BMGT Bus5571Test Bank BS2 Questions and Answers latest updated
1
Student:
1. According to the opening case, the most important reason to assemble
... [Show More] iPhones in China was due to:
A. lower labour costs in China
B. foreign exchange rates
C. consumer preferences for foreign items
D. the ability to scale production up and down
E. tariffs and trade barriers
2. The trend toward a more integrated and interdependent global economic system that has been in place for many years is commonly referred to as:
A. market standardization
B. cross-border integration
C. globalization
D. consumerism
E. nationalization
3. Sourcing goods and services from locations around the globe is known as . A. melding of markets
B. integration of markets
C. deregulation
D. globalization of production
E. globalization of markets
F.
4. The globalization of 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 (such as labour, energy, land, and capital).
A. information technology
B. process design
C. markets
D. production
E. R&D
5. The factors of production include:
A. information technology
B. process design
C. markets
D. labour
E. research and development
6. The was created in 1944 by 44 nations that met in Breton Woods, New Hampshire. A. International bank
A.
B.
C.
D.
E.
B. World Monetary Fund
C. World Trade Organization
D. International Monetary Fund
E. United Nations
7. The is seen as the lender of last resort to nation-states whose economies are in turmoil and currencies are losing value against those of other nations.
A. International Monetary Fund
B. International bank
C. United Nations
D. Canada's Export Development Corporation
E. Bank of Canada
8. Who is responsible for policing the world trading system?
A. International Monetary Fund
B. The World Bank
C. The World Trade Organization
D. Canada's Export Development Corporation
E. Bank of Canada
9. What was created at the same time as the International Monetary Fund?
A. World Bank
B. GATT
C. United Nations
D. Canada's Export Development Corporation
E. Bank of Canada
10. Although this organization is perhaps best known for its peacekeeping role, one of its central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development. What is it called?
A. World Bank
B. GATT
C. United Nations
D. Canada's Export Development Corporation
E. Bank of Canada
11. are the two macro factors that seem to underlie the trend toward greater globalization. A. The increase in global economic stability, and the slowdown in technological change
BThe increase in barriers to the free flow of goods, services, and capital that has occurred since the end . of World War II, and global economic stability
CThe decline in barriers to the free flow of goods, services, and capital that has occurred in the past 10 . years, and the slowdown in technological change
DThe decline in barriers to the free flow of goods, services, and capital that has occurred since the end of
. World War II, and technological change
E. Technological Change and the convergence of global product preferences
12. Firm X exports a number of products to users in other countries. This practice is referred to as .
A. world exchange
B. international trade
C. cross-national barter
D. situational commerce
E. multinational diversification
13. XYZ, Inc. is an auto parts distributing warehouse that exports many of its products to consumers in other countries. XYZ Inc. can be described as engaging in: A. international trade.
B. cross-border investments.
C. product development.
D. trading barriers.
E. international procurement.
14. Which of the following refers to the exporting of goods or services to consumers in another country? A. situational commerce
B. world exchange
C. international trade
D. cross-national barter
E. foreign investment
15. Although Inco is a Canadian company, it has invested substantial business resources in activities outside Canada. This practice is referred to as:
A. transnational commerce
B. foreign direct investment
C. international trade
D. organizational diversification
E. outsourcing
16. The investing of resources in business activities outside a firm's home country is referred to as: A. international trade
B. domestic direct investment
C. transnational barter
D. foreign direct investment
E. outsourcing
17. The is a treaty designed to remove barriers to the free flow of goods, services, and capital between nations.
A. Global Agreement on Tariffs and Commerce
B. United Nations Treaty on Trade
C. General Agreement on Tariffs and Trade
D. Multi-National Agreement on Tariffs and Commerce
E. The ILO
18. After World War II, the West committed to removing trade barriers between nations because of what experience?
A. the loss of production from the war
B. retaliatory trade policies leading to the Depression
C. the General Agreement on Tariffs and Trade
D. massive waves of immigrants seeking jobs
E. the shift away from production to consumption
19. Under the umbrella of GATT there have been eight rounds of negotiations among member states. The
was the most recent round of negotiations.
A. Uruguay Round
B. Malaysian Symposium
C. German Round
D. New Zealand Symposium
E. Cancun Round
20. Which of the following was not an outcome of the Uruguay Round of the GATT?
A. reduced trade barriers
B. extended GATT to cover services as well as manufactured goods
C. established the World Trade Organization
D. provided extended protection for patents, trademarks, and copyrights E. reduced agricultural subsidies
21. If the Doha talks are ever completed, the biggest gain will come from what? A. trademarks
B. agriculture
C. intellectual property D. consumer goods
E. manufactured goods
22. The acronym GATT stands for:
A. Global Agreement on Taxation and Tariffs
B. Global Association of Technology and Trade
C. General Agreement on Taxation and Trademarks
D. General Agreement on Tariffs and Trade
E. General Accord of Transportation and Trade
23. The agency established at the 1993 Uruguay Round to police the international trading system is the .
A. Global Trade Enforcement Administration
B. World Tariff and Trade Bureau
C. International Trade Enforcement Agency
D. World Trade Organization
E. The European bank of Reconstruction and Development
24. Suppose Petro Canada, an international oil company, had a complaint about a trade issue. The , a governing body established at the Uruguay Round in 1993 to police the international trading system, is an organization that Petro Canada could take its complaint to.
A. World Trade Organization
B. International Trade Monitoring Bureau
C. World Tariff and Trade Agency
D. International Trade Monitoring Agency
E. The United Nations
25. The acronym WTO stands for:
A. Western Trade Organization
B. World Tax Organization
C. World Trade Organization
D. World Tariff Organization
E. World Trade Operations
26. In the past decades, many countries, in addition to reducing trade barriers, have done what? A. decreased production
B. increased wages
C. removed restrictions to FDI
D. increased tariffs
E. joined the United Nations
27. Since 1992, most of the world's changes to FDI have done what?
A. blocked FDI
B. created a more favourable environment for FDI
C. had no impact on FDI
D. decreased production
E. decreased wealth
28. Since 1950, world trade has grown faster than what?
A. world wage rates
B. world population growth
C. world income
D. world output
E. world housing production
29. Many of the changes that countries have made pertaining to foreign direct investment regulations have:
A. made it harder for foreign companies to enter their markets
B. made it easier for foreign companies to enter their markets
C. had no effect on the ease upon which foreign companies can enter their markets
Dmade it easier to foreign producers of raw materials to enter their markets but more difficult for foreign
. producers of finished products to enter their markets
E. prevented the expropriation of business assets by a foreign government
30. Which of the following statements is consistent with data from the World Trade Organization? A. the volume of world trade has grown faster than the volume of world output since the 1950s.
B. the volume of world trade has grown slower than the volume of world output since the 1950s.
C. the volume of world trade and the volume of world output have grown at approximately the same rate since the 1950s.
D. the volume of world trade and the volume of world output have remained constant since the 1950s.
E. the volume of world trade is inversely related to the growth of world output.
31. According to your text, between 1950 to 2000, as world trade expanded by 20 times, world output grew by about .
A. 12 percent
B. 1 percent
C. 25 percent
D. 6 ½ times
E. 20 times
32. The average yearly outflow of FDI increased from about $25 billion in 1975 to a record of in 2007, though it has fallen more recently.
A. $500 billion
B. $73 billion
C. $1 trillion
D. $2 trillion
E. $11 trillion
33. The steep drop in world trade occurred when? A. 1950-1951.
B. 1955-1956.
C. 1995-1996.
D. 2005-2006.
E. 2008-2009.
34. Between 1992 and 2010, the total flow of FDI from all countries increase by about . A. 2 times
B. 3 times
C. 6 times
D. 7 times
E. 9 times
35. The globalization of markets, the growth of world trade, and the increase in FDI has had what effect?
.
A. a decrease in production
B. a decrease in world trade
C. companies find their home markets under attack from foreign competitors
D. companies are reducing their profits
E. companies are during to protectionist measures
36. Evidence suggests that FDI is playing a(n):
A. decreasing role in the world economy
B. increasing role in the world economy for services but a decreasing role in the world economy for manufactured goods
C. increasing role in the world economy for manufactured goods but a decreasing role in the world economy for services
D. increasing role in the world economy
E. a limited role in the world economy
37. According to our textbook, the growing integration of the world economy is:
A. increasing the intensity of competition within the home market of a company in a wide range of
. manufacturing and service industries
B. decreasing the intensity of global competition in manufacturing industries, and increasing the intensity
. of domestic competition in services
C. increasing the intensity of global competition in manufacturing industries, and decreasing the intensity . of domestic competition in services
D. narrowing the scope of global competition in a wide range of service, commodity, and manufacturing industries
EWidening the opportunities for competing with manufacturing companies within their home market and . narrowing the opportunities for competing with service companies in their home market.
38. Which of the following is a major cause for lowering the trade barriers of markets and production? A. Technological change
B. Increased labour mobility
C. Elastic demand
D. Corporate greed
E. Consumer demand
39. According to our textbook, the single most important technological innovation has been the development of the
.
A. telegraph
B. microprocessor
C. ocean container
D. airplane
E. telephone
40. is the theory that predicts that the number of transistors on a computer chip doubles every 24 months.
A. Brennan's Theorem
B. Bailey's Law
C. Moore's Law
D. Ivan's Law
E. Global Micro Accelerant (GMA) Law
41. According to your textbook, between 1930 and 1990, the cost of a three-minute phone call between New York and London fell from $244.65 to $3.32. This decrease can be mainly contributed to A. open communication between governments.
B. the advent of the microprocessor.
C. continuing efforts to globalize.
D. high corporate ethical standards.
E. the deregulation of the telecommunications industry.
42. As of 2014 the number of Internet users around the world exceeds what? A. 5 million
B. 100 million
C. 1 billion
D. 3 billion
E. 5 billion
43. According to our textbook, e-commerce retail sales are expected to reach by 2018 in the United states alone. A. $1 billion
B. $50 billion
C. $500 billion
D. $750 billion
E. $1 trillion
44. The Web is viewed as a global what?
A. equalizer
B. way of decreasing production
C. force for decreasing FDI
D. way of reaching businesses at the expense of consumer E. way for government to market to its population
45. was not mentioned in our textbook as major innovation in transportation technology. A. Commercial jet aircraft
B. Super freighters
C. E-commerce
D. The introduction of containerization
E. Both containerization and e-commerce were not mentioned
46. Due to containerization, the transportation costs associated with the globalization of production have: A. remained the same
B. increased dramatically
C. declined
D. increased slightly
E. reduced insurance costs
47. As a result of a variety of innovations, the real costs of information processing and communication have
over the past two decades.
A. fallen slightly
B. increased slightly
C. remained constant
D. fallen dramatically
E. had no impact on the cost of international business
48. Although the characteristics of the global economy have changed dramatically over the past 50 years, as late as the 1960s all of the following demographic characteristics were true except:
A. the U.S. dominated the world economy
B. small, U.S. entrepreneurial firms dominated the international business scene
C. the U.S. dominated the world foreign direct investment picture
D. the U.S. was the world's largest industrial power
E. the U.S. dominated world trade
49. Which country was the world's most dominant industry power was in the early 1960s?
A. Japan
B. The United Kingdom
C. Germany
D. The United States
E. Canada
50. In 1960, the U.S. accounted for about of world output as measured by GDP. A. 10.0%
B. 23.0%
C. 30.0%
D. 38.3%
E. 54.0%
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