Chapter 1- International Business

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

An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.

One of the U.N.'s Millennium Goals was to cut in half the number of people living in extreme poverty by 2015. Which of the following is an accurate statement concerning this goal or its impact?

This goal was reached five years ahead of schedule.

The stock of foreign direct investment refers to

the total cumulative value of foreign investments.

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

Countries progressively raised trade barriers against each other

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

Establishment of the World Trade Organization

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

International Monetary Fund

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.

Opponents of globalization argue that falling trade barriers

allow firms to move manufacturing activities to countries with lower wage rates.

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

World Bank

Globalization has enabled organizations to reduce their costs of production by

creating manufacturing units in developing countries.

The World Bank

has focused on making low-interest loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments.