Chapter 1

________ refers to the shift toward a more integrated and interdependent world economy Globalization Outsourcing International marketing Privatization

Globalization

What is true about the International Monetary Fund? It was established to formulate a coordinated policy response to financial crises in developing nations. It is responsible for establishing multinational treaties to govern the global business system. It is seen as the lender of last resort to nation-states whose economies are in turmoil. It is primarily responsible for policing the world trading system.

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

ABC Global has decided to invest resources in business activities outside its home country. This is called direct international investment (DII) foreign direct production (FDP) international trade (IT foreign direct investment (FDI)

foreign direct investment (FDI)

The G20 was originally established to preserve peace through international cooperation and collective security. manage, regulate, and police the global marketplace. formulate a coordinated policy response to financial crises in developing nations. maintain order in the international monetary system.

formulate a coordinated policy response to financial crises in developing nations.

Which of the following is a risk associated with globalization? differentiation of markets excessive market regulation restrictions on competition global financial contagion

global financial contagion

Which of the following is a consequence of globalization? decreasing interdependence between national economies differentiating of material culture increasing outsourcing increasing barriers to cross-border trade

increasing outsourcing

The World Trade Organization has estimated that the developed nations of the world can raise global economic welfare by $128 billion by removing subsidies given to their agricultural producers. reducing defense expenditure. increasing tariff barriers to trade in agriculture. increasing outsourcing of manufacturing processes.

removing subsidies given to their agricultural producers.

Which of the following focuses on making low-interest loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments? the GATT the WTO the World Bank the IMF

the world bank