Question 1

Due to the changing economic geography,many of tomorrow's economic opportunities are most likely to be found in the

Accepted Answer

A)  rich industrialized nations of the world like Great Britain and Germany.
B)  centrally planned economies of the communist world.
C)  United States.
D)  developing nations of the world such as China,India,and Brazil.
E)  countries that are currently not members of the World Trade Organization.F) B) and C)
G) A) and E)

Question 2

Why are supranational organizations,such as the World Trade Organization and the United Nations,criticized?

Accepted Answer

A concern voiced by critics of globaliza...

Question 3

The globalization of markets and production and the resulting growth of world trade,foreign direct investment,and imports all imply that firms are finding it easier to protect themselves from attack by foreign competitors.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following characterizes the lowering of trade and investment barriers?

Accepted Answer

A)  protects domestic industries from foreign competition
B)  was not an agenda of the Uruguay Round
C)  allows firms to base production at optimal locations outside their home country
D)  creates an unfavorable environment for FDI
E)  caused the Great depression of the 1930sF) C) and E)
G) B) and C) C

Question 5

ABC Toys,a U.S.-based toy manufacturer,has set up a manufacturing plant in Hong Kong.This is an example of

Accepted Answer

A)  foreign direct investment.
B)  international trade.
C)  exporting.
D)  global rivalry.
E)  the globalization of markets.F) A) and B)
G) B) and C) A

Question 6

Throughout the 1990s,the amount of investment directed at both developed and developing nations increased dramatically.

Accepted Answer

A) True 
 B)False

Question 7

For foreign direct investment (FDI) to occur,a firm should primarily

Accepted Answer

A)  conduct cross-border bartering with neighboring countries.
B)  invest resources in business activities outside its home country.
C)  export goods or services to consumers in another country.
D)  import goods or services from producers in another country.
E)  erect formidable barriers to international trade.F) None of the above
G) B) and E)

Question 8

Which of the following statements reflects an important trend in the changing nature of multinational enterprises?

Accepted Answer

A)  Global business activity is increasingly being dominated by large U.S.multinational corporations.
B)  The number of medium-size and small multinationals is decreasing continuously.
C)  The ranks of the world's largest 100 multinationals are dominated by firms from developing economies.
D)  The Internet is increasing the barriers that small firms face in building international sales.
E)  International business is conducted not just by large firms but also by medium-size and small enterprises.F) A) and D)
G) A) and B) E

Question 9

Which of the following is a macro factor underlying the trend toward greater globalization?

Accepted Answer

A)  Rise of communism across the globe
B)  Increase in nationalization of private organizations
C)  Increase in diversity in consumer tastes and preferences
D)  Increase in trade regulations across the globe
E)  Dramatic developments in information processing and other technologiesF) None of the above
G) A) and B)

Question 10

Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of global markets?

Accepted Answer

A)  Differences in business systems and legal regulations lead companies to customize their marketing strategies,product features,and operating practices to best match conditions in a particular country.
B)  As rival global firms follow each other across countries,they bring with them their brand names,products,and marketing strategies from other national markets,thus creating some homogeneity across markets.
C)  Truly innovative companies succeed by developing products that serve specific needs of the local markets.
D)  The volume of goods,services,and investment crossing national borders has expanded at a slower rate than world output for more than half a century.
E)  The most global of markets are not typically markets for consumer products,as significant differences in consumer tastes and preferences still exist among national markets.F) B) and E)
G) C) and E)

Question 11

According to globalization opponents,which of the following has increased in wealthy advanced economies as a result of globalization?

Accepted Answer

A)  unemployment
B)  price of goods and services
C)  demand for unskilled workers
D)  standard of living
E)  income equality between workers in all sectorsF) B) and D)
G) All of the above

Question 12

Globalization opponents argue that "exporting jobs" to low-wage nations has contributed to

Accepted Answer

A)  higher living standards in those countries that "export" the jobs.
B)  higher unemployment in wealthy advanced economies such as the United States.
C)  an increase in the income levels in those nations that "export" the jobs.
D)  lower standards of living in those countries to which the jobs are exported.
E)  reduced specialization in the production of goods and services.F) A) and E)
G) B) and D)

Question 13

What was a result of the Uruguay Round?

Accepted Answer

A)  increased trade and investment barriers
B)  excluding the trade of services from international trade
C)  transforming the World Trade Organization into the GATT
D)  enhanced protection for patents,trademarks,and copyrights
E)  promoting the worldwide rise of communismF) A) and E)
G) B) and D)

Question 14

Which of the following refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor,energy,land,and capital?

Accepted Answer

A)  Globalization of markets
B)  Containerization of production
C)  Dispersal of production
D)  Globalization of production
E)  Industrialization of marketsF) B) and E)
G) B) and D)

Question 15

Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off.Which of the following is being justified in this case?

Accepted Answer

A)  protectionism and retaliatory trade policy
B)  free trade of goods and services
C)  rise of communism
D)  high tariff on imports of manufactured goods
E)  the need to be a self-contained nationF) A) and B)
G) C) and D)

Question 16

What is globalization? Explain,with examples,how global companies can facilitate the creation of a global market.

Accepted Answer

Globalization refers to the shift toward...

Question 17

Free trade alone,some argue,is a necessary but not sufficient prerequisite to help "highly indebted poorer countries" (HIPCs) bootstrap themselves out of poverty.They also recommend implementing

Accepted Answer

A)  a highly regulated command economy.
B)  weaker property rights laws.
C)  weaker labor regulations.
D)  large-scale debt relief.
E)  rapid expansion in population.F) C) and E)
G) B) and C)

Question 18

Which of the following statements is a general implication of globalization?

Accepted Answer

A)  Globalization is inevitable.
B)  From a purely economic perspective,globalization is all good.
C)  Globalization has no negative impacts on the economies of the developed world.
D)  Globalization has reduced the risks associated with global financial contagion.
E)  As a result of globalization,a severe crisis in one region of the world can affect the entire globe.F) B) and D)
G) All of the above

Question 19

The World Trade Organization,the International Monetary Fund and its sister institution the World Bank,and the United Nations were all created by voluntary agreement between individual nation-states.

Accepted Answer

A) True 
 B)False

Question 20

What is the shift toward a more integrated and interdependent world economy called?

Accepted Answer

A)  International trade
B)  Foreign direct investment
C)  Globalization
D)  Moore's Law
E)  ContainerizationF) A) and E)
G) B) and C)

Exam 1: Globalization

Due to the changing economic geography,many of tomorrow's economic opportunities are most likely to be found in the

Correct AnswerverifiedShow Answer

Why are supranational organizations,such as the World Trade Organization and the United Nations,criticized?

Correct AnswerverifiedA concern voiced by critics of globaliza...View AnswerShow Answer

The globalization of markets and production and the resulting growth of world trade,foreign direct investment,and imports all imply that firms are finding it easier to protect themselves from attack by foreign competitors.

Correct AnswerverifiedShow Answer

Which of the following characterizes the lowering of trade and investment barriers?

Correct AnswerverifiedC

ABC Toys,a U.S.-based toy manufacturer,has set up a manufacturing plant in Hong Kong.This is an example of

Correct AnswerverifiedA

Throughout the 1990s,the amount of investment directed at both developed and developing nations increased dramatically.

Correct AnswerverifiedShow Answer

For foreign direct investment (FDI) to occur,a firm should primarily

Correct AnswerverifiedShow Answer

Which of the following statements reflects an important trend in the changing nature of multinational enterprises?

Correct AnswerverifiedE

Which of the following is a macro factor underlying the trend toward greater globalization?

Correct AnswerverifiedShow Answer

Which of the following statements best supports the claim that greater uniformity replaces diversity in the context of global markets?

Correct AnswerverifiedShow Answer

According to globalization opponents,which of the following has increased in wealthy advanced economies as a result of globalization?

Correct AnswerverifiedShow Answer

Globalization opponents argue that "exporting jobs" to low-wage nations has contributed to

Correct AnswerverifiedShow Answer

What was a result of the Uruguay Round?

Correct AnswerverifiedShow Answer

Which of the following refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor,energy,land,and capital?

Correct AnswerverifiedShow Answer

Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off.Which of the following is being justified in this case?

Correct AnswerverifiedShow Answer

What is globalization? Explain,with examples,how global companies can facilitate the creation of a global market.

Correct AnswerverifiedGlobalization refers to the shift toward...View AnswerShow Answer

Free trade alone,some argue,is a necessary but not sufficient prerequisite to help "highly indebted poorer countries" (HIPCs) bootstrap themselves out of poverty.They also recommend implementing

Correct AnswerverifiedShow Answer

Which of the following statements is a general implication of globalization?

Correct AnswerverifiedShow Answer

The World Trade Organization,the International Monetary Fund and its sister institution the World Bank,and the United Nations were all created by voluntary agreement between individual nation-states.

Correct AnswerverifiedShow Answer

What is the shift toward a more integrated and interdependent world economy called?

Correct AnswerverifiedShow Answer

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A concern voiced by critics of globaliza...
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A

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Globalization refers to the shift toward...
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