

One impact of globalization is that _____.

greater uniformity replaces diversity

Global markets for industrial goods such as oil and wheat are more typical than those for consumer products because _____.

industrial goods serve universal needs

Foreign direct investment occurs when a(n)

investment is made by a company based in one country into a company or entity based in another country.

The Uruguay Round negotiations resulted in

lowering the trade barriers between various national markets.

In return for offering loans, the International Monetary Fund (IMF)

maintains the sovereignty of nation-states.

Early outsourcing efforts were mostly limited to _____ activities while today numerous business activities can be outsourced.

manufacturing

The International Monetary Fund (IMF) has been criticized for

minimizing a nation's sovereignty.

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

more intertwined

The development of the microprocessor has

reduced the cost of global communications.

Companies rely on containerization to _____.

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

The four basic purposes of the United Nations include _____.(Check all that apply.)

solve humanitarian, cultural and social issues maintain international peace be a center for harmonizing the actions of nations develop friendly relations between nations be a center for harmonizing the actions of nations

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

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

true

The ______ was established on October 24, 1945. Today, one of its key purposes is to maintain international peace and security.

united nations

What are three things that result from the fact that the volume of world trade has been growing faster than world GDP?

world has become significantly wealthier more firms are dispersing parts of their production process around the globe economies of nation-states are becoming more intertwined