All international trade and investment are conducted by large firms.

• True

• False

The move toward a global economy has strengthened the adoption of conservative economic

policies by developing nations.

• True

• False

According to many influential economists, the increase in international trade and cross-border

investment will result in an increase in the prices of goods and services.

• True

• False

It is possible that economic growth in developed nations has offset the fall in the share of

national income enjoyed by unskilled workers, raising their living standards.

• True

• False

The growing income inequality is a result of the wages for skilled workers being discounted.

• True

• False

Ryan is the executive general manager of a U.S. multinational and Veronica is a manager in a

similar position, but works for another U.S. company that operates only in its home country. In

this context, which of the following business functions will be most typically exclusive to

Ryan?

• Marketing a product or service

• Planning on a business strategy

• Maintaining healthy relations with the U.S. government

• Choosing an appropriate mode for entering a particular foreign country

The minimum that a firm has to do to engage in international business is to:

• develop franchises and subsidiaries in other countries.

• export or import products from other countries.

• export low-wage manufacturing jobs to companies in other countries.

• invest directly in operations in another country.

Which of the following is NOT a concern for managers in international businesses?

• Cross-border transactions involving currency exchange

• Ethical adherence to environmental standards

• Perceived distance between home country and operating nations

• Government restrictions on international trade

Which of the following is a power of the WTO?

• It can make decisions related to international trade without considering the collective

  interests of member-states.

• It can issue a ruling instructing a member-state to change trade policies that violate GATT

  regulations.

• It supersedes IMF and has complete authority over IMF's actions.

• It can grant loans to cash-strapped governments in poor nations.

Which of the following is the most appropriate solution to the problem of rising carbon dioxide

emissions in developed economies?

• Restrict international trade and investment only to services.

• Get the nations of the world to agree to policies designed to limit pollutant emissions.

• Tie free trade agreements to the implementation of fewer environmental and labor laws in

  less developed countries.

• Roll back the trade liberalization efforts that have fostered economic growth and

  globalization.