Chpt 1 Sample

Topics: International trade, Globalization, World Trade Organization Pages: 124 (21302 words) Published: October 24, 2012
Chapter 01

True / False Questions

1. Globalization refers to the shift toward a more integrated and interdependent world economy.  True    False


2. Tastes and preferences of consumers in different nations are beginning to converge on some global norm.  True    False


3. A company has to be a major multinational corporation to facilitate and benefit from the globalization of markets.  True    False


4. Because of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries.  True    False


5. The most global markets currently are markets for consumer products.  True    False


6. As firms follow each other around the world, they bring with them many of the assets that served them well in other national markets. Thus, greater diversity replaces uniformity.  True    False


7. 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.  True    False


8. The GATT succeeded the World Trade Organization (WTO).  True    False


9. Over its entire history, the WTO has promoted the lowering of barriers to cross-border trade and investment.  True    False


10. The IMF is less controversial than its sister concern, the World Bank.  True    False


11. The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil.  True    False


12. After World War I, the advanced nations of the West committed themselves to removing barriers to the free flow of goods, services, and capital between nations.  True    False


13. World merchandise trade includes trade in manufactured goods, agricultural goods, and services.  True    False


14. Trade in services now accounts for more than half of the value of all international trade.  True    False


15. The volume of world output has grown faster than the volume of world merchandise trade since the 1950s, according to data from the World Trade Organization.  True    False


16. Moore's Law predicts that the power of microprocessor technology doubles and its cost of production declines in half every 18 months.  True    False


17. As transportation costs associated with the globalization of production decline, dispersal of production to geographically separate locations becomes more economical.  True    False


18. The Internet has acted as a regulatory brake on unfettered international trade in business.  True    False


19. In any society, the media are the primary conveyors of culture.  True    False


20. The dominance of large multinational British firms on the international business scene is one of the changing trends of globalization.  True    False


21. As the world's largest industrial power, the United States accounted for a significantly larger share of the world economy in 2008 than it did in the 1960's.  True    False


22. Most forecasts now predict a rapid rise in world output accounted for by developing nations such as China, India, and South Korea, and a relative decline in the share enjoyed by rich industrialized countries such as Britain and the United States. United States and other long-established developed nations seems likely.  True    False


23. In the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from their home markets to developing nations where labor costs were lower.  True    False


24. The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country.  True    False


25. A slump in foreign direct investment into developed nations from 1998 to 2000 was followed by a surge in 2001 to 2003.  True    False


26. In the 1960s, global business activity...
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