Chapter 1 Flashcards
- _____ is the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments.
International management
- To qualify as a multinational corporation (MNC), a firm must meet all of the following criteria except:
A. operations in more than one country.
B. international sales.
C. a mix of nationalities among managers and owners.
D. sales of at least one million dollars per year.
sales of at least one million dollars per year.
- Critics of globalization believe that:
A. the offshoring of business services jobs to lower-wage countries inherently creates greater opportunities at home.
B. growing trade deficits and slow wage growth are damaging economies.
C. when production moves to countries to take advantage of less-regulated environments, an upward pressure is created on wages and working conditions.
D. the main winners of globalization are the low-wage workers.
growing trade deficits and slow wage growth are damaging economies.
- The subcontracting or contracting out of activities to external organizations that had previously been performed by a firm is called
A. homesourcing
B. insourcing
C. offshoring
D. outsourcing
outsourcing
- _____ is the process by which companies undertake some activities at offshore locations instead of in their countries of origin.
A. Homesourcing
B. Insourcing
C. Offshoring
D. Globalization
Offshoring
- The _____ is the global organization of countries that oversees rules and regulations for international trade and investment, including agriculture, intellectual property, services, competition, and subsidies.
A. WTO
B. NAFTA
C. WIPO
D. ITO
WTO
- The _____ is a free-trade agreement among the United States, Canada, and Mexico that has removed most barriers to trade and investment.
A. AFTA
B. EFTA
C. CAFTA
D. NAFTA
NAFTA
- Identify a true statement about the Development Round in which the members of the World Trade Organization (WTO) met and launched a round of negotiations at Doha, Qatar in November 2011.
A. The WTO members agreed upon the opening of government procurement markets to companies in the developed nations.
B. There was a lack of consensus among WTO members regarding agricultural subsidies.
C. There was a lack of consensus among WTO members regarding unbalanced population pyramids.
D. The WTO members agreed upon the issues of competition.
There was a lack of consensus among WTO members regarding agricultural subsidies.
- The United States, Canada, and Mexico make up the _____, which in essence has removed all barriers to trade among these countries and created a huge North American market.
A. General Agreement on Tariffs and Trade
B. North American Common Market
C. North American Free Trade Agreement
D. North American Trade Union
North American Free Trade Agreement
- Agreements like NAFTA and CAFTA:
A. not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights.
B. do not include supplemental commitments like the FTAA does on labor and the environment to encourage countries to upgrade their working conditions and environmental protections.
not only reduce barriers to trade but also require additional domestic legal and business reforms in developing nations to protect property rights.
- In the context of the changing global demographics, identify a change that will be seen in developed nations.
A. Developed Asian nations will be able to easily replace the retiring, aging population.
B. In Japan, the number of nonworkers will be nearly equal to that of workers by 2050.
C. In South Korea, the immigration policy will ease by 2050.
D. In Germany, there will be a removal of restrictions on agricultural products, auto parts, and energy goods.
In Japan, the number of nonworkers will be nearly equal to that of workers by 2050.
- According to some critics, agreements like North American Free Trade Agreement (NAFTA) and Central American Free Trade Agreement (CAFTA):
A. have been successful in ensuring environmental standards.
B. have been successful in preventing the decline of the global working-age population.
C. do not go far enough in ensuring worker rights.
D. do not go far enough in protecting property rights.
do not go far enough in ensuring worker rights.
- The Asian economic block, made up of Indonesia, Malaysia, the Philippines, Singapore, Brunei, Thailand, Cambodia, Myanmar, and Vietnam, is referred to as the:
A. Association of Southeast Asian Nations (ASEAN).
B. Southeast Asia Free Trade Agreement (SWAFTA).
C. Southeast Asia Common Market.
D. Asian Economic Union.
Association of Southeast Asian Nations (ASEAN).
- A method that adjusts GDP to account for different prices in countries is called:
A. cumulative distribution function.
B. nominal GDP.
C. current currency exchange rate.
D. purchasing power parity.
purchasing power parity.
- Unlike the Group of Seven (G7) economies, the Emerging Seven (E7) economies are:
A. primarily located in North America and Europe.
B. located throughout Latin America and Asia.
C. mature economies in which economic growth is slow.
D. incentivizing citizens to have more children.
located throughout Latin America and Asia.
- Which of the following statements is true according to the reports that were released in 2004 and 2011 by the Goldman Sachs global economics team?
A. The economies of Russia and Brazil would remain unaffected by the low prices for oil and other commodities in the years 2015 and 2016.
B. The BRIC (Brazil, Russia, India, and China) economies’ share of world growth could rise significantly from 2003 to 2025.
The BRIC (Brazil, Russia, India, and China) economies’ share of world growth could rise significantly from 2003 to 2025.
- _____ is the term used to indicate the amount invested in property, plant, and equipment in another country.
A. Exporting
B. Foreign direct investment
C. Importing
D. Trade imperfection
Foreign direct investment
- According to the World Trade Organization, in 2014 merchandise exports:
A. reached a record high.
B. declined for the first time since 1983.
C. remained fairly consistent.
D. decreased by almost 50 percent.
reached a record high.
- In 2009, global FDI _____.
A. nearly doubled
B. nearly tripled
C. dropped substantially
D. remained fairly constant
dropped substantially
- By 2017, foreign direct investment (FDI) is estimated to:
A. surpass the all-time high set a decade earlier in 2007.
B. reach an all-time low due to political instability and uncertain markets.
C. experience a significant drop similar to the global recession of 2009.
D. experience an insignificant rise due to a slow rate of increase of merchandise exports.
surpass the all-time high set a decade earlier in 2007.