QUESTION According to many influential economists, the increase in international trade and cross-border investment will result in an increase in the prices of goods and services. Indicate whether the statement is true or false. ANSWER FALSE Many influential economists, politicians, and business leaders seem to think that the shift toward a more integrated and […]
QUESTION As a result of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries. Indicate whether the statement is true or false. ANSWER FALSE Significant differences still exist among national markets along many relevant dimensions, including consumer tastes and preferences, distribution channels, culturally embedded value systems, business […]
QUESTION The move toward a global economy has strengthened the adoption of conservative economic policies by developing nations. Indicate whether the statement is true or false. ANSWER FALSE The move toward a global economy has been further strengthened by the widespread adoption of liberal economic policies by countries that had firmly opposed them for […]
QUESTION The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are losing value against those of other nations. Indicate whether the statement is true or false. ANSWER FALSE The IMF is often seen as the lender of last resort to nation-states whose economies […]
QUESTION It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by unskilled workers, raising their living standards. Indicate whether the statement is true or false. ANSWER TRUE It is possible that economic growth in developed nations has offset the fall in the share […]
QUESTION The World Trade Organization, the International Monetary Fund and its sister institution the World Bank, and the United Nations were all created by voluntary agreement between individual nation-states. Indicate whether the statement is true or false. ANSWER TRUE Over the past half century, a number of important global institutions have been created to […]
QUESTION Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe. Indicate whether the statement is true or false. ANSWER TRUE Substantial impediments make it difficult for firms to achieve the optimal dispersion of their productive […]
QUESTION The IMF is less controversial than its sister institution, the World Bank. Indicate whether the statement is true or false. ANSWER FALSE The World Bank is less controversial than its sister institution, the IMF. The World Bank has focused on making low-interest loans to cash-strapped governments in poor nations that wish to undertake […]
QUESTION Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country. Indicate whether the statement is true or false. ANSWER TRUE Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.
QUESTION After World War II, the advanced nations of the West committed themselves to increasing barriers to the free flow of goods, services, and capital between nations. Indicate whether the statement is true or false. ANSWER FALSE Having learned from past experience, the advanced industrial nations of the West committed themselves after World War […]
