121 test bank for global business today 4th canadian edition

a limited role in the world economy Suppose Petro Canada, an international oil company, had a complaint about a trade issue.. tariffs and trade barriers Which of the following statements

Test Bank for Global Business Today 4th Canadian Edition

29 Test Bank True – False Questions

7 Test Free Text Questions

85 Test Bank Multiple Choice Questions

The _ is seen as the lender of last resort to states whose economies are in turmoil and currencies are losing value against those of other nations

nation-1 International Monetary Fund

1 Global Agreement on Tariffs and Commerce

2 United Nations Treaty on Trade

3 General Agreement on Tariffs and Trade

4 Multi-National Agreement on Tariffs and Commerce

3 The decline in barriers to the free flow of goods, services, and capital that has occurred in the past 10 years, and the slowdown in technological change

4 The decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and technological change

5 Technological Change and the convergence of global product preferences

The _ was created in 1944 by 44 nations that met in Breton Woods, New Hampshire

1 International bank

2 World Monetary Fund

3 World Trade Organization

4 International Monetary Fund

5 United Nations

Evidence suggests that FDI is playing a(n):

1 decreasing role in the world economy

2 increasing role in the world economy for services but a decreasing role in the world economy for manufactured goods

3 increasing role in the world economy for manufactured goods but a decreasing role in the world economy for services

4 increasing role in the world economy

5 a limited role in the world economy

Suppose Petro Canada, an international oil company, had a complaint about a trade issue The , a governing body established at the Uruguay Round in 1993 to police the international trading system, is an organization that Petro Canada could take its complaint to

1 World Trade Organization

2 International Trade Monitoring Bureau

3 World Tariff and Trade Agency

4 International Trade Monitoring Agency

5 The United Nations

The factors of production include:

1 information technology

2 process design

3 markets

4 labour

5 research and development

If the Doha talks are ever completed, the biggest gain will come from what?

1 lower labour costs in China

2 foreign exchange rates

3 consumer preferences for foreign items

4 the ability to scale production up and down

5 tariffs and trade barriers

Which of the following statements is consistent with data from the World Trade Organization?

1 the volume of world trade has grown faster than the volume of world output since the 1950s.

2 the volume of world trade has grown slower than the volume of world output since the 1950s.

3 the volume of world trade and the volume of world output have grown at

approximately the same rate since the 1950s.

4 the volume of world trade and the volume of world output have remained constant since the 1950s.

5 the volume of world trade is inversely related to the growth of world output.

According to your text, between 1950 to 2000, as world trade expanded by 20 times, world output grew by about _

According to our textbook, the single most important

technological innovation has been the development of the

1 made it harder for foreign companies to enter their markets

2 made it easier for foreign companies to enter their markets

3 had no effect on the ease upon which foreign companies can enter their markets

4 made it easier to foreign producers of raw materials to enter their markets but more difficult for foreign producers of finished products to enter their markets

5 prevented the expropriation of business assets by a foreign government

In the past decades, many countries, in addition to reducing trade barriers, have done what?

1 decreased production

2 increased wages

3 removed restrictions to FDI

4 increased tariffs

5 joined the United Nations

Since 1992, most of the world's changes to FDI have done what?

1 blocked FDI

2 created a more favourable environment for FDI

3 had no impact on FDI

According to your textbook, between 1930 and 1990, the cost

of a three-minute phone call between New York and London fell from $244.65 to $3.32 This decrease can be mainly

contributed to

1 open communication between governments.

2 the advent of the microprocessor.

3 continuing efforts to globalize.

4 high corporate ethical standards.

5 the deregulation of the telecommunications industry.

Which of the following refers to the exporting of goods or services to consumers in another country?

1 market standardization

2 cross-border integration

3 globalization

4 consumerism

5 nationalization

The agency established at the 1993 Uruguay Round to police the international trading system is the

1 Global Trade Enforcement Administration

2 World Tariff and Trade Bureau

3 International Trade Enforcement Agency

4 World Trade Organization

5 The European bank of Reconstruction and Development

After World War II, the West committed to removing trade barriers between nations because of what experience?

1 the loss of production from the war

2 retaliatory trade policies leading to the Depression

3 the General Agreement on Tariffs and Trade

4 massive waves of immigrants seeking jobs

5 the shift away from production to consumption

The acronym GATT stands for:

1 Global Agreement on Taxation and Tariffs

2 Global Association of Technology and Trade

3 General Agreement on Taxation and Trademarks

4 General Agreement on Tariffs and Trade

5 General Accord of Transportation and Trade

The Web is viewed as a global what?

1 equalizer

2 way of decreasing production

3 force for decreasing FDI

4 way of reaching businesses at the expense of consumer

5 way for government to market to its population

Sourcing goods and services from locations around the globe is known as

1 melding of markets

2 integration of markets

1 reduced trade barriers

2 extended GATT to cover services as well as manufactured goods

3 established the World Trade Organization

4 provided extended protection for patents, trademarks, and copyrights

5 reduced agricultural subsidies

Since 1950, world trade has grown faster than what?

1 world wage rates

2 world population growth

3 world income

4 world output

5 world housing production

Between 1992 and 2010, the total flow of FDI from all

countries increase by about _

XYZ, Inc is an auto parts distributing warehouse that

exports many of its products to consumers in other

countries XYZ Inc can be described as engaging in:

Under the umbrella of GATT there have been eight rounds of negotiations among member states The _ was the most recent round of negotiations

The acronym WTO stands for:

1 Western Trade Organization

2 World Tax Organization

3 World Trade Organization

4 World Tariff Organization

5 World Trade Operations

According to our textbook, e-commerce retail sales are

expected to reach _ by 2018 in the United states alone

_ is the theory that predicts that the number of

transistors on a computer chip doubles every 24 months

1 Brennan's Theorem

2 Bailey's Law

3 Moore's Law

4 Ivan's Law

5 Global Micro Accelerant (GMA) Law

Although Inco is a Canadian company, it has invested

substantial business resources in activities outside Canada This practice is referred to as:

2 a decrease in world trade

3 companies find their home markets under attack from foreign competitors

4 companies are reducing their profits

5 companies are during to protectionist measures

What was created at the same time as the International

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

Firm X exports a number of products to users in other

countries This practice is referred to as

Who is responsible for policing the world trading system?

1 International Monetary Fund

2 The World Bank

3 The World Trade Organization

4 Canada's Export Development Corporation

5 Bank of Canada

85 Free Test Bank for Global Business Today 4th

Canadian Edition by Hill Multiple Choice Questions - Page 2

If we look into the future, most forecasts now predict a

in world output accounted for by developing nations such as China, India, Indonesia, and South Korea, and a in the share enjoyed by rich industrialized countries such as Britain, Japan, and the United States

1 rapid rise; rapid decline

2 slight rise; slight decline

3 rapid decline; rapid rise

4 rapid rise; slight decline

5 stay the same; slight decline

The economies of most of the former Communist countries can best be described as:

1 in poor condition with high risk associated with doing business there

2 steady growth, especially since 2009

3 dominated by multinationals

4 robust and growing stronger

5 closed to many international businesses due to high tariffs

Managing an international business is different from

managing a purely domestic business for all of the following reasons except:

1 countries are different

2 international transactions involve converting money into different currencies

3 the range of problems confronted by a manager in an international business are narrower than those confronted by a manager in a domestic business

4 an international business must find ways to work within the limits imposed by government intervention in the international trade and investment system

5 different languages have to be learned

Supranational organizations such as the WTO are criticized for

1 interfering in the regulation of prices of a country's natural resources.

2 ruling in favour of rich western countries at the expense of poor developing

countries.

3 focusing on economics and not on democracy and environmental responsibility.

4 limiting its actions to what the WTO member states agree to.

5 encouraging economic stagnation in poor countries so that rich countries can grow faster.

Due to containerization, the transportation costs associated with the globalization of production have:

1 remained the same

2 increased dramatically

3 declined

4 increased slightly

5 reduced insurance costs

In recent years, all of the following countries have seen their relative share of world output fall except:

What does NAFTA stand for?

1 North American Free Trade Agreement

2 North Atlantic Free Trade Agency

3 North American Federation of Trade Advocates

4 National Alliance for Technology Advancement

5 North American Federal Treaty Association

Iceculture Inc., of Ontario employs 40 people and exports around the world It would be considered

1 a multinational company.

2 a transnational company.

3 a cross-border national company.

4 a mini-multinational.

5 a U.S dominated company.

Recently there has been _ in the number of smaller firms that are multinationals

_ is not a benefit of globalization

1 Lowering prices for goods

2 Raising the incomes of consumers

3 Slowing economic growth

4 Helping to create jobs in all countries that choose to participate

5 More leisure time

In 2013, the U.S.'s largest trade partner when it comes to exports from the United States was _

1 the U.S dominated the world economy

2 small, U.S entrepreneurial firms dominated the international business scene

3 the U.S dominated the world foreign direct investment picture

4 the U.S was the world's largest industrial power

5 the U.S dominated world trade

The relative decline of the developed countries' share of world output _

1 will reduce the living standards of the citizens of developed countries.

2 will increase competition for scarce resources and create political instability.

3 reflects the growing economic and industrial strength of developing countries.

4 will decrease prices but also reduce wages in Canada

5 will decrease job opportunities in Canada

As a result of a variety of innovations, the real costs of

information processing and communication have

over the past two decades

1 fallen slightly

2 increased slightly

3 remained constant

4 fallen dramatically

5 had no impact on the cost of international business

_ was not mentioned in our textbook as major

innovation in transportation technology

1 Commercial jet aircraft

2 Super freighters

3 E-commerce

4 The introduction of containerization

5 Both containerization and e-commerce were not mentioned

The foreign direct investment by non-U.S firms was

motivated primarily by the following two factors:

1 the desire to disperse production activities to optimal locations; and the desire to build a direct presence in major foreign markets

2 the desire to disperse production activities to optimal locations; and the desire to influence foreign exchange rates

3 the desire to influence foreign exchange rates; and the desire to influence political developments in foreign countries

4 the desire to build a direct presence in major foreign markets; and the desire to influence political developments in foreign countries

5 the desire to reduce dependence on the United States and to increase direct access to markets

If China continues to grow at its current rate, by 2020 the average income per capita will be about $13,000, roughly equivalent to what country today?

1 higher

1 governments are selling state-owned enterprises to private investors

2 foreign investment is welcome

3 debt and inflation are down

4 neither democracy nor free market reforms have seemed to take hold

5 None of these answers is correct

Which of the following is an example of a developing

According to your text, the World Bank estimates that

today's developing nations may account for more than _ percent of world economic activity by 2020

Disturbing signs of growing unrest and totalitarian

tendencies continue to be seen in many _ states

1 Western European

2 European

3 Northern European

4 Eastern European

5 South American states

Which country was the world's most dominant industry

power was in the early 1960s?

1 the decline of the multinational enterprise

2 the decline of the Canadian multinational enterprise

3 the rise of non-U.S multinationals

4 the decline of the Japanese multinational enterprise

5 the rise of U.S multinationals

Many critics of globalization argue that outsourcing leads to increased use of _ labour practices in developing countries

The Tim Hortons case study is an example of what?

1 how easily Canadian firms can enter the US market

2 the similarity of Canadian and US consumer tastes

3 Canadian firms buying up US firms

4 protests against globalization

5 the difficulty of Canadian firms expanding internationally

In 1960, the U.S accounted for about _ of world output

4 was highly variable

5 decreased, then increased

Among developing nations, the largest recipient of foreign direct investment has been which country?

1 China

2 India

3 Japan

4 Canada

5 the United States

What is the primary purpose of the World Trade

Organization?

1 arbitrate of trade disputes act as a "watchdog" for countries that lower their pollution standards in