INTERNATIONAL BUSINESS_CHAP 1

The merging of historically distinct and

separate national markets into one huge

global marketplace is known as_____.

• global market facilitation

• local market

• supernational market integration

• the globalization of markets

Firms that are involved in international business tend to be_____.

• large

• small

• medium-size

• large, small and medium-size

Which is not a factor of production?

• trade

• land

• capital

• entrepreneur

Which organization is responsible for policing

the world trading system?

• the IMF

• the United Nations

• the WTO

• the World Bank

Which statement best describes the current trend in international markets?

• National markets are becoming more distinct and separate.

• Trade barriers are increasing, making it harder to sell globally.

• Historically distinct and separate national markets are merging into a global market.

• Consumers' tastes and preferences are diverging, creating unique national markets.

Technological advancements that result in lower transportation costs and enhanced global communication networks primarily enable businesses to______.

• Centralize production in a single location for cost efficiency

• Expand production within a limited geographical region

• Disperse production to geographically separate locations

• Increase reliance on local suppliers for reduced transportation costs

Which of the following is a consequence of lower information processing and communication costs for firms?

• Firms are limited to local markets due to higher operational costs.

• Firms can create and manage globally dispersed production systems.

• Firms need to rely more on traditional forms of communication.

• Firms experience a decrease in overall productivity.

Low-cost global communications networks and global media contribute to:

• The reduction of international trade barriers.

• The creation of a worldwide culture and a global market for consumer products.

• The need for firms to limit production to local markets.

• The decline of international business activities.

Falling barriers to trade are unanimously viewed as beneficial for job creation in advanced countries.

• TRUE

• FALSE

Supporters of falling trade barriers believe that countries will specialize in what they do most efficiently and trade for other goods, resulting in benefits for all countries.

• TRUE

• FALSE