QUESTION Parker has become successful selling custom snowboards. The market started in Vermont, then expanded throughout the Northeast. After doing some research, he learned that he could sell an unlimited number of snowboards throughout Canada with no economic restrictions. What is Parker benefitting from? A) e-commerce B) outsourcing C) importing D) free trade E) new […]
QUESTION Which does the United States mainly export? A) services B) consumer goods C) capital goods D) agricultural products E) industrial supplies ANSWER Answer: C Explanation: C) Some 49 percent of what the United States exports is capital goods.
QUESTION Which of the following statements correctly describes importing? A) when a company makes goods domestically to sell domestically B) when a company buys goods from another country and sells them domestically C) when a company makes goods domestically and sells them to other countries D) when a company contracts a foreign company to produce […]
QUESTION Which of the following statements BEST describes the impacts of globalization on the United States? A) Job growth in other countries leads to job growth in the United States. B) Income growth in other countries leads to job growth in the United States. C) Job and income growth in other countries has no effect […]
QUESTION Which is the most positive effect of the global economy on the U.S. economy? A) increased foreign incomes B) greater U.S. consumer choice C) development of technology D) growth of U.S. jobs E) economic dominance of the United States ANSWER Answer: D Explanation: D) The global economy may lead to growth of U.S. […]
QUESTION Which of the following does NOT reflect the new world of globalization? A) stasis B) flexibility C) versatility D) change E) speed ANSWER Answer: A Explanation: A) With new technology, competitive pressures, and opportunities, global business is changing all the time—it is not static.
QUESTION Which adjective best describes the process of globalization? A) predictable B) reversible C) stabilizing D) disruptive E) equitable ANSWER Answer: D
QUESTION As globalization expanded, many U.S. companies shifted manufacturing jobs to countries that paid lower wages. As the economies in these countries grow and wages rise, how might this impact the U.S. companies that outsourced production? A) The companies will import more products. B) The companies will incur lower costs. C) The companies will shift […]
QUESTION Which of the following has NOT supported the expansion of free trade? A) growth of exports B) foreign investment in Asia C) collapse of communism in Eastern Europe D) growth of imports E) tighter economic regulation ANSWER Answer: E Explanation: E) Deregulation of economies played a role in the growth of global free […]
QUESTION How does the rise of international business most benefit small companies? A) They have access to foreign resources. B) They have greater choice of products to sell. C) Their startup costs are smaller. D) They can hire more employees. E) They can get started more quickly. ANSWER Answer: E Explanation: E) With the […]
