INTERNATIONAL BUSINESS THE
CHALLENGES OF GLOBALIZATION
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS FULL SOLUTION
STUDY GUIDE
●● Imports
Answer: Purchase of foreign manufactured goods in the buyer's
domestic market.
●● Exports
Answer: Sale of goods to a foreign country
●● FDI (foreign direct investment)
Answer: An investment made by a company or individual in one country
in business interests in another country
●● Globalization
Answer: The process by which businesses or other organizations
develop international influence or start operating on an international
scale.
,●● Globalization of markets and what are its benefits?
Answer: FDI, technological advancements, economies of scale
●● Globalization of production and what are its benefits?
Answer: sourcing of goods and services from locations around the globe
to take advantage of national differences in the cost and quality of
factors of production like land, labor, and capital
●● Two drivers of globalization?
Answer: Declining trade and investment barriers
●● Falling trade barriers
Answer: Makes it easier to sell internationally. The tastes and
preferences of consumers are converging on some global norm. Firms
help create the global market by offering the same basic products
worldwide.
●● GATT and the WTO
Answer: Polices the world trading system. Makes sure that nation-states
adhere to the rules laid down in trade treaties. Promotes lower barriers to
trade and investment.
●● Regional Trade Agreements
, Answer: Reciprocal trade agreements between two or more partners.
They include free trade agreements and customs unions
●● GNP
Answer: Measures the levels of production of any person or corporation
of a country.
●● GDP
Answer: Refers to and measures the domestic levels of production.
●● GDP per capita
Answer: Measure of a country's economic output that accounts for
population. It divides the country's gross domestic product by its total
population.
●● IMF (International Monetary Fund)
Answer: Promotes international financial stability and monetary
cooperation. It also facilitates international trade, promotes employment
and sustainable economic growth, and helps to reduce global poverty.
●● World Bank
Answer: International organization that fights poverty by offering
developmental assistance to middle-income and low-income countries.
CHALLENGES OF GLOBALIZATION
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS FULL SOLUTION
STUDY GUIDE
●● Imports
Answer: Purchase of foreign manufactured goods in the buyer's
domestic market.
●● Exports
Answer: Sale of goods to a foreign country
●● FDI (foreign direct investment)
Answer: An investment made by a company or individual in one country
in business interests in another country
●● Globalization
Answer: The process by which businesses or other organizations
develop international influence or start operating on an international
scale.
,●● Globalization of markets and what are its benefits?
Answer: FDI, technological advancements, economies of scale
●● Globalization of production and what are its benefits?
Answer: sourcing of goods and services from locations around the globe
to take advantage of national differences in the cost and quality of
factors of production like land, labor, and capital
●● Two drivers of globalization?
Answer: Declining trade and investment barriers
●● Falling trade barriers
Answer: Makes it easier to sell internationally. The tastes and
preferences of consumers are converging on some global norm. Firms
help create the global market by offering the same basic products
worldwide.
●● GATT and the WTO
Answer: Polices the world trading system. Makes sure that nation-states
adhere to the rules laid down in trade treaties. Promotes lower barriers to
trade and investment.
●● Regional Trade Agreements
, Answer: Reciprocal trade agreements between two or more partners.
They include free trade agreements and customs unions
●● GNP
Answer: Measures the levels of production of any person or corporation
of a country.
●● GDP
Answer: Refers to and measures the domestic levels of production.
●● GDP per capita
Answer: Measure of a country's economic output that accounts for
population. It divides the country's gross domestic product by its total
population.
●● IMF (International Monetary Fund)
Answer: Promotes international financial stability and monetary
cooperation. It also facilitates international trade, promotes employment
and sustainable economic growth, and helps to reduce global poverty.
●● World Bank
Answer: International organization that fights poverty by offering
developmental assistance to middle-income and low-income countries.
