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International Business, 6e (Wild/Wild)
Chapter 1 Globalization

1) International business is any commercial transaction that crosses the borders of two or more nations. Answer: TRUE
Diff: 1Page Ref: 4
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO1

2) Imports are goods and services purchased abroad and brought into a country. Answer: TRUE
Diff: 1Page Ref: 4
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO1

3) Products marketed in all countries essentially without any changes are known as sourced products. Answer: FALSE
Diff: 3Page Ref: 6
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO1

4) The term globalization of production refers to convergence in buyer preferences in markets around the world. Answer: FALSE
Diff: 2Page Ref: 7
AACSB: Dynamics of the global economy; Multicultural and diversity understanding Skill: Concept
Objective: Chapter 1-LO1

5) The General Agreement on Tariffs and Trade (GATT) was designed to promote free trade by reducing both tariffs and nontariff barriers to international trade. Answer: TRUE
Diff: 1Page Ref: 9
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO2

6) Today, NAFTA is the international organization that enforces the rules of international trade worldwide. Answer: FALSE
Diff: 1Page Ref: 9, 10
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO2

7) The power of the General Agreement on Tariffs and Trade (GATT) to settle trade disputes is what sets it apart from its predecessor, the World Trade Organization (WTO). Answer: FALSE
Diff: 1Page Ref: 10
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO2

8) In the World Trade Organization (WTO) dispute settlement system, the WTO has the ability to penalize offending nations. Answer: TRUE
Diff: 1Page Ref: 10
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO2

9) Resistance to worldwide trade agreements is causing some nations to place greater emphasis on regional pacts. Answer: TRUE
Diff: 1Page Ref: 10
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO2

10) Gross national product (GNP) is the value of all goods and services produced by a domestic economy over a one-year period. Answer: FALSE
Diff: 2Page Ref: 10
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO2

11) A country's GDP per capita is its GDP divided by its population. Answer: TRUE
Diff: 2Page Ref: 10
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO2

12) Extranets give distributors and suppliers access to a company's online database to place orders electronically. Answer: TRUE
Diff: 2Page Ref: 11
AACSB: Communication abilities; Dynamics of the global economy; Use of information technology Skill: Concept
Objective: Chapter 1-LO2

13) One commonality among the world's least-global nations is low levels of corruption. Answer: FALSE
Diff: 2Page Ref: 14
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO2

14) The role of the World Bank is to provide financing for national economic development efforts. Answer: TRUE
Diff: 2Page Ref: 16
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO3

15) The rules of the international monetary system are enforced by the World Bank. Answer: FALSE
Diff: 2Page Ref: 16
AACSB: Dynamics of the global economy
Skill: Concept
Objective: Chapter 1-LO3

16) Critics of globalization argue that it eliminates jobs in developing nations. Answer: FALSE
Diff: 2Page Ref: 17
AACSB: Dynamics of the global economy; Ethical understanding and reasoning abilities Skill: Concept
Objective: Chapter 1-LO3

17) Pro-globalization economists believe globalization increases wealth in...
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