Deck 1: Globalization

Question 1

The power of the General Agreement on Tariffs and Trade (GATT) to settle trade disputes is what sets it apart from its predecessor, the World Trade Organization (WTO).

Answer 1

False

Question 2

Denationalization refers to national boundaries becoming less relevant.

Answer 2

True

Question 3

Imports are goods and services purchased abroad and brought into a country.

Answer 3

True

Question 4

Companies that sell global products can reduce costs by standardizing various aspects of their marketing activities.

Question 5

Globalization of production refers to convergence in buyer preferences in markets around the world.

Question 6

The General Agreement on Tariffs and Trade (GATT) was a treaty designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

Question 7

Exporting is any business transaction that crosses the borders of two or more nations.

Question 8

Resistance to worldwide trade agreements is causing some nations to place greater emphasis on regional pacts.

Question 9

International business is any commercial transaction that crosses the borders of two or more nations.

Question 10

A company that sells a global product can explore opportunities abroad if the home market is small or becomes saturated.

Question 11

The World Trade Organization (WTO) is the international organization that enforces the rules of international trade.

Question 12

Globalization does not affect a people's culture nor the way companies do business.

Question 13

Globalization benefits YouTube by helping the company reach a global audience.

Question 14

Globalization creates new risks and accentuates old ones for companies because it exposes them to new threats as well as to new opportunities.

Question 15

Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

Question 16

Products marketed in all countries essentially without any changes are called "international products."

Question 17

Internationalization refers to national boundaries becoming less relevant.

Question 18

Today, the institution of the General Agreement on Tariffs and Trade (GATT) continues to promote free trade.

Question 19

Because of its ability to penalize offending nations, the World Trade Organization (WTO) dispute settlement system truly is the spine of the global trading system.

Question 20

E-business (e-commerce) is the use of computer networks to purchase, sell, or exchange products, service customers, and collaborate with partners.

Question 21

The political agenda of an organization does not generally influence its claims and findings on the beneficial or harmful effects of globalization.

Question 22

Videoconferencing provides access to a company's computer network from distant locations using personal computers.

Question 23

Globalization critics claim that it eliminates manufacturing jobs in developed nations.

Question 24

Although falling barriers to trade and investment discourage globalization, technological innovation is accelerating the process.

Question 25

The World Bank is an agency created to provide financing for national economic development efforts.

Question 26

A "backlash to globalization" in the early 1800s helped usher in high tariffs and barriers to immigration.

Question 27

The International Monetary Fund (IMF) is an agency created to regulate fixed exchange rates and enforce the rules of the international monetary system.

Question 28

Critics of globalization argue that it eliminates jobs and lowers wages in developed nations and exploits workers in developing countries.

Question 29

One remarkable commonality among the world's least-global nations is their low levels of corruption.

Question 30

Critics charge that globalization and international outsourcing exploit workers in low-wage nations.

Question 31

Businesses are using the Internet to sharpen their forecasting, lower their inventories, and improve communication with their suppliers.

Question 32

GDP or GNP per capita is a nation's GDP or GNP multiplied by its population.

Question 33

Globalization defenders believe globalization creates positive benefits by reducing labor market flexibility in developed nations.

Question 34

Intranets provide access to a company's computer network from distant locations using personal computers.

Question 35

Innovation in the shipping industry is facilitating globalization by making shipping more efficient and dependable.

Question 36

Pro-globalization economists believe globalization decreases wealth and efficiency in both developed and developing nations.

Question 37

Globalization may have added to nationalist sentiments and aggravated tensions between countries leading up to the First World War.

Question 38

Gross national product (GNP) is the value of all goods and services produced by a country during a one-month period, excluding income generated by both domestic production and the country's international activities.

Question 39

Extranets give distributors and suppliers access to a company's database to place orders or restock inventories electronically and automatically.

Question 40

Openness to international trade allows a nation's businesses to become more efficient and pass the resulting savings on to consumers.

Question 41

Flexible labor markets allow workers to be redeployed rapidly to sectors of the economy where they are highly valued and in demand.

Question 42

Some countries have advanced their economies by harnessing the forces of globalization, while others have not.

Question 43

A business that has direct investments abroad in multiple countries is called a multinational corporation (MNC).

Question 44

In the debate over inequality, poor nations open to world trade and investment appear to grow faster than rich nations.

Question 45

Both supporters and critics of globalization appear to agree that it causes dislocation in labor markets.

Question 46

Few international firms support reasonable labor and environmental laws because future local markets for their goods and services are likely to be small.

Question 47

Globalization supporters argue that it allows us all to profit from our differing circumstances and skills.

Question 48

National culture is a weak shaper of a people's values, attitudes, customs, beliefs, and communication styles.

Question 49

Opponents to globalization argue that it causes a "race to the bottom" in environmental conditions and regulations.

Question 50

Globalization supporters argue that one of the most amazing consequences of globalization has been the spread of democracy worldwide.

Question 51

Large companies from the least developed nations dominate international business.

Question 52

Globalization supporters believe that benefits result from worker dislocation, or "churning" as it is called when there is widespread job turnover throughout an economy.

Question 53

Although globalization may cause political and economic ideologies to diverge, deeper elements of culture may not be as easily affected.

Question 54

In the debate over inequality, studies suggest that developing nations are unable to boost incomes of their poorest members of society by integrating themselves into the global economy.

Question 55

Globalization opponents argue that globalization and international outsourcing help to advance developing nations' economies.

Question 56

Globalization protesters complain that it is homogenizing our world and destroying the rich diversity of cultures it contains.

Question 57

Although studies tend to conclude that global inequality has risen in recent decades, they differ on the extent of the rise in global poverty.

Question 58

Opponents to globalization say that it allows international firms to exploit local labor and the environment, and then simply export their goods back to the home country.

Question 59

Critics of globalization believe the overall gains that may accrue to national economies are worth the lost livelihoods that individuals may suffer.

Question 60

Results of studies support critics' allegations that economic openness and foreign investment contribute to lower labor standards.

Question 61

Today, it is very rare for a business to search simultaneously for production bases and markets.

Question 62

Highly centralized production and marketing activities mean that businesses today seldom interact with people in distant locations within the international business environment.

Question 63

It is common for large companies' business deals such as mergers and acquisitions to be valued in the trillions of dollars.

Question 64

Technology makes the world market more accessible for companies that sell traditional products by lessening the cost and difficulties associated with global communication.

Question 65

A born global firm is a company that adopts a global perspective and engages in international business from or near its inception.

Question 66

________ is (are) all goods and services sold abroad and sent out of a country.

A) Necessities
B) Exports
C) Global licensing
D) Imports

Question 67

Each national business environment is composed of unique cultural, political, legal, and economic characteristics that define business activity within that nation's borders.

Question 68

Although multinational corporations are economically very powerful, the revenue of the world's largest business is still far below the gross domestic product of the smallest nation.

Question 69

There is very little or no export financing available for small businesses.

Question 70

All goods and services purchased abroad and brought into a country are called ________.

A) gross domestic product (GDP)
B) exports
C) foreign trade
D) imports

Question 71

Some businesses can become completely immune to all events in the international business environment.

Question 72

Globalization benefits companies by allowing them to sell the same products worldwide with little or no ________.

A) standardization
B) modification
C) exportation
D) advertising

Question 73

________ is(are) any commercial transaction(s) that cross(es) the borders of two or more nations.

A) Exports
B) Gross national product (GNP)
C) International business
D) Imports

Question 74

The most obvious difference between domestic and international business is that international business occurs between two or more nations that can have entirely different societies and commercial environments.

Question 75

International business occurs within a dynamic, integrated system that weaves together four distinct elements.

Question 76

Although globalization is a potent force, it still does not transform our societies and commercial activities.

Question 77

The characteristics of national business environments define the context of international business management.

Question 78

The dynamic nature of globalization creates increasing competition for all companies everywhere, as managers begin to see the entire world as an opportunity.

Question 79

The integrating power of globalization forces managers and their firms to be knowledgeable about the nations in which they operate.

Question 80

Research has found that only large companies can export successfully.