Globalization Flashcards

1
Q

Foreign direct investment involves investments in non-monetary

A

Assets in a foreign location

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2
Q

The international organization that has the promotion of economic development through loans to developing countries as a primary purpose

A

World bank

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3
Q

The share of the total purchases and output has

A

Increased

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4
Q

When goods are outsourced to a foreign supplier the supplier is least likely to encounter

A

Market risk

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5
Q

Can mitigate risk of outsourcing by including an

A

Arbitration clause with the foreign supplier

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6
Q

Investment in foreign currency is fewer dollars and borrowing in a foreign currency is more dollars when

A

Dollar strengthens

Dollar weakens

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7
Q

Eurodollars are dominated in US and don’t provide

A

Long term loans

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8
Q

Europe has the greatest decline in worldwide

A

Output over the last 40 years

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9
Q

Us exports are what percent worldwide

A

10%

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10
Q

Asia has the greatest share of

A

Worldwide output

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11
Q

The us share of worldwide GDP is

A

25%

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12
Q

Least likely advantage of a wholly owned foreign subsidiary is

A

Minimizes capital investment required

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13
Q

Goods with a low value weight ratio are less likely to be suitable for

A

Importing than goods

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14
Q

Exporting goods one may encounter import

A

Restrictions

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15
Q

A foreign subsidiary is the greatest control over an

A

International business activity

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16
Q

Licensors do not remain more involved than

A

Franchising

17
Q

An economic crisis that cannot be addressed by the international monetary find is

A

The balance of trade crisis