Chapter 1 Globalization Flashcards
Which of the following best defines international business?
It includes all private economic flows between two or more countries.
It includes all economic flows between two or more countries.
It includes all business transactions involving two or more countries.
It includes all business transactions in countries other than your home
country.
It includes all business transactions involving two or more countries.
Goods and services purchased abroad and brought into a country are called \_\_\_\_\_\_\_\_. Imports Gross national products Exports Gross domestic products
Imports
\_\_\_\_\_ are all goods and services sold abroad and sent out of a country. Exports Imports Gross domestic products Net national products
Exports
Olive oil prepared in a small Italian oil press factory and sold by large
supermarkets in the United States is an example of a ______.
U.S. Import
U.S. Export
Gross domestic product
Net national product
U.S. Import
U.S. Import
A business that has direct investments (in the form of marketing or
manufacturing subsidiaries) abroad in several countries is called a
_______.
Shell corporation
Domestic corporation
Dummy corporation
Multinational corporation
Multinational corporation
The rise of a new international entity called the ______ suggests that any
company, regardless of age, experience, and resources, can engage in
international business.
Transnational corporation
Global firm
Born global firm
Multinational corporation
Born global firm
Which of the following is NOT a likely reason to study international
business?
Differences among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to
country.
Firms may be better able to obtain better or less expensive resources by
operating internationally.
Global events affect all companies
Business conducted outside the limits of any one country is inexplicably on
the decline.
Business conducted outside the limits of any one country is inexplicably on
the decline.
The term \_\_\_\_\_\_\_\_ refers to entities cooperating across national boundaries. Internationalization Supranationalism Denationalization Multiculturalism
Internationalization
Most companies today operate in an environment of increased
transparency and scrutiny regarding their business activities. This is due
to ________.
The rise of the social media
Labor market flexibility in developing nations
The prosperity of developing nations
The heterogeneity in markets
The rise of the social media
The value of all goods and services produced by a country’s domestic and
international activities over a one-year period is the country’s ________.
Gross state product (GSP)
Gross world product (GWP)
Gross national product (GNP)
Gross domestic product (GDP)
Gross national product (GNP)
Which of the following refers to the use of computer networks to
purchase, sell, or exchange products; service customers; and collaborate
Virtual hosting
E-commerce
Telecommuting
Data virtualization
E-commerce
Development that meets the needs of the present without compromising the
ability of future generations to meet their own needs indicates ________.
Denationalization
Sustainability
Egalitarianism
Generalizability
Sustainability
An established consumer market that primarily comprises the middle
class and possesses efficient infrastructure is characteristic of ________
markets.
Traditional
Emerging
Frontier
Developed
Developed
________ markets are characterized by the rural population migrating to
cities for better pay and thus, overloading cities’ infrastructures.
Traditional
Developed
Emerging
Virtual
Emerging
Which of the following has NOT been a major force increasing globalization in recent decades? decreasing prices of natural resources increase in and expansion of technology growing pressure from consumers liberalization of cross-border trade
decreasing prices of natural resources
Whereas relocating production to low-cost locales traditionally meant
production of goods almost exclusively, it increasingly applies to the
production of ________.
Perishables
Domestic products
Services
Global brands
Services
Whereas relocating production to low-cost locales traditionally meant
production of goods almost exclusively, it increasingly applies to the
production of ________.
Perishables
Domestic products
Services
Global brands
Services
Two major forces that underlie the expansion of globalization are falling
barriers to trade and investment, and ________.
Political stagnation
Technological innovation
Rise of closed economics
Elevation of nationalism
Technological innovation
As former competitors in many industries link up to challenge others on a worldwide basis, \_\_\_\_\_\_\_\_ occurs. segregation consolidation denationalization technological stagnation
consolidation
The purpose of the General Agreement on Tariffs and Trade (GATT) was to \_\_\_\_\_\_\_\_. regulate exchange rates create an international currency create regional trade organizations promote free trade
promote free trade
\_\_\_\_\_\_\_\_ place limits on the quantity of a product being imported. Nontariff barriers (Quotas) Embargoes Trade blocs Anti-dumping duties
Anti-dumping duties
Which of the following accurately identifies a difference between GATT and the WTO?
GATT could enforce member compliance with agreements, but the WTO
cannot.
GATT rules did not cover trade in services, but the rules of the WTO do.
GATT withdrew the most-favored-nation clause, but the WTO reinstated it.
At its inception, GATT had more member nations than the WTO currently
has.
GATT rules did not cover trade in services, but the rules of the WTO do.
The ________ replaced the institution of GATT while retaining all of the
former GATT agreements.
Commonwealth of Nations
International Monetary Fund
Federation of International Trade Association
World Trade Organization
World Trade Organization
Under the WTO agreement, ________.
countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement
mechanism
a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures
tariffs are permitted to be levied by developed countries against developing
countries but not against each other
there is no dispute resolution mechanism except for trade involving
environmental products
a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures
The \_\_\_\_\_\_\_\_ is an agency created to provide financing for national economic development efforts. Financial Stability Board World Trade Organization World Bank Global Financial Markets Association
World Bank
Which of the following was originally created to regulate fixed exchange rates and enforce the rules of the International monetary system? International Monetary Fund European Union World Trade Organization World Bank
International Monetary Fund
Globalization is criticized because it ________.
exploits workers in low-wage nations
prevents developed countries from outsourcing work to developing nations
does not generate labor market flexibility in developing nations
creates fewer manufacturing jobs in developing nations
exploits workers in low-wage nations
Supporters affirm that globalization ________.
causes worker dislocation that gradually lowers wages
brings an end to practices like outsourcing
curbs market flexibility in developed nations
increases wealth and efficiency in all countries
increases wealth and efficiency in all countries
Which of the following terms is used to refer to widespread job turnover throughout an economy? onboarding redeployment churning restructuring
churning
Trade unions claim that by permitting international firms to continually move to nations with ________, globalization reduces labor’s bargaining power and forces overall labor standards
lower labor density
higher resource accessibility
better factory facilities
lower labor standards
lower labor standards
A special region in which companies can engage in tariff-free importing and exporting is called a(n) \_\_\_\_\_\_\_\_. economic union preferential trade area customs union export-processing zone
export-processing zone
Critics of globalization say that global consumer-goods companies destroy \_\_\_\_\_\_\_\_ . A) the homogenization of markets B) societal conformity C) free trade areas D) cultural diversity
cultural diversity
________ involves the idea that a nation-state is autonomous, cannot intervene in
the affairs of other nations, and can enter into binding international agreements.
National sovereignty
Communalism
Authoritarianism
Cultural liberalism
National sovereignty
