Ch01
Student: ___________________________________________________________________________
1. The trend toward a more integrated and interdependent global economic system that has been in place for
many years is commonly referred to as:
A. market standardization
B. cross-border integration
C. globalization
D. consumerism
E. nationalization
2. The two of the three 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
E. the globalization of consumers and the globalization of marketing
3. Sourcing goods and services from locations around the globe is known as __________.
A. melding of markets
B. integration of markets
C. deregulation
D. globalization of production
E. globalization of markets
4. The global dispersal of productive activities is:
A. limited to large firms only
B. limited to medium firms only
C. limited to small firms only
D. limited to large and medium firms
E. found in all sized firms
5. The most global of markets is in what area?
A. services
B. consumer goods
C. industrial goods
D. intellectual capital
E. entertainment
6. The most global of markets are not markets for __________, where national differences in tastes and
preferences are still often important enough to act as a break on globalization.
A. services
B. consumer goods
C. staples
D. insurance and banking
E. industrial goods
7. Examples of _______ include Coca-Cola and Pepsi, Ford and Toyota, Bombardier and Embraer, and
Caterpillar and Komatsu.
A. service goods
B. international brands
C. homogeneous products
D. global competition
E. market integration
,8. Globalization results in a greater degree of __________ across markets than would be present
otherwise.
A. diversification
B. diversity
C. homogeneity
D. heterogeneity
E. uniformity
9. The globalization of __________ 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 (such as
labour, energy, land, and capital).
A. information technology
B. process design
C. markets
D. production
E. R&D
10. The _______ was created in 1944 by 44 nations that met in Breton Woods, New Hampshire.
A. International bank
B. World Monetary Fund
C. World Trade Organization
D. International Monetary Fund
E. United Nations
11. In producing its products, Bombardier sources goods and services from different locations around
the globe in an attempt to take advantage of national differences in the cost and quality of factors of
production. This practice is made possible by the globalization of:
A. finance
B. production
C. markets
D. process design
E. consumer demand
12. According to the text, the propensity of firms to outsource many of their productive activities to different
suppliers around the world has resulted in the creation of __________ products.
A. multi-domestic
B. cross-national
C. global
D. cross-cultural
E. transborder
13. The _______ is seen as the lender of last resort to nation-states whose economies are in turmoil and
currencies are losing value against those of other nations.
A. International Monetary Fund
B. International bank
C. United Nations
D. Canada's Export Development Corporation
E. Bank of Canada
14. _______ are the two macro factors that seem to underlie the trend toward greater globalization.
A. The increase in global economic stability, and the slowdown in technological change
B The increase in barriers to the free flow of goods, services, and capital that has occurred since the end
. of World War II, and global economic stability
C The decline in barriers to the free flow of goods, services, and capital that has occurred in the past 10
. years, and the slowdown in technological change
D The decline in barriers to the free flow of goods, services, and capital that has occurred since the end of
. World War II, and technological change
E. Technological Change and the convergence of global product preferences
,15. With membership of 192 countries, the _______________ was established to preserve peace through
international cooperation and collective security.
A. World Monetary Fund
B. The International Monetary Fund
C. International bank
D. United Nations
E. NATO
16. Matrikon exports a number of products to users in other countries. This practice is referred to as
__________.
A. world exchange
B. international trade
C. cross-national barter
D. situational commerce
E. multinational diversification
17. XYZ, Inc. is an auto parts distributing warehouse that exports many of its products to consumers in other
countries. XYZ Inc. can be described as engaging in:
A. international trade.
B. cross-border investments.
C. product development.
D. trading barriers.
E. international procurement.
18. Which of the following refers to the exporting of goods or services to consumers in another country?
A. situational commerce
B. world exchange
C. international trade
D. cross-national barter
E. foreign investment
19. Although Inco is a Canadian company, it has invested substantial business resources in activities outside
Canada. This practice is referred to as:
A. transnational commerce
B. foreign direct investment
C. international trade
D. organizational diversification
E. outsourcing
20. The investing of resources in business activities outside a firm's home country is referred to as:
A. international trade
B. domestic direct investment
C. transnational barter
D. foreign direct investment
E. outsourcing
21. The __________ is a treaty designed to remove barriers to the free flow of goods, services, and capital
between nations.
A. Global Agreement on Tariffs and Commerce
B. United Nations Treaty on Trade
C. General Agreement on Tariffs and Trade
D. Multi-National Agreement on Tariffs and Commerce
E. The ILO
, 22. Under the umbrella of GATT there have been eight rounds of negotiations among member states. The
_______ was the most recent round of negotiations.
A. Uruguay Round
B. Malaysian Symposium
C. German Round
D. New Zealand Symposium
E. Cancun Round
23. Which of the following was not an outcome of the Uruguay Round of the GATT?
A. reduced 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
E. reduced agricultural subsidies
24. The acronym GATT stands for:
A. Global Agreement on Taxation and Tariffs
B. Global Association of Technology and Trade
C. General Agreement on Taxation and Trademarks
D. General Agreement on Tariffs and Trade
E. General Accord of Transportation and Trade
25. The agency established at the 1993 Uruguay Round to police the international trading system is the
__________.
A. Global Trade Enforcement Administration
B. World Tariff and Trade Bureau
C. International Trade Enforcement Agency
D. World Trade Organization
E. The European bank of Reconstruction and Development
26. Suppose Petro Canada, an international oil company, had a complaint about a trade issue. The
__________, a governing body established at the Uruguay Round in 1993 to police the international
trading system, is an organization that Petro Canada could take its complaint to.
A. World Trade Organization
B. International Trade Monitoring Bureau
C. World Tariff and Trade Agency
D. International Trade Monitoring Agency
E. The United Nations
27. The acronym WTO stands for:
A. Western Trade Organization
B. World Tax Organization
C. World Trade Organization
D. World Tariff Organization
E. World Trade Operations
28. Average tariff rates have ______________ since 1950.
A. risen
B. fallen
C. stayed the same
D. risen then fallen
E. fallen then risen
Student: ___________________________________________________________________________
1. The trend toward a more integrated and interdependent global economic system that has been in place for
many years is commonly referred to as:
A. market standardization
B. cross-border integration
C. globalization
D. consumerism
E. nationalization
2. The two of the three 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
E. the globalization of consumers and the globalization of marketing
3. Sourcing goods and services from locations around the globe is known as __________.
A. melding of markets
B. integration of markets
C. deregulation
D. globalization of production
E. globalization of markets
4. The global dispersal of productive activities is:
A. limited to large firms only
B. limited to medium firms only
C. limited to small firms only
D. limited to large and medium firms
E. found in all sized firms
5. The most global of markets is in what area?
A. services
B. consumer goods
C. industrial goods
D. intellectual capital
E. entertainment
6. The most global of markets are not markets for __________, where national differences in tastes and
preferences are still often important enough to act as a break on globalization.
A. services
B. consumer goods
C. staples
D. insurance and banking
E. industrial goods
7. Examples of _______ include Coca-Cola and Pepsi, Ford and Toyota, Bombardier and Embraer, and
Caterpillar and Komatsu.
A. service goods
B. international brands
C. homogeneous products
D. global competition
E. market integration
,8. Globalization results in a greater degree of __________ across markets than would be present
otherwise.
A. diversification
B. diversity
C. homogeneity
D. heterogeneity
E. uniformity
9. The globalization of __________ 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 (such as
labour, energy, land, and capital).
A. information technology
B. process design
C. markets
D. production
E. R&D
10. The _______ was created in 1944 by 44 nations that met in Breton Woods, New Hampshire.
A. International bank
B. World Monetary Fund
C. World Trade Organization
D. International Monetary Fund
E. United Nations
11. In producing its products, Bombardier sources goods and services from different locations around
the globe in an attempt to take advantage of national differences in the cost and quality of factors of
production. This practice is made possible by the globalization of:
A. finance
B. production
C. markets
D. process design
E. consumer demand
12. According to the text, the propensity of firms to outsource many of their productive activities to different
suppliers around the world has resulted in the creation of __________ products.
A. multi-domestic
B. cross-national
C. global
D. cross-cultural
E. transborder
13. The _______ is seen as the lender of last resort to nation-states whose economies are in turmoil and
currencies are losing value against those of other nations.
A. International Monetary Fund
B. International bank
C. United Nations
D. Canada's Export Development Corporation
E. Bank of Canada
14. _______ are the two macro factors that seem to underlie the trend toward greater globalization.
A. The increase in global economic stability, and the slowdown in technological change
B The increase in barriers to the free flow of goods, services, and capital that has occurred since the end
. of World War II, and global economic stability
C The decline in barriers to the free flow of goods, services, and capital that has occurred in the past 10
. years, and the slowdown in technological change
D The decline in barriers to the free flow of goods, services, and capital that has occurred since the end of
. World War II, and technological change
E. Technological Change and the convergence of global product preferences
,15. With membership of 192 countries, the _______________ was established to preserve peace through
international cooperation and collective security.
A. World Monetary Fund
B. The International Monetary Fund
C. International bank
D. United Nations
E. NATO
16. Matrikon exports a number of products to users in other countries. This practice is referred to as
__________.
A. world exchange
B. international trade
C. cross-national barter
D. situational commerce
E. multinational diversification
17. XYZ, Inc. is an auto parts distributing warehouse that exports many of its products to consumers in other
countries. XYZ Inc. can be described as engaging in:
A. international trade.
B. cross-border investments.
C. product development.
D. trading barriers.
E. international procurement.
18. Which of the following refers to the exporting of goods or services to consumers in another country?
A. situational commerce
B. world exchange
C. international trade
D. cross-national barter
E. foreign investment
19. Although Inco is a Canadian company, it has invested substantial business resources in activities outside
Canada. This practice is referred to as:
A. transnational commerce
B. foreign direct investment
C. international trade
D. organizational diversification
E. outsourcing
20. The investing of resources in business activities outside a firm's home country is referred to as:
A. international trade
B. domestic direct investment
C. transnational barter
D. foreign direct investment
E. outsourcing
21. The __________ is a treaty designed to remove barriers to the free flow of goods, services, and capital
between nations.
A. Global Agreement on Tariffs and Commerce
B. United Nations Treaty on Trade
C. General Agreement on Tariffs and Trade
D. Multi-National Agreement on Tariffs and Commerce
E. The ILO
, 22. Under the umbrella of GATT there have been eight rounds of negotiations among member states. The
_______ was the most recent round of negotiations.
A. Uruguay Round
B. Malaysian Symposium
C. German Round
D. New Zealand Symposium
E. Cancun Round
23. Which of the following was not an outcome of the Uruguay Round of the GATT?
A. reduced 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
E. reduced agricultural subsidies
24. The acronym GATT stands for:
A. Global Agreement on Taxation and Tariffs
B. Global Association of Technology and Trade
C. General Agreement on Taxation and Trademarks
D. General Agreement on Tariffs and Trade
E. General Accord of Transportation and Trade
25. The agency established at the 1993 Uruguay Round to police the international trading system is the
__________.
A. Global Trade Enforcement Administration
B. World Tariff and Trade Bureau
C. International Trade Enforcement Agency
D. World Trade Organization
E. The European bank of Reconstruction and Development
26. Suppose Petro Canada, an international oil company, had a complaint about a trade issue. The
__________, a governing body established at the Uruguay Round in 1993 to police the international
trading system, is an organization that Petro Canada could take its complaint to.
A. World Trade Organization
B. International Trade Monitoring Bureau
C. World Tariff and Trade Agency
D. International Trade Monitoring Agency
E. The United Nations
27. The acronym WTO stands for:
A. Western Trade Organization
B. World Tax Organization
C. World Trade Organization
D. World Tariff Organization
E. World Trade Operations
28. Average tariff rates have ______________ since 1950.
A. risen
B. fallen
C. stayed the same
D. risen then fallen
E. fallen then risen
