Question 1. One of the two factors that seem to underlie the trend toward globalization is change in communication, information, and transportation technologies. The other factor is

1. declining trade barriers.
2. fewer international conflicts.
3. the influence of the United Nations.
4. the demise of communism in Russia.
5. the strength of the U.S. dollar and Japanese Yen.

Question 2. Which is a consequence of the globalization of production and markets?

1. Foreign direct investment has declined.
2. In the last decade, world trade has grown at the same pace as world output.
3. Competitive pressures have decreased in multiple industries.
4. Imports have become more prominent in the world\'s industrial nations.
5. In the last decade, world trade has not grown as quickly as world output.

Question 3. The main disadvantages of using a ___________________ mode of entering a foreign market is that the firm must bear all the costs and risks of opening a foreign market.

1. licensing
2. franchising
3. joint venture
4. turnkey project
5. wholly owned subsidiary

Question 4. It is permissible for American business to pay bribes to foreign officials in countries where bribery is an accepted cultural tradition.

1. True
2. False

Question 5. Which of the following is not a step in the financial overview process?

1. Determining financial health of country
2. Estimating budget percentages
3. Market research
4. Repatriation of funds
5. Source of finance