Test bank for global business today 9th edition by hill

True / False Question AACSB: Analytical ThinkingAccessibility: Keyboard Navigation Blooms: UnderstandDifficulty: 1 EasyLearning Objective: 01-01 Understand what is meant by the term glo

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Multiple Choice Questions - (60) Difficulty: 3 Hard - (5)

True/False Questions - (30) Learning Objective: 01-01 Understand what is meant by the term globalization - (24)

Essay Questions - (15) Learning Objective: 01-02 Recognize the main drivers of globalization - (24)

Odd Numbered - (53) Learning Objective: 01-03 Describe the changing nature of the global economy - (26)

Even Numbered - (52) Learning Objective: 01-04 Explain the main arguments in the debate over the impact of globalization - (23)

AACSB: Analytical Thinking - (83) Learning Objective: 01-05 Understand how the process of globalization is creating opportunities and challenges for business managers - (8)

AACSB: Reflective Thinking - (22) Topic: Drivers of Globalization - (24)

Accessibility: Keyboard Navigation - (90) Topic: Introduction - (2)

Blooms: Apply - (13) Topic: Managing in the Global Marketplace - (8)

Blooms: Remember - (45) Topic: The Changing Demographics of the Global Economy - (26)

Blooms: Understand - (47) Topic: The Emergence of Global Institutions - (9)

Difficulty: 1 Easy - (63) Topic: The Globalization Debate - (23)

Difficulty: 2 Medium - (37) Topic: What is Globalization? - (13)

1 As a result of globalization, we have been moving toward a world in which national economies are relatively

self-contained entities

True

→ FalseOver the past four decades a fundamental shift has been occurring in the world economy We have been moving away from a world in which national economies were relatively self-contained entities, isolated from each other by barriers to cross-border trade and investment; by distance, time zones, and language; and by national differences in government regulation, culture, and business systems

True / False Question

AACSB: Analytical ThinkingAccessibility: Keyboard Navigation

Blooms: UnderstandDifficulty: 1 EasyLearning Objective: 01-01 Understand what is meant by the term globalization

Topic: What is Globalization?

3 As a result of globalization, companies rarely need to customize marketing strategies, product features, and operating

practices in different countries

True

→ FalseSignificant differences still exist among national markets along many relevant dimensions, including consumer tastes and preferences, distribution channels, culturally embedded value systems, business systems, and legal regulations These differences frequently require companies to customize marketing strategies, product features, and operating practices to best match conditions in a particular country

4 Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms to achieve the optimal

dispersion of their productive activities to locations around the globe

False

Substantial impediments make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe These impediments include formal and informal barriers to trade between countries, barriers to foreign direct investment, transportation costs, issues associated with economic and political risk, and the shear managerial challenge of coordinating a globally dispersed supply chain

Test Bank for Global Business Today 9th Edition by Hill Full file at https://TestbankDirect.eu/Test-Bank-for-Global-Business-Today-9th-Edition-by-Hill

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5 The World Trade Organization, the International Monetary Fund and its sister institution the World Bank, and the United

Nations were all created by voluntary agreement between individual nation-states

False

Over the past half century, a number of important global institutions have been created to help manage, regulate, and

police the global marketplace and to promote the establishment of multinational treaties to govern the global business

system These include the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade

Organization (WTO); the International Monetary Fund (IMF) and its sister institution, the World Bank; and the United

Nations (UN) All these institutions were created by voluntary agreement between individual nation-states, and their

functions are enshrined in international treaties

Blooms: RememberDifficulty: 1 EasyLearning Objective: 01-01 Understand what is meant by the term globalization

Topic: The Emergence of Global Institutions

6 The WTO is seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are

losing value against those of other nations

True

→ False

The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil and whose currencies are

7 The IMF is less controversial than its sister institution, the World Bank

True

→ False

The World Bank is less controversial than its sister institution, the IMF The World Bank has focused on making

low-interest loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments,

while the IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil and currencies are

8 Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country

FalseForeign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country

Blooms: RememberDifficulty: 1 EasyLearning Objective: 01-02 Recognize the main drivers of globalization

Topic: Drivers of Globalization

9 After World War II, the advanced nations of the West committed themselves to increasing barriers to the free flow of

goods, services, and capital between nations

True

→ False

Having learned from past experience, the advanced industrial nations of the West committed themselves after World War

II to progressively reducing barriers to the free flow of goods, services, and capital among nations

10 The Uruguay Round extended GATT to cover services as well as manufactured goods

FalseThe Uruguay Round reduced trade barriers; extended GATT to cover services as well as manufactured goods; provided

enhanced protection for patents, trademarks, and copyrights; and established the World Trade Organization to police the

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international trading system.

11 The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity

FalseThe lowering of trade and investment barriers allows firms to base production at the optimal location for that activity

Blooms: UnderstandDifficulty: 1 EasyLearning Objective: 01-02 Recognize the main drivers of globalization

12 As a result of international trade, the economies of the world's nation-states are becoming less intertwined

True

→ False

The economies of the world's nation-states are becoming more intertwined As trade expands, nations are becoming

increasingly dependent on each other for important goods and services

13 The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and

imports all imply that firms are finding it easier to protect themselves from attack by foreign competitors

True

→ False

The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and

imports all imply that firms are finding their home markets under attack from foreign competitors

14 Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over

long distances

False

In economic terms, the most important major innovations in transportation technology are probably the development of

commercial jet aircraft and superfreighters and the introduction of containerization, which simplifies transshipment from

one mode of transport to another It has revolutionized the transportation business, significantly lowering the costs of

shipping goods over long distances

15 The real costs of information processing and communication have fallen dramatically in the past two decades

False

As a result of technological innovations, the real costs of information processing and communication have fallen

dramatically in the past two decades

Blooms: UnderstandDifficulty: 2 MediumLearning Objective: 01-02 Recognize the main drivers of globalization

16 The United States accounted for a significantly larger share of the world economy in 2012 than it did in the 1960s

True

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→ False

During the 1960s, the United States routinely accounted for 20 percent of world exports of manufactured goods, but the

U.S share of world exports of goods and services had slipped to 8.7 percent by 2012, behind that of China

Blooms: RememberDifficulty: 1 EasyLearning Objective: 01-03 Describe the changing nature of the global economy

Topic: The Changing Demographics of the Global Economy

17 Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from

developing nations to their home countries where labor costs were lower

True

→ False

Beginning in the 1970s, European and Japanese firms began to shift labor-intensive manufacturing operations from their

home markets to developing nations where labor costs were lower

18 The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country

FalseThe stock of foreign direct investment refers to the total cumulative value of foreign investments in a country

19 Throughout the 1990s, the amount of investment directed at both developed and developing nations increased

dramatically

FalseThroughout the 1990s, the amount of investment directed at both developed and developing nations increased

dramatically, a trend that reflects the increasing internationalization of business corporations

Blooms: RememberDifficulty: 2 MediumLearning Objective: 01-03 Describe the changing nature of the global economy

20 Although most international trade and investment are still conducted by large firms, many medium-size and small

businesses are becoming increasingly involved in international trade and investment

False

Although most international trade and investment are still conducted by large firms, many medium-size and small

businesses are becoming increasingly involved in international trade and investment

21 Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free

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22 The move toward a global economy has strengthened the adoption of conservative economic policies by developing

nations

True

→ False

The move toward a global economy has been further strengthened by the widespread adoption of liberal economic policies

by countries that had firmly opposed them for two generations or more

23 According to many influential economists, the increase in international trade and cross-border investment will result in an

increase in the prices of goods and services

True

→ False

Many influential economists, politicians, and business leaders seem to think that the shift toward a more integrated and

interdependent global economy is a good thing They say increased international trade and cross-border investment will

result in lower prices for goods and services

Blooms: RememberDifficulty: 1 EasyLearning Objective: 01-04 Explain the main arguments in the debate over the impact of globalization

Topic: The Globalization Debate

24 It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by

unskilled workers, raising their living standards

False

It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by

unskilled workers, raising their living standards

Blooms: UnderstandDifficulty: 2 MediumLearning Objective: 01-04 Explain the main arguments in the debate over the impact of globalization

25 The growing income inequality is a result of the wages for skilled workers being discounted

True

→ False

The growing income inequality is a result of the wages for skilled workers being bid up by the labor market and the wages

for unskilled workers being discounted In fact, evidence suggests that technological change has had a bigger impact than

globalization on the declining share of national income enjoyed by labor

Blooms: UnderstandDifficulty: 2 MediumLearning Objective: 01-04 Explain the main arguments in the debate over the impact of globalization

26 In general, as countries get richer, they enact tougher environmental and labor regulations

False

Supporters of free trade and greater globalization argue that tougher environmental regulations and stricter labor standards

go hand in hand with economic progress In general, as countries get richer, they enact tougher environmental and labor

regulations

27 Highly indebted poor countries (HIPCs) can bootstrap themselves out of poverty by pursuing retaliatory trade policies

rather than free trade policies

True

→ False

Free trade alone, some argue, is a necessary but not sufficient prerequisite to help HIPCs bootstrap themselves out of

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28 Managers in an international business must find ways to work around the limits imposed by specific governmental

institutions

True

→ False

Managers in an international business must also deal with government restrictions on international trade and investment

They must find ways to work within the limits imposed by specific governmental interventions

Blooms: UnderstandDifficulty: 1 EasyLearning Objective: 01-05 Understand how the process of globalization is creating opportunities and

challenges for business managers

Topic: Managing in the Global Marketplace

29 Despite all the talk about the emerging global village, differences between countries such as cultures and political systems

are very profound and enduring

False

Countries differ in their cultures, political systems, economic systems, legal systems, and levels of economic development

Despite all the talk about the emerging global village, and despite the trend toward globalization of markets and

production, many of these differences are very profound and enduring

Blooms: UnderstandDifficulty: 1 EasyLearning Objective: 01-05 Understand how the process of globalization is creating opportunities and

30 As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border

transactions

True

→ False

Cross-border transactions also require that money be converted from the firm's home currency into a foreign currency and

vice versa Because currency exchange rates vary in response to changing economic conditions, managers in an

international business must develop policies for dealing with exchange rate movements

Blooms: UnderstandDifficulty: 2 MediumLearning Objective: 01-05 Understand how the process of globalization is creating opportunities and

31 Which of the following has been reduced as a result of globalization?

Volume of goods and servicesForeign exchange transactionsEnvironment and labor laws

→ Differences in material culture

Regulation of markets

We are moving toward a world in which barriers to cross-border trade and investment are declining; perceived distance is

shrinking due to advances in transportation and telecommunications technology; material culture is starting to look similar

the world over; and national economies are merging into an interdependent, integrated global economic system

Multiple Choice Question

Blooms: UnderstandDifficulty: 2 MediumLearning Objective: 01-01 Understand what is meant by the term globalization

Topic: Introduction

32 What is the shift toward a more integrated and interdependent world economy called?

International tradeForeign direct investment

→ Globalization

Moore's Law

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Globalization refers to the shift toward a more integrated and interdependent world economy Globalization has several

facets, including the globalization of markets and the globalization of production

33 Automobile companies promote different car models in different countries depending on a range of factors such as

demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values This most likely

demonstrates that:

→ significant differences still exist among national markets

cultural diversity has been replaced by global uniformity

the global market is less complex than national markets

only multinational giants can benefit from the globalization of markets

the social norms in a country do not affect purchase decisions of consumers

Significant differences still exist among national markets along many relevant dimensions, including consumer tastes and

preferences, distribution channels, culturally embedded value systems, business systems, and legal regulations These

differences frequently require companies to customize marketing strategies, product features, and operating practices to

best match conditions in a particular country

Blooms: ApplyDifficulty: 3 HardLearning Objective: 01-01 Understand what is meant by the term globalization

34 Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of

global markets?

Differences in business systems and legal regulations lead companies to customize their marketing strategies, product features, and operating practices to best match conditions in a particular country

→ As rival global firms follow each other across countries, they bring with them their brand names, products, and marketing strategies from other national markets, thus creating homogeneity across markets.

Truly innovative companies succeed by developing products that serve specific needs of the local markets

The volume of goods, services, and investment crossing national borders has expanded at a slower rate than world output for more than half a century

The most global of markets are not typically markets for consumer products, as significant differences in consumer tastes and preferences still exist among national markets

As firms follow each other around the world, they bring with them many of the assets that served them well in other

national markets—including their products, operating strategies, marketing strategies, and brand names—creating some

homogeneity across markets Thus, greater uniformity replaces diversity

35 Which of the following 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 such as labor, energy, land, and capital?

Globalization of marketsContainerization of productionDispersal of production

→ Globalization of production

Industrialization of markets

The globalization of production 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

36 Which of the following best illustrates the globalization of production?

→ Daily Diamonds Inc buys diamonds from South Africa and exports them to India for the cutting process

Evan Swan, a U.S.-based fashion designer, is planning to open a flagship store in China to serve the Asian market

Uncle Crab, a U.K fast food chain, has been serving customers worldwide through its franchises

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Silver Unicorn Inc uses sales personnel from the respective host country to sell its products and services.

Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers

The globalization of production 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 (such as labor, energy, land, and capital)

37 West Electronic Corporation sources goods and services for its electronics products from different locations around the

globe in an attempt to take advantage of differences in the cost and quality of labor and land This practice demonstrates

the:

→ globalization of production

globalization of markets

dislocation of a developing nation's economy

restriction on foreign direct investment

regulation of the environment

Globalization of production is a trend followed by individual firms to disperse parts of their productive processes to

different locations around the globe to take advantage of differences in cost and quality of factors of production

38 Early outsourcing efforts were primarily confined to:

Early outsourcing efforts were primarily confined to manufacturing activities; increasingly, however, companies are taking

advantage of modern communications technology, particularly the Internet, to outsource service activities to low-cost

producers in other nations

AACSB: Reflective ThinkingAccessibility: Keyboard Navigation

39 Which of the following services CANNOT be outsourced to foreign nations?

Debugging softwareHandling consumer queriesTranscribing medical filesInterpreting MRI scans

→ Delivering closing arguments for a lawsuit

While corporations can outsource routine legal work to foreign nations to lower costs, they need attorneys to handle their

trials and lawsuits—make opening statements and closing arguments, etc

Blooms: ApplyDifficulty: 2 MediumLearning Objective: 01-01 Understand what is meant by the term globalization

40 Which of the following was established after the Uruguay Round to police the international trading system?

United NationsInternational Monetary FundGroup of Twenty

→ World Trade Organization

World Bank

The General Agreement on Tariffs and Trade (GATT) is an international treaty whose functions included policing the

world trading system and committing signatories to lowering barriers to the free flow of goods across national borders

The World Trade Organization (WTO) succeeded the General Agreement on Tariffs and Trade (GATT) as a result of the

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successful completion of the Uruguay Round of GATT negotiations.

Blooms: RememberDifficulty: 2 MediumLearning Objective: 01-01 Understand what is meant by the term globalization

41 Why was the World Bank set up?

To preserve peace through international cooperation

→ To promote economic development

To maintain order in the international monetary system

To formulate a coordinated policy response to financial crises

To police the world trading system

The World Bank was created in 1944 to promote economic development It has focused on making low-interest loans to

cash-strapped governments in poor nations that wish to undertake significant infrastructure investments (such as building

dams or roads)

42 Which of the following is an argument put forth by critics of the IMF?

It increases barriers to the free flow of goods and investment across national borders

It provides assistance only to developing nations and completely ignores the developed nations

It is not powerful enough to ensure that the nation-states adhere to the rules laid down in trade treaties

It promotes the rise of communism across the globe

→ It usurps the sovereignty of nation-states by telling governments what economic policies they must adopt

IMF loans come with strings attached In return for loans, the IMF requires nation-states to adopt specific economic

policies aimed at returning their troubled economies to stability and growth These requirements have sparked controversy

Some critics maintain that by telling national governments what economic policies they must adopt, the IMF is usurping

the sovereignty of nation-states

43 According to the UN Charter, one of the four purposes of the UN is to:

→ be a center for harmonizing the actions of nations

encourage high tariffs on imports of manufactured goods

provide enhanced protection for patents

promote the establishment of multinational treaties

facilitate globalization of production

According to the UN charter, the UN has four purposes: to maintain international peace and security, to develop friendly

relations among nations, to cooperate in solving international problems and in promoting respect for human rights, and to

be a center for harmonizing the actions of nations

44 Who, along with representatives from the European Union and the European Central Bank, represent the 19 largest

economies in the world on the G20?

→ Finance ministers and central bank governors

Presidents and defense ministersPrime ministers and army chiefsInternational trade ministersMinisters of foreign affairs

Established in 1999, the G20 comprises the finance ministers and central bank governors of the 19 largest economies in

the world, plus representatives from the European Union and the European Central Bank

Multiple Choice Question AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Blooms: Remember

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Difficulty: 1 EasyLearning Objective: 01-01 Understand what is meant by the term globalization.

45 Which of the following is a macro factor underlying the trend toward greater globalization?

Rise of communism across the globeIncrease in nationalization of private organizationsIncrease in diversity in consumer tastes and preferencesIncrease in trade regulations across the globe

→ Dramatic developments in information processing and other technologies

Two macro factors underlie the trend toward greater globalization The first is the decline in barriers to the free flow of

goods, services, and capital that has occurred since the end of World War II The second factor is technological change,

particularly the dramatic developments in recent years in communication, information processing, and transportation

technologies

46 Which of the following best exemplifies foreign direct investment (FDI)?

Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia, Philippines, and Australia

→ Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market.

Delicate Love, a reputable florist company in Holland, exports tulips and roses throughout the globe

Samantha started an Italian restaurant in her home country, the United States, after she took cooking lessons from a well-known chef in Italy

Yin and Yang Inc., a Chinese firm, supplies buttons and zippers to major denim brands in the United Kingdom

Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country

Blooms: ApplyDifficulty: 2 MediumLearning Objective: 01-02 Recognize the main drivers of globalization

47 Michelle, an Italian fashion designer, sells her merchandise by exporting them to the United States, United Kingdom, and

Brazil According to this information, Michelle is most likely involved in:

foreign direct investment

globalization of production

→ international trade

multinational enterprise

outsourcing

International trade refers to the exporting of goods or services to consumers in another country

Blooms: ApplyDifficulty: 2 MediumLearning Objective: 01-02 Recognize the main drivers of globalization

48 For foreign direct investment (FDI) to occur, a firm should primarily:

conduct cross-border bartering with neighboring countries

→ invest resources in business activities outside its home country

export goods or services to consumers in another country

import goods or services from producers in another country

erect formidable barriers to international trade

Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country

49 The motive behind the high tariffs imposed by nations on imports of manufactured goods, prior to World War II, was to:

deter any possible attempts to promote communism

→ protect domestic industries from foreign competition

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prevent the occurrence of the Great Depression.

safeguard patents, copyrights, and trademarks

promote the trade of services over the trade of manufactured goods

During the 1920s and 30s many of the world's nation-states erected formidable barriers to international trade and foreign

direct investment Many of the barriers to international trade took the form of high tariffs on imports of manufactured

goods The typical aim of such tariffs was to protect domestic industries from foreign competition

50 Which of the following reasons contributed to the Great Depression of the 1930s?

Inability to meet the increasing world demand for productsSeveral countries accepting General Agreement on Tariffs and TradeIncreasing attack from foreign competitors on domestic industriesPrivatization of state-owned organizations

→ Countries progressively raising trade barriers against each other

Countries progressively raising trade barriers against each other ultimately depressed world demand and contributed to the

Great Depression of the 1930s

51 The 1993 Uruguay Round:

increased trade and investment barriers

excluded the trade of services from international trade

transformed the World Trade Organization into the GATT

→ provided enhanced protection for patents, trademarks, and copyrights

promoted the worldwide rise of communism

The Uruguay Round reduced trade barriers; extended GATT to cover services as well as manufactured goods; provided

enhanced protection for patents, trademarks, and copyrights; and established the World Trade Organization to police the

international trading system

52 Which of the following was a part of the agenda of the Doha Round of talks launched by the WTO?

→ Limiting the use of antidumping laws

Abolishing the International Monetary FundIncreasing tariffs on industrial goods, services, and agricultural productsPersuading member governments to cut defense spending

Establishing GATT as a replacement for the WTO

The Doha agenda included cutting tariffs on industrial goods, services, and agricultural products; phasing out subsidies to

agricultural producers; reducing barriers to cross-border investment; and limiting the use of antidumping laws

53 The lowering of trade and investment barriers:

protects domestic industries from foreign competition

was not an agenda of the Uruguay Round

→ allows firms to base production at optimal locations outside their home country

creates an unfavorable environment for FDI

caused the Great depression of the 1930s

The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity

Multiple Choice Question AACSB: Analytical Thinking

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Blooms: UnderstandDifficulty: 2 MediumLearning Objective: 01-02 Recognize the main drivers of globalization.

54 Which of the following has been declining in the developing nations of the world such as China, India, Russia, Indonesia,

Thailand, South Korea, Mexico, and Brazil?

Economic opportunities for international tradeIndustrialization

Contribution toward the share of world outputThe stock of foreign direct investment

→ Barriers to the free flow of goods, services, and capital

In 2012, firms based in developing nations accounted for 18.9 percent of the stock of foreign direct investment, up from

only 1 percent in 1980 Firms based in Hong Kong, South Korea, Singapore, Taiwan, India, and mainland China

accounted for much of this investment

55 While the lowering of trade barriers made globalization of markets and production a theoretical possibility, which of the

following has made it a tangible reality?

→ The advances in communication, information processing, and transportation technologies

The rise of communism and the need for independent economies on a global scaleThe increasing diversity in consumer tastes and preferences worldwide

The increasing differences in the material culture the world overThe decreasing significance of the World Trade Organization

The lowering of trade barriers made globalization of markets and production a theoretical possibility Technological

change has made it a tangible reality

56 Gerald bought his son, David, a computer two years ago Recently, he decided to buy his daughter, Julian, a computer of

her own In the context of the two-year gap between the purchase of both the computers and Moore's law, it is most likely

that:

Gerald paid a higher price for Julian's computer

David's computer will have a microprocessor with better power than that of Julian's

both David's and Julian's computers would cost Gerald the same price

→ the microprocessor in Julian's computer will be more advanced in terms of power than that of David's

the power of the microprocessors, in both David and Julian's computers, would be the same

The cost of microprocessors continues to fall, while their power increases (a phenomenon known as Moore's law, which

predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months)

Blooms: ApplyDifficulty: 1 EasyLearning Objective: 01-02 Recognize the main drivers of globalization

57 Richard purchased a computer for $600 in 2014 Compared to the $900 computer that he had purchased way back in 2010,

the new one seems to be more efficient in terms of the price he has paid and the power of the microprocessor technology

This is best explained by:

The cost of microprocessors continues to fall, while their power increases (a phenomenon known as Moore's law, which

predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months)

Multiple Choice Question AACSB: Analytical Thinking

Blooms: ApplyDifficulty: 1 Easy

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