Else 6) Although many companies have lowered their overall cost structure and have improved the quality of their products by dispersing their production activities to locations around the world, this activity is confined primarily to large firms. (1) true (4) false 7) Sourcing goods and services from locations around the globe is known as the globalization of markets. (8) true false 8) General Agreement on Tariff and Trade is what the acronym GATT stands for. (2) true (1) false 9) As markets globalize and an increasing proportion of business activity transcends national borders, there is a need for institutions to help manage, regulate and police the global market place. true false 10) The Intemational Monetary Fund and the World Bank were both created in 1944 by 44 nations that met at Bretton Woods, New Hampshire. true false false. 1) The global economy is moving progressively towards a world in which nation: economies are relatively isolated from each other. 6 expanded faster than did world output every year during the last two decades of th 20th century. 7 (2) true 8 (4) false 9 10 3) Currently global markets are mostly markets for consumer products. 11 . true 12 filse 13 4) To benefit from the globalization of markets, a company has to be a multinationa firm. 15 true 16 (1) false 17 18 5) Currently most global markets are for industrial goods and materials that serve a universal need the world over. 19 tisue 20 ( false 21 6) Although many companies have lowered their overall cost structure and have 22 improved the quality of their products by dispersing their production activities to locations around the world, this activity is confined primarily to large firms 23 . true 24 false 3 E) It still influences many govemuments 10) the first theory of intemational trade, principal as sertion 5 was that gold and silver were the mainstays of national wealth and essenti to vigorous commerce. A) Collectivisns B) Mercantilisnds C) Capitalisnds D) Economic conservatisnds E) Market capitalism 11) The main tenet of mercantilismwas that it was in a country's best interest to maintain a(n) : 73 A) export and import trade balance 74 B) import trade embargo 75 C) export trade surplus 76 D) export trade deficit 77 E) large reserve of gold 78 79 12) The flaw with mercantilism was that it viewed trade as a 80 A) zero-sumgame 81 B) economic necessity 82 C) non es sential economic activity 83 D) threat to a govemment's independence 84 E) luxury for consumers