International Business Chapter 1 Study Set Question and Answer

International Business Chapter 1 Study Set Question and Answer International business is any commercial transaction that crosses the borders of two or more - CORRECT ANSWER-TRUE Imports are goods and services purchased abroad and brought into a country. - CORRECT ANSWER-TRUE Products marketed in all countries essentially without any changes are known as sourced products. - CORRECT ANSWER-FALSE The term globalization of production refers to convergence in buyer preferences in markets around the world. - CORRECT ANSWER-FALSE The General Agreement on Tariffs and Trade (GATT) was designed to promote free trade by reducing both tariffs and nontariff barriers to international trade. - CORRECT ANSWER-TRUE Today, NAFTA is the international organization that enforces the rules of international trade worldwide. - CORRECT ANSWER-FALSE The power of the General Agreement on Tariffs and Trade (GATT) to settle trade disputes is what sets it apart from its predecessor, the World Trade Organization (WTO). - CORRECT ANSWER-FALSE In the World Trade Organization (WTO) dispute settlement system, the WTO has the ability to penalize offending nations. - CORRECT ANSWER-TRUE Resistance to worldwide trade agreements is causing some nations to place greater emphasis on regional pacts. - CORRECT ANSWER-TRUE Gross national product (GNP) is the value of all goods and services produced by a domestic economy over a one-year period. - CORRECT ANSWER-FALSE A country's GDP per capita is its GDP divided by its population. - CORRECT ANSWER-TRUE Extranets give distributors and suppliers access to a company's online database to place orders electronically. - CORRECT ANSWER-TRUE One commonality among the world's least-global nations is low levels of corruption. - CORRECT ANSWER-FALSE The role of the World Bank is to provide financing for national economic development efforts. - CORRECT ANSWER-TRUE The rules of the international monetary system are enforced by the World Bank. - CORRECT ANSWER-FALSE