Question 1

The volume of world trade in merchandise growing faster than world GDP implies that:

Accepted Answer

A)  more firms are dispersing their production processes to global locations. 
B)  the economies of the world's nation-states are becoming more independent from each other. 
C)  the global economy is headed for a large downward correction. 
D)  the world is becoming poorer. 
A)  more firms are dispersing their production processes to global locations. 
B)  the economies of the world's nation-states are becoming more independent from each other. 
C)  the global economy is headed for a large downward correction. 
D)  the world is becoming poorer.

Question 2

In 2000, the United Nations adopted eight economic and human develop goals for the world known as the:

Accepted Answer

A)  Millennium Goals. 
B)  Century Goals. 
C)  Globalization Goals. 
D)  U.N. Humanic Goals. 
A)  Millennium Goals. 
B)  Century Goals. 
C)  Globalization Goals. 
D)  U.N. Humanic Goals.

Question 3

Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers:

Accepted Answer

A)  is due to technological changes that create greater demand for skilled workers. 
B)  is due to the migration of low-wage manufacturing jobs offshore. 
C)  can be checked by increasing government ownership of enterprises. 
D)  can be checked by limiting free trade and foreign investment. 
A)  is due to technological changes that create greater demand for skilled workers. 
B)  is due to the migration of low-wage manufacturing jobs offshore. 
C)  can be checked by increasing government ownership of enterprises. 
D)  can be checked by limiting free trade and foreign investment.

Question 4

Globalization critics argue that the decline in unskilled wage rates is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers.

Accepted Answer

A) True 
 B)False

Question 5

The downside of increased globalization is:

Accepted Answer

A)  global financial contagions are less likely. 
B)  a severe crisis in one region can affect the entire globe. 
C)  one nation may become too powerful. 
D)  the potential for increased exploitation of undeveloped nations by developed nations. 
A)  global financial contagions are less likely. 
B)  a severe crisis in one region can affect the entire globe. 
C)  one nation may become too powerful. 
D)  the potential for increased exploitation of undeveloped nations by developed nations.

Question 6

The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market.

Accepted Answer

A) True 
 B)False

Question 7

Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China to take advantage of the lower labor costs there. This is an example of foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 8

Globalization is criticized because it increases the power of:

Accepted Answer

A)  governments to own enterprises. 
B)  unskilled labor to form labor unions. 
C)  supranational organizations over nation-states. 
D)  nation-states to regulate markets and reduce competition. 
A)  governments to own enterprises. 
B)  unskilled labor to form labor unions. 
C)  supranational organizations over nation-states. 
D)  nation-states to regulate markets and reduce competition.

Question 9

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states.

Accepted Answer

A)  International Development Association 
B)  World Bank 
C)  International Court of justice 
D)  World Trade Organization 
A)  International Development Association 
B)  World Bank 
C)  International Court of justice 
D)  World Trade Organization

Question 10

Managing an international business is much easier than managing a domestic business.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a factor of production?

Accepted Answer

A)  tariffs 
B)  transportation costs 
C)  capital 
D)  government 
A)  tariffs 
B)  transportation costs 
C)  capital 
D)  government

Question 12

Which of the following is an ill antiglobalization protestors assign to globalization?

Accepted Answer

A)  Job growth in industries under attack from foreign competitors 
B)  Upward pressure on the wage rates of unskilled workers 
C)  Environmental degradation 
D)  Cultural insularity of global media and MNEs 
A)  Job growth in industries under attack from foreign competitors 
B)  Upward pressure on the wage rates of unskilled workers 
C)  Environmental degradation 
D)  Cultural insularity of global media and MNEs

Question 13

Managing an international business is different from managing a purely domestic business for which of the following reasons?

Accepted Answer

A)  Countries prefer to keep business transactions between domestic partners. 
B)  The range of problems confronted are wider and more complex. 
C)  International businesses have an added layer of U.N. regulations. 
D)  International transactions involve exchanging currencies through each countries' treasury. 
A)  Countries prefer to keep business transactions between domestic partners. 
B)  The range of problems confronted are wider and more complex. 
C)  International businesses have an added layer of U.N. regulations. 
D)  International transactions involve exchanging currencies through each countries' treasury.

Question 14

_____ occurs when a firm exports goods or services to consumers in another country.

Accepted Answer

A)  International trade 
B)  Foreign direct investment 
C)  Inward investment 
D)  Outsourcing 
A)  International trade 
B)  Foreign direct investment 
C)  Inward investment 
D)  Outsourcing

Question 15

Which of the following is true of HIPCs?

Accepted Answer

A)  About 100 nations fall in this category. 
B)  The average debt burden has never been more than 75% of the value of the HIPC's economy. 
C)  Servicing heavy debt leaves HIPCs with little left to invest in public infrastructure. 
D)  The annual costs of serving debt consumes about 30% of HIPC export earnings. 
A)  About 100 nations fall in this category. 
B)  The average debt burden has never been more than 75% of the value of the HIPC's economy. 
C)  Servicing heavy debt leaves HIPCs with little left to invest in public infrastructure. 
D)  The annual costs of serving debt consumes about 30% of HIPC export earnings.

Question 16

One of the UN's central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development.

Accepted Answer

A) True 
 B)False

Question 17

The relative decline of the United States in the share of world output and world exports reflects:

Accepted Answer

A)  an increase in the barriers to foreign trade in the United States. 
B)  the deepening of the global financial crisis. 
C)  the reduced industrialization in developing nations. 
D)  the growth in the economic development of the world economy. 
A)  an increase in the barriers to foreign trade in the United States. 
B)  the deepening of the global financial crisis. 
C)  the reduced industrialization in developing nations. 
D)  the growth in the economic development of the world economy.

Question 18

What are some of the issues a manager of an international business must confront that a manager of a domestic business never confronts?

Accepted Answer

In addition to the problems that arise f

Question 19

Which of the following is an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?

Accepted Answer

A)  Transportation costs 
B)  Government deregulations 
C)  Reduction of barriers to trade between countries 
D)  Reduction of barriers to foreign direct investment 
A)  Transportation costs 
B)  Government deregulations 
C)  Reduction of barriers to trade between countries 
D)  Reduction of barriers to foreign direct investment

Question 20

Why did many Japanese firms invest in North America and Europe in the 1970s?

Accepted Answer

A)  To avoid a highly competitive domestic market. 
B)  To exploit high domestic tariff barriers. 
C)  To create a hedge against unfavorable currency movements. 
D)  To take advantage of low labor costs. 
A)  To avoid a highly competitive domestic market. 
B)  To exploit high domestic tariff barriers. 
C)  To create a hedge against unfavorable currency movements. 
D)  To take advantage of low labor costs.

The volume of world trade in merchandise growing faster than world GDP implies that:

In 2000, the United Nations adopted eight economic and human develop goals for the world known as the:

Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers:

Globalization critics argue that the decline in unskilled wage rates is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers.

The downside of increased globalization is:

The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market.

Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China to take advantage of the lower labor costs there. This is an example of foreign direct investment.

Globalization is criticized because it increases the power of:

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states.

Managing an international business is much easier than managing a domestic business.

Which of the following is a factor of production?

Which of the following is an ill antiglobalization protestors assign to globalization?

Managing an international business is different from managing a purely domestic business for which of the following reasons?

_____ occurs when a firm exports goods or services to consumers in another country.

Which of the following is true of HIPCs?

One of the UN's central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development.

The relative decline of the United States in the share of world output and world exports reflects:

What are some of the issues a manager of an international business must confront that a manager of a domestic business never confronts?

Which of the following is an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?

Why did many Japanese firms invest in North America and Europe in the 1970s?

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 1: Globalization

The volume of world trade in merchandise growing faster than world GDP implies that:

In 2000, the United Nations adopted eight economic and human develop goals for the world known as the:

Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers:

Globalization critics argue that the decline in unskilled wage rates is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers.

The downside of increased globalization is:

The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market.

Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China to take advantage of the lower labor costs there. This is an example of foreign direct investment.

Globalization is criticized because it increases the power of:

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states.

Managing an international business is much easier than managing a domestic business.

Which of the following is a factor of production?

Which of the following is an ill antiglobalization protestors assign to globalization?

Managing an international business is different from managing a purely domestic business for which of the following reasons?

_____ occurs when a firm exports goods or services to consumers in another country.

Which of the following is true of HIPCs?

One of the UN's central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development.

The relative decline of the United States in the share of world output and world exports reflects:

What are some of the issues a manager of an international business must confront that a manager of a domestic business never confronts?

Which of the following is an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?

Why did many Japanese firms invest in North America and Europe in the 1970s?

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters