Fibe

Fundamentals of International Business Environment

Chapter 1: Globalisation and International Business

1. Globalization refers to the shift toward a more integrated and interdependent world economy. (True / False)

2. A company has to be a major multinational corporation to facilitate, and benefit from, the globalization of markets. (True / False)

3. One concern of globalization opponents is that it undermines the sovereignty of international organizations and promotes the sovereignty of individual nation-states. 

(True / False)

4. Due to benefits associated with free trade and investment, gap between the rich and poor nations of the world has reduced. (True / False)

5. Free trade alone is a sufficient prerequisite to help HIPC countries bootstrap themselves out of poverty. (True / False)

6. The globalization of __________ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production. 

A. information technology

B. process design

C. markets

D. production

7. An international treaty that committed signatories to lowering barriers to the free flow of goods across national borders is called ____________

A. the International Agreement on Trade.

B. the Global Expansion Agreement.

C. the Warsaw Pact.

D. the General Agreement on Tariffs and Trade.

8. The investing of resources in business activities outside a firm's home country is referred to as ______________ 

A. international trade.

B. diversified investment.

C. gross domestic product.

D. foreign direct investment.

9.  What is the contribution of the World Wide Web to global economy? 

A. It allows businesses to expand their global presence at much higher costs.

B. It relies on microprocessors to encode, transmit, and decode vast amounts of information.

C. It makes it much easier for buyers and...