TEST BANK FOR International Business: Competing in the Global Marketplace 11th Edition by Charles Hill ISBN % VERIFIED A+ GRADE ASSURED!!!!! GUARANTEED PASS!!!!! YOUR ULTIMATE GUIDE!!!!!LATEST UPDATE!!!!

, Chapter 01 fd fd




Globalization


True / False Questions
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1. A company does not need a large size to facilitate, and benefit from, the globalization of mar
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kets.

True False

2. Companies hope to lower their overall cost structure or improve the quality or fun
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ctionality of their product offering through globalization of production.
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True False

3. The most global markets currently are markets for consumer products.
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True False

4. Outsourcing is a process that is limited to manufacturing enterprises.
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True False

5. The World Bank has focused on policing the world trading system and making sure natio
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n-states adhere to the rules laid down in trade treaties.
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True False

6. The World Bank is known as the lender of the last resort.
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True False

7. One of the UN's central mandates is the promotion of higher standards of living, full emp
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loyment, and conditions of economic and social progress and development.
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True False

8. The Uruguay Round, finalized in December 1993, reduced protection for patents, tra
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demarks, and copyrights. fd fd




True False

9. "Beggar thy neighbor" retaliatory trade policies involved countries progressively lowering
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trade barriers against each other, which contributed to the Great Depression of the 1930s.
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True False

,10. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China to t
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ake advantage of the lower labor costs there. This is an example of foreign direct investment
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.

True False

11. World Bank gives an aid of 100 million dollars to Kenya for creating rural health care facil
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ities. This is an example of foreign direct investment.
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True False

12. The lowering of barriers to international trade enables firms to view the world, rather tha
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n a single country, as their market.
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True False

13. According to WTO data, the volume of world merchandise trade has grown faster than the
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world economy since 1950. fd fd fd




True False

14. The cost of microprocessors continues to fall, while their power increases. This sta
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tement supports the predictions made by Moore's Law.
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True False

15. Non-
U.S. firms increasingly began to invest across national borders because they wanted to disper
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se production activities to optimal locations and to build a direct presence in major foreign m
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arkets.

True False

16. A current trend in international business is the decline of medium-
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sized and small multinationals, known as mini-multinationals.
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True False

17. The globalization of the world economy has resulted in a relative increase in the do
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minance of U.S. firms in the global marketplace.
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True False

18. Doing business in Russia involves risks because the country has shown signs of shifting ba
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ck toward greater state involvement in economic activity and authoritarian government.
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True False

19. Globalization critics argue that the decline in unskilled wage rates is due to the migration of l
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ow-
wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled wor
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kers.
True False

, 20. Evidence suggests that technological change has had a bigger impact than globalization on t
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he declining share of national income enjoyed by labor.
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True False

21. According to supporters of free trade, as countries get richer they commit greater viol
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ation of environmental and labor regulations.
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True False

22. According to critics of globalization, today's interdependent global economy limits a na
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tion's national sovereignty.
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True False

23. Supporters of debt relief argue that new democratic governments in poor nations should not
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be forced to honor debts incurred by corrupt and dictatorial predecessors.
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True False

24. A firm does not have to become a multinational enterprise to engage in international busi
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ness.

True False

25. Managing an international business is much easier than managing a domestic business.
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True False




Multiple Choice Questions fd fd




26. The shift toward a more integrated and interdependent world economy is referred to as
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.


A. outsourci fd




ng
B. international f




marketing
d




C. privatizati fd




on
D. globalizati f




on d