QUESTION Which of the following statements reflects the changing demographics of the global economy? A. U.S. dominance in export markets has waned as Japan, Germany, and a number of newly industrialized countries have taken a larger share of world exports. B. The change in the position of the United States in terms of the share […]
QUESTION For foreign direct investment (FDI) to occur, a firm should primarily: A. conduct cross-border bartering with neighboring countries. B. invest resources in business activities outside its home country. C. export goods or services to consumers in another country. D. import goods or services from producers in another country. E. erect formidable barriers to international […]
QUESTION Which of the following refers to the total cumulative value of foreign investments? A. Purchasing power parity B. Multipoint pricing C. Stock of foreign direct investment D. Switch trading E. Bill of lading ANSWER C The stock of foreign direct investment refers to the total cumulative value of foreign investments.
QUESTION The motive behind the high tariffs imposed by nations on imports of manufactured goods, prior to World War II, was to: A. deter any possible attempts to promote communism. B. protect domestic industries from foreign competition. C. prevent the occurrence of the Great Depression. D. safeguard patents, copyrights, and trademarks. E. promote the trade […]
QUESTION Which of the following identifies the motivation for much of the foreign direct investment by non-U.S. firms? A. The desire to disperse production activities to optimal locations B. The need to suppress emerging economies such as China, India, and Brazil C. The demand for skilled workers in foreign nations D. The lack of adequate […]
QUESTION Which of the following reasons contributed to the Great Depression of the 1930s? A. Inability to meet the increasing world demand for products B. Several countries accepting General Agreement on Tariffs and Trade C. Increasing attack from foreign competitors on domestic industries D. Privatization of state-owned organizations E. Countries progressively raising trade barriers against […]
QUESTION Which of the following refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor, energy, land, and capital? A. Globalization of markets B. Containerization of production C. Dispersal of production D. Globalization of production E. […]
QUESTION West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the: A. globalization of production. B. globalization of markets. C. dislocation of a developing nation’s economy. D. […]
QUESTION Which of the following best illustrates the globalization of production? A. Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process. B. Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in China to serve the Asian market. C. Uncle Crab, a U.K. […]
QUESTION Early outsourcing efforts were primarily confined to: A. accounting services. B. manufacturing activities. C. testing services. D. educational activities. E. consulting services. ANSWER B
