Globalization

Globalization has enabled organizations to reduce their costs of production by

• differentiating material culture the world over.

• setting up barriers to cross-border trade.

• creating manufacturing units in developing countries.

• turning national economies into self-contained entities.

The ________ is often seen as the lender of last resort.

• World Bank

• International Monetary Fund

• International Development Association

• World Trade Organization

Foreign direct investment occurs when a firm invests resources in

• competitor-based products.

• business activities outside its home country.

• production and service technologies that will enhance globalization.

• local agricultural production.

Which of the following statements pertaining to changes in the global economy of the 21st century is true?

• Barriers to the free flow of goods, services, and capital have increased.

• Volume of global output has been growing more rapidly than cross-border trade and investment.

• National economies are becoming more independent.

• The world is moving toward an economic system that is more favorable for international business.

An international business is defined as

• one that implements homogenous practices across countries.

• the basis for a multinational enterprise.

• a business that is restricted by U.N. regulations.

• any firm that engages in international trade.

Which of the following expresses one of the reasons why managing an international business is different from managing a purely domestic business?

• The range of problems confronted by a manager in a domestic business is wider and the problems more complex than those confronted by a manager in an international business.

• International business transactions use the euro instead of the U.S. dollar.

• An international business does not need to contend with government intervention whereas a domestic business must work within the confines of its local government.

• An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.

Cultural differences have no effect on the way an international firm conducts its business around the globe.

• True

• False

• I don't know

• God, help.