CHAPTER 1
Most global markets are for consumer goods despite the national differences in tastes and
preferences.
False
Foreign direct investment occurs when a firm invests resources in business activities
outside its home country.
True
The crisis that began in the financial sector of the United States during 2007 and 2008
swept around the world and plunged the global economy into a deep recession is
something new and without precedent in the history of globalization.
False
Globalization has been blamed for
unemployment in developed nations.
The two main components of globalization are:
the globalization of markets and the globalization of production.
The IMF:
has been criticized for making inappropriate policy recommendations.
Since the beginning of the 21stcentury, the flow of FDI:
had reached about $1.8 trillion in 2007.
Which of the following best describes the technological change that has been a driver of
globalization?
The microprocessor may be the single most important innovation.
Which of the following is NOT one of drivers that has made the globalization of
production feasible?
New applications for social media
In the early 1960s, the United States was by far the worlds dominant industrial power, but:
even with the relative decline, it is still the largest industrial power.
The foreign direct investment by non-U.S. firms was motivated primarily by the following
two factors – the desire to:
disperse production activities to optimal locations and build a direct presence in major
foreign markets.
Medium-size and small multinationals (mini-multinationals):
are becoming increasingly involved in international business.
In Seattle, during December 1999, massive protests against globalization captured the
attention of the world. Which of the following was not an issue the protesters raised?
Environmental standards that were too strict
One of the criticisms of the WTO is the concern that the organization will undermine the
sovereignty of nations who are members. Which of the following is not a criticism in this
area?
The power of the organization rests largely on the ability to persuade member states to
follow a certain action.
Successful managers in international business:
face issues more complex than the issues managers face in strictly domestic business.
CHAPTER 2
Both U.S. law and OECD conventions condemn all forms of bribery with the exception of
grease payments, which expedite the performance of routine government action.
True
Although democracy may not always be the cause of initial economic progress, it seems to
be one consequence of that process.
True
In the 1980s and 90s two trends characterized the worlds nation-states – a wave of
democratic revolutions and a strong move away from planned economies.
