test Flashcards
Imperial Inc., an Irish semiconductor manufacturer, sources germanium, a raw material used in the production of semiconductors, from China. It takes advantage of differences across countries by treating them as business opportunities. This scenario best exemplifies
Arbitrage
Which of the following is one of the reasons why the United States and other developed countries no longer dominate the global market the way they once did?
The ease of becoming a multinational
Bianca is a student of international business at the University of Phoenix. She is of the opinion that the world is not fully connected. She believes that the global financial markets are controlled only by a few cities and that most businesses still operate in domestic markets. Bianca’s views are consistent with the _____ argument.
Round world
Imagine that Maretia is a country in Eastern Europe that recently joined the World Trade Organization (WTO). As a member of the WTO, Maretia is required to:
Uphold the multilateral trading system
Identify a true statement about the World Trade Organization.
It ensures that member nations impose the minimal number of restrictions on each other.
Dustin is a lecturer at a community college in Memphis. He believes that the globalization of markets has brought the world closer. He asserts that globalization has enabled free access to markets with less barriers to competition and uniform implementation of trade laws. Dustin’s beliefs are consistent with the theory of the _____ put forth by the author Thomas Friedman.
Flat World
Which of the following is the aim of the G20 head-of-government summits?
To coordinate financial and monetary policies to respond to financial crises
Which of the following best illustrates global convergence?
Hawke Inc., an American computer manufacturer, imports raw materials from Nigeria, and in return it invests in Nigeria’s infrastructure development
According to Nobel Prize-winning economist, Joseph Stiglitz, globalization:
perpetuates inequality throughout the world
Desktop computers are used by people all around the world. One of the challenges faced by computer manufacturing companies is to overcome the cultural and economic differences across communities that make it difficult for them to sell their products. Given this information, it can be said that desktop computers are _____.
Consumer Products
Which of the following is true of globalization of production?
It helps companies take advantage of national differences in cost and quality
Cora, an American citizen, is a critic of globalization. She believes that globalization has done more harm than good. She contends that globalization has detrimental effects on developed markets. Which of the following statements supports her contention?
Globalization makes it easy for employers to move jobs to cheaper locations
Identify an example of an emerging market.
Admenia, a country in Asia, has largely untapped markets with high levels of economic activity
Which of the following is true of arbitrage?
It involves searching for deals on production factors across geographic boundaries.
Hexagon Inc. is a small advertising start-up with a global presence. It relies on LinkedIn to find talent and uses social media to conduct its day-to-day business operations. Its staffing costs are low. Given this information, it can be said that Hexagon Inc. is most likely a _____.
micro-multinational corporation
