Question 1

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

Accepted Answer

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B)   cultural diversity has been replaced by global uniformity.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.F) A) and B)
G) C) and D)

Question 2

As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

Managing an international business is ch...

Question 4

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

Accepted Answer

A)   international trade
B)   foreign direct investment
C)   globalization
D)   Moore's Law
E)   containerizationF) A) and D)
G) C) and D)

Question 5

Describe the implications that result as the volume of world trade continues to grow faster than world GDP.

Accepted Answer

The fact that the volume of world trade ...

Question 6

The lowering of trade and investment barriers creates more opportunities for companies to have the world as their market.

Accepted Answer

A) True 
 B)False  True

Question 7

The WTO arbitrates trade disputes between its member states. What is one power of particular interest that the WTO can use?

Accepted Answer

A)   It can restrict the membership of nations in other supranational organizations such as the United Nations.
B)   It can grant loans to cash-strapped governments in poor nations.
C)   It supersedes IMF and has complete authority over IMF's actions.
D)   It can issue a ruling instructing a member state to change trade policies that violate GATT regulations.
E)   It can make decisions related to international trade without considering the collective interests of member states.F) A) and E)
G) A) and C)

Question 8

Explain the factors that led to the Great Depression of the 1930s.

Accepted Answer

During the 1920s and 1930s, many of the world's nation-states erected formidable barriers to international trade and foreign direct investment. Many of the barriers to international trade took the form of high tariffs on imports of manufactured goods. The typical aim of such tariffs was to protect domestic industries from foreign competition. One consequence, however, was "beggar thy neighbor" retaliatory trade policies, with countries progressively raising trade barriers against each other. Ultimately, this depressed world demand and contributed to the Great Depression of the 1930s.

Question 9

The range of problems that a manager in an international business faces is typically more complex than those faced by a manager in a domestic business.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)   Differences in business systems and legal regulations lead companies to customize their marketing strategies, product features, and operating practices to best match conditions in a particular country.
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.
C)   Truly innovative companies succeed by developing products that serve specific needs of the local markets.
D)   The volume of goods, services, and investment crossing national borders has expanded at a slower rate than world output for more than half a century.
E)   The most global of markets are not typically markets for consumer products, as significant differences in consumer tastes and preferences still exist among national markets.F) D) and E)
G) A) and B)

Question 11

The retaliatory trade policies of the 1920s and 1930s contributed to the Great Depression.

Accepted Answer

A) True 
 B)False

Question 12

As a result of globalization, we have been moving toward a world in which national economies are relatively self-contained entities.

Accepted Answer

A) True 
 B)False

Question 13

Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.

Accepted Answer

A) True 
 B)False

Question 14

The main goal of GATT was to

Accepted Answer

A)   limit foreign competition.
B)   make loans to struggling nations.
C)   increase domestic competition.
D)   privatize state-owned organizations.
E)   reduce trade barriers.F) A) and B)
G) B) and E) E

Question 15

Which scenario best demonstrates foreign direct investment?

Accepted Answer

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 manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.
C)   Delicate Love, a reputable 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 well-known chef in Italy.
E)   Yin and Yang Inc., a Chinese firm, supplies buttons and zippers to major denim brands in the United Kingdom.F) A) and E)
G) C) and E)

Question 16

A macro factor underlying the trend toward greater globalization is the

Accepted Answer

A)   rise of communism across the globe.
B)   increase in nationalization of private organizations.
C)   increase in diversity in consumer tastes and preferences.
D)   increase in trade regulations across the globe.
E)   dramatic developments in information processing and other technologies.F) A) and D)
G) D) and E)

Question 17

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

Accepted Answer

A)   globalization of markets.
B)   containerization of production.
C)   dispersal of production.
D)   globalization of production.
E)   industrialization of markets.F) None of the above
G) A) and E)

Question 18

Kellen's Karpets is headquartered in Las Vegas, Nevada, and has production plants in Mexico and Indonesia. Kellen's Karpets is an example of

Accepted Answer

A)   an acquisition.
B)   a multinational enterprise.
C)   a factor endowment.
D)   a global trader.
E)   a domestic company.F) A) and E)
G) B) and E)

Question 19

When compared to the past, the gap between rich and poor nations today has

Accepted Answer

A)   shown no significant change
B)   gotten bigger.
C)   become inexistent.
D)   become balanced.
E)   gotten smaller.F) All of the above
G) D) and E)

Question 20

The change in the United States' position as a dominant industrial power is characterized as a relative decline because it

Accepted Answer

A)   is the direct result of an isolationism policy.
B)   doesn't account for entrepreneurial activity.
C)   actually increased compared to some other developed nations.
D)   accounts for the production of goods and services.
E)   reflects the faster economic growth of several other economies.F) All of the above
G) A) and D)

Exam 1: Globalization

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

Correct Answer
verified

As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.

Correct Answer
verified

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

Correct Answer
verified
Managing an international business is ch...
View Answer

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

Correct Answer
verified

Describe the implications that result as the volume of world trade continues to grow faster than world GDP.

Correct Answer
verified
The fact that the volume of world trade ...
View Answer

The lowering of trade and investment barriers creates more opportunities for companies to have the world as their market.

Correct Answer
verified
True

The WTO arbitrates trade disputes between its member states. What is one power of particular interest that the WTO can use?

Correct Answer
verified

Explain the factors that led to the Great Depression of the 1930s.

The range of problems that a manager in an international business faces is typically more complex than those faced by a manager in a domestic business.

Correct Answer
verified

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

Correct Answer
verified

The retaliatory trade policies of the 1920s and 1930s contributed to the Great Depression.

Correct Answer
verified

As a result of globalization, we have been moving toward a world in which national economies are relatively self-contained entities.

Correct Answer
verified

Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.

Correct Answer
verified

The main goal of GATT was to

Correct Answer
verified
E

Which scenario best demonstrates foreign direct investment?

Correct Answer
verified

A macro factor underlying the trend toward greater globalization is the

Correct Answer
verified

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

Correct Answer
verified

Kellen's Karpets is headquartered in Las Vegas, Nevada, and has production plants in Mexico and Indonesia. Kellen's Karpets is an example of

Correct Answer
verified

When compared to the past, the gap between rich and poor nations today has

Correct Answer
verified

The change in the United States' position as a dominant industrial power is characterized as a relative decline because it

Correct Answer
verified

Exam 1: Globalization

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

Correct AnswerverifiedShow Answer

As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions.

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

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

Correct AnswerverifiedShow Answer

Describe the implications that result as the volume of world trade continues to grow faster than world GDP.

Correct AnswerverifiedThe fact that the volume of world trade ...View AnswerShow Answer

The lowering of trade and investment barriers creates more opportunities for companies to have the world as their market.

Correct AnswerverifiedTrue

The WTO arbitrates trade disputes between its member states. What is one power of particular interest that the WTO can use?

Correct AnswerverifiedShow Answer

Explain the factors that led to the Great Depression of the 1930s.

The range of problems that a manager in an international business faces is typically more complex than those faced by a manager in a domestic business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The retaliatory trade policies of the 1920s and 1930s contributed to the Great Depression.

Correct AnswerverifiedShow Answer

As a result of globalization, we have been moving toward a world in which national economies are relatively self-contained entities.

Correct AnswerverifiedShow Answer

Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.

Correct AnswerverifiedShow Answer

The main goal of GATT was to

Correct AnswerverifiedE

Which scenario best demonstrates foreign direct investment?

Correct AnswerverifiedShow Answer

A macro factor underlying the trend toward greater globalization is the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Kellen's Karpets is headquartered in Las Vegas, Nevada, and has production plants in Mexico and Indonesia. Kellen's Karpets is an example of

Correct AnswerverifiedShow Answer

When compared to the past, the gap between rich and poor nations today has

Correct AnswerverifiedShow Answer

The change in the United States' position as a dominant industrial power is characterized as a relative decline because it

Correct AnswerverifiedShow Answer

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Managing an international business is ch...
View Answer

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The fact that the volume of world trade ...
View Answer

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True

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E

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