AllTestsBank
,AllTestsBank
Chapter 01 GLOBALIZATION
True / False Questions
1. A company does not need a large size to facilitate, and benefit from, the
globalization of markets.
True False
2. Companies hope to lower their overall cost structure or improve
the quality or functionality of their product offering through
globalization of production.
True False
3. The most global markets currently are markets for consumer products.
True False
4. Outsourcing is a process that is limited to manufacturing enterprises.
True False
5. The World Bank has focused on policing the world trading system
and making sure nation-states adhere to the rules laid down in
trade treaties.
True False
6. The World Bank is known as the lender of the last resort.
True False
7. One of the UN's central mandates is the promotion of higher
standards of living, full employment, and conditions of economic and
social progress and development.
True False
8. The Uruguay Round, finalized in December 1993, reduced
protection for patents, trademarks, and copyrights.
True False
9. "Beggar thy neighbor" retaliatory trade policies involved countries
progressively lowering trade barriers against each other, which
contributed to the Great Depression of the 1930s.
True False
,AllTestsBank
10. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a
production unit in China to take advantage of the lower labor costs
there. This is an example of foreign direct investment.
True False
11. World Bank gives an aid of 100 million dollars to Kenya for creating
rural health care facilities. This is an example of foreign direct
investment.
True False
12. The lowering of barriers to international trade enables firms to view
the world, rather than a single country, as their market.
True False
13. According to WTO data, the volume of world merchandise trade has
grown faster than the world economy since 1950.
True False
14. The cost of microprocessors continues to fall, while their power
increases. This statement supports the predictions made by
Moore's Law.
True False
15. Non-U.S. firms increasingly began to invest across national borders
because they wanted to disperse production activities to optimal
locations and to build a direct presence in major foreign markets.
True False
16. A current trend in international business is the decline of medium-
sized and small multinationals, known as mini-multinationals.
True False
17. The globalization of the world economy has resulted in a relative
increase in the dominance of U.S. firms in the global marketplace.
True False
18. Doing business in Russia involves risks because the country has shown
signs of shifting back toward greater state involvement in economic
activity and authoritarian government.
True False
19. Globalization critics argue that the decline in unskilled wage rates is due
to the migration of low-wage manufacturing jobs offshore and a
corresponding reduction in demand for unskilled workers.
True False
, AllTestsBank
20. Evidence suggests that technological change has had a bigger impact
than globalization on the declining share of national income enjoyed by
labor.
True False
21. According to supporters of free trade, as countries get richer they
commit greater violation of environmental and labor regulations.
True False
22. According to critics of globalization, today's interdependent global
economy limits a nation's national sovereignty.
True False
23. Supporters of debt relief argue that new democratic governments in
poor nations should not be forced to honor debts incurred by corrupt and
dictatorial predecessors.
True False
24. A firm does not have to become a multinational enterprise to engage
in international business.
True False
25. Managing an international business is much easier than managing a
domestic business.
True False
Multiple Choice Questions
26. The shift toward a more integrated and interdependent world economy is
referred to as
.
A. outsour
ci ng
B. internatio
nal
marketing
C. privatiza
ti on
D. globaliz
ati on
,AllTestsBank
Chapter 01 GLOBALIZATION
True / False Questions
1. A company does not need a large size to facilitate, and benefit from, the
globalization of markets.
True False
2. Companies hope to lower their overall cost structure or improve
the quality or functionality of their product offering through
globalization of production.
True False
3. The most global markets currently are markets for consumer products.
True False
4. Outsourcing is a process that is limited to manufacturing enterprises.
True False
5. The World Bank has focused on policing the world trading system
and making sure nation-states adhere to the rules laid down in
trade treaties.
True False
6. The World Bank is known as the lender of the last resort.
True False
7. One of the UN's central mandates is the promotion of higher
standards of living, full employment, and conditions of economic and
social progress and development.
True False
8. The Uruguay Round, finalized in December 1993, reduced
protection for patents, trademarks, and copyrights.
True False
9. "Beggar thy neighbor" retaliatory trade policies involved countries
progressively lowering trade barriers against each other, which
contributed to the Great Depression of the 1930s.
True False
,AllTestsBank
10. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a
production unit in China to take advantage of the lower labor costs
there. This is an example of foreign direct investment.
True False
11. World Bank gives an aid of 100 million dollars to Kenya for creating
rural health care facilities. This is an example of foreign direct
investment.
True False
12. The lowering of barriers to international trade enables firms to view
the world, rather than a single country, as their market.
True False
13. According to WTO data, the volume of world merchandise trade has
grown faster than the world economy since 1950.
True False
14. The cost of microprocessors continues to fall, while their power
increases. This statement supports the predictions made by
Moore's Law.
True False
15. Non-U.S. firms increasingly began to invest across national borders
because they wanted to disperse production activities to optimal
locations and to build a direct presence in major foreign markets.
True False
16. A current trend in international business is the decline of medium-
sized and small multinationals, known as mini-multinationals.
True False
17. The globalization of the world economy has resulted in a relative
increase in the dominance of U.S. firms in the global marketplace.
True False
18. Doing business in Russia involves risks because the country has shown
signs of shifting back toward greater state involvement in economic
activity and authoritarian government.
True False
19. Globalization critics argue that the decline in unskilled wage rates is due
to the migration of low-wage manufacturing jobs offshore and a
corresponding reduction in demand for unskilled workers.
True False
, AllTestsBank
20. Evidence suggests that technological change has had a bigger impact
than globalization on the declining share of national income enjoyed by
labor.
True False
21. According to supporters of free trade, as countries get richer they
commit greater violation of environmental and labor regulations.
True False
22. According to critics of globalization, today's interdependent global
economy limits a nation's national sovereignty.
True False
23. Supporters of debt relief argue that new democratic governments in
poor nations should not be forced to honor debts incurred by corrupt and
dictatorial predecessors.
True False
24. A firm does not have to become a multinational enterprise to engage
in international business.
True False
25. Managing an international business is much easier than managing a
domestic business.
True False
Multiple Choice Questions
26. The shift toward a more integrated and interdependent world economy is
referred to as
.
A. outsour
ci ng
B. internatio
nal
marketing
C. privatiza
ti on
D. globaliz
ati on
