1. While workers in manufacturing industries are considered to be vulnerable to the negative effects of globalization, workers in service industries are relatively secure.
a. True
b. False
2. Which of the following was set up to promote economic development globally?
a. World Bank
b. International Monetary Fund
c. United Nations
d. World Trade Organization
3. Companies hope to lower their overall cost structure or improve the quality or functionality of their product offering which allows them to compete more effectively by engaging in
a. predatory…show more content… d. harmonization of members' tax rates, and a common monetary and fiscal policy.
22. Exchange rates are determined by the demand and supply of one currency relative to the demand and supply of another.
a. True.
b. False.
23. This involves the short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates.
a. Liquidity risk
b. Exchange rate
c. Currency speculation
d. Risk mitigation
24. Amber, a French distillery exports its whisky to the U.S. The distillery is paid in dollars, but it cannot be spent in France until they are converted to Francs. So the foreign exchange market is used by this business to
a. pay a foreign company for its products or services in its country currency.
b. invest their spare cash for short terms in money markets.
c. convert payment it receives from its exports or foreign investments into home currency.
d. speculate on currency.
25. It is impossible for "late movers" to compete once the early entrants have become well established.
a. true
b. false
26. Choosing which markets to enter depends on all of the following factors EXCEPT
a. the size of the market.
b. the value an international business can first create in its home market.
