GLM Mid Term Review

By sourcing goods and services from around the globe, companies may lower their overall cost structure or improve the quality or functionality of their product offering.

• True

• False

______ refers to the shift toward a more integrated and interdependent world economy.

• Outsourcing

• International marketing

• Privatization

• Globalization

The Globalization of markets is described as the submerging of historically distinct and separate national markets into multiple global marketplaces.

• True

• False

Which item is a factor of production?

• Tariffs

• Transportation costs

• Capital

• Government

Global institutions were needed to do which of the following in the global marketplace:

• Manage

• Regulate

• Police

• All of the above

• None of the above

Which of the following is a driver to Globalization?

• Declining barriers to trade

• The change in economies

• The change in forecast

• Increasing barriers to trade

________ occurs when a firm exports goods or services to consumers in another country.

• International Trade

• Foreign Direct Investment

• Inward Investment

• Outsourcing

Procter & Gamble is a multinational enterprise (MNE), which is a firm that

• exports its product to multiple countries.

• owns business operations in more than one country

• does most of its business on the internet.

• lists its securities on a public exchange.

To be classified as an MNE, a company must have productive activities in at least ________ countries.

Smith Global Industries has decided to invest resources in business activities outside its home country. This is called

• Foreign direct investment (FDI).

• Direct international investment (DII).

• International trade (IT).

• Foreign direct production (FDP).