International Business Questions

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Chapter 01



2. The shift toward a more integrated and interdependent world economy is referred to as globalization.  True    False

7. Because of their nature, service activities cannot be outsourced to other companies.  True    False

14. During the period 1990 - 2000, the volume of total exports was more than twice the world GDP.  True    False

28. The antiglobalization effort is created and supported only by a small group of hard-core anarchists.  True    False

33. According to supporters of free trade, as countries get richer they enact tougher environmental and labor regulations.  True    False

Multiple Choice Questions

41. Which of the following is not characteristic of globalization?  A. National economies are turning into independent economic systems. B. Material culture is starting to look similar the world over. C. Perceived distance is shrinking due to advances in transportation and telecommunications. D. Barriers to cross-border trade and investment are declining.

42. Globalization has _____ the opportunities for a firm to expand its revenues by selling around the world and _____ its costs by producing in nations where key inputs are cheap.  A. reduced, reduced

B. increased, increased
C. increased, reduced
D. reduced, increased

44. Identify the incorrect statement concerning globalization.  A. It has been blamed for unemployment in developed nations, environmental degradation and the Americanization of popular culture. B. It has created new threats for businesses accustomed to dominating their domestic markets. C. It is transforming industries and is highly welcomed by those who believed their jobs were protected from foreign competition. D. According to most economists it is a very beneficial process where gains outweigh the losses by a wide margin.

45. In the U.S., _____ percent of firms that export are small companies employing fewer than 100 people.  A. 90
B. 75
C. 50
D. 30

46. The most global markets currently are markets for: 
A. services.
B. consumer goods.
C. consumer durables.
D. industrial goods.

48. The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states.  A. International Development Association

B. World Bank
C. International Court of justice
D. World Trade Organization

50. The institution, created in 1944 at Bretton Woods, responsible for maintaining order in the international monetary system is the  A. IMF.
C. UN.

52. The _____ was established to remove barriers to the free flow of goods, services, and capital between nations.  A. UN

55. The growing integration of the world economy is: 
A. increasing the intensity of competition in a wide range of manufacturing and service industries. B. decreasing the intensity of competition in manufacturing industries, and increasing the intensity of competition in services. C. increasing the intensity of competition in manufacturing industries, and decreasing the intensity of competition in services. D. narrowing the scope of competition in a wide range of service, commodity, and manufacturing industries.

57. Identify the incorrect statement pertaining to the World Wide Web.  A. It makes it much easier for buyers and sellers to find each other. B. Viewed globally, it is emerging as an equalizer.
C. It rolls back all of the constraints of location, scale, and time zones. D. It allows businesses to expand their global presence at a lower cost than ever before.

61. Which of the following nation's world output has declined the least over the last 40 years?  A. France
B. United States
C. United Kingdom
D. Canada

62. Which of the following countries has had the maximum relative decline in its share of world output...
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