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1 | |
The phenomenon in which distinct national economic units are disappearing in favor of one huge global market is known as |
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| | A) | transnationalism |
| | B) | economic unity |
| | C) | globalization |
| | D) | the new world order |
| | E) | cross-border markets |
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2 | |
Companies such as Citicorp, Coca-Cola, and McDonald's are examples of companies that have facilitated the |
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| | A) | globalization of production |
| | B) | globalization of markets |
| | C) | globalization of companies |
| | D) | globalization of investments |
| | E) | globalization of culture |
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3 | |
__________ promotes the lowering of trade barriers and barriers to cross-border investment. |
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| | A) | IMF |
| | B) | UN |
| | C) | WTO |
| | D) | EU |
| | E) | World Bank |
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4 | |
The institution that was established to maintain order in the international monetary system is the |
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| | A) | IMF |
| | B) | World Bank |
| | C) | WTO |
| | D) | EU |
| | E) | UN |
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5 | |
The trend toward globalization is a factor of |
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| | A) | technological change and the decline in barriers to the free flow of goods, services, and capital |
| | B) | changes in consumer demand |
| | C) | the efforts of firms to continually seek new markets |
| | D) | changes in political systems around the globe |
| | E) | the power of the capital markets to integrate market economies |
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6 | |
__________ occurs when a firm exports goods or services to consumers in another country. |
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| | A) | globalization of markets |
| | B) | international trade |
| | C) | foreign direct investment |
| | D) | development of global products |
| | E) | globalization of production |
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7 | |
The _________ has revolutionized the ability to quickly process information at ever-decreasing costs to individuals and businesses, and has facilitated the globalization of markets and production. |
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| | A) | the microprocessor |
| | B) | the Internet |
| | C) | b2b web based transactions |
| | D) | transportation technology |
| | E) | containerization |
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8 | |
Which of the following countries is not expected to see a significant increase in their share of the world's output in the next twenty years? |
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| | A) | China |
| | B) | Indonesia |
| | C) | Thailand |
| | D) | South Korea |
| | E) | Japan |
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9 | |
Over the forty years, the United States has seen its position as the dominant industrial power |
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| | A) | erode |
| | B) | strengthen |
| | C) | disappear |
| | D) | remain unchanged |
| | E) | continue |
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10 | |
According to United Nations' data |
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| | A) | the United States has seen its share of the world's largest MNEs rise over the last 30 years |
| | B) | the world's largest MNEs are dominated by firms from developed countries |
| | C) | Japan has experienced a steady increase in its share of the world's largest MNEs |
| | D) | China now boasts a large share of the world's largest MNEs |
| | E) | firms from developing countries have failed to make any headway into the ranks of the world's largest corporations |
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11 | |
When a firm invests resources in business activities outside its home country, the company has engaged in international trade. |
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| | A) | True |
| | B) | False |
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12 | |
Containerization has revolutionized the transportation business allowing firms to ship their products at significantly lower prices over long distances. |
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| | A) | True |
| | B) | False |
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13 | |
Thanks to the advent of the "global village," significant national differences in culture, consumer preferences, and business practices no longer exist. |
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| | A) | True |
| | B) | False |
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14 | |
The United States is no longer the world's largest industrial power. |
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| | A) | True |
| | B) | False |
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15 | |
The United States has seen its share of the world's largest MNEs rise over the last thirty years. |
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| | A) | True |
| | B) | False |
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16 | |
In the global economy of the 21st century there is an ongoing shift toward privatization, deregulation, more open markets, and lower barriers to the free flow of cross-border investments. |
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| | A) | True |
| | B) | False |
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17 | |
It is generally agreed that a more integrated and interdependent global economy is beneficial to all. |
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| | A) | True |
| | B) | False |
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18 | |
According to those who support globalization, free trade encourages countries to specialize in the production of goods and services that they can produce most efficiently and trade for those goods and services that they cannot produce efficiently. |
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| | A) | True |
| | B) | False |
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19 | |
Because of its status as a multilateral organization, the WTO is typically exempt from criticism of the move toward globalization. |
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| | A) | True |
| | B) | False |
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20 | |
A firm that engages in international trade or investment is an international business. |
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| | A) | True |
| | B) | False |