__________ occurs when a firm invests resources in business activities outside its home country.
A. International diversification
B. Foreign direct investment
Cross-national investment
D. Transnational commerce
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According to data from the World Trade Organization, the volume of world trade has grown faster than the volume of world output since the 1950s. This relationship suggests all of the following except:
A. Nations are becoming increasingly self-sufficient for important goods and services
B. More firms are dispersing different parts of their overall production process to different locations around the globe to increase quality
C. The economies of the world's nation states are becoming more intertwined.
D. FDI is playing an increasing role in the global economy
Economists argue that increased international trade and cross-boarder investments will result in __________ prices for goods and services.
A. Stable
B. Higher
C. unstable
D. Lower
In general, supporters of globalization argue that free trade benefits __________ that adhere to a free trade regime.
All but the largest countries
B. All countries
C. All but the smallest countries
D. All but the countries with the highest wage rates
Critics use the following argument to suggest that globalization is a contributing factor to an increase in pollution.
A. Globalization results in an increase in the amount of activity that takes place in companies that do not have adequate pollution controls
B. Globalization results in increased commerce between countries, which results in an increase in the amount of transportation activity (e.g., trains, barges, air cargo, trucks, and so on)
C. Firms that operate in countries that have adequate pollution regulations have a tendency to move their manufacturing operations to countries that have less stringent or no pollution controls to avoid the cost of regulation
D. Globalization results in increased production, which has the undesirable side-effects of increased pollution
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