Question 1

Which of the following statements is true about the changing foreign direct investment picture of the global economy?

Accepted Answer

A)   Throughout the 1990s, the amount of investment directed at both developed and developing nations decreased dramatically.
B)   There has been a fall in the share of FDI stock accounted for by developing nations reflecting a declining trend for firms from these countries to invest outside their borders.
C)   Among developing nations, the lowest recipient of foreign direct investment has been China.
D)   The share of FDI stock accounted for by U.S. firms has been drastically increasing from 1980s.
E)   The sustained flow of foreign investment into developing nations is an important stimulus for economic growth in those countries.F) A) and B)
G) A) and C)

Question 2

As a result of international trade,the economies of the world's nation-states are becoming less intertwined.

Accepted Answer

A) True 
 B)False

Question 3

Substantial impediments,such as barriers to foreign direct investment,make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe.

Accepted Answer

A) True 
 B)False

Question 4

What are some of the challenges faced by managers of an international business?

Accepted Answer

Managing an international business is ch...

Question 5

Which of the following best exemplifies foreign direct investment (FDI) ?

Accepted Answer

A)   Pure Pearls, a jewelry store in the U.S., imports harvested pearls from Indonesia, Philippines, and Australia.
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.
C)   Delicate Love, a reputed florist company in Holland, exports tulips and roses throughout the globe.
D)   Samantha started an Italian restaurant in her home country, the United States, after she took cooking lessons from a reputed chef in Italy.
E)   Yin and Yang Inc., a Chinese firm, supplies buttons and zips to major denim brands in the UK.F) All of the above
G) C) and D)

Question 6

_____ predicts that the power of microprocessor technology doubles and the cost of production falls every 18 months.

Accepted Answer

A)   Bell's law
B)   Murphy's law
C)   Moore's law
D)   Ohm's law
E)   Engel's lawF) A) and D)
G) A) and C)

Question 7

Although most international trade and investment is still conducted by large firms,many medium-size and small businesses are becoming increasingly involved in international trade and investment.

Accepted Answer

A) True 
 B)False

Question 8

The Internet has been a major force facilitating international trade in services.

Accepted Answer

A) True 
 B)False

Question 9

While the lowering of trade barriers made globalization of markets and production a theoretical possibility,which of the following has made it a tangible reality?

Accepted Answer

A)   Major advances in communication, information processing, and transportation technologies
B)   The rise of communism and the need for independent economies on a global scale
C)   The increasing diversity in consumer tastes and preferences worldwide
D)   The increasing differences in the material culture the world over
E)   The decreasing significance of the World Trade OrganizationF) A) and D)
G) B) and D)

Question 10

_____ refers to the shift toward a more integrated and interdependent world economy.

Accepted Answer

A)   Forward integration
B)   Mass customization
C)   Globalization
D)   Commercialization
E)   Vertical integrationF) B) and D)
G) A) and B)

Question 11

Growing income inequality between the skilled and unskilled workers in advanced nations,such as the United States,is a result of the:

Accepted Answer

A)   wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted.
B)   decrease in the outsourcing of low-wage manufacturing jobs offshore and a corresponding increase in demand for unskilled workers.
C)   shift within advanced economies toward jobs where the only qualification is the willingness to turn up for work every day.
D)   increasing wage gap between developing and developed nations.
E)   shortage of unskilled workers and an excess supply of highly skilled workers.F) A) and E)
G) B) and E)

Question 12

Which of the following is the most appropriate solution to the problem of rising carbon dioxide emissions in developed economies?

Accepted Answer

A)   Roll back the trade liberalization efforts that have fostered economic growth and globalization.
B)   Tie free trade agreements to the implementation of fewer environmental and labor laws in less developed countries.
C)   Get the nations of the world to agree to policies designed to limit pollutant emissions.
D)   Increase the export of low-wage manufacturing jobs to developing nations
E)   Restrict international trade and investment only to services.F) B) and C)
G) All of the above

Question 13

Which of the following countries has seen a relative decline in its share of world output between 1960 and 2010?

Accepted Answer

A)   The United States
B)   Thailand
C)   Japan
D)   China
E)   South KoreaF) B) and D)
G) A) and B)

Question 14

The motive behind the high tariffs imposed by nations on imports of manufactured goods,prior to World War II,was to:

Accepted Answer

A)   deter any possible attempts to promote communism.
B)   protect domestic industries from foreign competition.
C)   prevent the occurrence of the Great Depression.
D)   safeguard patents, copyrights, and trademarks.
E)   promote the trade of services over the trade of manufactured goods.F) B) and D)
G) A) and B)

Question 15

The United States accounted for a significantly larger share of the world economy in 2011 than it did in the 1960's.

Accepted Answer

A) True 
 B)False

Question 16

What are the implications of the Uruguay Round held under the umbrella of GATT for international business?

Accepted Answer

Under the umbrella of GATT,eight rounds ...

Question 17

Containerization has revolutionized the transportation business,significantly lowering the costs of shipping goods over long distances.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a part of the agenda of the Doha Round of talks launched by the WTO?

Accepted Answer

A)   Limiting the use of antidumping laws
B)   Abolishing the International Monetary Fund
C)   Increasing tariffs on industrial goods, services, and agricultural products
D)   Persuading member governments to cut defense spending
E)   Establishing GATT as a replacement for the WTOF) B) and E)
G) A) and B)

Question 19

_____ has experienced a decline in the share of FDI stock between 1980 and 2010.

Accepted Answer

A)   India
B)   The United States
C)   France
D)   China
E)   South KoreaF) C) and E)
G) B) and D)

Question 20

Differences among countries require that an international business vary its practices country by country.

Accepted Answer

A) True 
 B)False

Exam 1: Globalization

Which of the following is a part of the agenda of the Doha Round of talks launched by the WTO?

Correct AnswerverifiedShow Answer

Differences among countries require that an international business vary its practices country by country.

Correct AnswerverifiedShow Answer

_____ refers to the shift toward a more integrated and interdependent world economy.

Correct AnswerverifiedShow Answer

Which of the following countries has seen a relative decline in its share of world output between 1960 and 2010?

Correct AnswerverifiedShow Answer

Although most international trade and investment is still conducted by large firms,many medium-size and small businesses are becoming increasingly involved in international trade and investment.

Correct AnswerverifiedShow Answer

The Internet has been a major force facilitating international trade in services.

Correct AnswerverifiedShow Answer

Which of the following best exemplifies foreign direct investment (FDI) ?

Correct AnswerverifiedShow Answer

Containerization has revolutionized the transportation business,significantly lowering the costs of shipping goods over long distances.

Correct AnswerverifiedShow Answer

The motive behind the high tariffs imposed by nations on imports of manufactured goods,prior to World War II,was to:

Correct AnswerverifiedShow Answer

What are the implications of the Uruguay Round held under the umbrella of GATT for international business?

Correct AnswerverifiedUnder the umbrella of GATT,eight rounds ...View AnswerShow Answer

Which of the following is the most appropriate solution to the problem of rising carbon dioxide emissions in developed economies?

Correct AnswerverifiedShow Answer

_____ predicts that the power of microprocessor technology doubles and the cost of production falls every 18 months.

Correct AnswerverifiedShow Answer

As a result of international trade,the economies of the world's nation-states are becoming less intertwined.

Correct AnswerverifiedShow Answer

_____ has experienced a decline in the share of FDI stock between 1980 and 2010.

Correct AnswerverifiedShow Answer

While the lowering of trade barriers made globalization of markets and production a theoretical possibility,which of the following has made it a tangible reality?

Correct AnswerverifiedShow Answer

Substantial impediments,such as barriers to foreign direct investment,make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe.

Correct AnswerverifiedShow Answer

The United States accounted for a significantly larger share of the world economy in 2011 than it did in the 1960's.

Correct AnswerverifiedShow Answer

Growing income inequality between the skilled and unskilled workers in advanced nations,such as the United States,is a result of the:

Correct AnswerverifiedShow Answer

Which of the following statements is true about the changing foreign direct investment picture of the global economy?

Correct AnswerverifiedShow Answer

What are some of the challenges faced by managers of an international business?

Correct AnswerverifiedManaging an international business is ch...View AnswerShow Answer

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Under the umbrella of GATT,eight rounds ...
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Correct Answer
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Managing an international business is ch...
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