Global Business Today: Asia-Pacific Perspective 5th edition by Charles W. L. Hill Test bank

economy for manufactured goods.
C. an increasing role in the world economy for manufactured goods but a decreasing role in the
world economy for services.
D. an increasing role in the world economy.
35. When discussing foreign direct investment (FDI), it is important to distinguish between the
flow of FDI and the _____________ of FDI.
A. outflow
B. inflow
C. stock
D. trade
36. Two factors seem to underlie the trend towards globalisation: (i) declining trade barriers; and
(ii) changes in communication, information and transport technologies. These factors have
facilitated the trend towards the globalisation of production and have enabled companies to view
the world as __________.
A. a single market
B. multiple markets
C. two markets
D. three markets
37. ______________ is the theory that predicts that the power of microprocessor technology
doubles and its cost of production falls every 18 months.
A. Brennan’s Theorem
B. Bailey’s Law
C. Moore’s Law
D. Ivan’s Law
38. With the technological advances in transport and ICT, it is no longer necessary to produce
goods close to where they are consumed, resulting in a rapid increase in trade and ______.
A. FDI
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B. services
C. manufacturing
D. agriculture
39. Due to containerisation and other developments in transport technology, the transport costs
associated with the globalisation of production have:
A. remained the same.
B. increased dramatically.
C. declined.
D. increased slightly.
40. When tasks that were previously performed in-house are now purchased from another
company, this is referred to as:
A. outsourcing.
B. offshoring.
C. globalisation.
D. WTO.
41. One concern of critics of globalisation is that a global economy shifts economic power away
from ____________________ and towards ________________.
A. the proletariat; the bourgeoisie
B. national governments; supranational organisations
C. the West; the East
D. the East; the West
42. Which of the following is not a reason why some of the world’s poorest countries have
suffered from economic stagnation?
A. Democratic governments.
B. Economic policies that destroy rather than facilitate the creation of wealth.
C. Weak protection of property rights.
D. War.
43. To ______________________ is the minimum that a firm has to do to engage in
international business.
A. export or import
B. invest directly in operations in another country
C. establish joint ventures or strategic alliances with companies in other countries
D. license products to companies in other countries
44. Any firm that engages in international trade or investment is referred to as:
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A. a multinational.
B. a franchise.
C. a conglomerate.
D. an international business.
45. Managing an international business is different from managing a purely domestic business,
for all of the following reasons except:
A. countries are different.
B. international transactions involve converting money into different currencies.
C. the range of problems confronted by a manager in an international business is 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.
46. Managing an international business is different from and more challenging than managing a
domestic business, for a variety of reasons, including country differences, the wider range of
more complex problems, the greater intensity of competition, the increased likelihood of
intervention by both home and host governments, and:
A. the fact that barriers to cross-border trade and investment are said to be flat or dormant.
B. the fact that outsourcing is increasing due to worldwide productivity.
C. the added complexity of conducting transactions in different countries.
D. the fact that national economies are becoming increasingly interdependent on each other.
47. An important positive driver of the growth of the Indian software industry has been:
A. India’s earnings growth of more than 50 per cent per annum.
B. India’s proximity to China.
C. the falling regulatory and administrative barriers to doing business internationally.
D. India’s abundant supply of engineering talent.
48. In keeping with the normative prescriptions of liberal economic ideology, in country after