,Chapter 1: The Rise of Globalization
b b b b b
TRUE/FALSE
1. Withbbusinessbbecomingbincreasinglybglobal,bitsbsuccess,bfortunately,bdependsbonlybonbtheb
domesticbenvironment.
ANS: F PTS: 1 DIF: Difficulty:bModerate
REF: p.b4 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bComprehension
2. Evenbthoughbbusinessbisbglobal,bthebcreditbcrisisbofb2008,bstartedbbybanbAmericanbinvestmentbb
ank,bwasblimitedbtobthebAmericanbeconomybwithbfortunatelybnobimpactbonbthebglobalbeconom
y.
ANS: F PTS: 1 DIF: Difficulty:bChallenging
REF: p.b3 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
3. Keybaspectsbofbglobalizationbincludebthebeliminationbofbbarriersbtobtradebandbinformationbt
echnology.
ANS: T PTS: 1 DIF: Difficulty:bModerate
REF: p.b5 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
4. Sobfarbglobalizationbhasbmadebitbpossiblebforbgoods,bservices,bandbcapital,btobcrossbnationalbb
ordersbbutbnotbtechnologybandbculture.
ANS: F PTS: 1 DIF: Difficulty:bModerate
REF: p.b5 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
5. Theb“soft”bqualitiesbessentialbtobglobalizationbincludebopenness,bprotectionism,b
accountability,bconnectivity,bdemocracy,bandbcentralization.
ANS: F PTS: 1 DIF: Difficulty:bChallenging
REF: p.b6 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
6. Absustainablebdecouplingbprocessbwouldbeventuallybleadbtobabmulti-polarbworld—
abworldbeconomybinbwhichbthebenginesbofbgrowthbcouldbcomprisebthebUnitedbStates,bthebEu
ropeanbUnion,bChina,bIndia,bBrazil,bRussia,bandbSouthbAfricabratherbthanbthebUnitedbStatesb
alone.
ANS: T PTS: 1 DIF: Difficulty:bChallenging
REF: p.b9 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
, 7. Thebopennessbandbproliferationbofbglobalizationbandbfreebtradebrulesbcanbbestbbebattributedbtobt
hebinterwarbperiodbbetweenbWorldbWarbIbandbII.
ANS: F PTS: 1 DIF: Difficulty:bChallenging
REF: p.b10 OBJ: LO:b01-02 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
8. AsbpartbofbthebWorldbBank’sbStrategicbFramework,btherebarebfivebfocusbareasbthatbaccommoda
tebandbfacilitatebthebglobalizationbprocessbincludingbitsbanalyticalbandbadvisorybrolebsupporting
bnational bpoliciesbtobstrengthenbfreebmarketbinstitutionsbandbinfrastructurebthatbhasbprovidedbth
ebpotentialbforbcreatingblargebgainsbfrombtrade.
ANS: T PTS: 1 DIF: Difficulty:bChallenging
REF: p.b12 OBJ: LO:b01-02 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
9. ForbWorldbTradebOrganization,bincreasingbtradebbarriersbhasbbeenbonebofbthebmostbsimplisticb
waysbtobencouragebtradebandbglobalization.
ANS: F PTS: 1 DIF: Difficulty:bModerate
REF: p.b13 OBJ: LO:b01-02 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bComprehension
10. Thebfoundationsbofbthebglobalizedbbusinessbworldbarebpolitical—
andbsobarebthebbiggestbthreatsbtobthebsystem.
ANS: T PTS: 1 DIF: Difficulty:bChallenging
REF: p.b15 OBJ: LO:b01-03 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
11. Countriesbthatbhavebsuccessfullybadaptedbtobglobalizationbrealizebthatbtheybcannotbsucceedb
withoutbhigh-qualitybgovernmentbmanagementbatbhome.
ANS: T PTS: 1 DIF: Difficulty:bModerate
REF: p.b18 OBJ: LO:b01-04 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bComprehension
12. Inbcommunistbandbstate-
controlledbeconomiesblikebthosebinbCentralbAsiabpropertybrightsbeitherbdobnotbexistborbarebnotb
wellbdefinedbwhichbdiscouragesbdomesticbandbforeignbinvestorsbfrombmakingblong-
termbcommitmentsbinbthesebcountries.
ANS: T PTS: 1 DIF: Difficulty:bModerate
REF: p.b18 OBJ: LO:b01-04 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
13. MorebglobalizedbeconomiesblikebNewbZealandbandbSingaporebrankbatbthebtopbinbindexbforba
bsencebofbcorruptionbbybTransparencybInternational.
ANS:b T PTS: 1 DIF: Difficulty:bChallenging
, REF: p.b19 OBJ: LO:b01-04 NAT:b BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
14. Becausebbroadbandbpricesbhavebbeenbfalling,bgovernmentsbinbemergingbeconomiesbsuchbasbIn
diabandbSouthbAfricabarebfacilitatingbthebspreadbofbbroadbandbtobruralbtownsbandbvillagesbtobpro
videbinstantbaccessbtobmarketbinformationbandbgovernmentbprogramsbtobremotebvillagersbwhic
hbwillbenablebpolicymakersbtobmaximizebthebeconomicbpotentialbofbremotebcommunitiesbandb
makebglobalizationbsustainable.
ANS: T PTS: 1 DIF: Difficulty:bModerate
REF: p.b20 OBJ: LO:b01-05 NAT: BUSPROG:bAnalytic
STA: DISC:bInformationbTechnology KEY:b b Bloom's:bEvaluation
15. Criticsbarguebthatbopenbtradebandbforeignbdirectbinvestmentbalwaysbtakebjobsbfrombworkersbinbd
evelopingbeconomiesbandbtransferbthembtobworkersbinbadvancedbindustrialbcountriesbwhichblea
vebthebworkersbinbthebdevelopingbcountry,boutbofbwork.
ANS: F PTS: 1 DIF: Difficulty:bModerate
REF: p.b23 OBJ: LO:b01-06 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
16. AbsurveybbybthebWorldbBankbindicatesbthatbofbthebcompaniesbsurveyed;bunfortunately,bonlyb3
0bpercentbhavebboard-
approvedbpoliciesbonbenvironmentalbmanagementbindicatingbthatbcorporatebsocialbresponsibi
litybpracticesbhavebbecomebanbinsignificantbfactorbinbdeterminingbwherebmultinationalbcorpor
ationsbconductbbusiness.
ANS: F PTS: 1 DIF: Difficulty:bChallenging
REF: p.b24 OBJ: LO:b01-06 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
MULTIPLEbCHOICE
1. Ofbthebfollowing,bwhichbisbNOTbtruebregardingbthebcreditbcrisis?
a. ItbaffectedbfarmersbinbBurkinabFaso.
b. ItbaffectedbminersbandbsteelbworkersbinbUkraine.
c. Itbaffectedbassemble-linebworkersbinbSingapore.
d. Itbaffectedbwhite-collarbworkersbatbinformationbtechnologybfirmsbinbIreland.
e. Itbhadbanbimpactbonlybonbitsbcountrybofborigin-bthebUnitedbStates.
ANS: E PTS: 1 DIF: Difficulty:bEasy
REF: p.b3 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
2. BrazilianbJuice,babmanufacturerbofbhealthybfruitbjuicesbinbBrazil,bsellsbjuicebinbsixbdifferentbc
ountriesbincludingbUnitedbStates.bBrazilianbjuicebisbengagingbin
a. economicbdevelopmentbinbUnitedbStates.
b. exercisingbnontariffbbarriersbinbBrazil.
c. unfairbtradebpractices.
d. globalization.
b b b b b
TRUE/FALSE
1. Withbbusinessbbecomingbincreasinglybglobal,bitsbsuccess,bfortunately,bdependsbonlybonbtheb
domesticbenvironment.
ANS: F PTS: 1 DIF: Difficulty:bModerate
REF: p.b4 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bComprehension
2. Evenbthoughbbusinessbisbglobal,bthebcreditbcrisisbofb2008,bstartedbbybanbAmericanbinvestmentbb
ank,bwasblimitedbtobthebAmericanbeconomybwithbfortunatelybnobimpactbonbthebglobalbeconom
y.
ANS: F PTS: 1 DIF: Difficulty:bChallenging
REF: p.b3 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
3. Keybaspectsbofbglobalizationbincludebthebeliminationbofbbarriersbtobtradebandbinformationbt
echnology.
ANS: T PTS: 1 DIF: Difficulty:bModerate
REF: p.b5 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
4. Sobfarbglobalizationbhasbmadebitbpossiblebforbgoods,bservices,bandbcapital,btobcrossbnationalbb
ordersbbutbnotbtechnologybandbculture.
ANS: F PTS: 1 DIF: Difficulty:bModerate
REF: p.b5 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
5. Theb“soft”bqualitiesbessentialbtobglobalizationbincludebopenness,bprotectionism,b
accountability,bconnectivity,bdemocracy,bandbcentralization.
ANS: F PTS: 1 DIF: Difficulty:bChallenging
REF: p.b6 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
6. Absustainablebdecouplingbprocessbwouldbeventuallybleadbtobabmulti-polarbworld—
abworldbeconomybinbwhichbthebenginesbofbgrowthbcouldbcomprisebthebUnitedbStates,bthebEu
ropeanbUnion,bChina,bIndia,bBrazil,bRussia,bandbSouthbAfricabratherbthanbthebUnitedbStatesb
alone.
ANS: T PTS: 1 DIF: Difficulty:bChallenging
REF: p.b9 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
, 7. Thebopennessbandbproliferationbofbglobalizationbandbfreebtradebrulesbcanbbestbbebattributedbtobt
hebinterwarbperiodbbetweenbWorldbWarbIbandbII.
ANS: F PTS: 1 DIF: Difficulty:bChallenging
REF: p.b10 OBJ: LO:b01-02 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
8. AsbpartbofbthebWorldbBank’sbStrategicbFramework,btherebarebfivebfocusbareasbthatbaccommoda
tebandbfacilitatebthebglobalizationbprocessbincludingbitsbanalyticalbandbadvisorybrolebsupporting
bnational bpoliciesbtobstrengthenbfreebmarketbinstitutionsbandbinfrastructurebthatbhasbprovidedbth
ebpotentialbforbcreatingblargebgainsbfrombtrade.
ANS: T PTS: 1 DIF: Difficulty:bChallenging
REF: p.b12 OBJ: LO:b01-02 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
9. ForbWorldbTradebOrganization,bincreasingbtradebbarriersbhasbbeenbonebofbthebmostbsimplisticb
waysbtobencouragebtradebandbglobalization.
ANS: F PTS: 1 DIF: Difficulty:bModerate
REF: p.b13 OBJ: LO:b01-02 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bComprehension
10. Thebfoundationsbofbthebglobalizedbbusinessbworldbarebpolitical—
andbsobarebthebbiggestbthreatsbtobthebsystem.
ANS: T PTS: 1 DIF: Difficulty:bChallenging
REF: p.b15 OBJ: LO:b01-03 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bAnalysis
11. Countriesbthatbhavebsuccessfullybadaptedbtobglobalizationbrealizebthatbtheybcannotbsucceedb
withoutbhigh-qualitybgovernmentbmanagementbatbhome.
ANS: T PTS: 1 DIF: Difficulty:bModerate
REF: p.b18 OBJ: LO:b01-04 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bComprehension
12. Inbcommunistbandbstate-
controlledbeconomiesblikebthosebinbCentralbAsiabpropertybrightsbeitherbdobnotbexistborbarebnotb
wellbdefinedbwhichbdiscouragesbdomesticbandbforeignbinvestorsbfrombmakingblong-
termbcommitmentsbinbthesebcountries.
ANS: T PTS: 1 DIF: Difficulty:bModerate
REF: p.b18 OBJ: LO:b01-04 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
13. MorebglobalizedbeconomiesblikebNewbZealandbandbSingaporebrankbatbthebtopbinbindexbforba
bsencebofbcorruptionbbybTransparencybInternational.
ANS:b T PTS: 1 DIF: Difficulty:bChallenging
, REF: p.b19 OBJ: LO:b01-04 NAT:b BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
14. Becausebbroadbandbpricesbhavebbeenbfalling,bgovernmentsbinbemergingbeconomiesbsuchbasbIn
diabandbSouthbAfricabarebfacilitatingbthebspreadbofbbroadbandbtobruralbtownsbandbvillagesbtobpro
videbinstantbaccessbtobmarketbinformationbandbgovernmentbprogramsbtobremotebvillagersbwhic
hbwillbenablebpolicymakersbtobmaximizebthebeconomicbpotentialbofbremotebcommunitiesbandb
makebglobalizationbsustainable.
ANS: T PTS: 1 DIF: Difficulty:bModerate
REF: p.b20 OBJ: LO:b01-05 NAT: BUSPROG:bAnalytic
STA: DISC:bInformationbTechnology KEY:b b Bloom's:bEvaluation
15. Criticsbarguebthatbopenbtradebandbforeignbdirectbinvestmentbalwaysbtakebjobsbfrombworkersbinbd
evelopingbeconomiesbandbtransferbthembtobworkersbinbadvancedbindustrialbcountriesbwhichblea
vebthebworkersbinbthebdevelopingbcountry,boutbofbwork.
ANS: F PTS: 1 DIF: Difficulty:bModerate
REF: p.b23 OBJ: LO:b01-06 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
16. AbsurveybbybthebWorldbBankbindicatesbthatbofbthebcompaniesbsurveyed;bunfortunately,bonlyb3
0bpercentbhavebboard-
approvedbpoliciesbonbenvironmentalbmanagementbindicatingbthatbcorporatebsocialbresponsibi
litybpracticesbhavebbecomebanbinsignificantbfactorbinbdeterminingbwherebmultinationalbcorpor
ationsbconductbbusiness.
ANS: F PTS: 1 DIF: Difficulty:bChallenging
REF: p.b24 OBJ: LO:b01-06 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
MULTIPLEbCHOICE
1. Ofbthebfollowing,bwhichbisbNOTbtruebregardingbthebcreditbcrisis?
a. ItbaffectedbfarmersbinbBurkinabFaso.
b. ItbaffectedbminersbandbsteelbworkersbinbUkraine.
c. Itbaffectedbassemble-linebworkersbinbSingapore.
d. Itbaffectedbwhite-collarbworkersbatbinformationbtechnologybfirmsbinbIreland.
e. Itbhadbanbimpactbonlybonbitsbcountrybofborigin-bthebUnitedbStates.
ANS: E PTS: 1 DIF: Difficulty:bEasy
REF: p.b3 OBJ: LO:b01-01 NAT: BUSPROG:bAnalytic
STA: DISC:bEnvironmentalbInfluence KEY:b b Bloom's:bEvaluation
2. BrazilianbJuice,babmanufacturerbofbhealthybfruitbjuicesbinbBrazil,bsellsbjuicebinbsixbdifferentbc
ountriesbincludingbUnitedbStates.bBrazilianbjuicebisbengagingbin
a. economicbdevelopmentbinbUnitedbStates.
b. exercisingbnontariffbbarriersbinbBrazil.
c. unfairbtradebpractices.
d. globalization.
