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 […]
QUESTION The real costs of information processing and communication have fallen dramatically in the past two decades. Indicate whether the statement is true or false. ANSWER TRUE As a result of technological innovations, the real costs of information processing and communication have fallen dramatically in the past two decades
QUESTION Which of the following is true of a transnational strategy? A. It is easy to implement because it does not place any conflicting demands on a company. B. It is used when the pressures for cost reductions are low. C. It is usually used when the pressure for local responsiveness is relatively low. D. […]
QUESTION Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically Indicate whether the statement is true or false. ANSWER TRUE Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically, a trend that reflects the increasing internationalization of business corporations.
QUESTION Which of the following refers to a cooperative agreement between potential or actual competitors? A. Tactical union B. Strategic alliance C. Political affiliation D. Economic association E. Nationalization ANSWER B
QUESTION Which of the following statements is most likely to be true about the economic prospects of a country? A. The economic system and property rights regime are reasonably good predictors of economic prospects of a country. B. Countries with command economies tend to achieve greater economic growth rates than free market economies. C. Countries […]
QUESTION The cost of doing business is most likely to be the lowest in: A. closed totalitarian states. B. primitive or undeveloped economies. C. open democratic societies. D. countries where local laws and regulations set strict standards with regard to product safety, safety in the workplace, and environmental pollution. E. countries that lack well-established laws […]
QUESTION Both China and India have achieved high growth rates despite relatively weak property rights regimes and high levels of corruption, because of: A. the shift toward a communist ideology. B. their high living standards. C. their large population. D. their high consumer purchasing power. E. the shift toward a market-based economic system. ANSWER […]
QUESTION According to Adam Smith, market mechanism, rather than government policy, should determine a country’s imports and exports. Indicate whether the statement is true or false. ANSWER TRUE Adam Smith argued that the invisible hand of the market mechanism, rather than government policy, should determine what a country imports and what it exports.
