Chpt 1 Smartbook

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

False

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

False

International trade occurs when a company

exports goods or services to consumers in another country.

A(n) ______ business is any firm that engages in cross-border trade or investment.

international

Michael works at a lawnmower manufacturing company in St. Louis, Missouri, and his company imports component parts from Thailand and also ships final product to various countries. Michael's company is an example of a(n) _____ business. Multiple choice question. international multi-national domestic

international

What global institution was established on October 24, 1945 and one of its key purposes is to maintain international peace and security? Multiple choice question. G20 United Nations International Monetary Fund World Bank

United Nations

The text notes that there are two macro factors fueling the trend toward greater globalization. These two factors focus on a decline in trade barriers and Multiple choice question. customization of products. technological change. greater homogenization of tastes. limited financing.

technological change.

Some U.S. hospitals outsource radiology work to India. This is a recent advancement that is possible because of advancements in _____. Multiple choice question. technology customer service legislation tariffs

technology

When nations lowered trade barriers it made the globalization of markets a possibility. What was needed to make this possibility a reality? Multiple choice question. customization transportation homogenization technology

technology

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

Trade

From the 1990s until today, foreign direct investment inflows can best be described as Multiple choice question. continually diminishing. surging and slumping. steady. always increasing.

surging and slumping.

While studies shw that the share of labor in national income has declined over the past two decades, experts caution that in reality the decline has only affected executives. unskilled labor. skilled labor. front-line managers.

unskilled labor.

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%

The decline of the United States' standing as a dominant industrial power is considered a(n) _____ decline because it reflects the faster economic growth of other economies. Multiple choice question. relative absolute

relative

Which argument favors globalization? Multiple choice question. Increasing cross-border investment will increase the prices for goods and services. Falling barriers to international trade reduce interdependency between countries. Raising barriers to international investments will diminish job opportunities in developing nations. Lowering international trade barriers raises the incomes of consumers.

Lowering international trade barriers raises the incomes of consumers.

Which organization would help out a cash-strapped government with a low-interest loan to help that country build new roads? Multiple choice question. The United Nations The International Monetary Fund The Federal Deposit Insurance Corporation The World Bank

The World Bank

Which global institution is the successor to GATT? Multiple choice question. The World Trade Organization The World Bank The United Nations The International Monetary Fund

The World Trade Organization

What is the best way to characterize the impact of existing impediments to globalization? Multiple choice question. The impediments reduce the national differences in consumer tastes and preferences. The impediments increase the economic and political stability among various countries. The impediments make it significantly easier for firms to sell their products and services internationally. The impediments make it difficult for companies to maximize production activities.

The impediments make it difficult for companies to maximize production activities.

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. $1,000. $25,000. $31,000. $8,000.

$8,000.

______ refers to the shift toward economic international integration.

Globalization

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

Internet

What is an accurate depiction of the World Bank? Multiple choice question. It provides financial assistance only to countries whose currencies are gaining value against those of other nations. It was established to promote the globalization of services among member nations. It focuses on helping developing countries fight poverty through investments in the underlying structure of the country. It is more controversial than the International Monetary Fund (IMF).

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

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

As figures for 2019 reflect, 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. decline increase

decline

The G20 was originally established to _____. Multiple choice question. formulate a coordinated policy response to financial crises in developing countries provide low-interest loans to struggling nations in exchange for sovereignty provide democratic reforms in developed non-member countries implement trade barriers and regulations

formulate a coordinated policy response to financial crises in developing countries

The national differences in the quality of factors of production help companies Multiple choice question. lower their profit margin thus allowing them to compete more effectively. improve the quality or functionality of their product offering. increase the overall cost structure of their business operations. increase the barriers to cross-border trade.

improve the quality or functionality of their product offering.

The purpose of the Uruguay Round negotiations was to

lower the trade barriers between various national markets.

Company ABC, based in Tennessee, sources goods from Southeast Asia to take advantage of labor cost savings. This is an example of _____. Multiple choice question. licensing intrastate investment the globalization of production the tragedy of the commons

the globalization of production

There has been two notable trends in the demographics of multinational enterprises since the 1960s. These include _____. Multiple select question. the growth of mini-multinationals. the decline of non-U.S. multinationals. the decline of mini-multinationals. the rise of non-U.S. multinationals.

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

In terms of conducting international business in China, it can be said that

China represents a large -- basically untapped -- market.

What is an accurate depiction of containerization? Multiple choice question. It does not facilitate the globalization of markets. It is very labor intensive and time consuming. It reduces the costs of shipping goods over long distances. Its use has significantly reduced over the last few years.

It reduces the costs of shipping goods over long distances.

When examining the data from 1960 to 2018, how does the value of the world economy compare to the value of international trade? Multiple choice question. The value of international trade had a greater increase. The values of the world economy and international trade grew at the same rate. The value of the world economy had a greater increase. The values of the world economy and international trade declined at the same rate.

The value of international trade had a greater increase.

Through the 1960s, which country dominated world foreign direct investment?

United States

The development of the microprocessor has lead to _____. Multiple choice question. a decrease in technology limitations on the type of data that can be transferred a reduction in the cost of global communications increased computer communication costs

a reduction in the cost of global communications

While it is known for its peacekeeping role, the United Nations devotes nearly 70% of its work toward promoting conditions of

a vibrant global economy.

During the 1920s and 1930s, when high tariffs were placed on imported manufactured goods, Multiple choice question. countries encouraged foreign direct investment. domestic firms were left unprotected from foreign competition. a decrease in trade barriers resulted. an increase in trade barriers resulted.

an increase in trade barriers resulted.

While U.S. firms accounted for about two-thirds of foreign direct investment in the 1960s, as of 2019, U.S. firms account for _____. Multiple choice question. less than 2% more than 90% about 41% around 28%

around 28%

The International Monetary Fund (IMF) has been criticized for Multiple choice question. helping only those nations that wish to undertake infrastructure investment. lowering the barriers to cross-border trade. not forcing nations to adopt its economic policies. compromising the jurisdiction and decision-making powers of the receiving country.

compromising the jurisdiction and decision-making powers of the receiving country.

Due to globalization, firms follow each other around the world, thereby Multiple choice question. replacing conformity with greater diversity. reducing foreign direct investment. creating some uniformity across markets. increasing barriers to cross-border trade.

creating some uniformity across markets.

What is an example of an obstacle to globalization? Multiple choice question. an increase in cross-border trade a decrease in the overhead expenses incurred by firms similarities in the business systems used in national markets differences in legal regulations among national markets

differences in legal regulations among national markets

In return for offering loans, the International Monetary Fund (IMF) Multiple choice question. maintains the sovereignty of nation-states. settles trade disputes. raises barriers to cross-border trade. enforces its economic policies on nations.

enforces its economic policies on nations.

The G20 is comprised of ______ from the 19 largest economies in the world. Multiple choice question. finance ministers the presidents transportation directors legal representatives

finance ministers

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 Multiple choice question. tragedy of the commons. foreign direct investment. international trade. market diversity.

foreign direct investment.

A debt relief movement was in full force in the late 1990s; however, in order for these programs to have a long-term impact it is necessary for those nations receiving debt assistance to Multiple choice question. focus on innovative ideas and technology. homogenize consumer tastes and preferences. put up barriers to international trade to minimize competitor acts. invest in public projects that boost economic growth.

invest in public projects that boost economic growth.

During the early years of globalization, outsourcing was primarily confined to _____ activities. Multiple choice question. service technology manufacturing promotion

manufacturing

Historically, national markets were distinct and separate entities. Today, these separate national markets have merged. This process is known as _____. Multiple choice question. mass customization the globalization of markets cottage industries the tragedy of the commons

the globalization of markets

What are two implications that are derived from the fact that the volume of world trade has been growing faster than world GDP? the economies of the world's nation-states are becoming less intertwined the world has become significantly wealthier in recent decades more companies are dispersing production processes to different locations around the globe companies are focusing on the customization of products to meet more general tastes

the world has become significantly wealthier in recent decades more companies are dispersing production processes to different locations around the globe

Supporters of globalization suggest that a solution to the problem of slow real income growth among unskilled workers is _____ society's investment in education.

to increase

The outward stock of foreign direct investment refers to the ______ of foreign investments by firms domiciled in a nation outside of that nation's borders. Multiple choice question. total cumulative value percentage of increase diminished value cross-border flow

total cumulative value

According to the critics of globalization, increased free trade and investment over the past few decades have

widened the gap between the rich and poor nations.