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 […]
QUESTION The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding it easier to protect themselves from attack by foreign competitors Indicate whether the statement is true or false. ANSWER FALSE The globalization of markets and production and the resulting […]
QUESTION The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity. Indicate whether the statement is true or false. ANSWER TRUE The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity.
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 Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from developing nations to their home countries where labor costs were lower. Indicate whether the statement is true or false. ANSWER FALSE Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from their home […]
QUESTION Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness? A. Global standardization strategy B. Localization strategy C. International strategy D. Transnational strategy E. Nationalization strategy ANSWER D
QUESTION The United States accounted for a significantly larger share of the world economy in 2012 than it did in the 1960s. Indicate whether the statement is true or false. ANSWER FALSE During the 1960s, the United States routinely accounted for 20 percent of world exports of manufactured goods, but the U.S. share of […]
QUESTION Which of the following is an observation made by researchers Bartlett and Ghoshal regarding modern multinational enterprises? A. Global logistics industry makes the concept of “location economies” redundant for international firms. B. Core competencies and skills can develop in any of the firm’s worldwide operations. C. Flow of skills between a firm and its […]
