Which feature of globalization has contributed most to the rise of outsourcing as a business practice?
a. The increased mobility of both goods and services
b. The homogenization of cultures throughout the world
c. The increase in the amount of money invested in financial services
d. The expansion in power and scope among international organizations
Q. 2Which of these incentives is an advantage that Foxconn's campuses in China offer Apple in addition to low labor costs?
a. A careful hiring process
b. A well-educated workforce
c. High standards of worker safety
d. The ability to scale up very quickly
Q. 3Which of these is bought and sold within the largest markets in the world?
a. Currencies
b. Electronics
c. Gold
d. Stocks
Q. 4An exchange rate is said to be floating when _____.
a. currency speculators predict that the rate will vary widely
b. the rate changes depending on the dynamics of supply and demand
c. the rate is set by a government that exhibits frequent policy changes
d. the value of the currency is artificially bolstered by a high inflation rate
Q. 5Which of the following is an example of something in the healthcare industry that is nontradable?
a. Crutches
b. An MRI machine
c. Ambulance service
d. Diabetes medication
Q. 6Over the last fifty years, manufacturing has moved to the developing world where ________ than in the United States and Europe
a. interest rates and union activity are greater
b. poverty and unemployment rates are lower
c. wages and restrictive regulations tend to be lower
d. human capital and natural resources are more available
Q. 7In 1995, the General Agreement on Tariffs and Trade (GATT) became ______
.
a. the International Monetary Fund (IMF)
b. the North American Free Trade Agreement (NAFTA)
c. the World Trade Organization (WTO)
d. the United Nations (UN)
Q. 8Immediately after World War II, the United States focused on reducing trade barriers around the world because U.S. policymakers _____.
a. saw the negative effects of protectionism during the Great Depression
b. wanted to make it easier for American businesses to buy factories in East Asia
c. believed that protectionism was one of the main causes of international warfare
d. thought that opening trade with communist countries would help them see the benefits of capitalism