1. The shift toward a more integrated and interdependent world economy is referred to
as globalization.
True False
2. A company does not need a large size to facilitate, and benefit from, the globalization
of markets.
True False
3. Companies hope to lower their overall cost structure or improve the quality or
functionality of their product offering through globalization of production.
True False
4. The most global markets currently are markets for consumer products.
True False
5. Outsourcing is a process that is limited to manufacturing enterprises.
True False
6. The health care sector in the U.S. cannot avail the benefits of outsourcing to low-cost
producers in other nations because of the nature of the work.
True False
7. The World Bank has focused on policing the world trading system and making sure
nation-states adhere to the rules laid down in trade treaties.
True False
8. The World Bank is known as the lender of the last resort.
,9. One of the UN's central mandates is the promotion of higher standards of living, full
employment, and conditions of economic and social progress and development.
True False
10. In 2008 and 2009, the GATT became the forum though which major nations
attempted to launch a coordinated policy response to the global financial crisis, which
started in America.
True False
11. The Uruguay Round, finalized in December 1993, reduced protection for patents,
trademarks, and copyrights.
True False
12. "Beggar thy neighbor" retaliatory trade policies involved countries progressively
lowering trade barriers against each other, which contributed to the Great Depression
of the 1930s.
True False
13. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in
China to take advantage of the lower labor costs there. This is an example of foreign
direct investment.
True False
14. World Bank gives an aid of 100 million dollars to Kenya for creating rural health care
facilities. This is an example of foreign direct investment.
True False
15. The lowering of barriers to international trade enables firms to view the world, rather
than a single country, as their market.
True False
16. According to WTO data, the volume of world merchandise trade has grown faster than
the world economy since 1950.
True False
17. The expansion of world trade implies that nations are becoming less dependent on
each other for important goods and services.
, 18. Over the past 30 years the flow of FDI has accelerated faster than the growth in world
trade and world output.
True False
19. The globalization of markets and production and the resulting growth of world trade,
foreign direct investment, and imports all imply that firms are finding their home
markets protected from foreign competitors.
True False
20. The cost of microprocessors continues to fall, while their power increases. This
statement supports the predictions made by Moore's Law.
True False
21. Efficiency gains associated with containerization have caused transportation costs to
fall dramatically.
True False
22. The Internet has developed into the information backbone of the global economy.
True False
23. Globalization of markets has resulted in greater differentiation of consumer tastes and
preferences.
True False
24. In the early 1960s, the United States was by far the world's dominant industrial
power. However by 2009, it lost its dominant position and now, is no longer the
world's largest industrial power.
True False
25. Non-U.S. firms increasingly began to invest across national borders because they
wanted to disperse production activities to optimal locations and to build a direct
presence in major foreign markets.
True False
26. A multinational enterprise (MNE) is any business that exports or imports products
from other countries.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $31.03. You're not tied to anything after your purchase.
