California-based Urban Health Source has invested resources in business activities in Italy.

What
type of business activity does this represent? foreign direct investment
Gigantic Games., a U.S.-based company that specializes in strategy-based board games, has
production facilities in Poland and Spain. Based on this information, Gigantic Games can be
classified as what type of enterprise? multinational
Shannon works as the executive manager of an international business, while Bob is the executive
manager of a purely domestic business. Which of these responsibilities apply to both Shannon
and Bob? dealing with business attacks from competitors
Which institution was established as a result of the Uruguay Round of GATT? World Trade
Organization
The labor, energy, land, and capital that a company has access to are known as factors of
production.
Why was the World Trade Organization established? to police the international trading
system
What was the motivation for non-U.S. firms to begin investing across national borders in the
1970s? desire to disperse production activities to optimal locations
Which country has seen their share of world output increase the most from 1960 to today?
China
According to globalization opponents, what is a disadvantage of globalization? Globalization
results in companies "exporting jobs" to low-wage nations.
Canadian company Yummy Snacks exports a number of products to consumers in Peru, Chile,
and Argentina. According to this information, Yummy Snacks is most likely involved in
international trade.
______ refers to the shift toward economic international integration. Globalization
The World Trade Organization (WTO) is the successor to ______. GATT
Renata is traveling across Europe and is surprised to find Starbucks, McDonald's, and Coca-Cola
in nearly every city she visits. This shows a convergence of consumer tastes which creates a
_____. globalization of markets
When Jerry started his small appliance manufacturing company in the 1950s, every component
part was made in the USA and the product was assembled in the USA. Today, he sources the
components from China. The change at this company is an example of the _____. globalization
of production
Global institutions are needed to stabilize and monitor the global marketplace.
A country with high _____ has a barrier to international trade. tariffs on imports of foreign
goods
A United States-based shoe company has decided to invest in a British company that specializes
in clasps and buckles. This would be an example of foreign direct investment.
The Uruguay Round negotiations resulted in lowering the trade barriers between various national
markets.
Critics of globalization protest in order to diminish the impact of the culture of multinational
enterprises on the world.
True or false: While lowering trade barriers initially made global production possible, the advent
of technology made globalization a reality. True
Supporters of globalization argue that bodies such as the World Trade Organization and the
United Nations exist to serve the collective interests of member states, not to subvert those
interests. True
Moore's Law predicts that computer power will approximately double every 18 months.
What is an accurate description of microprocessors? They can decode vast amounts of
information.
The globalization of _____ is the term used to describe the merging of national markets into one
large global place. markets
The ______ has developed into the information backbone of the global economy and reduced the
constraints of location, scale, and time zone. Internet
Just a few decades ago, it would have cost a business much more money to find buyers in a
foreign country. What has helped lower the cost of this process and allows buyers and sellers to
easily find each other regardless of their location? Internet
Select the four facts that describe the demographics of the global economy up until the 1960s.
Dominance of large, multinational US firms in international business scene
US dominance in world foreign direct investment
Roughly half of the globe was off-limits to Western international business
US dominance in the world economy and world trade
The negotiations called the _____, finalized in December 1993, established the World Trade
Organization to police the international trading system. Uruguay Round
The doubling of the power of microprocessor technology while the costs of its production
decreases by half is called ______ Law. Moore's
In the early 1960s, the US was the world's dominant industrial power. How does the US position
compare today? It has diminished in power.
True or false: The first web browser was introduced to the public in the 1970s and started the
explosive growth of the Internet in foreign transactions. False
During the 1960s, which country was the predominant world power in terms of foreign direct
investment? US
As the barriers to the free flow of goods, services, and capital fell during the 1970s, one
motivation for foreign direct investment by non-US firms was the desire tomove production
activities to more desirable locations.
There have been two notable trends in the demographics of multinational enterprises since the
1960s. These include _____. the rise of non-US multinationals
the growth of mini-multinationals
The risks of doing business in countries that are facing revolutions is higher than in
countries not facing revolutions.
If you were to describe the global economy of the twenty-first century, it would be accurate to
say that more nations are becoming part of the developed world.
Those who support globalization argue that increasing globalization will lead to reduced prices
for goods and services.
A critic of globalization would say that falling trade barriers result in what two situations?
Depression of wages in developed nations.
Destruction of manufacturing jobs in advanced economies
The decline of the United States standing in industrial power since the 1960s, is considered a
relative decline because it is a reflection of the faster economic growth of other economies
When NAFTA was first introduced, what was the biggest argument opponents presented?U.S.
firms would move manufacturing to Mexico and feel free to pollute the air and employ child
labor.
According to critics of globalization, increased free trade and investment over the past few
decades have broadened the gap between the rich and poor nations.
Brite-Way Lighting is based in California and sells products within the United States as well as
to ten foreign countries. Brite-Way Lighting is an example of a(n) _____ business.
international
Some demonstrations against globalization are based on the idea that falling barriers to
international trade result in job losses in industries targeted by foreign competitors.
Paragon Corp., based in Ohio, sources goods from Southeast Asia to take advantage of labor cost
savings. This company is benefiting from _____. the globalization of production
The International Monetary Fund and the World Bank are both examples of _____ that help
govern the global business system. global institutions
Foreign direct investment occurs when a(n) investment is made by a company based in one
country into a company or entity based in another country.