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31) Which of these companies is taking advantage of the globalization of production?

A) Daily Diamonds, an American jewelry manufacturer, buys diamonds from South Africa and exports them to India for the cutting process.

37) According to the UN Charter, one of the four purposes of the UN is to

A) be a center for harmonizing the actions of nations.

32) West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice is an example of the

A) globalization of production.

28) 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

A) significant differences still exist among national markets.

29) What statement best supports the claim that greater uniformity replaces diversity in the context of global markets?

B) As rival global firms follow each other across countries, they bring with them their brand names, products, and marketing strategies from other national markets, thus creating some homogeneity across markets.

39) Which scenario best demonstrates foreign direct investment?

B) Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.

35) Which global institution has focused on making low-interest loans to governments in poor nations that want to make significant infrastructure investments such as building a road or a bridge?

B) World Bank

34) During early globalization efforts, outsourcing was typically confined to ________ activities.

D) manufacturing

27) What is the shift toward a more integrated and interdependent world economy called?

C) globalization

Many believe that globalization has created a convergence in

D) consumer taste preferences.

30) Agri-Corp manufactures large farm implements and currently sources component parts for these large machines from fifteen different companies around globe. They use these sources to take advantage of lower costs. This demonstrates the idea of

D) globalization of production.

36) Countries that receive loans from the IMF are required to

E) adopt specific economic policies to attain stabilization.

38) A macro factor underlying the trend toward greater globalization is the

E) dramatic developments in information processing and other technologies.

33) The labor, energy, land, and capital a country relies on to source goods and services are known as

E) factors of production.