International Business

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Chapter 01 Globalization True / False Questions 1. (p. 4) The notion that national economies are relatively self-contained entities is on the rise. FALSE 2. (p. 4) For the last 50 years, the volume of goods, services and investment crossing national borders has consistently expanded faster than world output. TRUE 3. (p. 4) Today, the world economy is fast moving toward a world in which barriers to cross-border trade and investment are declining. TRUE 4. (p. 6) The shift toward a more integrated and interdependent world economy is referred to as globalization. TRUE 5. (p. 6) The merging of historically distinct and separate markets into one huge global marketplace is known as the globalization of markets. TRUE 6. (p. 6) The…show more content…
FALSE 30. (p. 28) Studies have shown that wage rates for unskilled workers in many advanced economies have fallen in recent years. TRUE 31. (p. 28) Recent evidence indicates that the solution to the problem of stagnant incomes among the unskilled is to be found in increasing society's investment in education to reduce the supply of unskilled workers. TRUE 32. (p. 29) A source of concern of critics of free trade is that it usually encourages firms from advanced countries to move manufacturing facilities to less developed countries that lack adequate regulations to protect labor and the environment from abuse. TRUE 33. (p. 29) According to supporters of free trade, as countries get richer they enact tougher environmental and labor regulations. TRUE 34. (p. 30) According to critics of globalization today's interdependent global economy limits a nation's national sovereignty. TRUE 35. (p. 31) Critics of globalization suggest that over the last century, the gap between the rich and poor nations of the world has shrunken. FALSE 36. (p. 31) Debt continues to be a major burden for poorer nations as they strive to get ahead. TRUE 37. (p. 32) Supporters of debt relief argue that new democratic governments in poor nations should not be forced to honor debts that their corrupt and dictatorial
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