Question 1

In the context of the environment,globalization critics argue that:

Accepted Answer

A)   free trade discourages firms from advanced nations to move manufacturing facilities to less developed countries.
B)   adhering to labor and environmental regulations significantly increases the costs of manufacturing enterprises.
C)   manufacturing enterprises are put at a competitive disadvantage by moving their production facilities to nations that do not have burdensome regulations.
D)   as countries get richer, they relax their environmental and labor regulations.
E)   while pollution levels are rising in the world's richer countries, they have been falling in developing nations.F) A) and B)
G) A) and E)

Question 2

In return for loans,the IMF requires nation-states to adopt specific economic policies aimed at returning their troubled economies to stability and growth.

Accepted Answer

A) True 
 B)False

Question 3

Michelle,an Italian fashion designer,sells her merchandise by exporting them to the U.S.,UK,and Brazil.According to this information,Michelle is most likely involved in:

Accepted Answer

A)   foreign direct investment.
B)   foreign institutional investment.
C)   international trade.
D)   cross-border bartering.
E)   outsourcing.F) C) and E)
G) A) and E)

Question 4

In the context of international trade and investment,describe how the former Communist nations of Europe and Asia have been changing.

Accepted Answer

Many of the former Communist nations of ...

Question 5

The globalization of production mainly occurs due to the:

Accepted Answer

A)   growing cultural homogeneity across markets.
B)   increasing differences in the tastes and preferences of consumers in different nations.
C)   national differences in the cost and quality of factors such as labor, energy, land, and capital.
D)   rise in communism the world over.
E)   increasing worldwide demand for unskilled workers.F) A) and C)
G) C) and D)

Question 6

Elaborate on why globalization is not inevitable.

Accepted Answer

The world may be moving toward a more gl...

Question 7

Which of the following reasons has made outsourcing of service activities to low-cost producers in other nations possible?

Accepted Answer

A)   Increasing diversity in material culture among national markets
B)   Government regulations limiting certain service activities in the home country
C)   Increasing foreign competition in manufacturing industries
D)   Rise in communism globally
E)   Use of modern communications technologyF) A) and D)
G) A) and B)

Question 8

The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following organizations was established at the 1993 Uruguay Round?

Accepted Answer

A)   World Trade Organization
B)   International Court of Justice
C)   International Trade Enforcement Agency
D)   United Nations
E)   World BankF) C) and E)
G) All of the above

Question 10

What are mini-multinationals?

Accepted Answer

A)   Multinational firms from relatively small countries in terms of area
B)   Multinationals from the developing nations of the world
C)   Multinational firms that operate in only one foreign country
D)   Medium-sized and small multinationals
E)   Subsidiaries of large multinationals in foreign countriesF) C) and D)
G) A) and E)

Question 11

What is a multinational enterprise? What have been the two most notable trends in multinational enterprises since the 1960s?

Accepted Answer

A multinational enterprise is any busine...

Question 12

Which of the following best illustrates the globalization of production?

Accepted Answer

A)   Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process.
B)   Evan Swan, a U.S. based fashion designer, is planning to open a flagship store in China to serve the Asian market.
C)   Uncle Crab, a UK fast food chain, has been serving customers worldwide through its franchises.
D)   Silver Unicorn Inc. uses sales personnel from the respective host country to sell its products and services.
E)   Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers.F) A) and B)
G) None of the above

Question 13

The advanced industrial nations of the West committed themselves after World War II to removing barriers to the free flow of goods,services,and capital between nations.This goal was enshrined in the:

Accepted Answer

A)   Inter-American Treaty of Reciprocal Assistance.
B)   Comprehensive Economic Partnership Agreement.
C)   General Agreement on Tariffs and Trade.
D)   North American Free Trade Agreement.
E)   United Nations charter.F) D) and E)
G) None of the above

Question 14

An argument in support of the falling barriers to international trade and investment is that the falling barriers:

Accepted Answer

A)   prohibit countries from specializing in the production of goods and services.
B)   drive the global economy toward greater prosperity.
C)   reduce the need to export jobs overseas.
D)   increase the bargaining power of business firms by decreasing the incomes of consumers.
E)   reduce attacks from foreign competitors.F) A) and B)
G) C) and D)

Question 15

As a result of globalization,we have been moving toward a world in which national economies are relatively self-contained entities.

Accepted Answer

A) True 
 B)False

Question 16

Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the:

Accepted Answer

A)   migration of low-wage manufacturing jobs offshore.
B)   technology induced shift toward jobs that require significant education and skills.
C)   increased supply of highly skilled workers.
D)   reducing demand for unskilled workers in developing nations.
E)   reducing national differences in the cost of labor between developed and developing nations.F) A) and E)
G) All of the above

Question 17

Which of the following has seen a positive change from 1960 to 2010?

Accepted Answer

A)   Growth of the centrally planned economies of the communist world
B)   U.S. position in the world economy and world trade picture
C)   The share of world output enjoyed by rich industrialized countries such as Great Britain, Germany, and Japan
D)   The share of world output accounted for by developing nations
E)   Prevalence of independent and self-contained national economiesF) C) and D)
G) None of the above

Question 18

What are the various reasons for economic stagnation in many of the world's poorest countries?

Accepted Answer

Many of the world's poorest countries ha...

Question 19

The rise of the Internet is increasing the barriers that small firms face in building international sales.

Accepted Answer

A) True 
 B)False

Question 20

The _____ refers to the total cumulative value of foreign investments.

Accepted Answer

A)   weighted average foreign exchange
B)   leveraged foreign investment
C)   stock of foreign direct investment
D)   adjusted foreign exchange
E)   horizontal foreign direct investmentF) B) and C)
G) B) and D)

Exam 1: Globalization

The rise of the Internet is increasing the barriers that small firms face in building international sales.

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In return for loans,the IMF requires nation-states to adopt specific economic policies aimed at returning their troubled economies to stability and growth.

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The _____ refers to the total cumulative value of foreign investments.

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Which of the following best illustrates the globalization of production?

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As a result of globalization,we have been moving toward a world in which national economies are relatively self-contained entities.

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Which of the following has seen a positive change from 1960 to 2010?

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In the context of international trade and investment,describe how the former Communist nations of Europe and Asia have been changing.

Correct AnswerverifiedMany of the former Communist nations of ...View AnswerShow Answer

The advanced industrial nations of the West committed themselves after World War II to removing barriers to the free flow of goods,services,and capital between nations.This goal was enshrined in the:

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Michelle,an Italian fashion designer,sells her merchandise by exporting them to the U.S.,UK,and Brazil.According to this information,Michelle is most likely involved in:

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Elaborate on why globalization is not inevitable.

Correct AnswerverifiedThe world may be moving toward a more gl...View AnswerShow Answer

What are mini-multinationals?

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What are the various reasons for economic stagnation in many of the world's poorest countries?

Correct AnswerverifiedMany of the world's poorest countries ha...View AnswerShow Answer

Which of the following organizations was established at the 1993 Uruguay Round?

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Which of the following reasons has made outsourcing of service activities to low-cost producers in other nations possible?

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An argument in support of the falling barriers to international trade and investment is that the falling barriers:

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Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the:

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The globalization of production mainly occurs due to the:

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The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country.

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What is a multinational enterprise? What have been the two most notable trends in multinational enterprises since the 1960s?

Correct AnswerverifiedA multinational enterprise is any busine...View AnswerShow Answer

In the context of the environment,globalization critics argue that:

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Many of the former Communist nations of ...
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The world may be moving toward a more gl...
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Many of the world's poorest countries ha...
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A multinational enterprise is any busine...
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