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
QUESTION As a result of international trade, the economies of the world’s nation-states are becoming less intertwined. Indicate whether the statement is true or false. ANSWER FALSE The economies of the world’s nation-states are becoming more intertwined. As trade expands, nations are becoming increasingly dependent on each other for important goods and services
QUESTION Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances. Indicate whether the statement is true or false. ANSWER TRUE In economic terms, the most important major innovations in transportation technology are probably the development of commercial jet aircraft and superfreighters and the introduction of containerization, which […]
QUESTION The Uruguay Round extended GATT to cover services as well as manufactured goods. Indicate whether the statement is true or false. ANSWER TRUE The Uruguay Round reduced trade barriers; extended GATT to cover services as well as manufactured goods; provided enhanced protection for patents, trademarks, and copyrights; and established the World Trade Organization […]
QUESTION The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country. Indicate whether the statement is true or false. ANSWER TRUE The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country
