QUESTION Which of the following is an argument put forth by critics of the IMF? A. It increases barriers to the free flow of goods and investment across national borders. B. It provides assistance only to developing nations and completely ignores the developed nations. C. It is not powerful enough to ensure that the nation-states […]
QUESTION In general, as countries get richer, they enact tougher environmental and labor regulations. Indicate whether the statement is true or false. ANSWER TRUE Supporters of free trade and greater globalization argue that tougher environmental regulations and stricter labor standards go hand in hand with economic progress. In general, as countries get richer, they […]
QUESTION According to the UN Charter, one of the four purposes of the UN is to: A. be a center for harmonizing the actions of nations. B. encourage high tariffs on imports of manufactured goods. C. provide enhanced protection for patents. D. promote the establishment of multinational treaties. E. facilitate globalization of production. ANSWER […]
QUESTION Managers in an international business must find ways to work around the limits imposed by specific governmental institutions. Indicate whether the statement is true or false. ANSWER FALSE Managers in an international business must also deal with government restrictions on international trade and investment. They must find ways to work within the limits […]
QUESTION Which of the following is a macro factor underlying the trend toward greater globalization? A. Rise of communism across the globe B. Increase in nationalization of private organizations C. Increase in diversity in consumer tastes and preferences D. Increase in trade regulations across the globe E. Dramatic developments in information processing and other technologies […]
QUESTION Highly indebted poor countries (HIPCs) can bootstrap themselves out of poverty by pursuing retaliatory trade policies rather than free trade policies. Indicate whether the statement is true or false. ANSWER FALSE Free trade alone, some argue, is a necessary but not sufficient prerequisite to help HIPCs bootstrap themselves out of poverty.
QUESTION Which of the following best exemplifies foreign direct investment (FDI)? A. Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia, Philippines, and Australia. B. Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market. C. […]
QUESTION Despite all the talk about the emerging global village, differences between countries such as cultures and political systems are very profound and enduring. Indicate whether the statement is true or false. ANSWER TRUE Countries differ in their cultures, political systems, economic systems, legal systems, and levels of economic development. Despite all the talk […]
QUESTION As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions. Indicate whether the statement is true or false. ANSWER FALSE Cross-border transactions also require that money be converted from the firm’s home currency into a foreign currency and vice versa. Because currency exchange rates vary in […]
QUESTION Which of the following has been reduced as a result of globalization? A. Volume of goods and services B. Foreign exchange transactions C. Environment and labor laws D. Differences in material culture E. Regulation of markets ANSWER D
