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1
As discussed in "Globalization and Its Contents," the globalizing process has its pros and cons, but generally it can be argued that economic globalization has had a positive impact on living standards and purchasing power in:
A)most of the world.
B)the wealthier nations.
C)most of the United States.
D)the poorer countries.
2
As pointed out in "Globalization and Its Contents," the invention and application of mass-production technology, together with surplus capital and the free-market economy, are at the root of:
A)human misery.
B)modern prosperity.
C)economic vicissitudes.
D)the globalizing process.
3
Even 50 years ago, the prospect of economically integrating both the communist and the impoverished Third World economies was promising and realistic.
A)True
B)False
4
As set forth in "Trading Places," the United States currently dominates the world economy of information, but it does not dominate the three other world economies of:
A)agriculture, labor, and finance.
B)money, multinationals, and trade.
C)gold, steel, and oil.
D)transportation, manufacturing, and entertainment.
5
According to "Trading Places," mercantilism is becoming the policy of blocs rather than nations and the bloc that the United States belongs to is:
A)the EU.
B)MERCOSUR.
C)ASEAN.
D)NAFTA.
6
As described in "Trading Places," most multinationals are large American companies with foreign subsidiaries.
A)True
B)False
7
As concluded in "The Leading Economic Organizations at the Beginning of the 21st Century," corporations make up about:
A)five percent of the organizations on the list.
B)one tenth of the list.
C)one third of the list of the world's largest economic organizations.
D)more than half of the organizations on the list.
8
The single largest economic organization on the list discussed in "The Leading Economic Organizations at the Beginning of the 21st Century" is:
A)the People's Republic of China.
B)Wal-Mart.
C)the United States.
D)the North American trade body.
9
The U.S. economy has, as noted in "The Leading Economic Organizations at the Beginning of the 21st Century," performed poorly when compared to the rest of the world.
A)True
B)False
10
As reported in "The Global Compact: Origins, Operations, Progress, Challenges," the mission of the Global Compact is to contribute to more sustainable and inclusive global markets by:
A)relieving the burden of debt in the developing world.
B)embedding those markets in shared values.
C)enforcing the standards of corporate governance established by international law.
D)redistributing income through tariffs.
11
As stated in "The Global Compact: Origins, Operations, Progress, Challenges," funding sources for the Global Compact include all of the following except:
A)corporations.
B)non-governmental organizations.
C)labor unions.
D)governments.
12
As noted in "The Global Compact: Origins, Operations, Progress, Challenges," the Global Compact is designed to eliminate the need for government regulation of corporate behavior.
A)True
B)False
13
According to "Business and Global Governance," the biggest push toward corporate codes of conduct comes from:
A)governments in the developed world.
B)governments in the developing world.
C)the United Nations.
D)civil-society groups.
14
As noted in "Business and Global Governance," an item included in the code devised by the Council on Economic Priorities that is excluded from most corporate codes is:
A)child labor.
B)payment of a living wage.
C)working hours.
D)the rights to collective bargaining.
15
As pointed out in "Business and Global Governance," the behavior standards in the UN Global Compact go beyond what governments require.
A)True
B)False
16
According to "Looking Ahead To Our Place In The Next Economy," a primary reason that both blue- and white-collar jobs are moving overseas is that:
A)foreign workers are better educated and have a higher skill level than U.S. workers.
B)outsourcing menial jobs allows companies to offer better jobs to U.S. workers.
C)U.S. workers are more expensive to maintain than foreign workers.
D)U.S. workers are simply not interested in the types of jobs being outsourced to other countries.
17
As cited in "Looking Ahead To Our Place In The Next Economy," Glen Hiemstra, founder of Futurist.com, believes that the biggest competitive advantage for the United States is the:
A)wealth of information available in the United States.
B)innovative thinking of U.S. workers.
C)U.S. pipeline, which will always keep workers employed.
D)availability of advanced technology, which has made human contact unnecessary.
18
As noted in "Looking Ahead To Our Place In The Next Economy," many business experts agree that critical thinking and problem solving are overemphasized in American educational systems.
A)True
B)False
19
As explored in "Shaking Up Trade Theory," the trend that has economists questioning long-held beliefs about the benefits of unfettered trade to the U.S. economy is the emergence of:
A)a global labor market for skilled workers.
B)terrorist threats to national security.
C)protectionist tariffs in the European Union.
D)skyrocketing energy prices.
20
As related in "Shaking Up Trade Theory," economists predict that the economic benefits of white-collar offshoring are likely to flow mostly to:
A)consumers.
B)workers.
C)companies and shareholders.
D)the federal government.
21
As cited in "Shaking Up Trade Theory," the largest U.S. companies foresee a decline in their ability to send white-collar jobs offshore in the next several years.
A)True
B)False
22
As described in "A Theory of International New Ventures: A Decade of Research," Oviatt and McDougall's 1994 article about international new ventures focused particularly on:
A)large, established firms making their first international moves.
B)the characteristics of smaller, younger firms that allow them to internationalize quickly.
C)supporting the stage theory proposed by Johanson and Vahlne.
D)geographic factors affecting a firm's decision to internationalize.
23
As recounted in "A Theory of International New Ventures: A Decade of Research," Oviatt and McDougall identified four types of INV by studying two factors, the coordination of value-chain activities and the:
A)characteristics of the company's entrepreneurs.
B)number of rivals.
C)vertical integration in the market.
D)number of countries involved.
24
As noted in "A Theory of International New Ventures: A Decade of Research," the age at which a company undergoes internationalization is assumed to affect the success of its expansion, survival, and performance.
A)True
B)False
25
As maintained in "Decoupled," the primary reason that the health of companies and economies have become detached is that:
A)big firms have become more international.
B)the pace of technological innovation has slowed.
C)national deficits have overwhelmed increases in GDPs.
D)workers receiving larger salaries have failed to invest the extra money.
26
According to "Decoupled," the problem with expecting governments to help close the gap between corporate profits and workers' low wages with diminishing benefits is that:
A)most politicians are benefiting from corporate profits.
B)companies could simply move their head offices to friendlier countries.
C)the cost of benefits is already crippling many small to mid-sized companies.
D)such legislation does not respond quickly enough to changing market conditions.
27
As noted in "Decoupled," the old saying "What's good for General Motors is good for America" is as true as ever.
A)True
B)False
28
Under the general-equilibrium models generally used by researchers in the field of international trade, as described in "Integrating Multinational Firms Into International Economics," theorists tended to discuss trade in terms of:
A)nations.
B)trading partners.
C)industries.
D)specific firms.
29
Jointness, as explained in "Integrating Multinational Firms Into International Economics," is the key feature that gives rise to:
A)horizontal multinationals.
B)vertical multinationals.
C)ownership of foreign subsidiaries.
D)contracting with foreign-owned firms.
30
Until recently, as pointed out in "Integrating Multinational Firms Into International Economics," research on multinational firms was almost always separated from research on international trade.
A)True
B)False
31
According to "The Rich Borrow and the Poor Repay," during the 1982 debt crisis, as a result of nations assuming the debts of corporations within their borders:
A)most of the corporations were bankrupted.
B)corruption in government was reduced.
C)the poor suffered disproportionately.
D)international creditors had reduced security.
32
As stated in "The Rich Borrow and the Poor Repay," the East Asian Economic Crisis began in:
A)Japan.
B)Thailand.
C)Indonesia.
D)Singapore.
33
As pointed out in "The Rich Borrow and the Poor Repay," the East Asian Economic Crisis was initially a currency crisis.
A)True
B)False
34
As profiled in "The World's Banker," the recently appointed head of the World Bank is:
A)Peter Bauer.
B)Robert McNamara.
C)Paul Wolfowitz.
D)Kofi Annan.
35
As portrayed in "The World's Banker," the plight of the growing number of desperately disadvantaged people in the world throughout the 1990s was obscured by the smashing economic success of:
A)India.
B)countries in the European Union.
C)multinational corporations.
D)China.
36
The author of "The World's Banker" praises U.S. President George W. Bush for his sense of style.
A)True
B)False
37
As set forth in "The Bretton Woods System: Are We Experiencing a Revival?" Dooley, Folkerts-Landau, and Garber argue that the current international exchange-rate system operates like the Bretton Woods system because so many countries limit exchange-rate fluctuations relative to the:
A)price of gold.
B)renminbi.
C)dollar.
D)euro.
38
As postulated in "The Bretton Woods System: Are We Experiencing a Revival?" one effect of having developing nations like China continue to accumulate U.S. assets, such as U.S. Treasury securities, is that:
A)interest rates in the United States should remain stable.
B)the United States will see ongoing trade deficits.
C)the United States will see ongoing trade surpluses.
D)China will be more receptive to U.S. human-rights concerns.
39
As recounted in "The Bretton Woods System: Are We Experiencing a Revival?" the appreciation of the euro has caused the European Central Bank to engage in large-scale currency intervention.
A)True
B)False
40
As asserted in "Too Much Money," economists are beginning to believe that what really matters in determining interest rates is the:
A)size of the deficit.
B)positive trade balance.
C)availability of energy supplies.
D)global economy.
41
The author of "Too Much Money" compares the restructuring of business during the 1980s that was fueled by junk bonds with the restructuring currently happening worldwide and being funded by:
A)Treasury bills.
B)municipal bonds.
C)venture capital.
D)private equity funds.
42
As related in "Too Much Money," it is illegal in Mexico for the state-owned oil company to team up with a foreign company to gain expertise in finding more oil.
A)True
B)False
43
As described in "Squeezed by the Euro," despite hopes that the euro would impose fiscal discipline on the countries using it, the reality is that rather than reining in spending, countries simply:
A)return to the currency they used before the euro.
B)loosen the deficit restrictions.
C)turn to the European Central Bank for a bailout.
D)expect the euro to be devalued so as to increase their money supply.
44
As noted in "Squeezed by the Euro," two of the European Union countries that opted not to use the euro, and consequently have experienced superior economic performance compared to other EU countries, are:
A)Spain and Portugal.
B)Luxembourg and the Netherlands.
C)Austria and Finland.
D)Sweden and Great Britain.
45
As related in "Squeezed by the Euro," newspaper protests by Manfred J. M. Neumann and other economists resulted in a delay in the introduction of the euro.
A)True
B)False
46
As explained in "Bottom Dollar," the basic economic problem with the U.S. dollar is that:
A)it has been replaced by the euro as the world's standard currency.
B)there may be more dollars available now than foreigners want.
C)the supply of dollars cannot keep up with world demand.
D)a disproportionate amount of the supply of dollars is tied up in the budget deficit.
47
As identified in "Bottom Dollar," the country whose currency rose in the late 1980s, making its exports less competitive and slowing down its formerly robust economy, is:
A)India.
B)Japan.
C)Great Britain.
D)Germany.
48
As pointed out in "Bottom Dollar," many other countries depend on the U.S. trade deficits for their own economic growth.
A)True
B)False
49
Unlike the Great Depression, as maintained in "Failure of the Fund: Rethinking the IMF Response," the Asian financial crisis did not induce much soul-searching about the basic principles of capitalism, in part because:
A)large-scale socialist experiments are known to have failed in the past.
B)recovery was rapid and the collapse did not have a deep effect on industrialized nations.
C)the problems of Asia were thought to be unrelated to the problems facing the Western nations.
D)only an increased reliance on capitalism and free trade brought about recovery.
50
The Asian financial crisis, as put forth in "Failure of the Fund: Rethinking the IMF Response," was nearly comparable in scope to the:
A)collapse of the Internet bubble.
B)stagflation atmosphere of the 1970s.
C)economic recession of the late 1980s.
D)Great Depression.
51
The IMF, as cited in "Failure of the Fund: Rethinking the IMF Response," has only recently produced a coherent theory of market failure that can justify its own existence and intervention strategies.
A)True
B)False
52
In simple terms, the author of "America's Growing Trade Deficit is Selling the Nation Out From Under Us" suggests that the U.S. trade deficit has been caused by:
A)imprudent monetary policy.
B)exorbitant expenditures for defense.
C)a century of fiscal irresponsibility.
D)loss of national assets to our creditors abroad.
53
As proof of his concern about the U.S. trade deficit, the author of "America's Growing Trade Deficit is Selling the Nation Out From Under Us" reports that, for the first time in his life, he has:
A)stopped buying imported products.
B)invested in foreign currency.
C)advocated a steep devaluation of the dollar.
D)concentrated his investing in consumables.
54
As pointed out in "America's Growing Trade Deficit is Selling the Nation Out From Under Us," the large U.S. trade deficits force foreign investors to constantly add to the American assets they already own.
A)True
B)False
55
The dominant currency in the world today, as presented in "What the New Currency Means to the European Economy," is the:
A)euro.
B)U.S. dollar.
C)German mark.
D)peso.
56
The impact of the euro was initially limited, as explained in "What the New Currency Means to the European Economy," because:
A)national currencies were still usable.
B)many people began using U.S. dollars for their cash transactions.
C)the bills and coins were not yet available in all planned denominations.
D)it first existed only as a virtual currency, usable for official or non-cash transactions.
57
Over the last three years of its existence, as stated in "What the New Currency Means to the European Economy," the euro has been consistently strong and of almost equal value to the U.S. dollar.
A)True
B)False
58
As reported in "The Great Wal-Mart of China," Wal-Mart's Asia CEO Joe Hatfield was told by members of Wal-Mart's board to:
A)proceed cautiously until the Wal-Mart brand is well established in China.
B)get a lot more aggressive.
C)focus only on populated coastal cities when planning new stores.
D)cut back on Chinese-made goods for export to U.S. Wal-Mart stores.
59
As related in "The Great Wal-Mart of China," Wal-Mart's Hatfield says that in addition to finding sites for the stores, his biggest challenge in opening new Wal-Mart stores in China is:
A)financing the construction of new buildings.
B)arranging for the importation of U.S.-made goods.
C)luring shoppers from local markets where they have traditionally shopped.
D)finding qualified managers.
60
As quoted in "The Great Wal-Mart of China," the president of Brilliance, China's largest retailer, has expressed concern about the competition Wal-Mart is beginning to provide.
A)True
B)False
61
As detailed in "Thinking Locally, Succeeding Globally," LG Electronics has succeeded in emerging markets by:
A)ruthless price-cutting.
B)catering to national lifestyles.
C)bribing foreign officials.
D)using only Korean labor.
62
According to "Progress Against Corruption," corruption in governments has all of the following effects except:
A)encouraging foreign direct investment in developing countries.
B)reducing economic growth.
C)undercutting environmental regulations.
D)eroding respect for the law.
63
As identified in "Asymmetric Globalization: Global Markets Require Good Global Politics," one contention of the opponents of globalization that is correct is that:
A)globalization causes corruption in government.
B)world poverty has been doubled during the process of globalization.
C)countries that compete in the global market suffer.
D)opportunities in the global market are not equal for all countries.
64
As pointed out in "Asymmetric Globalization: Global Markets Require Good Global Politics," in the the better-off emerging-market economies:
A)global trade has passed them by.
B)participation in global financial markets has had negative consequences.
C)globalization has been an unqualified success.
D)resistance to the forces of globalization has stymied growth.
65
As reported in "Asymmetric Globalization: Global Markets Require Good Global Politics," liberalizing financial markets in the absence of adequate regulatory institutions and banking standards invites corruption.
A)True
B)False
66
Among the reasons cited in "Grassroots Diplomacy" for the growth of anti-Americanism are all of the following except:
A)the image of the United States as a promised land has faded with familiarity.
B)recent business scandals have tainted the image of the whole country.
C)worldwide goodwill for the United States for actions during World War II has waned except among older people.
D)American tourists around the world have confirmed perceptions of Americans as rude, arrogant, inflexible, and demanding.
67
According to "Grassroots Diplomacy," Fluor Corp. has taken a stand against corruption in the industry considered by a watchdog group as the second most corrupt after arms and defense; that industry is:
A)sanitation.
B)public works and construction.
C)automobile manufacturing.
D)the music and film industries.
68
As mentioned in "Grassroots Diplomacy," of UPS's 40,000 overseas employees, only about 2,000 are American.
A)True
B)False
69
As related in "Is U.S. Business Losing Europe?" most American executives in Europe agree that the way to deal with European disapproval of the U.S. government is to:
A)do some flag-waving to affirm support for the U.S. system of government, if not this president.
B)maintain one's distance from local culture and language so as to not appear hypocritical.
C)keep a low profile, mix with the locals, and avoid lengthy conversations about politics.
D)seek out other Americans abroad to find strength in numbers.
70
As mentioned in "Is U.S. Business Losing Europe?" distrust of the U.S. government was expressed in Russia by the suspicion that the:
A)2004 election was won by fraud.
B)United States engineered Viktor Yuschenko's electoral victory in Ukraine.
C)U.S. government is withholding pharmaceutical supplies needed to fight AIDS.
D)Iraqi War was prompted by a U.S. desire to control oil supplies.
71
As disclosed in "Is U.S. Business Losing Europe?" one American in Europe helped organize an antiwar protest but then found that someone at the protest refused to take orders from him because he was American.
A)True
B)False
72
As quoted in "Prosperity Without Peace," investment banker Len Rosen sums up a widely held view that Israel's prosperity depends not on peace, but rather on:
A)victory.
B)security.
C)capital.
D)market share.
73
As profiled in "Prosperity Without Peace," Israeli Finance Minister Benjamin Netanyahu's economic stance has caused others to compare his views to those of:
A)Adam Smith.
B)Alan Greenspan.
C)John Kenneth Galbraith.
D)Ronald Reagan.
74
As noted in "Prosperity Without Peace," Israel has more companies on the NASDAQ than any other foreign country except Japan.
A)True
B)False
75
As stated in "A Trade War with China?" more than half of Chinese exports to the United States are:
A)not taxed at all by the Chinese government.
B)produced by foreign-owned firms, many of them American.
C)made by companies whose workers are unionized.
D)agricultural goods.
76
As asserted in "A Trade War with China?" one charge made by Americans is that the Chinese are keeping the yuan undervalued by:
A)pegging it to the dollar.
B)constantly printing new currency.
C)keeping interest rates lower than the market would bear.
D)short-selling it on currency exchanges.
77
According to the author of "A Trade War with China?" China can afford to pay for all the imports it needs to sustain its high growth rate and still out-compete any other country in world export markets.
A)True
B)False
78
As discussed in "Opening Doors to Research," more extensive patent rights generally mean:
A)more competition in the pharmaceutical industry.
B)more incentive to do pharmaceutical research.
C)lower drug prices.
D)more available treatments for diseases in the short term.
79
As reported in "Opening Doors to Research," governments in countries with low-cost drugs:
A)have no incentive to stop drugs being exported to other countries where prices are higher.
B)do not have regulatory power over the content of the drugs.
C)should take specific steps to prevent illegal exports.
D)are unaware of the reach of the "gray market."
80
As noted in "Opening Doors to Research," almost a third of drugs licensed from 1975 to 1997 were targeted specifically for tropical diseases in humans.
A)True
B)False
81
As noted in "The Sham Economy," global branding:
A)protects well-known brands from being imitated.
B)is still in its infancy.
C)has difficulty in surmounting language barriers.
D)makes it easy to create fake products with broad appeal.
82
Nearly two-thirds of all counterfeit products, as stated in "Fakes!" are manufactured in:
A)South Korea.
B)China.
C)Thailand.
D)Mexico.
83
Apart from pressuring governments, as explained in "Fakes!" multinational corporations have been taking all of the following steps to discourage counterfeiting except:
A)aggressive pricing.
B)electronic tagging on products.
C)aggressively going after consumers who purchase counterfeit products.
D)frequent redesigns of products.
84
So far, as put forth in "Fakes!" producers of counterfeit goods have not been able to duplicate holograms, smart chips, and the other security devices some companies are using to identify their genuine products.
A)True
B)False
85
As described in "Making It in China," the breakthrough for Derek Sulger's startup company was Sulger's idea of:
A)using radio and television to advertise his new business.
B)immediately hiring a lot of Chinese talent to forge ties to powerful telecoms.
C)getting foreign venture capitalists to bankroll the new company.
D)making an export deal with the EU that gave him access to a market in many countries.
86
As presented in "Making It in China," New Yorker Peter Loehr mastered the Chinese language and absorbed the culture, allowing him to become successful in China as a:
A)hotel executive.
B)nightclub owner.
C)management consultant.
D)movie producer.
87
As recounted in "Making It in China," the idea of selling hotdogs from carts in China failed because the Chinese found the idea of hotdogs distasteful.
A)True
B)False
88
As mentioned in "Bushmeat on the Menu," among the animals that provide bushmeat are:
A)chickens, turkeys, and squabs.
B)cows, moose, and elk.
C)armadillos, jaguars, and ocelots.
D)monkeys, antelopes, and cane rats.
89
The article "Bushmeat on the Menu" opens with a description of a visit by biologist Justin Brashares to a bushmeat market in:
A)San Francisco, California.
B)Yaounde, Cameroon.
C)New York, New York.
D)Brazzaville, Republic of Congo.
90
As cited in "Bushmeat on the Menu," researchers were able to show that when supplies of fish were low, hunting of bushmeat increased.
A)True
B)False
91
According to "The China Factor," U.S. companies should seek to develop two basic understandings about China's business environment, the:
A)language differences and the involvement of the government in manufacturing.
B)gap between home and China, and the general direction of change.
C)currency fluctuations and the financing differences.
D)different styles of management and the import-export regulations.
92
As reported in "The China Factor," one indication of China's industrial growth is that annually it will graduate six to seven times the U.S. number of graduates with degrees in:
A)business administration.
B)human resources.
C)sales and marketing.
D)engineering.
93
As noted in "The China Factor," China's 1.3 billion people give it 21 percent of the world's population.
A)True
B)False
94
Among the government-funded infrastructure projects planned in Indonesia, as mentioned in "A Whiff of New Money," are:
A)an airport extension and a gas pipeline.
B)an oil refinery and a series of bridges.
C)new roads and a subway system.
D)a high-speed railway system and several aqueducts.
95
As enumerated in "A Whiff of New Money," the global demand is robust for Indonesian products such as:
A)gemstones, spices, and coconut oil.
B)palm oil, coal, tin, and apparel.
C)wood products, aluminum goods, and fish products.
D)textiles, chemicals, and iron ore.
96
Among the many challenges Indonesia faces, as mentioned in "A Whiff of New Money," is the damage caused by the 2004 tsunami.
A)True
B)False
97
The only Chinese stock that the author of "The China Hedge" recommends investing in is:
A)Shanda.
B)China Powershares Golden Dragon.
C)51Job Inc.
D)FTSE/Xinhau China 25 Index.
98
As explained in "The China Hedge," the author's father now represents a Chinese manufacturer of:
A)watches.
B)interactive computer games.
C)shopping bags.
D)playing cards.
99
In the opinion of the author of "The China Hedge," Chinese Communists make crummy capitalists.
A)True
B)False
100
As reported in "The Brave New World of IFRS," the move to IFRS has been mandated for countries listed on a regulated market and:
A)in the United States.
B)members of NAFTA.
C)members of ASEAN.
D)within the EU.
101
As recounted in "The Brave New World of IFRS," one problem organizations moving to the use of IFRS have encountered is a shortage of:
A)capital.
B)trained personnel.
C)clear regulations.
D)reasons to make the change.
102
As presented in "The Brave New World of IFRS," Australia, China, South Africa, and Russia are among the countries that have indicated that they may move to IFRS.
A)True
B)False
103
As profiled in "Your Next TV," the American rivals that Asian companies did not expect to see in the flat-panel TV market are:
A)RCA and Zenith.
B)Dell and HP.
C)Polaroid and Bose.
D)Apple and Sun.
104
As mentioned in "Your Next TV," the most notable example of success in the convergence of consumer electronics and computing is:
A)the Blackberry.
B)Nokia cell phones.
C)DVRs.
D)Apple's iPod.
105
As reported in "Your Next TV," such firms as Sony, Samsung, and Matsushita are spending billions investing in manufacturing flat-panel TVs.
A)True
B)False
106
The main topics pertaining to manufacturing over the past 35 years that, as presented in "Shaping the Future of Manufacturing," include all of the following except:
A)globalization.
B)financing.
C)production.
D)information technology.
107
As pointed out in "Shaping the Future of Manufacturing," instead of the dreaded Y2K meltdown of computer systems, the real problem that occurred in 2000 was the:
A)disputed U.S. presidential election.
B)rise in oil prices.
C)financial collapse of Internet companies.
D)emergence of China as a manufacturing giant.
108
As noted in "Shaping the Future of Manufacturing," in 1980 the United States dropped to second place in automobile manufacturing for the first time since 1904.
A)True
B)False
109
As asserted in "Here Come Chinese Cars," not only do Chinese carmakers have to improve the quality of their cars before exporting to the United States, they also have to:
A)meet U.S. safety and emissions standards.
B)develop expertise on U.S. tastes in interior materials and colors.
C)increase domestic sales significantly to provide capital for new ventures abroad.
D)match Detroit's development of hybrid cars.
110
As detailed in "Here Come Chinese Cars," even though labor costs are low in China, the cost of making cars there is still high because:
A)manufacturers are still paying for recently-built factories.
B)parts are expensive.
C)taxes are high.
D)transportation costs are high.
111
As mentioned in "Here Come Chinese Cars," Honda plans to export 50,000 Fit compact cars to Europe each year and sell them under the model name Jazz.
A)True
B)False
112
One of the most important resources a company can have when looking to expand franchise operations overseas, as asserted in "International Growth Patterns Remain Strong," is:
A)strong government contacts in the new country.
B)a good, supportive relationship with the local partner.
C)a thorough understanding of the culture and buying habits in the chosen country.
D)the willingness to invest sufficient capital in the project from the beginning.
113
The first franchises to make headway opening overseas outlets, as explained in "International Growth Patterns Remain Strong," were those that sold:
A)consumer technology products like computers and software.
B)printing services and office supplies.
C)supplies and services to other businesses.
D)fast food.
114
In part due to an international economic slowdown and political difficulties, as noted in "International Growth Patterns Remain Strong," most franchisors in the United States are reluctant to pursue plans for international expansion.
A)True
B)Fale
115
As mentioned in "Every Little Reform Counts," one disheartening piece of economic news in early 2005 was that Germany's jobless rolls exceeded 5 million; the last time this happened was:
A)after the end of World War II.
B)during the recession during the 1970s.
C)after East Germany and West Germany were reunited.
D)when Germany joined the EU.
116
According to "Every Little Reform Counts," Toyota built a factory in northern France but, because of high French taxes, the senior Japanese executives are based in:
A)Great Britain.
B)Germany.
C)Belgium.
D)Switzerland.
117
As given in "Every Little Reform Counts," one of the changes made in France in 2005 was the introduction of the 35-hour work week.
A)True
B)False
118
According to "Outsourcing Jobs: The Myths and Realities," the debate over outsourcing is misplaced, because the issue is not globalization, but rather:
A)massive trade deficits.
B)the way nations allocate the benefits of economic integration.
C)the pace of innovation and technological change.
D)competitiveness.
119
As explained in "Outsourcing Jobs: The Myths and Realities," over the past 10 years, job growth in the United States:
A)was fastest among low-wage jobs.
B)has remained steady.
C)was fastest among high-wage jobs.
D)had fallen every year until 2005.
120
As asserted in "Outsourcing Jobs: The Myths and Realities," the fact that what is good for the economy as a whole may not be good for each individual does not weaken the case for free trade.
A)True
B)False
121
Technology has, as concluded in "Globalization and the American Labor Force," enabled:
A)workers in wealthy countries to retain their lead in productivity, despite being more expensive than workers from the developing world.
B)unskilled workers in the Third World to be as productive as a more expensive employee in a developed country.
C)business owners to avoid using unskilled labor either in the United States or abroad.
D)the United States to recover most of the textile jobs lost to the developing world a decade ago.
122
As discussed in "Globalization and the American Labor Force," the British approach to technological change and globalization shows that:
A)adopting inflexible employment policies is the most effective way to boost economic growth.
B)state monopolies are significantly more efficient than private firms.
C)low unemployment rates require accepting low growth rates as well.
D)the goals of economic growth and low unemployment can both be met.
123
As noted in "Globalization and the American Labor Force," American jobs that were lost during the last recession are now returning, but are reappearing only in the Southwest United States.
A)True
B)False
124
In the fictional retrospective of the author of "Countdown to a Meltdown," the event that led to the Democratic victory in the election of 2008 was the:
A)collapse of the dollar in Asian market.
B)death of Fidel Castro.
C)defeat of U.S. forces in Iraq.
D)rise to power of Hugo Chavez.
125
According to "Countdown to a Meltdown," every Republican president has left office with the:
A)dollar higher.
B)American trade position stronger.
C)U.S. manufacturing work force smaller.
D)federal budget deficit lower.
126
As noted in "Countdown to a Meltdown," in 2005 the Congressional Budget Office contended that a large majority of the upcoming year's deficit resulted from the Bush Administration tax cuts.
A)True
B)False
127
As described in "A New World Economy: The Balance of Power Will Shift to the East as China and India Evolve," the closest parallel to the emergence of China and India as economic powers is the saga of:
A)eighteenth-century Great Britain.
B)nineteenth-century America.
C)thirteenth-century Venice.
D)twentieth-century Japan and Korea.
128
As asserted in "A New World Economy: The Balance of Power Will Shift to the East as China and India Evolve," India's long-term potential may be even greater than China's, in part because India has:
A)even more educated people.
B)much better supplies of natural resources.
C)many young people and higher fertility rates, so it will have more workers.
D)closer relationships with many of the world's biggest multinationals.
129
As noted in "A New World Economy: The Balance of Power Will Shift to the East as China and India Evolve," China has tripled per capita income in a generation and eased 300 million people out of poverty.
A)True
B)False
130
As given in "New Century, New Challenges," twenty-first-century organizing challenges are made more difficult in the case of global warming by:
A)the scientific community's demand for immediate action to prevent ecological disaster.
B)disagreement among environmentalists about the best responses to the problem.
C)the fact that many people simply do not believe there is a global-warming problem.
D)America's being one of the few countries that did not sign the Kyoto Protocol.
131
As mentioned in "New Century, New Challenges," global debt relief was won by a coalition of anti-World Trade Organization activists and:
A)corporate philanthropists.
B)conservative faith groups.
C)women's groups.
D)third-world countries.
132
As expressed in "New Century, New Challenges," sometimes it is necessary to choose between preventing local utility-plant emissions and building support for a strengthened Kyoto agreement.
A)True
B)False
133
As maintained in "Globalization and You," in order to succeed in a globalized world economy, people:
A)need a good education and flexibility to maintain a competitive advantage.
B)should have engineering skills.
C)must be willing to perform manual labor.
D)must consume less and save more.





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