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| 1 | |
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 | |
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 | |
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 | |
At the Doha Round of talks, the WTO members choose to reduce agricultural subsidies in an attempt to address issues of global hunger and the needs of developing nations. |
| | A) | True |
| | B) | False |
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| 5 | |
Even if China's rapid rise continues, it will not overtake the U.S. as the world's largest economy and largest exporter any time soon. |
| | A) | True |
| | B) | False |
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| 6 | |
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 | |
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 | |
The IMF: |
| | A) | provides loans to countries at rates comparable to many commercial banks. |
| | B) | provides loans that countries can use as they see best fit to improve their economies. |
| | C) | has been criticized for making inappropriate policy recommendations. |
| | D) | prefers not to make loans to troubled states because of the risks involved. |
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| 9 | |
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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| 10 | |
Since the beginning of the 21st century, the flow of FDI has: |
| | A) | risen consistently. |
| | B) | had reached about $1.2trillion in 2006. |
| | C) | has barely kept pace with the growth in world trade and world output. |
| | D) | led to concentrated growth in a little more than 5,000 companies worldwide. |
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| 11 | |
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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| 12 | |
Which of the following best describes the technological change that has been a driver of globalization? |
| | A) | Communications has not kept pace with other areas. |
| | B) | The microprocessor may be the single most important innovation. |
| | C) | The Internet is important for gaming and within the domestic economy, but has yet to realize promise in globalization. |
| | D) | Despite the widespread use of containerization, transportation costs continue to rise. |
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| 13 | |
The use of the Internet in globalization of services: |
| | A) | will continue to be minimal because of the importance of face-to-fact interaction in services. |
| | B) | is an important tool, but the expertise required of professionals limits globalization. |
| | C) | is already reaching maturity. |
| | D) | will increase as telecommunications bandwidth continues to increase. |
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| 14 | |
In the early 1960s, the United States was by far the world's dominant industrial power, but: |
| | A) | even with the relative decline, it is still the largest industrial power. |
| | B) | Germany, France and Italy have growth rates that suggest they may soon overtake the U.S. |
| | C) | China's share of world GDP is still small given its large population. |
| | D) | though some Asian countries have increased their share of world exports, the US will remain the world's leading exporter for some time to come. |
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| 15 | |
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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| 16 | |
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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| 17 | |
Developing nations: |
| | A) | are too insignificant to be home to large multinationals. |
| | B) | will have slowing growth due to several trends in globalization. |
| | C) | do not offer significant competition in world markets. |
| | D) | can be expected to shift the axis away of the world economy from North American and Western European. |
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| 18 | |
Medium-size and small multinationals (mini-multinationals): |
| | A) | are not significant players in international business. |
| | B) | have not grown significantly. |
| | C) | have few of the same issues of complexity that large multinationals so. |
| | D) | are becoming increasingly involved in international business. |
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| 19 | |
Since 1989, there have been significant changes in the world order. Which of the following is true about formerly communist states? |
| | A) | With the collapse of the former Soviet Union, the resulting domestic problems have closed the door to opportunities. |
| | B) | The demonstrated success of democracy and free market orientations have created an end to totalitarian tendencies and unrest. |
| | C) | China's moves toward a more free-market orientation have created opportunities. |
| | D) | State involvement in economies has been thoroughly repudiated after the collapse of the communist system. |
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| 20 | |
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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| 21 | |
Venezuela and Bolivia have created a great deal of attention because; |
| | A) | left-wing governments have shifted the political and investment orientations. |
| | B) | their known oil and gas reserves offer Western countries a more stable supply. |
| | C) | their governments have been dismantling decades of state-controlled industries. |
| | D) | the investment climate is attractive to foreign investors. |
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| 22 | |
In Seattle, during December 1999, massive protests against globalization captured the attention of the world. Which of the following was not an issue the protesters raised? |
| | A) | Domestic job losses |
| | B) | Downward pressure on wage rates of unskilled workers |
| | C) | Environmental standards that were too strict |
| | D) | Cultural imperialism of global media and multinational enterprises |
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| 23 | |
One of the criticisms of the WTO is the concern that the organization will undermine the sovereignty of nations who are members. Which of the following is not a criticism in this area? |
| | A) | Democratically elected governments must submit to unelected bureaucrats from other countries. |
| | B) | Nations can no longer control their own destiny. |
| | C) | There is a lack of transparency and accountability. |
| | D) | The power of the organization rests largely on the ability to persuade member states to follow a certain action. |
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| 24 | |
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 | |
There are 40 or so "highly indebted poorer countries" (HIPCs), which are home to 700 million people. Debt relief for these countries has gained some high profile supporters. Which of the following is not one of the major concerns? |
| | A) | HPICs are trapped in a cycle of poverty. |
| | B) | Democratically elected governments are saddled with debt that may have been incurred by corrupt earlier governments. |
| | C) | Creditor countries can little afford debt relief without causing major dislocations in their economies. |
| | D) | To be successful, debt relief must be coupled with public projects that boost economic growth. |
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