International Bus Exam 1
Countries that receive loans from the IMF are required to
Adopt specific economic policies to attain stabilization
Who/What is affected: Workers
Argument for globalization: Development of better skills Arguments against globalization: Loss of jobs due to competition
Who/What is affected: Producers
Argument for globalization: More markets to sell in Arguments Against Globalization: Can go bankrupt due to competition
Who/What is affected: Consumers
Argument for globalization: More products to choose from Arguments against Globalization: Don't know how products are made
Who/What is affected: The Environment
Argument for globalization: Tougher laws led to lower pollution rates Arguments against Globalization: Lack of adequate regulations causes abuse
Econometrics studies show a hump-shaped relationship between income level and pollution levels. Which of the following statements reflect that relationship?
As an economy grows and income levels rise, initially pollution levels also rise.
Declining trade barriers
Better ability to export goods
Declining investment barriers
Better ability to optimize location economies
The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth
Bretton Woods: Institutions: IMF and the World Bank
What country in Latin America has seen a significant expansion in their economy in the past two decades?
Chile
The changing World Order
China
Many benefits that globalization has created a convergence in
Consumer taste preference
Bethany has been assigned the task of shipping all of the exhibit parts for the trade show her company is participating in to Germany. She works with a shipping company and has all the parts packaged together in a crate that will be lifted directly from the company trucks to the airplane. When the crate arrives in Germany it will go directly onto another truck and will be delivered to the convention center. What innovation in transportation is Bethany using?
Containerization
What is an accurate characterization of the role of international business investments in Latin America today?
Debt and inflation are down and foreign investment is welcomed
According to the UN Charter, one of the four purposes of the UN is to
Develop friendly relations against nations
The Changing World Output and World Trade Picture
Developing Countries
The labor, energy, land, and capital a country relies on to source goods and services are known as:
Factors of production
Morning Fresh Skin Care, a U.S.-based beauty products manufacturer, has set up a manufacturing plant in Hong Kong. This is an example of
Foreign direct investment
A series of treaties that reduced barriers to trade
GATT
Finance ministers and central bank governors of major economies coordinate policy on global financial crises
GTO
Simpson Manufacturing produces high-end kitchen appliances and currently sources component parts for these machines from fifteen different companies around globe. They use these sources to take advantage of lower costs. This demonstrates the idea of
Globalization of production
When compared to the past, the gap between rich and poor nations today has
Gotten bigger
Opponents to globalization believe that when U.S. companies outsource service activities, such as call centers, to a lower-cost foreign supplier, it results in
Higher unemployment in wealthy advanced economies such as the United States
The Changing Nature of the Multinational Enterprise
Hisense
Monique, a French fashion designer, sells her merchandise by exporting it to retail stores in the United States, United Kingdom, and Brazil. According to this information, Monique is participating in
International trade
Which best describes what place when a Chinese supplier of bicycle parts exports bike seats to Detroit Bikes?
International trade
For foreign direct investment (FDI) to occur, a firm should primarily
Invest resources in business activities outside its home country
What are mini-multinationals?
Medium-sized and small multinationals
Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the:
Migration of low-wage manufacturing jobs offshore
Sanjay purchased a computer for $500 in 2018. Compared to the $900 computer that he purchased in 2011, the new one seems better in terms of the price he has paid and the power of the microprocessor technology. This is best explained by
Moores law
Tomorrow's Tech Inc., a U.S. - based company, has productive activities in more than two countries. Tomorrow's Tech is what type of enterprise
Multinational
Boeing produced just 5 percent of its original 737 and 747 outside the United States but produces 65 percent of its newer 787 in foreign locations. Boeing's production strategy
Reflects the globalization of production
Which statement reflects a general implication of globalization
The COVID-19 pandemic called into question the wisdom of relying on globally production systems
A common complaint among those pushing back against globalization is that
The benefits of globalization are not evenly distributed among socioeconomic classes
Christian bought his son, Eric, a computer two years ago. Recently, he decided to buy his daughter, Brigette, a computer of her own. When applying Moore's Law to the two-year gap between the purchase of the computers, it is most likely that
The microprocessor in Brigette's computer wiukd be more advanced in terms of power than that of Eric's
The Changing FDI Picture
Toyota
As much as 70% of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development
UN
What country has seen a relative decline in its share of world output between 1960 and 2018
United States
Primarily responsible for policing world trade system
WTO
Detroit Bikes is located in the United States, assembles its product in the United States, but imports components from China and other countries. Which best describes Detroit Bikes?
an international business
The commercial jet aircraft market
can best be described as a global market
Boeing's 787 aircraft is produced by 50 suppliers spread around the world, a huge increase in global outsourcing as compared to the past. Boeing's strategy, like that of other multinational companies, suggests that
declining barriers to trade and investment are facilitating global production strategies
The minimum that a firm has to do to engage in international business is to
export or import products from other countries
What is the shift toward a more integrated and interdependent world economy called
globalization
Which best describes Detroit Bike's sourcing of components from other countries for assembly in the United States?
globalization of production
Enhanced communication technologies
growth in e-commerce
Enhanced transportation technologies
lowered distance between countries
During early globalization efforts, outsourcing was typically confined to _____ activities.
manufacturing
A major factor contributing to the frying of globalization since 2008 is
more regulations limiting credits
The growth of trade as a percentage of global GDP
reflects the globalization of markets
Fast food chain restaurants promote different menu choices in different countries depending on a range of factors such as demographics, local taste, income levels, and cultural values. This demonstrates that
significant differences still exist among national markets
One suggestion for helping poor countries enjoy the benefits of free trade is for richer nations to reduce barriers to importing products from those nations particularly for _____ agricultural products.
textiles
One advancement that has lowered the barriers many small firms face when buildings international sales is
the internet
Which socioeconomics group is feeling left behind in the age of globalization
the lower and middle class
