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| 1 | |
We are moving away from a world in which national economies were self-contained and toward a world in which: |
| | A) | Barriers are increasing |
| | B) | Barriers to trade are decreasing |
| | C) | Barriers to trade are increasing and investment is decreasing |
| | D) | Barriers to trade are decreasing and barriers to investment are tumbling |
| | E) | Barriers to trade and technology remain unchanged |
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| 2 | |
In discussing the marketing of consumer products and services, going global is not without problems – what sells in Britain may not sell in Thailand because of: |
| | A) | Different rules and regulations |
| | B) | Different time zones |
| | C) | Different tastes and preferences |
| | D) | Different locations |
| | E) | Barriers to entry |
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| 3 | |
Globalization has two main components: globalization of ______ and the globalization of _______. |
| | A) | customers; culture |
| | B) | markets; production |
| | C) | trade; investment |
| | D) | companies; customers |
| | E) | MNCs; MNEs |
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| 4 | |
_______ refers to the merging of historically distinct and separate national markets into one huge global marketplace. |
| | A) | Globalization of companies |
| | B) | Globalization of investments |
| | C) | Globalization of markets |
| | D) | Globalization of culture |
| | E) | Globalization of production |
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| 5 | |
It has been argued for some time that the tastes and preferences of consumers in different nations are ___________ thereby helping to create a global market. |
| | A) | Very different due to regional tensions |
| | B) | Beginning to converge on some global norm |
| | C) | Are diverging into many separate market segments |
| | D) | Difficult to establish with modern communications |
| | E) | Easy to establish |
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| 6 | |
The tendency among firms to source goods and services from different locations around the globe to take advantage of national differences in the cost and quality of factors of production is referred to as: |
| | A) | globalization of locations. |
| | B) | globalization of goods. |
| | C) | globalization of markets. |
| | D) | globalization of culture. |
| | E) | globalization of production. |
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| 7 | |
Which of the following is the treaty designed to remove barriers to the free flow of goods, services, and capital between nations? |
| | A) | GATT |
| | B) | EU |
| | C) | WTO |
| | D) | FDI |
| | E) | NAFTA |
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| 8 | |
Which agency was established to police the international trade systems? |
| | A) | GATT |
| | B) | EU |
| | C) | WTO |
| | D) | FDI |
| | E) | NAFTA |
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| 9 | |
Which agency is often seen as the lender of last resort to nation-states in turmoil? |
| | A) | GATT |
| | B) | EU |
| | C) | WTO |
| | D) | IMF |
| | E) | NAFTA |
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| 10 | |
_____ occurs when a firm invests resources in business activities outside its home country. |
| | A) | GATT |
| | B) | International trade |
| | C) | Globalization of production |
| | D) | New world order |
| | E) | Foreign direct investment |
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| 11 | |
Globalization of production—the text indicates more firms are doing what Bombardier does, meaning: |
| | A) | Consolidating production |
| | B) | Consolidating supplies |
| | C) | Dispersing production |
| | D) | Dispersing advertising |
| | E) | Consolidating advertising |
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| 12 | |
Perhaps the single most important innovation has been, according to the authors, _______. |
| | A) | development of the microprocessor |
| | B) | development of xerography |
| | C) | transportation advancement |
| | D) | containerization |
| | E) | MNCs |
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| 13 | |
In 2005, the Internet had about ____ users. |
| | A) | 1.1 billion |
| | B) | 1 million |
| | C) | 11 billion |
| | D) | 350 million |
| | E) | 490 million |
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| 14 | |
In Canada, the number of Internet household users in 2004 reached: |
| | A) | 1.2 million households |
| | B) | 12 million households |
| | C) | 120 thousand households |
| | D) | 12 thousand households |
| | E) | 347 thousand households |
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| 15 | |
_______ has revolutionized the transportation business as it greatly simplifies transshipment from one mode of transport to another. |
| | A) | Commercial jet airline |
| | B) | Superfreighters |
| | C) | Railroad systems |
| | D) | Containerization |
| | E) | Information superhighway |
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| 16 | |
Which of these countries had the second largest share of world output in 2003? |
| | A) | Japan |
| | B) | Canada |
| | C) | Germany |
| | D) | South Korea |
| | E) | China |
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| 17 | |
Which country is the largest trading partner of the U.S.? |
| | A) | Japan |
| | B) | Canada |
| | C) | Germany |
| | D) | South Korea |
| | E) | China |
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| 18 | |
The _______ refers to the total cumulative value of foreign investments. |
| | A) | stock of foreign direct investment |
| | B) | U.S. government bonds |
| | C) | payments of stock returns |
| | D) | FDI |
| | E) | GATT |
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| 19 | |
A(n) _______ is any business that has productive activities in two or more countries. |
| | A) | multinational enterprise |
| | B) | WTO members |
| | C) | foreign company |
| | D) | international business |
| | E) | globalized market business |
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| 20 | |
A trend in international business has been the growth of: |
| | A) | large firms. |
| | B) | developing countries. |
| | C) | medium-sized and mini-multinationals. |
| | D) | democratic governments. |
| | E) | car companies. |
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| 21 | |
Which of the following is a concern voiced by opponents of globalization? |
| | A) | The government will lose money in taxes to other countries. |
| | B) | Firms will move their manufacturing activities to poorer countries to save on wages and the poor will become poorer. |
| | C) | Wealthy countries will gain all manufacturing activities. |
| | D) | Developing countries will become stagnant due to lack of jobs and funds. |
| | E) | The Internet will have negative affects on the development of jobs in developing countries. |
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| 22 | |
Globalization has had an effect on jobs. There has been a(n) _____ of Canadian jobs to _________ countries. |
| | A) | Net increase, European |
| | B) | Outsourcing, developing |
| | C) | Outsourcing, Latin American |
| | D) | Net increase, developing |
| | E) | Outsourcing, OECD |
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| 23 | |
The free trade agreement between _______ is represented by NAFTA. |
| | A) | Canada, Mexico, and the United States |
| | B) | the United States, and the European Community |
| | C) | Canada, and the United States |
| | D) | Mexico and Latin America |
| | E) | Japan and Pacific Islander countries |
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