Question 1

The real costs of information processing and communication have fallen dramatically in the past two decades.

Accepted Answer

A) True 
 B)False

Question 2

In the past two decades, the majority of Latin American countries have:

Accepted Answer

A)  experienced a decline in the health of their economies.
B)  sold state-owned enterprises to private investors.
C)  been characterized by low growth, high debt, and hyperinflation.
D)  restricted investment by foreign firms.
E)  discouraged both democracy and free market reforms.

Question 3

Discuss the concerns voiced by critics of globalization regarding labor policies and environment.

Accepted Answer

A source of concern for critics of globa...

Question 4

Why was the World Bank set up?

Accepted Answer

A)  To preserve peace through international cooperation
B)  To promote economic development
C)  To maintain order in the international monetary system
D)  To formulate a coordinated policy response to financial crises
E)  To police the world trading system

Question 5

Briefly trace the history of the G20 and describe its current role in international business.

Accepted Answer

Established in 1999, the G20 comprises t...

Question 6

Which of the following statements is a general implication of globalization?

Accepted Answer

A)  Globalization is inevitable.
B)  From a purely economic perspective, globalization is all good.
C)  Globalization has no negative impacts on the economies of the developed world.
D)  Globalization has reduced the risks associated with global financial contagion.
E)  As a result of globalization, a severe crisis in one region of the world can affect the entire globe.

Question 7

Which of the following statements reflects the nature of the global economy of the twenty-first century?

Accepted Answer

A)  National economies are becoming less integrated into a single and interdependent economic system.
B)  The number of nations joining the ranks of the developed world has reduced.
C)  Countries have extensively adopted liberal economic policies.
D)  There are fewer instances of state-owned businesses privatized and markets being opened to more competition.
E)  The world is currently moving toward an economic system that is more unfavorable for international business.

Question 8

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 9

The NAFTA was formed in 1994 between:

Accepted Answer

A)  Canada, Mexico, and the United States.
B)  the United States, Brazil, and Argentina.
C)  Canada, Argentina, and Mexico.
D)  Colombia, Venezuela, and Brazil.
E)  Uruguay, Colombia, and Costa Rica.

Question 10

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 11

Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe.

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

Which of the following has been reduced as a result of globalization?

Accepted Answer

A)  Volume of goods and services
B)  Foreign exchange transactions
C)  Environment and labor laws
D)  Differences in material culture
E)  Regulation of markets

Question 14

Who, along with representatives from the European Union and the European Central Bank, represent the 19 largest economies in the world on the G20?

Accepted Answer

A)  Finance ministers and central bank governors
B)  Presidents and defense ministers
C)  Prime ministers and army chiefs
D)  International trade ministers
E)  Ministers of foreign affairs

Question 15

Which of the following reasons contributed to the Great Depression of the 1930s?

Accepted Answer

A)  Inability to meet the increasing world demand for products
B)  Several countries accepting General Agreement on Tariffs and Trade
C)  Increasing attack from foreign competitors on domestic industries
D)  Privatization of state-owned organizations
E)  Countries progressively raising trade barriers against each other

Question 16

Growing income inequality between the skilled and unskilled workers in advanced nations, such as the United States, is a result of the:

Accepted Answer

A)  wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted.
B)  decrease in the outsourcing of low-wage manufacturing jobs offshore and a corresponding increase in demand for unskilled workers.
C)  shift within advanced economies toward jobs where the only qualification is the willingness to turn up for work every day.
D)  increasing wage gap between developing and developed nations.
E)  shortage of unskilled workers and an excess supply of highly skilled workers.

Question 17

Which of the following is most likely to be observed in today's global economy?

Accepted Answer

A)  Increasing U.S. share of world output
B)  Large U.S. entrepreneurial firms dominating the international business scene
C)  Increasing U.S. dominance in the world economy and world trade picture
D)  Most of the nations being governed by centrally planned economies of the communist world
E)  Rapid rise in the share of world output accounted for by developing nations such as China and India

Question 18

Due to the changing economic geography, many of tomorrow's economic opportunities are most likely to be found in the:

Accepted Answer

A)  rich industrialized nations of the world like Great Britain and Germany.
B)  centrally planned economies of the communist world.
C)  United States.
D)  developing nations of the world such as China, India, and Brazil.
E)  countries that are currently not members of the World Trade Organization.

Question 19

What is the shift toward a more integrated and interdependent world economy called?

Accepted Answer

A)  International trade
B)  Foreign direct investment
C)  Globalization
D)  Moore's Law
E)  Containerization

Question 20

Elaborate on why globalization is not inevitable.

Accepted Answer

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

Exam 1: Globalization

Why was the World Bank set up?

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Due to the changing economic geography, many of tomorrow's economic opportunities are most likely to be found in the:

Correct AnswerverifiedShow Answer

The real costs of information processing and communication have fallen dramatically in the past two decades.

Correct AnswerverifiedShow Answer

Briefly trace the history of the G20 and describe its current role in international business.

Correct AnswerverifiedEstablished in 1999, the G20 comprises t...View AnswerShow Answer

Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe.

Correct AnswerverifiedShow Answer

Which of the following statements reflects the nature of the global economy of the twenty-first century?

Correct AnswerverifiedShow Answer

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

Discuss the concerns voiced by critics of globalization regarding labor policies and environment.

Correct AnswerverifiedA source of concern for critics of globa...View AnswerShow Answer

What is the shift toward a more integrated and interdependent world economy called?

Correct AnswerverifiedShow Answer

Who, along with representatives from the European Union and the European Central Bank, represent the 19 largest economies in the world on the G20?

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Which of the following is most likely to be observed in today's global economy?

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The NAFTA was formed in 1994 between:

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

Correct AnswerverifiedShow Answer

Which of the following statements is a general implication of globalization?

Correct AnswerverifiedShow Answer

Which of the following reasons contributed to the Great Depression of the 1930s?

Correct AnswerverifiedShow Answer

Which of the following has been reduced as a result of globalization?

Correct AnswerverifiedShow Answer

In the past two decades, the majority of Latin American countries have:

Correct AnswerverifiedShow Answer

Growing income inequality between the skilled and unskilled workers in advanced nations, such as the United States, is a result of the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Elaborate on why globalization is not inevitable.

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

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Established in 1999, the G20 comprises t...
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Many of the former communist nations of ...
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Correct Answer
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A source of concern for critics of globa...
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

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