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 […]
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 Firms that pursue which of the following strategies focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies? A. International B. Transnational C. Localization D. Global standardization E. Nationalization ANSWER D
QUESTION Firms that pursue which of the following strategies differentiate their product offering across geographic markets to account for local differences? A. International B. Global standardization C. Transnational D. Multidomestic E. Nationalization ANSWER C
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
