MGMT 309 Chapter 1 | Questions and Answers Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent economy? Globalization ________ results from the lessening of trade barriers and the increased flow of goods ...
Which of the following is characterized by networks of international linkages that bind
countries, institutions, and people in an interdependent economy?
Globalization
________ results from the lessening of trade barriers and the increased flow of goods
and services, capital, labor, and technology around the world.
Economic integration
In which of the following groups of trade blocs does most of today's world trade takes
place?
Western Europe, Asia, and the Americas
The European Union currently consists of how many nations?
27
Which of the following best explains China's success in exporting?
low costs and steady stream of capital
Which of the following countries is today known as the world's services supplier,
providing highly skilled and educated workers to foreign companies?
India
Which of the following agreements is a free trade pact among seven South Asian
nations, signed in order to lower tariffs?
SAARC
Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The
company employs almost 130,000 workers at its 250 manufacturing facilities located on
five different continents. Emerson manufactures a wide range of products including air-
conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian
operations employ over 50,000 people at manufacturing facilities in Asia. Emerson
needs to build a new manufacturing facility to produce automotive parts for cars
manufactured in Detroit. Emerson executives are considering whether to build the new
facility in China or in the U.S.
Which of the following, if true, supports the argument to build a new Emerson facility in
China?
The Chinese courts recently ruled in favor of an MNC in an intellectual property rights
lawsuit.
Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The
company employs almost 130,000 workers at its 250 manufacturing facilities located on
, five different continents. Emerson manufactures a wide range of products including air-
conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian
operations employ over 50,000 people at manufacturing facilities in Asia. Emerson
needs to build a new manufacturing facility to produce automotive parts for cars
manufactured in Detroit. Emerson executives are considering whether to build the new
facility in China or in the U.S.
Which of the following, if true, undermines the argument to build a new Emerson facility
in China?
Fuel costs in China have risen sharply and are not expected to drop.
Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The
company employs almost 130,000 workers at its 250 manufacturing facilities located on
five different continents. Emerson manufactures a wide range of products including air-
conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian
operations employ over 50,000 people at manufacturing facilities in Asia. Emerson
needs to build a new manufacturing facility to produce automotive parts for cars
manufactured in Detroit. Emerson executives are considering whether to build the new
facility in China or in the U.S.
Which of the following questions is LEAST relevant to Emerson's decision regarding
where to build a new facility?
How will e-commerce affect Emerson's ability to export products from China?
To which of the following free-trade agreements do Costa Rica, Guatemala, Honduras,
El Salvador, and Nicaragua all belong?
CAFTA
Political risks are best described as any governmental actions or politically motivated
events that ________.
negatively affect the firm's long-run profitability or value.
Which of the following best describes nationalization?
forced sale of an MNC's assets to local buyers
________ occurs when the local government seizes the foreign-owned assets of the
MNC and provides inadequate compensation.
Expropriation
Expropriation is most likely to occur in a country that has ________.
constant political upheaval and change
The government of Jonovia seizes all assets of Refresh, a world-famous, soft-drink
brand in Jonovia, without offering any compensation to the company. This action by the
government of Jonovia is an example of ________.
confiscation
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