, Chapter 01
Q Q
Globalization
TrueQ /Q FalseQ Questions
1. AQcompanyQdoes QnotQneedQaQlargeQsizeQto Qfacilitate,QandQbenefitQfrom, QtheQglobalizationQo
fQmarkets.
True False
2. Companies QhopeQtoQlowerQtheirQoverallQcostQstructureQorQimproveQtheQqualityQo
rQfunctionalityQofQtheirQproductQofferingQthroughQglobalizationQofQproduction.
True False
3. TheQ mostQ globalQ markets Q currentlyQ areQ markets Q forQ consumer Q products.
True False
4. OutsourcingQ isQaQprocess Q thatQisQlimitedQtoQ manufacturingQ enterprises.
True False
5. TheQWorldQBankQhasQfocusedQonQpolicingQtheQworldQtradingQsystemQandQmakingQsureQ
nation-statesQadhere QtoQtheQrulesQlaidQdownQinQtradeQtreaties.
True False
6. TheQWorldQBankQisQknownQasQtheQlenderQofQtheQlastQresort.
True False
7. OneQofQtheQUN'sQcentralQmandates QisQtheQpromotionQofQhigherQstandards QofQliving,Qfull
Qemployment, Qand Qconditions QofQeconomic Qand Qsocial Qprogress Qand Qdevelopment.
True False
8. TheQUruguayQRound,Qfinalized QinQDecember Q1993,Qreduced QprotectionQforQpatents,
Qtrademarks, Qand Qcopyrights.
True False
9. "BeggarQthyQneighbor"QretaliatoryQtradeQpoliciesQinvolvedQcountriesQprogressivelyQlower
ingQtradeQbarriersQagainstQeachQother,QwhichQcontributedQtoQtheQGreatQDepressionQofQtheQ
1930s.
True False
,10. RiversQInc.,QaQU.S.QbasedQsportsQapparelQmanufacturer, QsetsQupQaQproductionQunitQinQChina
Qto Qtake Qadvantage QofQthe Qlower Qlabor Qcosts Qthere. QThis Qis Qan Qexample QofQforeign Qdirect Qi
nvestment.
True False
11. WorldQBankQgivesQanQaidQofQ100QmillionQdollarsQtoQKenyaQforQcreatingQruralQhealthQcare
Qfacilities. QThis Qis Qan Qexample QofQforeign Qdirect Qinvestment.
True False
12. TheQloweringQofQbarriers QtoQinternational QtradeQenablesQfirmsQtoQviewQthe Qworld,Qrathe
rQthanQaQsingleQcountry,QasQtheirQmarket.
True False
13. AccordingQtoQWTOQdata,QtheQvolume QofQworldQmerchandiseQtradeQhasQgrownQfasterQthan
Qthe Qworld Qeconomy Qsince Q1950.
True False
14. TheQcostQofQmicroprocessors Qcontinues QtoQfall,QwhileQtheirQpowerQincreases.QThi
sQstatementQsupports QtheQpredictions Qmade QbyQMoore'sQLaw.
True False
15. Non-
U.S.QfirmsQincreasinglyQbeganQtoQinvestQacrossQnationalQbordersQbecauseQtheyQwanted QtoQdi
sperseQproductionQactivities QtoQoptimalQlocations QandQtoQbuildQaQdirectQpresenceQinQmajorQ
foreignQmarkets.
True False
16. AQcurrentQtrendQinQinternational QbusinessQisQtheQdeclineQofQmedium-
sizedQandQsmallQmultinationals, Qknown QasQmini-multinationals.
True False
17. TheQglobalizationQofQtheQworldQeconomy QhasQresultedQinQaQrelativeQincreaseQinQth
eQdominance QofQU.S.QfirmsQinQtheQglobalQmarketplace.
True False
18. DoingQ businessQinQRussiaQ involves QrisksQbecauseQ theQ countryQ hasQshownQ signsQofQ shifting
Qback Qtoward Qgreater Qstate Qinvolvement QinQeconomic Qactivity Qand Qauthoritarian Qgovernm
ent.
True False
19. GlobalizationQcriticsQargueQthatQtheQdeclineQinQunskilledQwageQratesQisQdueQtoQtheQmigratio
nQofQlow-
wageQmanufacturing QjobsQoffshoreQandQaQcorrespondingQreductionQinQdemandQforQunskilled
Qworkers.
True False
, 20. EvidenceQsuggestsQthatQtechnological Qchange QhasQhadQaQbiggerQimpact QthanQglobalizationQ
onQtheQdecliningQshareQofQnationalQincome QenjoyedQbyQlabor.
True False
21. AccordingQtoQsupporters QofQfreeQtrade,QasQcountries QgetQricherQtheyQcommitQgreate
rQviolationQofQenvironmental QandQlaborQregulations.
True False
22. AccordingQtoQcriticsQofQglobalization,Qtoday'sQinterdependent QglobalQeconomyQlimitsQa
Qnation's Qnational Qsovereignty.
True False
23. Supporters QofQdebtQreliefQargue QthatQnewQdemocraticQgovernments QinQpoorQnationsQshould
Qnot Qbe Qforced Qto Qhonor Qdebts Qincurred Qby Qcorrupt Qand Qdictatorial Qpredecessors.
True False
24. AQfirmQdoesQnotQhave QtoQbecomeQaQmultinational QenterpriseQtoQengage QinQinternational
Qbusiness.
True False
25. Managing QanQinternationalQbusinessQisQmuchQeasierQthanQmanaging QaQdomesticQbusiness.
True False
MultipleQChoiceQQuestions
26. TheQshiftQtowardQaQmoreQintegratedQandQinterdependent QworldQeconomy QisQreferredQtoQas
.
A. outsourci
Qng
B. international
Qmarketing
C. privatizatiQ
on
D. globalizati
Qon
Q Q
Globalization
TrueQ /Q FalseQ Questions
1. AQcompanyQdoes QnotQneedQaQlargeQsizeQto Qfacilitate,QandQbenefitQfrom, QtheQglobalizationQo
fQmarkets.
True False
2. Companies QhopeQtoQlowerQtheirQoverallQcostQstructureQorQimproveQtheQqualityQo
rQfunctionalityQofQtheirQproductQofferingQthroughQglobalizationQofQproduction.
True False
3. TheQ mostQ globalQ markets Q currentlyQ areQ markets Q forQ consumer Q products.
True False
4. OutsourcingQ isQaQprocess Q thatQisQlimitedQtoQ manufacturingQ enterprises.
True False
5. TheQWorldQBankQhasQfocusedQonQpolicingQtheQworldQtradingQsystemQandQmakingQsureQ
nation-statesQadhere QtoQtheQrulesQlaidQdownQinQtradeQtreaties.
True False
6. TheQWorldQBankQisQknownQasQtheQlenderQofQtheQlastQresort.
True False
7. OneQofQtheQUN'sQcentralQmandates QisQtheQpromotionQofQhigherQstandards QofQliving,Qfull
Qemployment, Qand Qconditions QofQeconomic Qand Qsocial Qprogress Qand Qdevelopment.
True False
8. TheQUruguayQRound,Qfinalized QinQDecember Q1993,Qreduced QprotectionQforQpatents,
Qtrademarks, Qand Qcopyrights.
True False
9. "BeggarQthyQneighbor"QretaliatoryQtradeQpoliciesQinvolvedQcountriesQprogressivelyQlower
ingQtradeQbarriersQagainstQeachQother,QwhichQcontributedQtoQtheQGreatQDepressionQofQtheQ
1930s.
True False
,10. RiversQInc.,QaQU.S.QbasedQsportsQapparelQmanufacturer, QsetsQupQaQproductionQunitQinQChina
Qto Qtake Qadvantage QofQthe Qlower Qlabor Qcosts Qthere. QThis Qis Qan Qexample QofQforeign Qdirect Qi
nvestment.
True False
11. WorldQBankQgivesQanQaidQofQ100QmillionQdollarsQtoQKenyaQforQcreatingQruralQhealthQcare
Qfacilities. QThis Qis Qan Qexample QofQforeign Qdirect Qinvestment.
True False
12. TheQloweringQofQbarriers QtoQinternational QtradeQenablesQfirmsQtoQviewQthe Qworld,Qrathe
rQthanQaQsingleQcountry,QasQtheirQmarket.
True False
13. AccordingQtoQWTOQdata,QtheQvolume QofQworldQmerchandiseQtradeQhasQgrownQfasterQthan
Qthe Qworld Qeconomy Qsince Q1950.
True False
14. TheQcostQofQmicroprocessors Qcontinues QtoQfall,QwhileQtheirQpowerQincreases.QThi
sQstatementQsupports QtheQpredictions Qmade QbyQMoore'sQLaw.
True False
15. Non-
U.S.QfirmsQincreasinglyQbeganQtoQinvestQacrossQnationalQbordersQbecauseQtheyQwanted QtoQdi
sperseQproductionQactivities QtoQoptimalQlocations QandQtoQbuildQaQdirectQpresenceQinQmajorQ
foreignQmarkets.
True False
16. AQcurrentQtrendQinQinternational QbusinessQisQtheQdeclineQofQmedium-
sizedQandQsmallQmultinationals, Qknown QasQmini-multinationals.
True False
17. TheQglobalizationQofQtheQworldQeconomy QhasQresultedQinQaQrelativeQincreaseQinQth
eQdominance QofQU.S.QfirmsQinQtheQglobalQmarketplace.
True False
18. DoingQ businessQinQRussiaQ involves QrisksQbecauseQ theQ countryQ hasQshownQ signsQofQ shifting
Qback Qtoward Qgreater Qstate Qinvolvement QinQeconomic Qactivity Qand Qauthoritarian Qgovernm
ent.
True False
19. GlobalizationQcriticsQargueQthatQtheQdeclineQinQunskilledQwageQratesQisQdueQtoQtheQmigratio
nQofQlow-
wageQmanufacturing QjobsQoffshoreQandQaQcorrespondingQreductionQinQdemandQforQunskilled
Qworkers.
True False
, 20. EvidenceQsuggestsQthatQtechnological Qchange QhasQhadQaQbiggerQimpact QthanQglobalizationQ
onQtheQdecliningQshareQofQnationalQincome QenjoyedQbyQlabor.
True False
21. AccordingQtoQsupporters QofQfreeQtrade,QasQcountries QgetQricherQtheyQcommitQgreate
rQviolationQofQenvironmental QandQlaborQregulations.
True False
22. AccordingQtoQcriticsQofQglobalization,Qtoday'sQinterdependent QglobalQeconomyQlimitsQa
Qnation's Qnational Qsovereignty.
True False
23. Supporters QofQdebtQreliefQargue QthatQnewQdemocraticQgovernments QinQpoorQnationsQshould
Qnot Qbe Qforced Qto Qhonor Qdebts Qincurred Qby Qcorrupt Qand Qdictatorial Qpredecessors.
True False
24. AQfirmQdoesQnotQhave QtoQbecomeQaQmultinational QenterpriseQtoQengage QinQinternational
Qbusiness.
True False
25. Managing QanQinternationalQbusinessQisQmuchQeasierQthanQmanaging QaQdomesticQbusiness.
True False
MultipleQChoiceQQuestions
26. TheQshiftQtowardQaQmoreQintegratedQandQinterdependent QworldQeconomy QisQreferredQtoQas
.
A. outsourci
Qng
B. international
Qmarketing
C. privatizatiQ
on
D. globalizati
Qon
