Chapter 01 - Globalization and International Linkages Chapter 01 Globalization and International Linkages True / False Questions 1. The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political and cultural environments is called international management. True False 2. Multinational corporations can be defined as firms having operations in more than one country, international sales and a nationality mix of managers and owners. True False 3. Internationalization is the vision of creating one world unit, a single market entity. True False 4. Nongovernmental organizations believe that everyone benefits from globalization, as evidenced in lower prices, greater availability of goods, better jobs and access to technology. True False 5. NAFTA is a free trade agreement between the United States, Canada and Mexico that has in essence removed all barriers to trade and investment between the three nations. True False 6. NAFTA is better integrated as a single market than the EU or the allied Asian countries. True False 1-1
Chapter 01 - Globalization and International Linkages 7. The countries of the Association of Southeast Asian nations are challenging China's position as destinations for low cost production and export. True False 8. Foreign direct investment remained strong and even grew in some regions despite the 2008-2009 global recession. True False 9. United States multinationals have more foreign direct investment in Germany than any other country. True False 10. In recent years, Canadian firms have begun investing heavily in the United States. True False 11. Mexican firms cannot export goods into the European community without paying a tariff. True False 12. Mexico believes that the United States is its most important market and that little effort should go into expanding trade with Europe and Asia at least for now. True False 13. Like most South American economies, Brazil's economy is faced with grave economic problems. Its GDP through 2009 continued to fall and inflation and unemployment increased. True False 1-2
Chapter 01 - Globalization and International Linkages 14. The ultimate objective of the EU is to eliminate all trade barriers among member countries. True False 15. One of the ways that Russia is attempting to get its economy going is by removing many administered prices and subsidies and letting free market forces take over. True False 16. As a result of some continuing problems, the international business climate in Poland has not done well. True False 17. A keiretsu is a government agency in South Korea. True False
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