International Business Chapter 1: Globalization

Supporters of globalization believe that tougher environmental regulations and stricter labor standards are a natural aspect of economic progress.

True

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.

Cultural differences have no effect on the way an international firm conducts its business around the globe.

False

Foreign direct investment occurs when a firm invests resources in

business activities outside its home country.

Globalization has enabled organizations to reduce their costs of production by

creating manufacturing units in developing countries.

Globalization critics argue that the decline in unskilled wage rates is due to the

migration of low-wage manufacturing jobs offshore.

A small country is short on cash for much needed infrastructure development projects. It could go to the World Bank for assistance.

True

One concern frequently voiced by those opposed to globalization is that falling barriers to international trade destroy manufacturing jobs in wealthy advanced economies such as the United States and Western Europe.

True

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

World Bank

An international business is defined as

any firm that engages in international trade.