Chapter 1

Chapter 1

Globalization

TRUE/FALSE QUESTIONS

1. Globalization benefits Apple by helping it sell the same iPod models worldwide with little or no modification.

2. Globalization does not affect national economies and standards of living.

3. International business is any commercial transaction that crosses the borders of two or more nations.

4. Imports are goods and services brought into a country that are acquired from organizations located abroad.

5. Exporting is any business transaction that crosses the borders of two or more nations.

6. E-business (e-commerce) is the use of computer networks to purchase, sell, or exchange goods and services, service customers, collaborate with partners, and transact within a company.

7. Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

8. Denationalization refers to national boundaries becoming less relevant.

9. Internationalization refers to national boundaries becoming less relevant.

10. Products marketed in all countries essentially without any changes are called “international products.”

11. Companies that sell global products can reduce costs by standardizing various aspects of their marketing activities.

12. A company that sells a global product can explore opportunities abroad if the home market is small or becomes saturated.

13. Globalization of production refers to convergence in buyer preferences in markets around the world.

14. The General Agreement on Tariffs and Trade (GATT) was a treaty designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

15. Today, the institution of the General Agreement on Tariffs and Trade (GATT) continues to promote free trade.

16. The World Trade Organization (WTO) is the international organization that regulates trade between nations.

17. The power of the General Agreement on...