Global Business Today 9th Edition Test Bank

Preview (16 of 1433 Pages)

100%

Purchase to unlock

Loading page image...

1Student: ___________________________________________________________________________1.As a result of globalization, we have been moving toward a world in which national economiesare relatively self-contained entities.TrueFalse2.Byoffering the same basic product worldwide, firms help to create a global market.TrueFalse3.As a result of globalization, companies rarely need to customize marketing strategies, productfeatures, and operating practices in different countries.TrueFalse4.Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms toachieve the optimal dispersion of their productive activities to locations around the globe.TrueFalse5.The World Trade Organization, the International Monetary Fund and its sister institution the WorldBank, and the United Nations were all created by voluntary agreement between individual nation-states.TrueFalse6.The WTO is seen as the lender of lastresort to nation-states whose economies are in turmoil andwhose currencies are losing value against those of other nations.TrueFalse7.The IMF is less controversial than its sister institution, the World Bank.TrueFalse8.Foreign direct investment (FDI) occurs when a firm invests resources in business activitiesoutside its home country.TrueFalse9.After World War II, the advanced nations of the West committed themselves to increasing barriersto the free flow of goods, services, and capital between nations.TrueFalse

Loading page image...

10.The Uruguay Round extended GATT to cover services as well as manufactured goods.TrueFalse11.The lowering of trade and investment barriers allows firms to base production at the optimallocation for that activity.TrueFalse12.As a result of international trade, the economies of the world's nation-states are becoming lessintertwined.TrueFalse13.The globalization of markets and production and theresulting growth of world trade, foreign directinvestment, and imports all imply that firms are finding it easier to protect themselves from attackby foreign competitors.TrueFalse14.Containerization has revolutionized thetransportation business, significantly lowering the costs ofshipping goods over long distances.TrueFalse15.The real costs of information processing and communication have fallen dramatically in the pasttwo decades.TrueFalse16.The United States accounted for a significantly larger share of the world economy in 2012 than itdid in the 1960s.TrueFalse17.Beginning in the 1970s, European and Japanese firms began to shift labor-intensivemanufacturing operations fromdeveloping nations to their home countries where labor costs werelower.TrueFalse18.The stock of foreign direct investment refers to the total cumulative value of foreign investmentsin a country.TrueFalse

Loading page image...

19.Throughout the 1990s, the amount of investment directed at both developed and developingnations increased dramatically.TrueFalse20.Although most international trade and investment are still conducted by large firms, manymedium-size and small businesses are becoming increasingly involved in international trade andinvestment.TrueFalse21.Many of the former Communist nations of Europe and Asia seem to share a commitment todemocratic policies and free market economies.TrueFalse22.Themove toward a global economy has strengthened the adoption of conservative economicpolicies by developing nations.TrueFalse23.According to many influential economists, the increase in international trade and cross-borderinvestment willresult in an increase in the prices of goods and services.TrueFalse24.It is possible that economic growth in developed nations has offset the fall in the share of nationalincome enjoyed by unskilled workers, raising their living standards.TrueFalse25.The growing income inequality is a result of the wages for skilled workers being discounted.TrueFalse26.In general, as countries get richer, they enact tougher environmental and labor regulations.TrueFalse27.Highly indebted poor countries (HIPCs) can bootstrap themselves out of poverty by pursuingretaliatory trade policies rather than free trade policies.TrueFalse28.Managers in an international business must find ways to work around the limits imposed byspecific governmental institutions.TrueFalse

Loading page image...

29.Despite all the talk about the emerging global village, differences between countries such ascultures and political systems are very profound and enduring.TrueFalse30.As aresult of globalization, international businesses can avoid the haggle of currency exchangesduring cross-border transactions.TrueFalse31.Which of the following has been reduced as a result of globalization?A.Volume of goods and servicesB.Foreign exchange transactionsC.Environment and labor lawsD.Differences in material cultureE.Regulation of markets32.What is the shift toward a more integrated and interdependent world economy called?A.International tradeB.Foreign direct investmentC.GlobalizationD.Moore's LawE.Containerization33.Automobile companies promote different car models in different countries depending on a rangeof factors such asdemographics, local taste, local fuel costs, income levels, traffic congestion,and cultural values. This most likely demonstrates that:A.significant differences still exist among national markets.B.cultural diversity has been replaced by global uniformity.C.the global market is less complex than national markets.D.only multinational giants can benefit from the globalization of markets.E.the social norms in a country do not affect purchase decisions of consumers.

Loading page image...

34.Which of the following statements best supports the claim that greater uniformity replacesdiversity in the context of global markets?A.Differences in business systems and legal regulations lead companies to customize theirmarketingstrategies, product features, and operating practices to best match conditions in aparticular country.B.As rival global firms follow each other across countries, they bring with them their brandnames, products, and marketing strategies from other national markets, thus creatinghomogeneity across markets.C.Truly innovative companies succeed by developing products that serve specific needs of thelocal markets.D.The volume of goods, services, and investment crossing national borders hasexpanded at aslower rate than world output for more than half a century.E.The most global of markets are not typically markets for consumer products, as significantdifferences in consumer tastes and preferences still exist among national markets.35.Which of the following refers to the sourcing of goods and services from locations around theglobe to take advantage of national differences in the cost and quality of factors such as labor,energy, land, and capital?A.Globalization of marketsB.Containerization of productionC.Dispersal of productionD.Globalization of productionE.Industrialization of markets36.Which of the following best illustrates the globalization of production?A.Daily Diamonds Inc.buys diamonds from South Africa and exports them to India for the cuttingprocess.B.Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in China toserve the Asian market.C.Uncle Crab, a U.K. fast food chain, has been serving customers worldwide through itsfranchises.D.Silver Unicorn Inc. uses sales personnel from the respective host country to sell its productsand services.E.Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of itsAmerican and Australian customers.

Loading page image...

37.West Electronic Corporation sources goods and services for its electronics products from differentlocations around the globe in an attempt to take advantage of differences in the cost andqualityof labor and land. This practice demonstrates the:A.globalization of production.B.globalization of markets.C.dislocation of a developing nation's economy.D.restriction on foreign direct investment.E.regulation of theenvironment.38.Early outsourcing efforts were primarily confined to:A.accounting services.B.manufacturing activities.C.testing services.D.educational activities.E.consulting services.39.Which of thefollowing services CANNOT be outsourced to foreign nations?A.Debugging softwareB.Handling consumer queriesC.Transcribing medical filesD.Interpreting MRI scansE.Delivering closing arguments for a lawsuit40.Which of thefollowing was established after the Uruguay Round to police the international tradingsystem?A.United NationsB.International Monetary FundC.Group of TwentyD.World Trade OrganizationE.World Bank41.Why was the World Bankset up?A.To preserve peace through international cooperationB.To promote economic developmentC.To maintain order in the international monetary systemD.To formulate a coordinated policy response to financial crisesE.Topolice the world trading system

Loading page image...

42.Which of the following is an argument put forth by critics of the IMF?A.It increases barriers to the free flow of goods and investment across national borders.B.It provides assistance only todeveloping nations and completely ignores the developednations.C.It is not powerful enough to ensure that the nation-states adhere to the rules laid down in tradetreaties.D.It promotes the rise of communism across the globe.E.It usurps the sovereignty of nation-states by telling governments what economic policies theymust adopt.43.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.B.encourage high tariffs on imports of manufactured goods.C.provide enhanced protection for patents.D.promote the establishment of multinational treaties.E.facilitate globalization of production.44.Who, along withrepresentatives from the European Union and the European Central Bank,represent the 19 largest economies in the world on the G20?A.Finance ministers and central bank governorsB.Presidents and defense ministersC.Prime ministers and army chiefsD.International trade ministersE.Ministers of foreign affairs45.Which of the following is a macro factor underlying the trend toward greater globalization?A.Rise of communism across the globeB.Increase innationalization of private organizationsC.Increase in diversity in consumer tastes and preferencesD.Increase in trade regulations across the globeE.Dramatic developments in information processing and other technologies

Loading page image...

46.Which ofthe following best exemplifies foreign direct investment (FDI)?A.Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia,Philippines, and Australia.B.Chivalry, a U.S.-based phone manufacturingcompany, has set up its own assembly plant inJapan to cater to the needs of the Asian market.C.Delicate Love, a reputable florist company in Holland, exports tulips and roses throughout theglobe.D.Samantha started an Italian restaurant in her home country, the United States, after she tookcooking lessons from a well-known chef in Italy.E.Yin and Yang Inc., a Chinese firm, supplies buttons and zippers to major denim brands in theUnited Kingdom.47.Michelle, an Italian fashiondesigner, sells her merchandise by exporting them to the UnitedStates, United Kingdom, and Brazil. According to this information, Michelle is most likely involvedin:A.foreign direct investment.B.globalization of production.C.international trade.D.multinational enterprise.E.outsourcing.48.For foreign direct investment (FDI) to occur, a firm should primarily:A.conduct cross-border bartering with neighboring countries.B.invest resources in businessactivities outside its home country.C.export goods or services to consumers in another country.D.import goods or services from producers in another country.E.erect formidable barriers to international trade.49.The motive behind thehigh tariffs imposed by nations on imports of manufactured goods, prior toWorld War II, was to:A.deter any possible attempts to promote communism.B.protect domestic industries from foreign competition.C.prevent the occurrence of theGreat Depression.D.safeguard patents, copyrights, and trademarks.E.promote the trade of services over the trade of manufactured goods.

Loading page image...

50.Which of the following reasons contributed to the Great Depression of the 1930s?A.Inability to meet the increasing world demand for productsB.Several countries accepting General Agreement on Tariffs and TradeC.Increasing attack from foreign competitors on domestic industriesD.Privatization of state-owned organizationsE.Countries progressively raising trade barriers against each other51.The 1993 Uruguay Round:A.increased trade and investment barriers.B.excluded the trade of services from international trade.C.transformed the World TradeOrganization into the GATT.D.provided enhanced protection for patents, trademarks, and copyrights.E.promoted the worldwide rise of communism.52.Which of the following was a part of the agenda of the Doha Round of talks launched by theWTO?A.Limiting the use of antidumping lawsB.Abolishing the International Monetary FundC.Increasing tariffs on industrial goods, services, and agricultural productsD.Persuading member governments to cut defense spendingE.Establishing GATT as a replacement for the WTO53.The lowering of trade and investment barriers:A.protects domestic industries from foreign competition.B.was not an agenda of the Uruguay Round.C.allows firms to baseproduction at optimal locations outside their home country.D.creates an unfavorable environment for FDI.E.caused the Great depression of the 1930s.54.Which of the following has been declining in the developing nations of the world suchas China,India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil?A.Economic opportunities for international tradeB.IndustrializationC.Contribution toward the share of world outputD.The stock of foreign direct investmentE.Barriers to the free flow of goods, services, and capital

Loading page image...

55.While the lowering of trade barriers made globalization of markets and production a theoreticalpossibility, which of the following has made it a tangible reality?A.The advances in communication, information processing, and transportation technologiesB.The rise of communism and the need for independent economies on a global scaleC.The increasing diversity in consumer tastes and preferences worldwideD.Theincreasing differences in the material culture the world overE.The decreasing significance of the World Trade Organization56.Gerald bought his son, David, a computer two years ago. Recently, he decided to buy hisdaughter, Julian, a computer of her own. In the context of the two-year gap between the purchaseof both the computers and Moore's law, it is most likely that:A.Gerald paid a higher price for Julian's computer.B.David's computer will have a microprocessor with betterpower than that of Julian's.C.both David's and Julian's computers would cost Gerald the same price.D.the microprocessor in Julian's computer will be more advanced in terms of power than that ofDavid's.E.the power of the microprocessors, in both David and Julian's computers, would be the same.57.Richard purchased a computer for $600 in 2014. Compared to the $900 computer that he hadpurchased way back in 2010, the new one seems to be more efficient in terms of the price he haspaidand the power of the microprocessor technology. This is best explained by:A.product liability.B.property rights.C.Moore's law.D.purchasing power parity.E.sustainable strategies.58.The advent ofcontainerization has:A.made the economies of the world's nation-states less intertwined.B.made moving goods from one mode of transport to another extremely labor-intensive.C.significantly lowered the costs of shipping goods over long distances.D.slowed down the globalization of markets and production.E.increased costs of coordinating and controlling a global organization.

Loading page image...

59.Which of the following is most likely to be observed in today's global economy?A.Increasing U.S. share of world outputB.Large U.S. entrepreneurial firms dominating the international business sceneC.Increasing U.S. dominance in the world economy and world trade pictureD.Most of the nations being governed bycentrally planned economies of the communist worldE.Rapid rise in the share of world output accounted for by developing nations such as China andIndia60.Which of the following countries has seen a relative decline in its share of world output between1960 and 2012?A.United StatesB.ThailandC.JapanD.ChinaE.South Korea61.Which of the following statements reflects the changing demographics of the global economy?A.U.S. dominance in export markets haswaned as Japan, Germany, and a number of newlyindustrialized countries have taken a larger share of world exports.B.The change in the position of the United States in terms of the share of world output is theresult of the absolute decline in the health of the U.S. economy.C.From 1960 to 2010, countries that experienced a large decrease in their share of world outputinclude Japan, Thailand, Malaysia, Taiwan, and South Korea.D.The United States is the only developed nation to see itsrelative standing in the share of worldoutput slip.E.Today, roughly half the globe—the centrally planned economies of the communist world—isoff-limits to Western international businesses.62.Which of the following has seen a positivechange from 1960 to 2012?A.Growth of the centrally planned economies of the communist worldB.U.S. position in the world economy and world trade pictureC.The share of world output enjoyed by rich industrialized countries such as GreatBritain,Germany, and JapanD.The share of world output accounted for by developing nationsE.Prevalence of independent and self-contained national economies

Loading page image...

63.Due to the changing economic geography, many of tomorrow's economic opportunities are mostlikely to be found in the:A.rich industrialized nations of the world like Great Britain and Germany.B.centrally planned economies of the communist world.C.United States.D.developing nations of the world such as China, India, and Brazil.E.countries that are currently not members of the World Trade Organization.64.Which of the following identifies the motivation for much of the foreign directinvestment by non-U.S. firms?A.The desire to disperse production activities to optimal locationsB.The need to suppress emerging economies such as China, India, and BrazilC.The demand for skilled workers in foreign nationsD.The lack of adequate environmental regulationsE.The establishment of multinational treaties65.Which of the following refers to the total cumulative value of foreign investments?A.Purchasing power parityB.Multipoint pricingC.Stock offoreign direct investmentD.Switch tradingE.Bill of lading66.Silver Fire Electric Inc., a U.S.-based company, has productive activities in more than twocountries. As a result, it would be most appropriate to refer to Silver FireElectric as what type ofenterprise?A.GreenfieldB.UniversalC.PrivateD.MultinationalE.Public

Loading page image...

67.What are mini-multinationals?A.Multinational firms from relatively small countries in terms of areaB.Multinationals from the developing nations of the worldC.Multinational firms that operate in only one foreign countryD.Medium-sized and small multinationalsE.Subsidiaries of large multinationals in foreign countries68.Which of thefollowing statements reflects the trend in the changing nature of multinationalenterprises?A.Global business activity is increasingly being dominated by large U.S. multinationalcorporations.B.The number of medium-size and small multinationals is decreasing continuously.C.The ranks of the world's largest 100 multinationals are dominated by firms from developingeconomies.D.The Internet is increasing the barriers that small firms face in building international sales.E.International business is conducted not just by large firms but also by medium-size and smallenterprises.69.Universal Lingo, a U.K.-based language translation company employing just 65 peopleworldwide, has an annual turnover of $1.5 million. In this context, Universal Lingo is most likely tobe classified as a(n):A.large domestic firm.B.mini-multinational firm.C.greenfield firm.D.foreign firm.E.multinational giant.70.Which of the following conditions is most likely to act as a deterrent for foreign firms willing to dobusiness with former communist nations of East Europe and central Asia?A.The high levels of economic development in these countriesB.The signs of growing unrest and totalitarian tendencies seen in these countriesC.A strong commitment to market-based economic systems seen in these countriesD.The collapse of communism in these countriesE.Low returns involved in doing business in these countries

Loading page image...

71.In the past two decades, the majority of Latin American countries have:A.experienced a decline in the health of their economies.B.sold state-owned enterprises to private investors.C.beencharacterized by low growth, high debt, and hyperinflation.D.restricted investment by foreign firms.E.discouraged both democracy and free market reforms.72.Which of the following statements reflects the nature of the global economy ofthe twenty-firstcentury?A.National economies are becoming less integrated into a single and interdependent economicsystem.B.The number of nations joining the ranks of the developed world has reduced.C.Countries have extensively adopted liberal economic policies.D.There are fewer instances of state-owned businesses privatized and markets being opened tomore competition.E.The world is currently moving toward an economic system that is more unfavorable forinternational business.73.Which of the following statements is a general implication of globalization?A.Globalization is inevitable.B.From a purely economic perspective, globalization is all good.C.Globalization has nonegative impacts on the economies of the developed world.D.Globalization has reduced the risks associated with global financial contagion.E.As a result of globalization, a severe crisis in one region of the world can affect the entireglobe.74.An argument in support of the falling barriers to international trade and investment is that thefalling barriers:A.prohibit countries from specializing in the production of goods and services.B.drive the global economy towardgreater prosperity.C.reduce the need to export jobs overseas.D.increase the bargaining power of business firms by decreasing the incomes of consumers.E.reduce attacks from foreign competitors.

Loading page image...

75."Exporting jobs" to low-wagenations has contributed to:A.higher living standards in those countries that "export" the jobs.B.higher unemployment in wealthy advanced economies such as the United States.C.an increase in the income levels in those nations that"export" the jobs.D.lower standards of living in those countries to which the jobs are exported.E.reduced specialization in the production of goods and services.76.Which of the following has increased in the United States as a result ofglobalization?A.Unemployment rateB.Price of goods and servicesC.Demand for unskilled workersD.Standard of livingE.Income equality between workers in skilled and unskilled sectors77.Supporters of globalization insistthat dislocation in the form of lost jobs is a trade-off that willultimately lead to the economy being better off. Which of the following is being justified in thiscase?A.Protectionism and retaliatory trade policyB.Free trade of goods andservicesC.Rise of communismD.High tariff on imports of manufactured goodsE.The need to be a self-contained nation78.Critics of globalization say that exporting jobs to low-wage nations results in higherunemployment and lowerliving standards in their home nations. Which of the followingstatements does NOT support this argument?A.Globalization destroys manufacturing jobs in wealthy advanced economies.B.Globalization demonstrates a structural adjustment to a more integrated global economy.C.Globalization results in depressed wages in developed nations.D.Globalization leads to economic dislocation in most cases.E.Globalization induces a decline in the share of labor in national income.

Preview Mode

This document has 1433 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Test Bank For Global Business Today, 8th Edition

Global Business Today , 10th Edition Class Notes

CIS 337 Unit 7 Assignment Final Project Part IV Pr

Analysis of Leadership in Monster Inc

Evaluation of Alphabet's Mission, Vision, and 8-29

Boundless Management

Uncovering the Martha Stewart Tax Scandal Insider

Boundless Business

JetBlue Airlines Case Analysis

Effective Speaker Notes Template for BUS 210 Prese

Company

Explore

Study Tools