question

The shift toward a more integrated and interdependent world economy is referred to as globalization

answer

true

question

A company does not need a large size to facilitate, and benefit from, the globalization of markets

answer

true

question

Companies hope to lower their overall cost structure or improve the quality of functionality of their product offering through globalization of production

answer

true

question

The most global markets currently are markets for consumer products

answer

false

question

Outsourcing is a process that is limited to manufacturing enterprises

answer

false

question

The World Bank has focused on policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties

answer

false

question

The World Bank is known as the lender of the last result

answer

false

question

One of the UN's central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development

answer

true

question

The Uruguay Round, finalized in December 1993, reduced protection for patents, trademarks, and copyrights

answer

true

question

Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China to take advantage of the lower labor costs there. This is an example of foreign direct investment

answer

true

question

World Bank gives an aid of 100 million dollars to Kenya for creating rural health care facilities. This is an example of foreign direct investment

answer

false

question

The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market

answer

true

question

According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950

answer

true

question

The expansion of world trade implies that nations are becoming less dependent on each other for important goods and services

answer

false

question

The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding their home markets protected from foreign competitors

answer

false

question

Globalization of markets has resulted in greater differentiation of consumer tastes and preferences

answer

false

question

a multinational enterprise (MNE) is any business that exports or imports from other countries

answer

false

question

A current trend in international business is the decline of medium-sized and small multinationals, known as mini-multinationals

answer

false

question

The globalization of the world economy has resulted in a relative increase in the dominance of U.S. firms in the global marketplace

answer

false

question

Recent evidence indicates that the solution to the problem of stagnant incomes among the unskilled is to be found in increasing government regulation of markets

answer

false

question

According to supporters of free trade, as countries get richer they commit greater violation of environmental and labor regulations

answer

false

question

According to critics of globalization, today's interdependent global economy limits a nation's national sovereignty

answer

true

question

Critics of globalization suggest that over the last century, the gap between the rich and poor nations of the world has shrunken

answer

false

question

Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by globalizing their markets. This involves _____. A. regulating markets B. privatizing state-owned enterprises C. decreasing competition D. reducing foreign investment

answer

b

question

Which of the following is a consequence of globalization? A. Decreasing interdependence between national economies B. Increasing outsourcing of services C. Differentiation of material culture D. Increase in barriers to cross-border trade

answer

b

question

Which of the following has enabled globalization of markets? A. Differentiation amongst national markets B. Falling barriers to cross border trade C. Reduced homogeneity of material culture across the world D. Increased government ownership of factors of production

answer

b

question

Which of the following factors hinders globalization of consumer goods market? A. National differences in tastes and preferences B. Higher production costs in developed nations C. Homogenization of material culture D. Increasing outsourcing of goods and services

answer

a

question

Globalization of markets results in markets becoming _____. A. less interdependent B. less diverse C. more protected D. less competitive

answer

b

question

29. A U.S. Investment firm, Fin-Smart, set up a customer service call center in India to take advantage of the lower labor costs. This is called _____. A. homogenizing markets B. vertical integration C. outsourcing D. horizontal integration

answer

c

question

Early outsourcing efforts were primarily confined to _____. A. health care B. service activities C. technological research D. manufacturing activities

answer

d

question

Which of the following is NOT an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe? A. Reduced tariffs on imports of manufactured goods B. Government regulations C. Issues associated with economic and political risk D. Barriers to foreign direct investment

answer

a

question

The General Agreement on Tariffs and Trade (GATT) was responsible for _____. A. protecting government owned enterprises B. policing the global marketplace C. limiting nuclear testing D. promoting environment friendly technology

answer

b

question

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states. A. International Development Association B. World Bank C. International Court of justice D. World Trade Organization

answer

d

question

The World Trade Organization promotes _____. A. lowering of barriers to cross-border trade and investment B. infrastructural development in poor nations through low-interest loans C. state ownership of major enterprises D. regulation of national economies

answer

a

question

Which of the following is true about the International Monetary Fund? A. It is primarily responsible for policing the world trading system. B. It is seen as the lender of last resort to nation-states whose economies are in turmoil. C. It is responsible for establishing multinational treaties to govern the global business system. D. It was established to formulate a coordinated policy response to financial crises in developing nations.

answer

b

question

The _____ was established on October 24, 1945, by 51 countries committed to preserving peace through international cooperation and collective security. A. World Trade Organization B. United Nations C. G20tx D. World Bank

answer

c

question

_____ occurs when a firm exports goods or services to consumers in another country. A. International trade B. Foreign direct investment C. Inward investment D. Outsourcing

answer

a

question

Which of the following is NOT a consequence of the reduction in trade barriers and restrictions on FDI since 1950? A. Firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality. B. The economies of the world's nation states are becoming more intertwined. C. Nations are becoming more independent of each other for important goods and services. D. The world has become significantly wealthier since 1950.

answer

c

question

The relative decline of the United States in the share of world output and world exports reflects _____. A. an increase in the barriers to foreign trade in the U.S. B. the deepening of the global financial crisis C. the reduced industrialization in developing nations D. the growth in the economic development of the world economy

answer

d

question

Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects: A. a slowdown in global economic activity. B. the increasing share of the U.S. in the total FDI stock. C. the decline in cross-border flows of foreign direct investment. D. the increasing internationalization of business corporations.

answer

d

question

Which of the following countries has been the largest recipient of foreign direct investment and received about $60 billion to $100 billion a year in inflows in 2004-2009? A. Brazil B. Russia C. India D. China

answer

d

question

A multinational enterprise (MNE) is a firm that _____. A. exports its products to multiple countries B. has production units in more than two countries C. does most of its business on the Internet D. lists its securities on a public exchange

answer

b

question

Which of these statements pertaining to cross-border FDI flows is true? A. There was a growth of FDI between 2004 and 2007. B. A slump in FDI from 1998 to 2000 was followed by a surge from 2001 to 2003. C. Among developing nations, the largest recipient of FDI has been Russia. D. The dramatic increase in FDI reflects the decreasing internationalization of business corporations.

answer

a

question

In the last two decades, Latin American countries like Brazil, Mexico, and Chile have _____. A. embraced communist principles B. promoted government ownership of enterprises C. experienced increasing debt and inflation D. welcomed foreign investment

answer

d

question

Which of the following is a risk associated with globalization? A. Restrictions on competition B. Global financial contagion C. Excessive market regulation D. Differentiation of markets

answer

b

question

Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers: A. is due to technological changes that create greater demand for skilled workers. B. is due to the migration of low-wage manufacturing jobs offshore. C. can be checked by increasing government ownership of enterprises. D. can be checked by limiting free trade and foreign investment.

answer

a

question

Globalization is criticized because it increases the power of _____. A. governments to own enterprises B. unskilled labor to form labor unions C. supranational organizations over nation-states D. nation-states to regulate markets and reduce competition

answer

c

question

An international business, unlike a multinational enterprise, _____. A. needs to have manufacturing units in at least two foreign nations B. needs to manufacture products or provide services that target a global market C. need not customize its products to the requirements of national markets D. need not invest directly in operations in other countries

answer

d

question

Which of the following statements is true about an international business? A. An international business needs to invest directly in operations in other countries. B. An international business needs to have homogenous practices across countries. C. An international business can be managed in the same way that a domestic business is managed. D. An international business must find ways to work within the limits imposed by government intervention.

answer

d

question

A number of econometric studies have found consistent evidence of a hump-shaped relationship between income levels and pollution levels. According to this, as an economy grows and income levels rise: A. initially the pollution levels remain low B. after a while the pollution levels decrease C. the pollution levels also rise in proportion to the economic growth D. there is increasing industrialization which leads to greater pollution

answer

b

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