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Description

According to the opening case,

the most important reason to assemble iPhones in China was due to: A

consumer preferences for foreign items D

the ability to scale production up and down E

The trend toward a more integrated and interdependent global economic system that has been in place for many years is commonly referred to as: A

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

The globalization of __________ 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 labour,

The factors of production include: A

The _______ was created in 1944 by 44 nations that met in Breton Woods,

New Hampshire

International bank B

World Monetary Fund C

World Trade Organization D

International Monetary Fund E

United Nations

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

International Monetary Fund B

International bank C

United Nations D

Canada's Export Development Corporation E

Bank of Canada

Who is responsible for policing the world trading system

International Monetary Fund B

The World Bank C

The World Trade Organization D

Canada's Export Development Corporation E

Bank of Canada

What was created at the same time as the International Monetary Fund

World Bank B

United Nations D

Canada's Export Development Corporation E

Bank of Canada

Although this organization is perhaps best known for its peacekeeping role,

one of its central mandates is the promotion of higher standards of living,

and conditions of economic and social progress and development

What is it called

World Bank B

United Nations D

Canada's Export Development Corporation E

Bank of Canada

_______ are the two macro factors that seem to underlie the trend toward greater globalization

The increase in global economic stability,

and the slowdown in technological change B

The increase in barriers to the free flow of goods,

and capital that has occurred since the end of World War II,

and global economic stability C

The decline in barriers to the free flow of goods,

and capital that has occurred in the past 10 years,

and the slowdown in technological change D

The decline in barriers to the free flow of goods,

and capital that has occurred since the end of World War II,

Technological Change and the convergence of global product preferences

Firm X exports a number of products to users in other countries

This practice is referred to as __________

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: A

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

Although Inco is a Canadian company,

it has invested substantial business resources in activities outside Canada

This practice is referred to as: A

organizational diversification E

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

The __________ is a treaty designed to remove barriers to the free flow of goods,

Global Agreement on Tariffs and Commerce B

United Nations Treaty on Trade C

General Agreement on Tariffs and Trade D

Multi-National Agreement on Tariffs and Commerce E

The ILO

After World War II,

the West committed to removing trade barriers between nations because of what experience

the loss of production from the war B

retaliatory trade policies leading to the Depression C

the General Agreement on Tariffs and Trade D

massive waves of immigrants seeking jobs E

the shift away from production to consumption

Under the umbrella of GATT there have been eight rounds of negotiations among member states

The _______ was the most recent round of negotiations

Uruguay Round B

Malaysian Symposium C

German Round D

New Zealand Symposium E

Cancun Round

Which of the following was not an outcome of the Uruguay Round of the GATT

extended GATT to cover services as well as manufactured goods C

established the World Trade Organization D

provided extended protection for patents,

reduced agricultural subsidies

If the Doha talks are ever completed,

the biggest gain will come from what

The acronym GATT stands for: A

Global Agreement on Taxation and Tariffs B

Global Association of Technology and Trade C

General Agreement on Taxation and Trademarks D

General Agreement on Tariffs and Trade E

General Accord of Transportation and Trade

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

Global Trade Enforcement Administration B

World Tariff and Trade Bureau C

International Trade Enforcement Agency D

World Trade Organization E

The European bank of Reconstruction and Development

Suppose Petro Canada,

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

World Trade Organization B

International Trade Monitoring Bureau C

World Tariff and Trade Agency D

International Trade Monitoring Agency E

The United Nations

The acronym WTO stands for: A

Western Trade Organization B

World Tax Organization C

World Trade Organization D

World Tariff Organization E

World Trade Operations

In the past decades,

in addition to reducing trade barriers,

Since 1992,

most of the world's changes to FDI have done what

created a more favourable environment for FDI C

Since 1950,

world trade has grown faster than what

Many of the changes that countries have made pertaining to foreign direct investment regulations have: A

made it harder for foreign companies to enter their markets B

made it easier for foreign companies to enter their markets C

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

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 E

prevented the expropriation of business assets by a foreign government

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

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

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

the volume of world trade and the volume of world output have grown at approximately the same rate since the 1950s

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

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

According to your text,

as world trade expanded by 20 times,

world output grew by about _______

20 times

The average yearly outflow of FDI increased from about $25 billion in 1975 to a record of _______________ in 2007,

though it has fallen more recently

The steep drop in world trade occurred when

1950-1951

1955-1956

1995-1996

2005-2006

2008-2009

Between 1992 and 2010,

the total flow of FDI from all countries increase by about _______

2 times B

3 times C

6 times D

7 times E

9 times

The globalization of markets,

and the increase in FDI has had what effect

companies find their home markets under attack from foreign competitors D

companies are reducing their profits E

companies are during to protectionist measures

Evidence suggests that FDI is playing a(n): A

decreasing role in the world economy B

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

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

increasing role in the world economy E

a limited role in the world economy

According to our textbook,

the growing integration of the world economy is: A

increasing the intensity of competition within the home market of a company in a wide range of manufacturing and service industries B

decreasing the intensity of global competition in manufacturing industries,

and increasing the intensity of domestic competition in services C

increasing the intensity of global competition in manufacturing industries,

and decreasing the intensity of domestic competition in services D

narrowing the scope of global competition in a wide range of service,

and manufacturing industries E

Widening the opportunities for competing with manufacturing companies within their home market and narrowing the opportunities for competing with service companies in their home market

Which of the following is a major cause for lowering the trade barriers of markets and production

Technological change B

Increased labour mobility C

Elastic demand D

Corporate greed E

Consumer demand

According to our textbook,

the single most important technological innovation has been the development of the __________

_______ is the theory that predicts that the number of transistors on a computer chip doubles every 24 months

Brennan's Theorem B

Bailey's Law C

Moore's Law D

Ivan's Law E

Global Micro Accelerant (GMA) Law

According to your textbook,

the cost of a three-minute phone call between New York and London fell from $244

65 to $3

This decrease can be mainly contributed to A

open communication between governments

the advent of the microprocessor

continuing efforts to globalize

high corporate ethical standards

the deregulation of the telecommunications industry

As of 2014 the number of Internet users around the world exceeds what

5 billion

According to our textbook,

The Web is viewed as a global what

way of decreasing production C

way of reaching businesses at the expense of consumer E

way for government to market to its population

_______ was not mentioned in our textbook as major innovation in transportation technology

Commercial jet aircraft B

Super freighters C

E-commerce D

The introduction of containerization E

Both containerization and e-commerce were not mentioned

Due to containerization,

the transportation costs associated with the globalization of production have: A

As a result of a variety of innovations,

the real costs of information processing and communication have __________ over the past two decades

had no impact on the cost of international business

Although the characteristics of the global economy have changed dramatically over the past 50 years,

as late as the 1960s all of the following demographic characteristics were true except: A

entrepreneurial firms dominated the international business scene C

dominated the world foreign direct investment picture D

was the world's largest industrial power E

Which country was the world's most dominant industry power was in the early 1960s

Japan B

The United Kingdom C

Germany D

The United States E

In 1960,

accounted for about _____ of world output as measured by GDP

In recent years,

all of the following countries have seen their relative share of world output fall except: A

United States B

France C

Germany D

China E

United Kingdom

In 2013,

's largest trade partner when it comes to exports from the United States was ___________________

United Kingdom B

Mexico C

China D

Canada E

South Korea

If we look into the future,

most forecasts now predict a __________ in world output accounted for by developing nations such as China,

Indonesia,

and a __________ in the share enjoyed by rich industrialized countries such as Britain,

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

will reduce the living standards of the citizens of developed countries

will increase competition for scarce resources and create political instability

reflects the growing economic and industrial strength of developing countries

will decrease prices but also reduce wages in Canada E

will decrease job opportunities in Canada

Which of the following is an example of a developing nation

Thailand B

Britain C

Japan D

United States E

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

_______ is not considered to be a "developing" nation

Brazil B

India C

China D

Japan E

The foreign direct investment by non-U

firms was motivated primarily by the following two factors: A

the desire to disperse production activities to optimal locations

and the desire to build a direct presence in major foreign markets B

the desire to disperse production activities to optimal locations

and the desire to influence foreign exchange rates C

the desire to influence foreign exchange rates

and the desire to influence political developments in foreign countries D

the desire to build a direct presence in major foreign markets

and the desire to influence political developments in foreign countries E

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

In the 1960s,

what was then seen as an economic threat to Europe

The dominance of U

Technological innovations C

Low-cost transportation D

Low-cost global communication networks E

Reduction in trade barriers

Throughout the 1990s,

the amount of investment directed at both developed and developing nations did what

Among developing nations,

the largest recipient of foreign direct investment has been which country

China B

India C

Japan D

Canada E

Since the 1960s,

what has been a notable trend regarding multinational enterprises

the decline of the multinational enterprise B

the decline of the Canadian multinational enterprise C

the decline of the Japanese multinational enterprise E

What kind of enterprise is a business that has productive activities in two or more countries

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

General Electric Corporation has productive activities in a number of countries

As a result,

it would be appropriate to refer to General Electric as a __________ corporation

Iceculture Inc

of Ontario employs 40 people and exports around the world

It would be considered A

a cross-border national company

Since the 1960s,

there have been two notable trends in the demographics of the multinational enterprise

These two trends have been: A

multinationals and the disappearance of mini-multinationals B

multinationals and the decline of mini-multinationals C

multinationals and the growth of mini-multinationals D

multinationals and the growth of mini-multinationals E

multinationals and the growth of mini-multinationals

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

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

closed to many international businesses due to high tariffs

Disturbing signs of growing unrest and totalitarian tendencies continue to be seen in many _______ states

Western European B

European C

Northern European D

Eastern European E

South American states

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

Canada B

United States C

Spain D

India E

Latin America

Which of the following statements is not true regarding the majority of Latin American countries

governments are selling state-owned enterprises to private investors B

foreign investment is welcome C

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

None of these answers is correct

The last quarter of the 20th century experienced __________ in the global economy

great concerns over potential disruptions 73

Economists argue that increased international trade and cross-border investments will result in __________ prices for goods and services

_______ is not a benefit of globalization

Lowering prices for goods B

Raising the incomes of consumers C

Slowing economic growth D

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

More leisure time

Economists,

and business leaders believe that the _______ to international trade and investment is the engine driving the global economy toward greater prosperity

One frequently voiced concern about globalization is that it destroys manufacturing jobs in wealthy advanced economies such as Canada

The basic thrust of the critics' argument is: A

developing nations will recruit employees from the more advanced economies,

thereby depleting their labour pools B

globalization increases the pace of the shift from a world economy based on manufactured goods to a world economy based on services C

falling trade barriers allows firms to move their manufacturing activities offshore to countries where wage rates are much lower D

the governments of developing countries will heavily subsidize their primary industries,

making competing products produced in advanced economies less attractive E

Canadian workers are overpaid and the true value of a manufacturing job is much lower

Outsourcing has even extended to the Canadian _______ industry

Critics use the following argument to suggest that globalization is a contributing factor to an increase in pollution

globalization results in an increase in the amount of activity that takes place in companies that do not have adequate pollution controls B

globalization results in increased commerce between countries,

which results in an increase in the amount of transportation activity (e

firms that operate in countries that have adequate pollution regulations have a tendency to move their manufacturing operations to countries that have less stringent or no pollution controls to avoid the cost of regulation D

globalization results in increased production,

which has the undesirable side-effect of increased pollution E

people in developing countries are used to coping with more pollution

What does NAFTA stand for

North American Free Trade Agreement B

North Atlantic Free Trade Agency C

North American Federation of Trade Advocates D

National Alliance for Technology Advancement E

North American Federal Treaty Association

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

What is the primary purpose of the World Trade Organization

act as a "watchdog" for countries that lower their pollution standards in an effort to attract more foreign manufacturing activity C

set tariffs for countries that signed the GATT agreement D

monitor the implementation of trade agreements such as NAFTA E

reduce the number of job losses in member countries

Supranational organizations such as the WTO are criticized for A

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

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

focusing on economics and not on democracy and environmental responsibility

limiting its actions to what the WTO member states agree to

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

Managing an international business is different from managing a purely domestic business for all of the following reasons except: A

international transactions involve converting money into different currencies C

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

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

different languages have to be learned

The world's poorest nations have also faced __________

The Tim Hortons case study is an example of what

how easily Canadian firms can enter the US market B

the similarity of Canadian and US consumer tastes C

Canadian firms buying up US firms D

protests against globalization E

the difficulty of Canadian firms expanding internationally

The global economy is moving progressively towards a world in which national economies are relatively isolated from each other

True False

The volume of goods,

services and investment crossing national borders expanded faster than did world output every year during the last two decades of the 20 th

True False 88

Because of the global presence of widely accepted products like McDonalds,

Coca-Cola,

national markets are disappearing

True False

To benefit from the globalization of markets,

a company has to be a multinational firm

True False

Currently most global markets are for industrial goods and materials that serve a universal need the world over

True False

Currently most global markets are markets for consumer goods

True False

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

True False

Currently most global markets are markets for consumer goods

True False

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

True False

General Agreement on Tariffs and Trade is what the acronym GATT stands for

True False

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

The International Monetary Fund and the World Bank were both created in 1944 by 44 nations that met at Bretton Woods,

New Hampshire

True False

The International Monetary Fund (IMF) is often seen as the leader of last resort to nation states whose economies are in economic turmoil

True False

In addition to reducing trade barriers,

many countries have also been progressively removing restrictions on barriers to foreign direct investment

True False

The advanced nations of the East committed themselves after World War II to removing barriers to the free flow of goods,

True False

There is very little evidence that suggests that the lowering of trade barriers has facilitated the globalization of production

True False

The volume of world output has grown faster than the volume of world trade since the 1950s,

according to data from the World Trade Organization

True False

Surprisingly,

despite the importance of technology in our everyday lives,

technological change has played only a minor role in the globalization of markets

True False

Most forecasts now predict a rapid rise in world output accounted for by developing nations such as China,

and a rapid decline in the share enjoyed by rich industrialized countries such as Canada,

Britain and the United States

True False

Many of tomorrow's economic opportunities may be found in the developing nations of the world

True False

In the 1960s global business activity was dominated by large Japanese multinational corporations

True False

Although most international trade and investment is still conducted by large firms,

small to medium sized firms are increasingly involved in international trade and investment

True False

An MNE is any firm that invests outside of its home country

True False

Between 1995 and 2000 most countries in Eastern Europe saw their Communist governments collapse

True False

If what is occurring in China continues for two more decades,

China may move from third-world to industrial superpower status even more rapidly than Japan did

True False

Economists argue that increased international trade and cross-border investments will result in higher prices for goods and services,

although there are many benefits to globalization

True False

It is commonly believed that globalization stimulates economic growth,

True False

The financial crisis in Thailand shows one of the risks of globalization

True False

Some Canadian firms have outsourced jobs to developing countries

True False

Describe the concept of globalization

What are the major opportunities and challenges that globalization has created for business organization

Describe the two main facets of globalization

Explain how each of these components of globalization has helped create the shift towards a more integrated world economy

Describe the meaning of the term "trade barriers"

? What measures have been taken by the world community to reduce the impact of trade barriers on international trade

Describe the impact of the development of the World Wide Web on global commerce

Define the term "foreign direct investment (FDI)

" How does the term "foreign direct investment" differ from the term "international trade

Discuss the primary advantages and disadvantages of globalization

Do you believe the advantages outweigh the disadvantages

? How can the effects of the disadvantages of globalization be reduced

Country competitiveness is not something that is permanent or fixed

The dominant features of the global economy are the rapid changes relative economic and competitive status of different countries

Canada is not immune to these changes

We have seen our total share of the global economy decrease and the loss of many industries

The anti-globalization movement has been active in Canada

In particular they have been critical of multinational corporate power and argued against global and regional agreements on economic growth and the lowering of trade barriers

Others feel that globalization is inevitable and contributes to the well being of people around the world

Consider the overall impact of globalization on Canada from the perspective of a software developer-has it been positive or negative

What kinds of strategies could a Canadian developer of software employ to reduce the negative impacts and take advantage of the positive aspects

Why is international trade important to Canada

You manage a company that produces and sells cameras that work under water

The camera bodies are made in China,

in a facility your company owns,

and which employs about 500 people

The electronics for the camera are bought from a supplier in South Korea

The lens and optics are made in your own facility in Japan,

which employs about 300 people

The final product is also assembled and packaged at this facility in Japan

Your company currently employs about 350 people in Canada (head office functions,

You are a successful company,

and you hope to expand your sales around the globe

What is this type of company called

You manage a company that produces and sells cameras that work under water

The camera bodies are made in China,

in a facility your company owns,

and which employs about 500 people

The electronics for the camera are bought from a supplier in South Korea

The lens and optics are made in your own facility in Japan,

which employs about 300 people

The final product is also assembled and packaged at this facility in Japan

Your company currently employs about 350 people in Canada (head office functions,

You are a successful company,

and you hope to expand your sales around the globe

What are some other examples of this type of firm

You manage a company that produces and sells cameras that work under water

The camera bodies are made in China,

in a facility your company owns,

and which employs about 500 people

The electronics for the camera are bought from a supplier in South Korea

The lens and optics are made in your own facility in Japan,

which employs about 300 people

The final product is also assembled and packaged at this facility in Japan

Your company currently employs about 350 people in Canada (head office functions,

You are a successful company,

and you hope to expand your sales around the globe

What have been the two most notable trends in these type of enterprises since the 1960s

You manage a company that produces and sells cameras that work under water

The camera bodies are made in China,

in a facility your company owns,

and which employs about 500 people

The electronics for the camera are bought from a supplier in South Korea

The lens and optics are made in your own facility in Japan,

which employs about 300 people

The final product is also assembled and packaged at this facility in Japan

Your company currently employs about 350 people in Canada (head office functions,

You are a successful company,

and you hope to expand your sales around the globe

What are the future prospects of smaller firms that operate as your firm does internationally

According to the opening case,

the most important reason to assemble iPhones in China was due to: A

consumer preferences for foreign items D

the ability to scale production up and down E

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The trend toward a more integrated and interdependent global economic system that has been in place for many years is commonly referred to as: A

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

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The globalization of __________ 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 labour,

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The factors of production include: A

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The _______ was created in 1944 by 44 nations that met in Breton Woods,

New Hampshire

International bank B

World Monetary Fund C

World Trade Organization D

International Monetary Fund E

United Nations

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

International Monetary Fund B

International bank C

United Nations D

Canada's Export Development Corporation E

Bank of Canada

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Who is responsible for policing the world trading system

International Monetary Fund B

The World Bank C

The World Trade Organization D

Canada's Export Development Corporation E

Bank of Canada

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What was created at the same time as the International Monetary Fund

World Bank B

United Nations D

Canada's Export Development Corporation E

Bank of Canada

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Although this organization is perhaps best known for its peacekeeping role,

one of its central mandates is the promotion of higher standards of living,

and conditions of economic and social progress and development

What is it called

World Bank B

United Nations D

Canada's Export Development Corporation E

Bank of Canada

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_______ are the two macro factors that seem to underlie the trend toward greater globalization

The increase in global economic stability,

and the slowdown in technological change B

The increase in barriers to the free flow of goods,

and capital that has occurred since the end of World War II,

and global economic stability C

The decline in barriers to the free flow of goods,

and capital that has occurred in the past 10 years,

and the slowdown in technological change D

The decline in barriers to the free flow of goods,

and capital that has occurred since the end of World War II,

Technological Change and the convergence of global product preferences

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Firm X exports a number of products to users in other countries

This practice is referred to as __________

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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: A

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

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Although Inco is a Canadian company,

it has invested substantial business resources in activities outside Canada

This practice is referred to as: A

organizational diversification E

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

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The __________ is a treaty designed to remove barriers to the free flow of goods,

Global Agreement on Tariffs and Commerce B

United Nations Treaty on Trade C

General Agreement on Tariffs and Trade D

Multi-National Agreement on Tariffs and Commerce E

The ILO

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After World War II,

the West committed to removing trade barriers between nations because of what experience

the loss of production from the war B

retaliatory trade policies leading to the Depression C

the General Agreement on Tariffs and Trade D

massive waves of immigrants seeking jobs E

the shift away from production to consumption

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Under the umbrella of GATT there have been eight rounds of negotiations among member states

The _______ was the most recent round of negotiations

Uruguay Round B

Malaysian Symposium C

German Round D

New Zealand Symposium E

Cancun Round

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Which of the following was not an outcome of the Uruguay Round of the GATT

extended GATT to cover services as well as manufactured goods C

established the World Trade Organization D

provided extended protection for patents,

reduced agricultural subsidies

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If the Doha talks are ever completed,

the biggest gain will come from what

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The acronym GATT stands for: A

Global Agreement on Taxation and Tariffs B

Global Association of Technology and Trade C

General Agreement on Taxation and Trademarks D

General Agreement on Tariffs and Trade E

General Accord of Transportation and Trade

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

Global Trade Enforcement Administration B

World Tariff and Trade Bureau C

International Trade Enforcement Agency D

World Trade Organization E

The European bank of Reconstruction and Development

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Suppose Petro Canada,

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

World Trade Organization B

International Trade Monitoring Bureau C

World Tariff and Trade Agency D

International Trade Monitoring Agency E

The United Nations

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The acronym WTO stands for: A

Western Trade Organization B

World Tax Organization C

World Trade Organization D

World Tariff Organization E

World Trade Operations

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In the past decades,

in addition to reducing trade barriers,

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Since 1992,

most of the world's changes to FDI have done what

created a more favourable environment for FDI C

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Since 1950,

world trade has grown faster than what

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Many of the changes that countries have made pertaining to foreign direct investment regulations have: A

made it harder for foreign companies to enter their markets B

made it easier for foreign companies to enter their markets C

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

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 E

prevented the expropriation of business assets by a foreign government

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

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

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

the volume of world trade and the volume of world output have grown at approximately the same rate since the 1950s

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

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

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According to your text,

as world trade expanded by 20 times,

world output grew by about _______

20 times

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The average yearly outflow of FDI increased from about $25 billion in 1975 to a record of _______________ in 2007,

though it has fallen more recently

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The steep drop in world trade occurred when

1950-1951

1955-1956

1995-1996

2005-2006

2008-2009

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Between 1992 and 2010,

the total flow of FDI from all countries increase by about _______

2 times B

3 times C

6 times D

7 times E

9 times

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The globalization of markets,

and the increase in FDI has had what effect

companies find their home markets under attack from foreign competitors D

companies are reducing their profits E

companies are during to protectionist measures

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Evidence suggests that FDI is playing a(n): A

decreasing role in the world economy B

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

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

increasing role in the world economy E

a limited role in the world economy

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According to our textbook,

the growing integration of the world economy is: A

increasing the intensity of competition within the home market of a company in a wide range of manufacturing and service industries B

decreasing the intensity of global competition in manufacturing industries,

and increasing the intensity of domestic competition in services C

increasing the intensity of global competition in manufacturing industries,

and decreasing the intensity of domestic competition in services D

narrowing the scope of global competition in a wide range of service,

and manufacturing industries E

Widening the opportunities for competing with manufacturing companies within their home market and narrowing the opportunities for competing with service companies in their home market

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Which of the following is a major cause for lowering the trade barriers of markets and production

Technological change B

Increased labour mobility C

Elastic demand D

Corporate greed E

Consumer demand

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According to our textbook,

the single most important technological innovation has been the development of the __________

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_______ is the theory that predicts that the number of transistors on a computer chip doubles every 24 months

Brennan's Theorem B

Bailey's Law C

Moore's Law D

Ivan's Law E

Global Micro Accelerant (GMA) Law

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According to your textbook,

the cost of a three-minute phone call between New York and London fell from $244

65 to $3

This decrease can be mainly contributed to A

open communication between governments

the advent of the microprocessor

continuing efforts to globalize

high corporate ethical standards

the deregulation of the telecommunications industry

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As of 2014 the number of Internet users around the world exceeds what

5 billion

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According to our textbook,

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The Web is viewed as a global what

way of decreasing production C

way of reaching businesses at the expense of consumer E

way for government to market to its population

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_______ was not mentioned in our textbook as major innovation in transportation technology

Commercial jet aircraft B

Super freighters C

E-commerce D

The introduction of containerization E

Both containerization and e-commerce were not mentioned

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Due to containerization,

the transportation costs associated with the globalization of production have: A

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As a result of a variety of innovations,

the real costs of information processing and communication have __________ over the past two decades

had no impact on the cost of international business

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Although the characteristics of the global economy have changed dramatically over the past 50 years,

as late as the 1960s all of the following demographic characteristics were true except: A

entrepreneurial firms dominated the international business scene C

dominated the world foreign direct investment picture D

was the world's largest industrial power E

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Which country was the world's most dominant industry power was in the early 1960s

Japan B

The United Kingdom C

Germany D

The United States E

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In 1960,

accounted for about _____ of world output as measured by GDP

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In recent years,

all of the following countries have seen their relative share of world output fall except: A

United States B

France C

Germany D

China E

United Kingdom

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In 2013,

's largest trade partner when it comes to exports from the United States was ___________________

United Kingdom B

Mexico C

China D

Canada E

South Korea

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If we look into the future,

most forecasts now predict a __________ in world output accounted for by developing nations such as China,

Indonesia,

and a __________ in the share enjoyed by rich industrialized countries such as Britain,

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

will reduce the living standards of the citizens of developed countries

will increase competition for scarce resources and create political instability

reflects the growing economic and industrial strength of developing countries

will decrease prices but also reduce wages in Canada E

will decrease job opportunities in Canada

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Which of the following is an example of a developing nation

Thailand B

Britain C

Japan D

United States E

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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

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_______ is not considered to be a "developing" nation

Brazil B

India C

China D

Japan E

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The foreign direct investment by non-U

firms was motivated primarily by the following two factors: A

the desire to disperse production activities to optimal locations

and the desire to build a direct presence in major foreign markets B

the desire to disperse production activities to optimal locations

and the desire to influence foreign exchange rates C

the desire to influence foreign exchange rates

and the desire to influence political developments in foreign countries D

the desire to build a direct presence in major foreign markets

and the desire to influence political developments in foreign countries E

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

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In the 1960s,

what was then seen as an economic threat to Europe

The dominance of U

Technological innovations C

Low-cost transportation D

Low-cost global communication networks E

Reduction in trade barriers

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Throughout the 1990s,

the amount of investment directed at both developed and developing nations did what

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Among developing nations,

the largest recipient of foreign direct investment ha