Question 1

As a result of international trade, the economies of the world's nation-states are becoming less intertwined.

Accepted Answer

A) True 
 B)False

Question 2

Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off. Which of the following is being justified in this case?

Accepted Answer

A)  Protectionism and retaliatory trade policy
B)  Free trade of goods and services
C)  Rise of communism
D)  High tariff on imports of manufactured goods
E)  The need to be a self-contained nationF) All of the above
G) A) and E)

Question 3

Explain the factors that led to the Great Depression of the 1930s.

Accepted Answer

Many of the barriers to international tr...

Question 4

Which of the following refers to the total cumulative value of foreign investments?

Accepted Answer

A)  Purchasing power parity
B)  Multipoint pricing
C)  Stock of foreign direct investment
D)  Switch trading
E)  Bill of ladingF) D) and E)
G) B) and C)

Question 5

For foreign direct investment (FDI)  to occur, a firm should primarily:

Accepted Answer

A)  conduct cross-border bartering with neighboring countries.
B)  invest resources in business activities outside its home country.
C)  export goods or services to consumers in another country.
D)  import goods or services from producers in another country.
E)  erect formidable barriers to international trade.F) A) and D)
G) None of the above

Question 6

Managers in an international business must find ways to work around the limits imposed by specific governmental institutions.

Accepted Answer

A) True 
 B)False

Question 7

The IMF is less controversial than its sister institution, the World Bank.

Accepted Answer

A) True 
 B)False

Question 8

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) A) and B)
G) None of the above

Question 9

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 10

Which of the following has seen a positive change from 1960 to 2012?

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) A) and C)

Question 11

Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements supports the claim that the gap between the rich and poor nations of the world has gotten wider because of globalization?

Accepted Answer

A)  There are many countries that suffer from totalitarian governments.
B)  A quarter of the countries with a GDP per capita of less than $1,000 in 1960 had growth rates of less than zero from 1960 to 1995.
C)  There is a rapidly growing population in many developing nations.
D)  Unelected bureaucrats limit a nation's ability to control its own destiny.
E)  Endemic corruption has long been a problem in the national governments of developing nations.F) B) and C)
G) A) and E)

Question 13

How is managing an international business different from managing a purely domestic business?

Accepted Answer

Managing an international business is di...

Question 14

Free trade alone, some argue, is a necessary but not sufficient prerequisite to help the world's poorest countries bootstrap themselves out of poverty. They also recommend:

Accepted Answer

A)  a highly regulated command economy.
B)  weaker property rights laws.
C)  weaker labor regulations.
D)  large-scale debt relief.
E)  rapid expansion in population.F) None of the above
G) A) and B)

Question 15

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)  decreasing 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) B) and D)

Question 16

The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding it easier to protect themselves from attack by foreign competitors.

Accepted Answer

A) True 
 B)False

Question 17

Explain the concepts of "globalization of markets" and "globalization of production."

Accepted Answer

Globalization has several facets, includ...

Question 18

A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward:

Accepted Answer

A)  supranational organizations such as the World Trade Organization.
B)  the communist states of eastern Europe and central Asia.
C)  the medium-size and small U.S. multinationals.
D)  the national governments of the countries participating in globalization.
E)  nations that have authoritarian forms of government.F) A) and B)
G) B) and E)

Question 19

After World War II, the advanced nations of the West committed themselves to increasing barriers to the free flow of goods, services, and capital between nations.

Accepted Answer

A) True 
 B)False

Question 20

According to many influential economists, the increase in international trade and cross-border investment will result in an increase in the prices of goods and services.

Accepted Answer

A) True 
 B)False

Exam 1: Globalization

The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding it easier to protect themselves from attack by foreign competitors.

Correct AnswerverifiedShow Answer

For foreign direct investment (FDI) to occur, a firm should primarily:

Correct AnswerverifiedShow Answer

Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically.

Correct AnswerverifiedShow Answer

Free trade alone, some argue, is a necessary but not sufficient prerequisite to help the world's poorest countries bootstrap themselves out of poverty. They also recommend:

Correct AnswerverifiedShow Answer

How is managing an international business different from managing a purely domestic business?

Correct AnswerverifiedManaging an international business is di...View AnswerShow Answer

As a result of international trade, the economies of the world's nation-states are becoming less intertwined.

Correct AnswerverifiedShow Answer

Managers in an international business must find ways to work around the limits imposed by specific governmental institutions.

Correct AnswerverifiedShow Answer

A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward:

Correct AnswerverifiedShow Answer

According to many influential economists, the increase in international trade and cross-border investment will result in an increase in the prices of goods and services.

Correct AnswerverifiedShow Answer

Which of the following refers to the total cumulative value of foreign investments?

Correct AnswerverifiedShow Answer

Explain the factors that led to the Great Depression of the 1930s.

Correct AnswerverifiedMany of the barriers to international tr...View AnswerShow Answer

Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off. Which of the following is being justified in this case?

Correct AnswerverifiedShow Answer

Which of the following statements supports the claim that the gap between the rich and poor nations of the world has gotten wider because of globalization?

Correct AnswerverifiedShow Answer

What are mini-multinationals?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Explain the concepts of "globalization of markets" and "globalization of production."

Correct AnswerverifiedGlobalization has several facets, includ...View AnswerShow Answer

After World War II, the advanced nations of the West committed themselves to increasing barriers to the free flow of goods, services, and capital between nations.

Correct AnswerverifiedShow Answer

Which of the following has seen a positive change from 1960 to 2012?

Correct AnswerverifiedShow Answer

The IMF is less controversial than its sister institution, the World Bank.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Managing an international business is di...
View Answer

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Many of the barriers to international tr...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Globalization has several facets, includ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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