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GB 101 True/ False Questions

True or false

1) Globalization is characterized by increasing connectivity and interdependence of the world’s economies, societies, and cultures.( )

2) The principle of freetrade allows for movement of goods and services among nations without political or economic restrictions.( )

3) Organizations with multinational management and ownership that manufacture andmarket products in many different countries are called conglomerates.( )

4) A country that has comparative advantage sells products to other countries that it can produce cheaply and buys products from other countries that it cannot produce cheaply.( )

5) The value of a country’s exports compared to the value of its imports, measured over a specific period of time, is called balance oftrade.
6) A country runs atrade surplus when the value of its total imports exceeds the value of its total exports. ( )

7) A country that barters goods it produces for goods produced by another country is engaged in countertrading.( )

8) Global outsourcing presents the lowest risk for a company that wants to reach foreignmarket.( )

9) Contract manufacturing always involves a company’s use of foreign resources.( )

10) When a U.S. company joins with a foreign company to share the risks andrewards of starting a new enterprise in a foreign country, this is called a strategic alliance.( )

11) A foreign subsidiary is a company in a foreign country that is totally owned and controlled by the parent company.( )

12) Floating exchange rates are affected by the supply-and-demand dynamic.( )

13) Culture refers to the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.( )

14) Nonverbal communication is only responsible for about 10 percent of a message.( )

15) Infrastructure is the physical facilities that form the basis for a country’s economic development. ( )

16) The current term for nations with low economic development and low average incomes is “developing countries.”( )

17) Expropriation is when a government seizes the assets of a domestic or foreign company.
( )

18) Although bribes are an acceptable practice in many parts of the world, American businesspeople are prevented by law from participating in bribes in foreign countries.( )

19) A tariff is a customs duty or tax on imports that functions as a trade barrier.( )

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