Question 1 (1 point) The volume of world merchandise trade and production is growing faster than world GDP. This implies that more firms are dispersing their production processes to global locations. ,. the economies of the world's nation-states are becoming more independent " from each other. the global economy is headed for a large downward correction. the world is becoming poorer. Question 2 (1 point) Nations faced with a financial crisis can turn to the World Bank, known as the lender of last resort, to bail it out. True .1: False Question 3 (1 point) Early outsourcing efforts were primarily confined to health care. service activities. technological research. .1: manufacturing activities. Question 4 (1 point) Managing an international business is quite similar to managing a domestic business. True False Question 5 (1 point) In 2009, the financial crisis in the United States was triggered by the global hike in the price of crude oil. .1: the slowdown in U.S. imports, due to political pressure. liberal lending policies by U.S. banks to homeowners. i: the artificial fixing of the currency rate by China. Question 6 (1 point) Based on several studies, the data suggest that real wages for unskilled workers have decreased while real wages for skilled workers have increased. i: for both skilled and unskilled labor have decreased. for both skilled and unskilled labor have increased. for unskilled workers have increased while real wages for skilled worker have decreased. Question 7 (1 point) Manufacturers of industrial goods and materials are more likely to participate in global markets than producers of consumer products. If: True If False Question 8 {1 point) Supporters of debt relief for HIPCs i: argue that free trade alone is sufficient to bring HIPCs out of poverty. \"3| argue that new democratic governments should be forced to honor debts incurred by previous corrupt predecessors. are energized by high-profile endorsements from Bono, the Dalai Lama, and Jeffrey Sachs. are working against the policies of the IMF and World Bank. Question 9 {1 point) Globalization is criticized because it increases the power of governments to own enterprises. unskilled labor to form labor unions. '1: supranational organizations over nation-states. .1: nation-states to regulate markets and reduce competition. Question 10 (1 point) Which statement is true about the International Monetary Fund (IMF)? Ii: It is primarily responsible for policing the world trading system. It is seen as the lender of last resort to nation-states whose economies are in I turmoil. "f. It is responsible for establishing multinational treaties to govern the global I business system. It was established to formulate a coordinated policy response to financial crises in developing nations. Question 11 (1 point) Since Mercury Machine is a medium-size business, it would not benefit from globalization. True False Question 12 [1 point) Which country has been the largest recipient of foreign direct investment and, in 2020, received about $250 billion in inflows? Brazil '1: Russia India China Question 13 (1 point) Which factor is viewed by large segments of the population in many countries as a detrimental effect of globalization? job growth in industries under attack from foreign competitors '1: __:j;. upward pressure on the wage rates of unskilled workers environmental degradation cultural isolationism of global media and MNEs Question 14 (1 point) Which factor has contributed to the globalization of markets? a decrease in foreign direct investment '22: global convergence of consumer tastes and preferences an increase in cross-border barriers to trade Ii: the trend to separate a homogeneous market into separate national markets Question 15 (1 point) Exotic Collectibles is an international business. As such, it .i: needs to have manufacturing units in at least two foreign nations. :2: needs to manufacture products or provide services that target a global market. :2: need not customize its products to the requirements of national markets. Ii: invests in international trade or investment. Question 16 (1 point) Why did many Japanese firms invest in North America and Europe in the 19705? i: to avoid a highly competitive domestic market to exploit high domestic tariff barriers to provide a hedge against unfavorable currency movements and imposition of trade barriers Ii: to take advantage of the removal of all trade barriers Question 17 (1 point) The negotiations in the Uruguay Round of GATT led to .1: an easing of lending restrictions for cash-strapped nation-states. .12: enhanced protection for patents, trademarks, and copyrights. .3: increased trade barriers. reduced coverage of services and manufactured goods. Question 18 (1 point) To be classified as an MNE, a company must have productive activities in at least countries. If :1 three ten .1: twenty Question 19 (1 point) __________ occurs when a firm exports goods or services to consumers in another country. If International trade .1: Foreign direct investment '22: Inward investment .1: Outsourcing Question 20 (1 point) One result of the globalization of markets and the resulting growth of world trade, foreign direct investment, and imports is the increasing competition in domestic markets from foreign competitors. (Fl) True Ii: False