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International Business, 12e (Hill)
1) Since Wally's Whistles is a medium-size business, it wouldn't benefit from globalization.
2) Globalization of production can help companies lower their overall cost structure or improve
the quality or functionality of their product offering.
3) Johann's business does not make consumer products; therefore, it would not be likely to
participate in global markets.
4) Outsourcing is a process that is limited to manufacturing enterprises.
5) 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.
6) When Cyprus had a financial crisis, it went to the World Bank, known as the lender of last
resort, to bail it out.
7) 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.
8) The Uruguay Round, finalized in December 1993, reduced protection for patents, trademarks,
9) "Beggar thy neighbor" retaliatory trade policies involved countries progressively lowering trade
barriers against each other, which contributed to the Great Depression of the 1930s.
10) 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.
11) World Bank gives aid of $100 million to Kenya for creating rural health care facilities. This is
an example of foreign direct investment.
12) The lowering of barriers to international trade enables firms to view the world, rather than a
single country, as their market.
13) According to WTO data, the volume of world merchandise trade has grown faster than the
world economy since 1950.
14) The cost of microprocessors continues to fall, while their power increases. This statement
supports the predictions made by Moore's Law.
15) Foreign direct investment by non-U.S. firms increased because they wanted to disperse
production activities to optimal locations and to build a direct presence in major foreign markets.
16) A current trend in international business is the decline of medium-sized and small
multinationals, known as mini-multinationals.
17) The globalization of the world economy has resulted in a relative increase in the dominance of
U.S. firms in the global marketplace.
18) Because Russia has shown signs of shifting back toward greater state involvement in economic
activity and authoritarian government, doing business in Russia is considered risky.
19) According to globalization critics, the decline in unskilled wage rates is due to the migration of
low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled
workers.
20) Evidence suggests that technological change has had a bigger impact than globalization on the
declining share of national income enjoyed by unskilled labor.
21) According to supporters of free trade, as countries get richer they commit greater violation of
environmental and labor regulations.
22) According to critics of globalization, today's interdependent global economy limits a nation's
national sovereignty.
23) According to supporters of debt relief, new democratic governments in poor nations should not
be forced to honor debts incurred by corrupt and dictatorial predecessors.
24) A firm needs to become a multinational enterprise to engage in international business.
25) Managing an international business is quite similar to managing a domestic business.
26) ________ refers to the shift toward a more integrated and interdependent world economy
A) Outsourcing
B) International marketing
C) Privatization
D) Globalization
27) In 2008 and 2009, the ________ became the forum through which major nations attempted to
launch a coordinated policy response to the global financial crisis, which started in America.
A) GATT
B) Group of Ten (G20)
C) Group of Twenty (G20)
D) World Trade Organization
28) The Uruguay Round provided
C) increased trade barriers.
D) reduced coverage of services and manufactured goods.
