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| 1.
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While workers in manufacturing industries are considered to be vulnerable to the negative effects of globalization, workers in service industries are relatively secure. |
| | A) | True |
| | B) | False |
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| 2.
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The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace. |
| | A) | True |
| | B) | False |
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| 3.
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The globalization of production 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 of production. |
| | A) | True |
| | B) | False |
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| 4.
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The World Bank's primary responsibility is to maintain order in the international monetary system. |
| | A) | True |
| | B) | False |
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| 5.
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International trade occurs when a firm exports goods or services to consumers in another country. |
| | A) | True |
| | B) | False |
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| 6.
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Globalization has been blamed for |
| | A) | unemployment in developed nations |
| | B) | the preservation of national culture |
| | C) | environmental protection regulations |
| | D) | economic political isolation |
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| 7.
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The two main components of globalization are: |
| | A) | the globalization of markets and the globalization of production |
| | B) | the globalization of production and the globalization of finance |
| | C) | the standardization of technology and the globalization of markets |
| | D) | the globalization of finance and the globalization of accounting |
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| 8.
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A company that designs its product in one country, sources parts of the product in other countries, and assembles its product in still another country is |
| | A) | capitalizing on the globalization of production |
| | B) | capitalizing on the globalization of marketing |
| | C) | is probably from a developed country |
| | D) | is probably producing a product that meets a universal need |
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| 9.
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According to former Secretary of Labor Robert Reich, the propensity of firms to outsource many of their productive activities to different suppliers around the world has resulted in the creation of __________ products. |
| | A) | multi-domestic |
| | B) | cross-national |
| | C) | global |
| | D) | cross-cultural |
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| 10.
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Which of the following institutions promotes the lowering of barriers to cross-border trade? |
| | A) | the International Monetary Fund |
| | B) | the World Trade Organization |
| | C) | the United Nations |
| | D) | the World Bank |
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| 11.
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The role of the __________ is to maintain international peace and security, to develop friendly relations among nations, to cooperate in solving international problems and promoting respect for human rights, and to be a center for harmonizing the actions of nations. |
| | A) | the International Monetary Fund |
| | B) | the World Trade Organization |
| | C) | the United Nations |
| | D) | the World Bank |
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| 12.
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Which of the following was not an outcome of the Uruguay Round of the GATT? |
| | A) | Increased trade barriers |
| | B) | Extended GATT to cover services as well as manufactured goods |
| | C) | Established the World Trade Organization |
| | D) | Provided extended protection for patents, trademarks, and copyrights |
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| 13.
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The acronym WTO stands for |
| | A) | Western Trade Organization. |
| | B) | World Tax Organization. |
| | C) | World Trade Organization. |
| | D) | World Tariff Organization. |
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| 14.
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Approximately 95 percent of the changes countries have made pertaining to foreign direct investment regulations have: |
| | A) | made it harder for foreign companies to enter their markets |
| | B) | made it easier for foreign companies to enter their markets |
| | C) | had no effect on the ease upon which foreign companies can enter their markets |
| | D) | made it easier to foreign producers of raw materials to enter their markets but more difficult for foreign producers of finished products to enter their markets |
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| 15.
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Moore's Law predicts that |
| | A) | the cost of global communications will increase |
| | B) | efforts to halt the globalization process will increase at the same rate as the increase in global poverty |
| | C) | the growth of the Internet will dramatically affect global competition |
| | D) | the power of microprocessor technology doubles and its cost of production falls in half every 18 months |
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| 16.
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By 2003, approximately _______ percent of the population in the United States was using the Internet. |
| | A) | 35 |
| | B) | 49 |
| | C) | 60 |
| | D) | 63 |
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| 17.
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The greatest current potential of the Web seems to be in the _______ arena. |
| | A) | business-to-business |
| | B) | consumer-to-business |
| | C) | consumer-to-consumer |
| | D) | business-to-consumer |
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| 18.
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Which country was the world's most dominant industry power in the early 1960s? |
| | A) | Japan |
| | B) | The United Kingdom |
| | C) | Germany |
| | D) | The United States |
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| 19.
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The World Bank estimates that by 2020 developing nations will account for more than ____ percent of world economic activity. |
| | A) | 20 |
| | B) | 40 |
| | C) | 60 |
| | D) | 80 |
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| 20.
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The foreign direct investment by non-U.S. firms was motivated primarily by the following two factors: |
| | A) | the desire to disperse production activities to optimal locations; and the desire to build a direct presence in major foreign markets |
| | B) | the desire to disperse production activities to optimal locations; and the desire to influence foreign exchange rates |
| | C) | the desire to influence foreign exchange rates; and the desire to influence political developments in foreign countries |
| | D) | the desire to build a direct presence in major foreign markets; and the desire to influence political developments in foreign countries |
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| 21.
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The shares of the total stock of FDI accounted for by France, Japan, and other Asian nations |
| | A) | increased markedly from 1980 to 2002 |
| | B) | increased slightly from 1980 to 2002 |
| | C) | declined slightly from 1980 to 2002 |
| | D) | remained about the same from 1980 to 2002 |
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| 22.
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The globalization of the world economy has resulted in |
| | A) | a sharp increase in the dominance of U.S. firms in the global marketplace |
| | B) | a relative decline in the dominance of U.S. firms in the global marketplace |
| | C) | a relative decline in the dominance of French firms in the global marketplace |
| | D) | a sharp decline in the dominance of Japanese firms in the global marketplace |
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| 23.
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Which of the following statements is not true regarding the majority of Latin American countries? |
| | A) | Governments are selling state-owned enterprises to private investors |
| | B) | Foreign investment is welcome |
| | C) | Debt and inflation are down |
| | D) | Neither democracy nor free market reforms have seemed to take hold |
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| 24.
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All of the following except __________ are reasons for economic stagnation in countries such as Afghanistan, Cambodia, Cuba, Haiti, and Iraq. |
| | A) | totalitarian governments |
| | B) | strong protection for property rights |
| | C) | endemic corruption |
| | D) | economic policies that destroyed wealth |
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| 25.
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Any firm that engages in international trade or investment is |
| | A) | exposed to exchange risk |
| | B) | an international business |
| | C) | a multinational enterprise |
| | D) | a large company |
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