BUS 280- Midterm questions well
answered 100% passed
Globalization - correct answer ✔✔Refers to the shift toward a more integrated and
interdependent world economy.
Globalization of Markets - correct answer ✔✔Refers to the merging of historically distinct and
separate national markets into one huge global marketplace. Falling barriers to cross-boarder
trade and investment have made it easier to sell internationally.
Globalization of production - correct answer ✔✔Refers to the 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.
Factors of Production - correct answer ✔✔These are the inputs of the productive process' of
firms, they include labor, management, land, capital, and technological know-how.
General Agreement on Tariffs and Trade (GATT) - correct answer ✔✔International treaty that
committed signatories to lowering barriers to the free flow of goods across national borders and
led to the WTO.
World Trade Organization (WTO) - correct answer ✔✔the organization that succeeded the
General Agreement on Tariffs and Trade (GATT) as a result of the successful completion of the
Uruguay Round of GATT negotiations.
International Monetary Fund (IMF) - correct answer ✔✔An international institution set up to
maintain order in the international monetary system. (created in 1944)
,World Bank - correct answer ✔✔An international institution set up to promote general
economic development in the world's poorer nations. (created in 1944)
The United Nations (UN) - correct answer ✔✔Established October 24, 1945 by 51 countries, this
international organization made up of 193 countries headquartered in New York City, was
formed in 1945 to promote peace, security, and cooperation.
Group of Twenty (G20) - correct answer ✔✔Established in 1999, this group comprises the
finance ministers and central bank governors of the 19 largest economies in the world, plus
representatives from the European Union and the European Central Bank.
International Trade - correct answer ✔✔Occurs when a firm exports goods and services to
consumers in another country.
Foreign Direct Investment (FDI) - correct answer ✔✔Direct investment in business operations in
a foreign country.
Stock of Foreign Direct Investment (FDI) - correct answer ✔✔the total accumulated value of
foreign-owned assets at a given time.
Multinational Enterprise (MNE) - correct answer ✔✔A firm that owns business operations in
more than one country.
International Business - correct answer ✔✔Any firm that engages in international trade or
investment.
Moore's Law - correct answer ✔✔The power of microprocessor technology doubles and its
costs of production fall in half every 18 months.
Which of the following factors contributed to the Great Depression of the 1930s?
, A. artificial fixing of currency rate by China
B. problems in the U.S. subprime mortgage lending market
C. countries progressively raising trade barriers against each other
D. outsourcing of manufacturing units to developed nations - correct answer ✔✔C. countries
progressively raising trade barriers against each other
Opponents of globalization argue that falling trade barriers
A. allow firms to move manufacturing activities to countries with lower wage rates
B. create manufacturing jobs in wealthy advanced economies
C. force countries to maintain manufacturing in their home countries regardless of wage rates
D. reduce the pool of global labor - correct answer ✔✔
The _______ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to
promote economic development
A. World Bank
B. International Trade Center
C. World Trade Organization
D. United Nations - correct answer ✔✔
The _______ is often seen as the lender of last resort
A. World Bank
B. Internations Monetary Fund
C. International Development Association
answered 100% passed
Globalization - correct answer ✔✔Refers to the shift toward a more integrated and
interdependent world economy.
Globalization of Markets - correct answer ✔✔Refers to the merging of historically distinct and
separate national markets into one huge global marketplace. Falling barriers to cross-boarder
trade and investment have made it easier to sell internationally.
Globalization of production - correct answer ✔✔Refers to the 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.
Factors of Production - correct answer ✔✔These are the inputs of the productive process' of
firms, they include labor, management, land, capital, and technological know-how.
General Agreement on Tariffs and Trade (GATT) - correct answer ✔✔International treaty that
committed signatories to lowering barriers to the free flow of goods across national borders and
led to the WTO.
World Trade Organization (WTO) - correct answer ✔✔the organization that succeeded the
General Agreement on Tariffs and Trade (GATT) as a result of the successful completion of the
Uruguay Round of GATT negotiations.
International Monetary Fund (IMF) - correct answer ✔✔An international institution set up to
maintain order in the international monetary system. (created in 1944)
,World Bank - correct answer ✔✔An international institution set up to promote general
economic development in the world's poorer nations. (created in 1944)
The United Nations (UN) - correct answer ✔✔Established October 24, 1945 by 51 countries, this
international organization made up of 193 countries headquartered in New York City, was
formed in 1945 to promote peace, security, and cooperation.
Group of Twenty (G20) - correct answer ✔✔Established in 1999, this group comprises the
finance ministers and central bank governors of the 19 largest economies in the world, plus
representatives from the European Union and the European Central Bank.
International Trade - correct answer ✔✔Occurs when a firm exports goods and services to
consumers in another country.
Foreign Direct Investment (FDI) - correct answer ✔✔Direct investment in business operations in
a foreign country.
Stock of Foreign Direct Investment (FDI) - correct answer ✔✔the total accumulated value of
foreign-owned assets at a given time.
Multinational Enterprise (MNE) - correct answer ✔✔A firm that owns business operations in
more than one country.
International Business - correct answer ✔✔Any firm that engages in international trade or
investment.
Moore's Law - correct answer ✔✔The power of microprocessor technology doubles and its
costs of production fall in half every 18 months.
Which of the following factors contributed to the Great Depression of the 1930s?
, A. artificial fixing of currency rate by China
B. problems in the U.S. subprime mortgage lending market
C. countries progressively raising trade barriers against each other
D. outsourcing of manufacturing units to developed nations - correct answer ✔✔C. countries
progressively raising trade barriers against each other
Opponents of globalization argue that falling trade barriers
A. allow firms to move manufacturing activities to countries with lower wage rates
B. create manufacturing jobs in wealthy advanced economies
C. force countries to maintain manufacturing in their home countries regardless of wage rates
D. reduce the pool of global labor - correct answer ✔✔
The _______ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to
promote economic development
A. World Bank
B. International Trade Center
C. World Trade Organization
D. United Nations - correct answer ✔✔
The _______ is often seen as the lender of last resort
A. World Bank
B. Internations Monetary Fund
C. International Development Association
