Quiz on Factors Accelerating International Trade

What is one of the technological factors that can impact a business?

• Research and development

• Market saturation

• Consumer preferences

• Increased tariffs

What does outsourcing typically involve?

• Increasing production costs

• Subcontracting parts of a company's value-chain

• Hiring more internal staff

• Reducing product quality

How do multinational firms contribute to developing economies?

• By reducing competition

• By creating wealth and jobs

• By increasing local taxes

• By limiting foreign investment

What is globalization primarily driven by?

• International trade and investment

• Cultural isolation

• Government regulations

• Local trade agreements

What impact has advanced transportation had on economic opportunities?

• Decreased global trade

• Increased economic opportunities

• Higher production costs

• Limited market access

What is a significant effect of industrialization?

• Decreased urbanization

• Increased reliance on agriculture

• Higher average income levels

• Lower life expectancy

Which of the following is NOT a common outsourcing activity?

• Product manufacturing

• Legal documentation

• Facilities management

• Human resource management

What is one benefit of economies of scale for multinational firms?

• Higher average costs

• Lower average costs and prices

• Increased product variety

• Reduced market share

What does globalization lead to in terms of competition?

• Higher production costs

• Decreased product quality

• Increased competition

• Reduced consumer choices

What is a key characteristic of industrialized nations compared to non-industrialized nations?

• Lower per capita income

• Higher levels of education

• Fewer job opportunities

• Less urbanization