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49) ________ predicts that the power of microprocessor technology doubles and its cost of
production falls in half every 18 months.
A) Keynes's Law
B) Say's Law
C) Moore's Law
D) Sullivan Principle
50) Containerization allows
A) reduction of the time needed to get from one location to another.
B) simplification of transshipment from one mode of transport to another.
C) buyers and sellers to find each other easily in a global economy.
D) enterprises to coordinate and control a globally dispersed production system.
51) The average tariff rates for manufactured goods have fallen significantly since 1950, and now
stand at about
A) 18 percent.
B) 5.9 percent.
C) 4.8 percent.
D) 1.6 percent.
52) The volume of world trade in merchandised goods has been
A) growing at the same rate as world GDP.
B) growing faster than world GDP.
C) growing slower than world GDP.
D) declining faster than world GDP.
53) The growth of international trade in service activities has been driven by advances in
A) communications.
B) transportation.
C) agriculture.
D) energy.
54) ABC Global has decided to invest resources in business activities outside its home
country. This is called
A) foreign direct investment (FDI).
B) direct international investment (DII).
C) international trade (IT).
D) foreign direct production (FDP).
55) The relative decline of the United States in the share of world output and world exports reflects
A) an increase in the barriers to foreign trade in the United States.
B) the deepening of the global financial crisis.
C) the reduced industrialization in developing nations.
D) the growth in the economic development of the world economy.
56) Why did many Japanese firms invest in North America and Europe in the 1970s?
A) to avoid a highly competitive domestic market
B) to exploit high domestic tariff barriers
C) to provide a hedge against unfavorable currency movements
D) to take advantage of low labor costs
57) The total cumulative value of foreign investments is best referred to as
A) accumulation of foreign shares.
B) portfolio investments.
C) stock of foreign direct investments.
D) stock market investments.
58) Throughout the 1990s, the amount of foreign direct investment directed at both developed and
developing nations increased dramatically. This trend reflects
A) a slowdown in global economic activity.
B) the increasing share of the United States in the total FDI stock.
C) the decline in cross-border flows of foreign direct investment.
D) the increasing internationalization of business corporations.
59) Which of the following countries has been the largest recipient of foreign direct investment
and, in 2016, received a record $249.8 billion in inflows?
A) Brazil
B) Russia
C) India
D) China
60) Toyota is a multinational enterprise (MNE), which is a firm that
A) exports its products to multiple countries.
B) has production activities in more than two countries.
C) does most of its business on the Internet.
D) lists its securities on a public exchange.
61) Since the 1960s, which of the following has been a notable trend in the demographics of the
multinational enterprise?
A) the decline of multinational companies in the manufacturing sector
B) the growth of government-owned multinational enterprises
C) the decline of non-U.S. multinationals
D) the growth of mini-multinationals
62) In the last two decades, Latin American countries such as Brazil, Mexico, and Chile have
A) embraced communist principles.
B) promoted government ownership of enterprises.
C) experienced increasing debt and inflation.
D) welcomed foreign investment.
63) Which of the following is a risk associated with globalization?
A) restrictions on competition
B) global financial contagion
C) excessive market regulation
D) differentiation of markets
64) The rise in the number of mini-multinationals means that
A) small businesses are becoming increasingly involved in international trade and investment.
B) it is increasingly difficult to enter the large multinational market.
C) countries are working together to minimize MNE influence.
D) there is greater state involvement in industry.
65) The downside of increased globalization is
A) global financial contagions are less likely.
B) a severe crisis in one region can affect the entire globe.
C) one nation may become too powerful.
D) the potential for increased exploitation of undeveloped nations by developed nations.
66) During the past two decades, change in Latin America has been characterized by
A) an increase in debt.
B) hyperinflation.
C) the sale of state-owned enterprises to private investors.
D) protests against foreign investment.
67) If China continues to move toward greater free market reforms it
A) may move from industrial superpower to third-world status.
B) will likely see a decrease in GDP per capita.
C) may move from third-world to industrial superpower status.
D) will likely give global market share to Western and Japanese enterprises.
68) After the United States, the second-largest source country of MNEs is
A) a tie between France and the United Kingdom.
B) China.
C) Japan.
D) a tie between Germany and the United Kingdom.
