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 Although mercantilism is an old and largely discredited doctrine, its echoes remain in modern political debate and in the trade policies of many countries. Indicate whether the statement is true or false. ANSWER TRUE Although mercantilism is an old and largely discredited doctrine, its echoes remain in modern political debate and in the […]
QUESTION Pressures for greater protectionism increased around the world during the 1980s and early 1990s due to the strain caused by the persistent trade deficit in the world’s largest economy, Japan. Indicate whether the statement is true or false. ANSWER FALSE During the 1980s and early 1990s, the world trading system erected by the […]
QUESTION A critical competitive feature of an oligopoly is independence of the major players. Indicate whether the statement is true or false. ANSWER FALSE An oligopoly is an industry composed of a limited number of large firms. A critical competitive feature of such industries is interdependence of the major players: What one firm does […]
QUESTION Which of the following is most likely to necessitate the delegation of marketing functions to national subsidiaries? A. Differences in distribution channels B. Pressures for decreasing consumer surplus C. Lack of product customization D. Pressures for increasing economies of scale E. Pressures for increasing consumers’ reservation price ANSWER A
