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