TEST BANK For Global Business Today, 12th Edition
By Charles Hill, Verified Chapters 1 - 17, Complete
Newest Version
globalization - ANSWER trend away from distinct national economic units and
toward one huge global market.
globalization of markets - ANSWER Moving away from an economic system in
which national markets are distinct entities, isolated by trade barriers and barriers of
distance, time, and culture, and toward a system in which national markets are
merging into one global market
globalization of production - ANSWER Trend 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.
factors of production - ANSWER Inputs into the productive process of a firm,
including labor, management, land, capital, and technological know-how
general agreement on tariffs and trade (GATT) - ANSWER international treaty that
committed signatories to lowering barriers to the free flow of goods across national
borders; led to the World Trade Organization
World Trade organization (WTO) - ANSWER the organization that succeeded the
general agreement on tariffs and trade (GATT) as a result of the successful
completion of the Uruguay round of GATT negotiations
International Monetary Fund (IMF) - ANSWER international institution set up to
maintain order in the international monetary system
World Bank - ANSWER International institution set up to promote general economic
development in the worlds poorer nations
United Nations - ANSWER An international organization made up of 193 countries
headquartered in NYC, formed in 1945 to promote peace, security, and cooperation.
G20 - ANSWER 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.
International Trade - ANSWER Occurs when a firm exports goods or services to
consumers in another country
Foreign Direct Investment (FDI) - ANSWER Direct investment in business
operations in a foreign country.
, Moore's Law - ANSWER the of power microprocessors technology doubles and its
costs of production fall in half every 18 month
Stock of Foreign Direct Investment - ANSWER The total accumulated value of
foreign-owned assets at a given time.
Multinational Enterprise (MNE) - ANSWER A firm that owns business operations in
more than one country
International Business - ANSWER Any Firm that engages in international trade or
investment
Political Economy - ANSWER the political, economic, and legal systems of a
country
Political System - ANSWER system of government in a country
Collectivism - ANSWER a political system that emphasizes collective goals as
opposed to individual goals
Socialist - ANSWER a person who believes that the people as a whole rather than
private individuals should own all property and share the profits.
Communists - ANSWER Those who believed socialism can be achieved only
through revolution and totalitarian dictatorship
Social Democrats - ANSWER Those committed to achieving socialism by
democratic means
Privatization - ANSWER The sale of state - owned enterprises to private investors
Individualism - ANSWER An emphasis on the importance of guaranteeing individual
freedom and self expression
Representative Democracy - ANSWER A political system in which citizens
periodically elect individuals to represent them in a government
Communist Totalitarianism - ANSWER A version of collectivism advocating that
socialism can be achieved only through a totalitarian dictatorship
Theocratic totalitarianism - ANSWER a political system in which political power is
monopolized by a party, group, or individual that governs according to religious
principles
Democracy - ANSWER A government controlled by its citizens, either directly or
through representatives.
Totalitarianism - ANSWER A form of government in which the ruler is an absolute
dictator (not restricted by a constitution or laws or opposition etc.)
By Charles Hill, Verified Chapters 1 - 17, Complete
Newest Version
globalization - ANSWER trend away from distinct national economic units and
toward one huge global market.
globalization of markets - ANSWER Moving away from an economic system in
which national markets are distinct entities, isolated by trade barriers and barriers of
distance, time, and culture, and toward a system in which national markets are
merging into one global market
globalization of production - ANSWER Trend 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.
factors of production - ANSWER Inputs into the productive process of a firm,
including labor, management, land, capital, and technological know-how
general agreement on tariffs and trade (GATT) - ANSWER international treaty that
committed signatories to lowering barriers to the free flow of goods across national
borders; led to the World Trade Organization
World Trade organization (WTO) - ANSWER the organization that succeeded the
general agreement on tariffs and trade (GATT) as a result of the successful
completion of the Uruguay round of GATT negotiations
International Monetary Fund (IMF) - ANSWER international institution set up to
maintain order in the international monetary system
World Bank - ANSWER International institution set up to promote general economic
development in the worlds poorer nations
United Nations - ANSWER An international organization made up of 193 countries
headquartered in NYC, formed in 1945 to promote peace, security, and cooperation.
G20 - ANSWER 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.
International Trade - ANSWER Occurs when a firm exports goods or services to
consumers in another country
Foreign Direct Investment (FDI) - ANSWER Direct investment in business
operations in a foreign country.
, Moore's Law - ANSWER the of power microprocessors technology doubles and its
costs of production fall in half every 18 month
Stock of Foreign Direct Investment - ANSWER The total accumulated value of
foreign-owned assets at a given time.
Multinational Enterprise (MNE) - ANSWER A firm that owns business operations in
more than one country
International Business - ANSWER Any Firm that engages in international trade or
investment
Political Economy - ANSWER the political, economic, and legal systems of a
country
Political System - ANSWER system of government in a country
Collectivism - ANSWER a political system that emphasizes collective goals as
opposed to individual goals
Socialist - ANSWER a person who believes that the people as a whole rather than
private individuals should own all property and share the profits.
Communists - ANSWER Those who believed socialism can be achieved only
through revolution and totalitarian dictatorship
Social Democrats - ANSWER Those committed to achieving socialism by
democratic means
Privatization - ANSWER The sale of state - owned enterprises to private investors
Individualism - ANSWER An emphasis on the importance of guaranteeing individual
freedom and self expression
Representative Democracy - ANSWER A political system in which citizens
periodically elect individuals to represent them in a government
Communist Totalitarianism - ANSWER A version of collectivism advocating that
socialism can be achieved only through a totalitarian dictatorship
Theocratic totalitarianism - ANSWER a political system in which political power is
monopolized by a party, group, or individual that governs according to religious
principles
Democracy - ANSWER A government controlled by its citizens, either directly or
through representatives.
Totalitarianism - ANSWER A form of government in which the ruler is an absolute
dictator (not restricted by a constitution or laws or opposition etc.)
