BUS 480 INTERNATIONAL BUSINESS STUDY GUIDE QUESTIONS WITH ANSWERS LATEST UPDATE
Chapter 1 Globalization
1) As a result of globalization, we have been
... [Show More] moving toward a world in which national economies are relatively self-contained entities.
Answer: FALSE
2) To truly benefit from globalization, a firm needs to be a multinational conglomerate rather than a small or mid-size company.
Answer: FALSE
3) In today's marketplace, outsourcing efforts are confined to manufacturing activities.
Answer: FALSE
4) The World Trade Organization, the International Monetary Fund and its sister institution the World Bank, and the United Nations were all created by voluntary agreement between individual nation-states.
Answer: TRUE
5) The WTO polices the world trading system, and without this organization, the globalization of markets might not be where it is today.
Answer: TRUE
6) Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.
Answer: TRUE
7) The retaliatory trade policies of the 1920s and 1930s contributed to the Great Depression.
Answer: TRUE
8) The Uruguay Round extended GATT to cover services as well as manufactured goods.
Answer: TRUE
9) Enhanced protection for patents and trademarks was one focus of the Uruguay Round.
Answer: TRUE
10) The lowering of trade and investment barriers creates more opportunities for companies to have the world as their market.
Answer: TRUE
11) In recent years, the economies of the world's nation-states have become less intertwined as a result of international trade.
Answer: FALSE
12) The United Nations created the Millennium Development Goals to increase the number of entrepreneurial activities around the world.
Answer: FALSE
13) Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances. Answer: TRUE
14) Moore's law helps determine the most appropriate transportation method for a produced good. Answer: FALSE15) During the 1960s, centrally planned economies associated with the communist world became open to Western international businesses. Answer: FALSE
16) The stock of foreign direct investment refers to the total cumulative value of foreign investments. Answer: TRUE
17) Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically.
Answer: TRUE
18) A domestic enterprise is any business that has productive activities in at least two [Show Less]