Chapter 1: Globalization

The merging of historically distinct and separate national markets into one huge global marketplace is referred to as the __________.

• GLOBALIZATION
• GLOBALIZATION OF MARKET
• GLOBALIZATION OF PRODUCTION

Firms that are involved in international business tend to be

• Large
• Medium
• Small
• All of above

Which organization is responsible for policing the world trading system?

• World Bank
• IMF
• WTO

As a result of __________, a company such as IBM can build the case, keyboard and hard drive for its product in one country, build the wireless card in a second country, the microprocessor in a third country, and assemble it in still another country.

• GLOBALIZATION OF PRODUCTION
• GLOBALZIATION OF MARKET
• GLOBALZIATION

When a firm exports goods or services to consumers in another country

• international trade has occurred
• foreign direct investment takes place
• The volume of foreign trade declines

Falling barriers to cross-border trade:

• have made it harder to sell internationally
• have had no meaningful impact on international trade
• have made it easier to sell internationally

Doing business in foreign countries is complex compared to local business because of the following EXCEPT

• the problem in foreign countries more complicated
• the currency is similar
• the culture is different

Volkswagen built a plant in Malaysia to take advantage of the following

• improve functionality of its product
• reduce the cost of production
• all of the above

Increasing interdependence of nations and peoples across the globe.

• Infrastructure
• Interdependence
• Globalization
• Specialization

A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (taxes on exports).

• Free Trade
• Goods
• Supply and Demand
• Trade