International Business: Chapter 1

4 Driving Forces of Globalization "Better ability to export goods" A. Declining trade barriers B. Advances in communication technology C. Advances in transportation technology D. Declining investment barriers

A. Declining trade barriers

Toyota rapidly increased its investment in auto production facilities in the United States and Europe in the late 1980s and early 1990s. A. The Changing FDI Picture B. The Changing World Order C. The Changing World Output and World Trade Picture D. The Changing Nature of the Multinational Enterprise

A. The Changing FDI Picture

The __________ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire, to promote economic development. A. World Bank B. International Trade Center C. World Trade Organization D. United Nations

A. World Bank

Opponents of globalization argue that falling trade barriers A. allow firms to move manufacturing activities to countries with lower wage rates B. create manufacturing jobs in wealthy advanced economies C. force countries to maintain manufacturing in their home countries regardless of wage rates D. reduce the pool of global labor.

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

As it pertains to trade policy, what does a "beggar thy neighbor" policy represent? A. countries progressively raising trade barriers against each other B. lenient trade policies directed toward countries with struggling economies C. developing countries placing trade barriers on developed nations to level the playing field D. a systematic removal of all barriers to trade among nation

A. countries progressively raising trade barriers against each other

Real power resides with nation-states. This argument is _____ globalization. A. for B. against

A. for

Tougher environmental regulations follow economic progress. This argument is _____ globalization. A. for B. against

A. for

Globalization critics argue that the decline in unskilled wage rates is due to the A. migration of low-wage manufacturing jobs offshore B. privatization of government-owned enterprises C. regulation of the global market by WTO D. technology-induced shift toward skilled jobs.

A. migration of low-wage manufacturing jobs offshore

Four Trends of Globalization 1. Declining trade barriers 2. ?? 3. Advances in transportation technology 4. Declining investment barriers

Advances in communication technology

Four Trends of Globalization 1. Declining trade barriers 2. Advances in communication technology 3. ?? 4. Declining investment barriers

Advances in transportation technology

Boeing produced just 5 percent of its original 737s and 747s outside the United States but produces 65 percent of its newer 787s in foreign locations. Boeing's production strategy.... A. suggests that Boeing has lost its edge in product design. B. implies that outsourcing services is virtually impossible. C. reflects the globalization of production. D. suggests falling raw material costs require international production. E. indicates the presence of trade barriers in the United States.

C. reflects the globalization of production.

Since the 1960s, four major factors have contributed to the changing world economy and the world trade picture. They are... 1. .The Changing FDI Picture 2. The Changing World Order 3. The Changing World Output and World Trade Picture 4. ??

The Changing Nature of the Multinational Enterprise

Since the 1960s, four major factors have contributed to the changing world economy and the world trade picture. They are... 1. .The Changing FDI Picture 2. ?? 3. The Changing World Output and World Trade Picture 4. The Changing Nature of the Multinational Enterprise

The Changing World Order

Since the 1960s, four major factors have contributed to the changing world economy and the world trade picture. They are... 1. .The Changing FDI Picture 2. The Changing World Order 3. ?? 4. The Changing Nature of the Multinational Enterprise

The Changing World Output and World Trade Picture

1. Declining trade barriers 2. Advances in communication technology 3. Advances in transportation technology 4. Declining investment barriers These are the...

four trends of globalization

Since the 1960s, four major factors have contributed to the changing world economy and the world trade picture. They are... 1. ?? 2. The Changing World Order 3. The Changing World Output and World Trade Picture 4. The Changing Nature of the Multinational Enterprise

.The Changing FDI Picture

The commercial jet aircraft market A. suggests that national economies are largely self-sufficient B. indicates that national markets in consumer goods are now homogenous C. can best be described as a global market D. implies that to effectively engage in trade, a company must be a large multinational E. reflects the need for domestic competition to spur innovation.

C. can best be described as a global market

The __________ is often seen as the lender of last resort. A. World Bank B. International Monetary Fund C. International Development Association D. World Trade Organization

B. International Monetary Fund

China continues to move toward greater free-market reforms. If this continues for two more decades, China may move from third world to industrial superpower more rapidly than Japan did. A. The Changing FDI Picture B. The Changing World Order C. The Changing World Output and World Trade Picture D. The Changing Nature of the Multinational Enterprise

B. The Changing World Order

Economic power shifts from nations to international institutions This argument is _____ globalization. A. for B. against

B. against

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 A. as compared to foreign producers Boeing is more efficient at producing component parts. B. declining barriers to trade and investment are facilitating global production strategies. C. the manufacturing capabilities of suppliers in other nations is declining. D. time zones and language differences remain significant impediments to global trade. E. Boeing's cost structure is higher than it should be.

B. declining barriers to trade and investment are facilitating global production strategies.

Which action was implemented in the Uruguay Round, finalized in December 1993? A. reduction in the protection for patents, trademarks, and copyrights B. establishment of the World Trade Organization C. extension of the GATT to cover consumer products D. enhancement of trade barriers

B. establishment of the World Trade Organization

The outward stock of foreign direct investment refers to A. the entry of funds into a country when foreigners make purchases in the country's stock and bond markets B. the total cumulative value of foreign investments by firms domiciled in a nation outside of that nation's borders C. movements of labor, capital, and other factors of production between countries D. total export or import products from other countries.

B. the total cumulative value of foreign investments by firms domiciled in a nation outside of that nation's borders

It is estimated that today's developing nations may account for more than 60 percent of world economic activity by 2030, while rich nations' activity, currently at 55 percent, may decline to 38 percent. A. The Changing FDI Picture B. The Changing World Order C. The Changing World Output and World Trade Picture D. The Changing Nature of the Multinational Enterprise

C. The Changing World Output and World Trade Picture

Which statement expresses one of the reasons why managing an international business is different from managing a purely domestic business? A. The range of problems confronted by a manager in a domestic business is wider and the problems more complex than those confronted by a manager in an international business. B. International business transactions use the euro instead of the U.S. dollar. C. An international business does not need to contend with government intervention whereas a domestic business must work within the confines of its local government. D. An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.

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

4 Driving Forces of Globalization "Lowered distance between countries" A. Declining trade barriers B. Advances in communication technology C. Advances in transportation technology D. Declining investment barriers

D. Declining investment barriers

The Dalian Wanda Group, one of the world's largest real estate companies, is a world-class multinational company. The company, which began in China in 1988, has assets in the United States, the United Kingdom, Australia, and Spain. A. The Changing FDI Picture B. The Changing World Order C. The Changing World Output and World Trade Picture D. The Changing Nature of the Multinational Enterprise

D. The Changing Nature of the Multinational Enterprise

Which statement pertaining to changes in the global economy of the 21st century is true? A. Barriers to the free flow of goods, services, and capital have increased B. Volume of global output has been growing more rapidly than cross-border trade and investment C. National economies are becoming more independent D. The world is moving toward an economic system that is more favorable for international business.

D. The world is moving toward an economic system that is more favorable for international business.

An international business is defined as A. one that implements homogenous practices across countries B. the basis for a multinational enterprise C. a business that is restricted by U.N. regulations D. any firm that engages in international trade or investment.

D. any firm that engages in international trade or investment.

The growth of trade as a percentage of global GDP A. represents an argument for greater barriers to trade B. is surprising given the level of conflict among nations C. suggests that the United States is increasing its role as the most dominant player in global trade D. reflects the globalization of markets E. indicates growing isolationism among countries, especially developing economies.

D. reflects the globalization of markets

Four Trends of Globalization 1. Declining trade barriers 2. Advances in communication technology 3. Advances in transportation technology 4. ??

Declining investment barriers

Four Trends of Globalization 1. ?? 2. Advances in communication technology 3. Advances in transportation technology 4. Declining investment barriers

Declining trade barriers

Finance ministers and central bank governors of major economies coordinate policy on global financial crises. A. United Nations B. World Bank C. International Monetary Fund D. World Trade Organization E. G20

E. G20

What does FDI stand for?

Foreign Direct Investment

True or False. There is a debate: For Globalization Vs. Against Globalization

True