,Name: Class: Date:
Chapter 01: The Rise of Globalization
1. With business becoming increasingly global, its success, fortunately, depends only on the domestic environment.
a. True
b. False
ANSWER: False
2. Key aspects of globalization include the elimination of barriers to trade and information technology.
a. True
b. False
ANSWER: True
3. The world economy is quickly shifting away from countries with emerging economies.
a. True
b. False
ANSWER: False
4. The “soft” qualities essential to globalization include openness, protectionism, accountability, connectivity,
democracy, and centralization.
a. True
b. False
ANSWER: False
5. A sustainable decoupling process would eventually lead to a multi-polar world—a world economy in which the
engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South
Africa rather than the United States alone.
a. True
b. False
ANSWER: True
6. The openness and proliferation of globalization and free trade rules can best be attributed to the interwar period
between World War I and II.
a. True
b. False
ANSWER: False
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,Name: Class: Date:
Chapter 01: The Rise of Globalization
7. As part of the World Bank’s Strategic Framework, there are five focus areas that accommodate and facilitate the
globalization process including its analytical and advisory role supporting national policies to strengthen free market
institutions and infrastructure that has provided the potential for creating large gains from trade.
a. True
b. False
ANSWER: True
8. For the World Trade Organization, increasing trade barriers has been one of the most simple ways to encourage
trade and globalization.
a. True
b. False
ANSWER: False
9. The foundations of the globalized business world are political—and so are the biggest threats to the system.
a. True
b. False
ANSWER: True
10. Countries that have successfully adapted to globalization realize that they cannot succeed without high-quality
government management at home.
a. True
b. False
ANSWER: True
11. In communist and state-controlled economies like those in Central Asia property rights either do not exist or are
not well defined which discourages domestic and foreign investors from making long-term commitments in these
countries.
a. True
b. False
ANSWER: True
12. Globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by
Transparency International.
a. True
b. False
ANSWER: True
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, Name: Class: Date:
Chapter 01: The Rise of Globalization
13. Text messaging will likely be an unimportant component of emerging economies' mobile phone usage because most
people in these countries cannot read or write.
a. True
b. False
ANSWER: False
14. Critics argue that open trade and foreign direct investment always take jobs from workers in developing economies
and transfer them to workers in advanced industrial countries which leave the workers in the developing country,
out of work.
a. True
b. False
ANSWER: False
15. There appears to be a clear connection between economic freedom and political freedom.
a. True
b. False
ANSWER: True
16. Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United
States. Brazilian juice is engaging in
a. economic development in United States.
b. exercising nontariff barriers in Brazil.
c. unfair trade practices.
d. globalization.
e. the World Trade Bank Group.
ANSWER: d
17. Which of the following is NOT a key aspect of globalization?
a. The elimination of barriers to trade
b. Investment
c. Financial independence
d. Culture
e. Information technology
ANSWER: c
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Chapter 01: The Rise of Globalization
1. With business becoming increasingly global, its success, fortunately, depends only on the domestic environment.
a. True
b. False
ANSWER: False
2. Key aspects of globalization include the elimination of barriers to trade and information technology.
a. True
b. False
ANSWER: True
3. The world economy is quickly shifting away from countries with emerging economies.
a. True
b. False
ANSWER: False
4. The “soft” qualities essential to globalization include openness, protectionism, accountability, connectivity,
democracy, and centralization.
a. True
b. False
ANSWER: False
5. A sustainable decoupling process would eventually lead to a multi-polar world—a world economy in which the
engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South
Africa rather than the United States alone.
a. True
b. False
ANSWER: True
6. The openness and proliferation of globalization and free trade rules can best be attributed to the interwar period
between World War I and II.
a. True
b. False
ANSWER: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 01: The Rise of Globalization
7. As part of the World Bank’s Strategic Framework, there are five focus areas that accommodate and facilitate the
globalization process including its analytical and advisory role supporting national policies to strengthen free market
institutions and infrastructure that has provided the potential for creating large gains from trade.
a. True
b. False
ANSWER: True
8. For the World Trade Organization, increasing trade barriers has been one of the most simple ways to encourage
trade and globalization.
a. True
b. False
ANSWER: False
9. The foundations of the globalized business world are political—and so are the biggest threats to the system.
a. True
b. False
ANSWER: True
10. Countries that have successfully adapted to globalization realize that they cannot succeed without high-quality
government management at home.
a. True
b. False
ANSWER: True
11. In communist and state-controlled economies like those in Central Asia property rights either do not exist or are
not well defined which discourages domestic and foreign investors from making long-term commitments in these
countries.
a. True
b. False
ANSWER: True
12. Globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by
Transparency International.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 2
, Name: Class: Date:
Chapter 01: The Rise of Globalization
13. Text messaging will likely be an unimportant component of emerging economies' mobile phone usage because most
people in these countries cannot read or write.
a. True
b. False
ANSWER: False
14. Critics argue that open trade and foreign direct investment always take jobs from workers in developing economies
and transfer them to workers in advanced industrial countries which leave the workers in the developing country,
out of work.
a. True
b. False
ANSWER: False
15. There appears to be a clear connection between economic freedom and political freedom.
a. True
b. False
ANSWER: True
16. Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United
States. Brazilian juice is engaging in
a. economic development in United States.
b. exercising nontariff barriers in Brazil.
c. unfair trade practices.
d. globalization.
e. the World Trade Bank Group.
ANSWER: d
17. Which of the following is NOT a key aspect of globalization?
a. The elimination of barriers to trade
b. Investment
c. Financial independence
d. Culture
e. Information technology
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 3
