TEST BANK For International Business Competing in the Global Marketplace, 14th Edition By Charles Hill. 2024

,f




1. A company does not need a large size to facilitate, and benefit from, the globalization of
f f f f f f f f f f f f f f f



markets.


TRUE


A company does not have to be the size of multinational giants to facilitate, and benefit from,
f f f f f f f f f f f f f f f f



the globalization of markets. In the United States, for example, nearly 90 percent of firms that
f f f f f f f f f f f f f f f



export are small businesses employing less than 100 people, and their share of total U.S.
f f f f f f f f f f f f f f



exports has grown steadily over the past decade to now exceed 20 percent.
f f f f f f f f f f f f




2. Companies hope to lower their overall cost structure or improve the quality or functionality of
f f f f f f f f f f f f f f



their product offering through globalization of production.
f f f f f f




TRUE


The globalization of production refers to the sourcing of goods and services from locations
f f f f f f f f f f f f f



around the globe to take advantage of national differences in the cost and quality of factors of
f f f f f f f f f f f f f f f f



production. By doing this, companies hope to lower their overall cost structure or improve the
f f f f f f f f f f f f f f



quality or functionality of their product offering, thereby allowing them to compete more
f f f f f f f f f f f f



effectively.




3. The most global markets currently are markets for consumer products.
f f f f f f f f f




FALSE


The most global markets currently are not markets for consumer products—where national
f f f f f f f f f f f



differences in tastes and preferences are still often important enough to act as a brake on
f f f f f f f f f f f f f f f



globalization—but markets for industrial goods and materials that serve a universal need the
f f f f f f f f f f f f



world over. f




2-2
Copyright f© f2017 fMcGraw-Hill fEducation. fAll frights freserved. fNo freproduction for fdistribution fwithout fthe fprior fwritten fconsent fof fMcGraw-Hill
Education.

,f




4. Outsourcing is a process that is limited to manufacturing enterprises.
f f f f f f f f f




FALSE


Early outsourcing efforts were primarily confined to manufacturing activities. Increasingly,
f f f f f f f f f



however, companies are taking advantage of modern communications technology, particularly
f f f f f f f f f



the Internet, to outsource service activities to low-cost producers in other nations.
f f f f f f f f f f f




5. The World Bank has focused on policing the world trading system and making sure nation-
f f f f f f f f f f f f f f



states adhere to the rules laid down in trade treaties.
f f f f f f f f f




FALSE


The World Trade Organization is primarily responsible for policing the world trading system
f f f f f f f f f f f f



and making sure nation-states adhere to the rules laid down in trade treaties signed by WTO
f f f f f f f f f f f f f f f



member states. The World Bank was set up to promote economic development.
f f f f f f f f f f f




6. The World Bank is known as the lender of the last resort.
f f f f f f f f f f f




FALSE


The IMF was established to maintain order in the international monetary system. It is often
f f f f f f f f f f f f f f



seen as the lender of last resort to nation-states whose economies are in turmoil and whose
f f f f f f f f f f f f f f f



currencies are losing value against those of other nations.
f f f f f f f f




2-3
Copyright f© f2017 fMcGraw-Hill fEducation. fAll frights freserved. fNo freproduction for fdistribution fwithout fthe fprior fwritten fconsent fof fMcGraw-Hill
Education.

,f




7. One of the UN's central mandates is the promotion of higher standards of living, full
f f f f f f f f f f f f f f



employment, and conditions of economic and social progress and development.
f f f f f f f f f




TRUE


Although the UN is perhaps best known for its peacekeeping role, one of the organization's
f f f f f f f f f f f f f f



central mandates is the promotion of higher standards of living, full employment, and
f f f f f f f f f f f f



conditions of economic and social progress and development—all issues that are central to
f f f f f f f f f f f f



the creation of a vibrant global economy.
f f f f f f




8. The Uruguay Round, finalized in December 1993, reduced protection for patents, trademarks,
f f f f f f f f f f f



and copyrights.
f




FALSE


Under the umbrella of GATT, the most recent negotiations to be completed, known as the
f f f f f f f f f f f f f f



Uruguay Round, were finalized in December 1993. The Uruguay Round provided enhanced
f f f f f f f f f f f



protection for patents, trademarks, and copyrights.
f f f f f




9. "Beggar thy neighbor" retaliatory trade policies involved countries progressively lowering trade
f f f f f f f f f f



barriers against each other, which contributed to the Great Depression of the 1930s.
f f f f f f f f f f f f




FALSE


The typical aim of tariffs on imports of manufactured goods was to protect domestic
f f f f f f f f f f f f f



industries from foreign competition. One consequence, however, was "beggar thy neighbor"
f f f f f f f f f f



retaliatory trade policies, with countries progressively raising trade barriers against each
f f f f f f f f f f



other. Ultimately, this depressed world demand and contributed to the Great Depression of
f f f f f f f f f f f f



the 1930s.
f




2-4
Copyright f© f2017 fMcGraw-Hill fEducation. fAll frights freserved. fNo freproduction for fdistribution fwithout fthe fprior fwritten fconsent fof fMcGraw-Hill
Education.