Question 1

Which of the following falls under the functions of the WTO?

Accepted Answer

A)   It can restrict the membership of nations in other supranational organizations such as the United Nations.
B)   It can grant loans to cash-strapped governments in poor nations.
C)   It supercedes IMF and has complete authority over IMF's actions.
D)   It can issue a ruling instructing a member-state to change trade policies that violate GATT regulations.
E)   It can take decisions related to international trade without considering the collective interests of member-states.F) D) and E)
G) A) and B)

Question 2

It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by unskilled workers,raising their living standards.

Accepted Answer

A) True 
 B)False

Question 3

Beginning in the 1970s,European and Japanese firms began to shift labor-intensive manufacturing operations from developing nations to their home countries where labor costs were lower.

Accepted Answer

A) True 
 B)False

Question 4

Automobile companies promote different car models in different countries depending on a range of factors such as demographics,local taste,local fuel costs,income levels,traffic congestion,and cultural values.This most likely demonstrates that:

Accepted Answer

A)   significant differences still exist among national markets.
B)   cultural diversity has been replaced by global uniformity.
C)   the global market is less complex than national markets.
D)   a company does not have to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets.
E)   the social norms in a country do not affect purchase decisions of consumers.F) A) and D)
G) All of the above

Question 5

While advances in telecommunications are creating a global audience,advances in transportation are creating a global village.

Accepted Answer

A) True 
 B)False

Question 6

In the context of the changing demographics of the global economy,which of the following has seen a decline?

Accepted Answer

A)   Economic development and industrialization of the developing nations
B)   The U.S. share of world exports of goods and services
C)   Deregulation of the markets in the centrally planned economies of the communist world
D)   Japan, Thailand, Malaysia, Taiwan, and South Korea's share of world output
E)   Economic opportunities in the developing nations of the worldF) None of the above
G) A) and E)

Question 7

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land.This practice demonstrates the:

Accepted Answer

A)   globalization of production.
B)   localization of markets.
C)   increasing differences in tastes and preferences of consumers across the world.
D)   nationalization of private enterprises.
E)   rise of communism throughout the globe.F) C) and E)
G) A) and E)

Question 8

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 IndiaF) A) and B)
G) A) and C)

Question 9

In the global marketplace,the globalization of the world economy has resulted in a relative decline in the:

Accepted Answer

A)   growth of medium-size and small multinationals.
B)   dominance of U.S. firm.
C)   rise of non-U.S. multinationals.
D)   desire to disperse production activities outside the home country.
E)   emergence of firms from developing nations as important competitors.F) A) and E)
G) B) and C)

Question 10

Foreign direct investment (FDI)occurs when a firm invests resources in business activities outside its home country.

Accepted Answer

A) True 
 B)False

Question 11

Among developing nations,the largest recipient of foreign direct investment has been China.

Accepted Answer

A) True 
 B)False

Question 12

The _____ 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 such as labor,energy,land,and capital.

Accepted Answer

A)   globalization of markets
B)   augmentation of products
C)   amplification of production
D)   globalization of production
E)   capitalization of marketsF) A) and C)
G) A) and E)

Question 13

In 1944,the IMF was established to:

Accepted Answer

A)   maintain order in the international monetary system.
B)   preserve peace through international cooperation and collective security.
C)   promote respect for human rights.
D)   control the fossil-fuel emissions of the member states by imposing monetary fines.
E)   formulate a coordinated policy response to financial crises in developing nations.F) A) and B)
G) A) and C)

Question 14

Gem Globe,an American company,has invested substantial capital in precious stones mining activities outside the United States.This practice is referred to as:

Accepted Answer

A)   unrelated diversification.
B)   foreign direct investment.
C)   cross-border bartering.
D)   organizational divestment.
E)   international cartel.F) A) and E)
G) All of the above

Question 15

In general,as countries get richer,they enact tougher environmental and labor regulations.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a macro factor underlying the trend toward greater globalization?

Accepted Answer

A)   Rise of communism across the globe
B)   Increasing nationalization of private organization
C)   Increasing diversity in the tastes and preferences of consumers in different nations
D)   Increasing trade regulations across the globe
E)   Dramatic developments in recent years in information processing and other technologiesF) C) and D)
G) B) and E)

Question 17

"Exporting jobs" to low-wage nations has contributed to:

Accepted Answer

A)   higher living standards in those countries that "export" the jobs.
B)   higher unemployment in wealthy advanced economies such as the United States.
C)   increase in the income levels in those nations that "export" the jobs.
D)   lower standards of living in those countries in which the jobs are exported.
E)   reduced specialization in the production of goods and services.F) D) and E)
G) A) and E)

Question 18

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Accepted Answer

A) True 
 B)False

Question 19

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) B) and E)
G) A) and B)

Question 20

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

Accepted Answer

Globalization has several facets,includi...

Exam 1: Globalization

"Exporting jobs" to low-wage nations has contributed to:

Correct AnswerverifiedShow Answer

While advances in telecommunications are creating a global audience,advances in transportation are creating a global village.

Correct AnswerverifiedShow Answer

In the global marketplace,the globalization of the world economy has resulted in a relative decline in the:

Correct AnswerverifiedShow Answer

In general,as countries get richer,they enact tougher environmental and labor regulations.

Correct AnswerverifiedShow Answer

Automobile companies promote different car models in different countries depending on a range of factors such as demographics,local taste,local fuel costs,income levels,traffic congestion,and cultural values.This most likely demonstrates that:

Correct AnswerverifiedShow Answer

Among developing nations,the largest recipient of foreign direct investment has been China.

Correct AnswerverifiedShow Answer

Gem Globe,an American company,has invested substantial capital in precious stones mining activities outside the United States.This practice is referred to as:

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

Foreign direct investment (FDI)occurs when a firm invests resources in business activities outside its home country.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land.This practice demonstrates the:

Correct AnswerverifiedShow Answer

Which of the following is a macro factor underlying the trend toward greater globalization?

Correct AnswerverifiedShow Answer

In the context of the changing demographics of the global economy,which of the following has seen a decline?

Correct AnswerverifiedShow Answer

In 1944,the IMF was established to:

Correct AnswerverifiedShow Answer

It is possible that economic growth in developed nations has offset the fall in the share of national income enjoyed by unskilled workers,raising their living standards.

Correct AnswerverifiedShow Answer

Which of the following falls under the functions of the WTO?

Correct AnswerverifiedShow Answer

The _____ 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 such as labor,energy,land,and capital.

Correct AnswerverifiedShow Answer

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

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

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Correct AnswerverifiedShow Answer

Beginning in the 1970s,European and Japanese firms began to shift labor-intensive manufacturing operations from developing nations to their home countries where labor costs were lower.

Correct AnswerverifiedShow Answer

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Globalization has several facets,includi...
View Answer

Correct Answer
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Correct Answer
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