, Chapter 01 l l
Globalization
Truel /l Falsel Questions
1. Alcompanyldoeslnotlneedlallargelsizeltolfacilitate,landlbenefitlfrom,lthelglobalization loflmark
ets.
True False
2. Companies lhopeltollowerltheirloveralllcostlstructurelorlimprovelthelqualitylorlfunc
tionalitylofltheirlproductlofferinglthroughlglobalizationloflproduction.
True False
3. Thel mostl globall marketsl currentlyl arel marketsl forl consumerl products.
True False
4. Outsourcingl islal processl thatl isllimitedltol manufacturingl enterprises.
True False
5. ThelWorldlBanklhaslfocusedlonlpolicinglthelworldltradinglsystemlandlmakinglsurelnation
-statesladhereltolthelrulesllaidldownlinltradeltreaties.
True False
6. ThelWorldlBanklislknownlaslthellenderloflthellastlresort.
True False
7. OneloflthelUN'slcentrallmandateslislthelpromotionloflhigherlstandards loflliving,lfulllempl
oyment,landlconditionslofleconomiclandlsociallprogresslandldevelopment.
True False
8. ThelUruguaylRound,lfinalizedlinlDecemberl1993,lreducedlprotectionlforlpatents,ltrad
emarks,landlcopyrights.
True False
9. "Beggarlthylneighbor"lretaliatoryltradelpolicieslinvolvedlcountrieslprogressivelylloweringl
tradelbarrierslagainstleachlother,lwhichlcontributedltolthelGreatlDepressionloflthel1930s.
True False
,10. RiverslInc.,lalU.S.lbasedlsportslapparellmanufacturer, lsetsluplalproductionlunitlinlChinaltoltak
eladvantageloflthellowerllaborlcostslthere.lThislislanlexampleloflforeignldirectlinvestment.
True False
11. WorldlBanklgiveslanlaidlofl100lmillionldollarsltolKenyalforlcreatinglrurallhealthlcarelfacilit
ies.lThislislanlexampleloflforeignldirectlinvestment.
True False
12. Thelloweringloflbarriersltolinternationalltradelenables lfirmsltolviewlthelworld,lratherlthan
lalsingle lcountry, lasltheir lmarket.
True False
13. AccordingltolWTOldata,lthelvolumeloflworldlmerchandiseltradelhaslgrownlfasterlthanlthelw
orldleconomylsincel1950.
True False
14. Thelcostloflmicroprocessorslcontinues ltolfall,lwhileltheirlpowerlincreases.lThislstat
ementlsupportslthelpredictions lmadelbylMoore'slLaw.
True False
15. Non-
U.S.lfirmslincreasinglylbeganltolinvestlacrosslnationallborderslbecauseltheylwantedltoldispers
elproductionlactivities ltoloptimalllocationslandltolbuildlaldirectlpresencelinlmajorlforeignlmar
kets.
True False
16. Alcurrentltrendlinlinternationallbusinesslisltheldeclineloflmedium-
sizedlandlsmalllmultinationals, lknownlaslmini-multinationals.
True False
17. Thelglobalizationloflthelworldleconomylhaslresultedlinlalrelativelincreaselinltheldom
inanceloflU.S.lfirmslinlthelgloballmarketplace.
True False
18. Doingl businesslinlRussial involveslriskslbecausel thel countryl haslshownl signslofl shiftinglbacklt
owardlgreaterlstatelinvolvement linleconomiclactivitylandlauthoritarianlgovernment.
True False
19. Globalizationlcriticslarguelthatltheldeclinelinlunskilledlwagelrateslisldueltolthelmigrationlofllo
w-
wagelmanufacturingljobsloffshorelandlalcorrespondinglreductionlinldemandlforlunskilledlwork
ers.
True False
, 20. Evidencelsuggestslthatltechnological lchangelhaslhadlalbiggerlimpactlthanlglobalizationlonlth
eldeclininglshareloflnationallincomelenjoyedlbyllabor.
True False
21. Accordingltolsupporters loflfreeltrade,laslcountrieslgetlricherltheylcommitlgreaterlviol
ationloflenvironmental landllaborlregulations.
True False
22. Accordingltolcriticsloflglobalization,ltoday'slinterdependent lgloballeconomyllimitslalnati
on'slnationallsovereignty.
True False
23. Supporterslofldebtlrelieflarguelthatlnewldemocraticlgovernments linlpoorlnationslshouldlnotlb
elforcedltolhonorldebtslincurredlbylcorruptlandldictatoriallpredecessors.
True False
24. Alfirmldoeslnotlhaveltolbecomelalmultinational lenterpriseltolengagelinlinternationallbusin
ess.
True False
25. Managing lanlinternationallbusinesslislmuchleasierlthanlmanaginglaldomesticlbusiness.
True False
MultiplelChoicelQuestions
26. Thelshiftltowardlalmorelintegratedlandlinterdependentlworldleconomylislreferredltolas
.
A. outsourcil
ng
B. international
lmarketing
C. privatizatil
on
D. globalizati
lon
Globalization
Truel /l Falsel Questions
1. Alcompanyldoeslnotlneedlallargelsizeltolfacilitate,landlbenefitlfrom,lthelglobalization loflmark
ets.
True False
2. Companies lhopeltollowerltheirloveralllcostlstructurelorlimprovelthelqualitylorlfunc
tionalitylofltheirlproductlofferinglthroughlglobalizationloflproduction.
True False
3. Thel mostl globall marketsl currentlyl arel marketsl forl consumerl products.
True False
4. Outsourcingl islal processl thatl isllimitedltol manufacturingl enterprises.
True False
5. ThelWorldlBanklhaslfocusedlonlpolicinglthelworldltradinglsystemlandlmakinglsurelnation
-statesladhereltolthelrulesllaidldownlinltradeltreaties.
True False
6. ThelWorldlBanklislknownlaslthellenderloflthellastlresort.
True False
7. OneloflthelUN'slcentrallmandateslislthelpromotionloflhigherlstandards loflliving,lfulllempl
oyment,landlconditionslofleconomiclandlsociallprogresslandldevelopment.
True False
8. ThelUruguaylRound,lfinalizedlinlDecemberl1993,lreducedlprotectionlforlpatents,ltrad
emarks,landlcopyrights.
True False
9. "Beggarlthylneighbor"lretaliatoryltradelpolicieslinvolvedlcountrieslprogressivelylloweringl
tradelbarrierslagainstleachlother,lwhichlcontributedltolthelGreatlDepressionloflthel1930s.
True False
,10. RiverslInc.,lalU.S.lbasedlsportslapparellmanufacturer, lsetsluplalproductionlunitlinlChinaltoltak
eladvantageloflthellowerllaborlcostslthere.lThislislanlexampleloflforeignldirectlinvestment.
True False
11. WorldlBanklgiveslanlaidlofl100lmillionldollarsltolKenyalforlcreatinglrurallhealthlcarelfacilit
ies.lThislislanlexampleloflforeignldirectlinvestment.
True False
12. Thelloweringloflbarriersltolinternationalltradelenables lfirmsltolviewlthelworld,lratherlthan
lalsingle lcountry, lasltheir lmarket.
True False
13. AccordingltolWTOldata,lthelvolumeloflworldlmerchandiseltradelhaslgrownlfasterlthanlthelw
orldleconomylsincel1950.
True False
14. Thelcostloflmicroprocessorslcontinues ltolfall,lwhileltheirlpowerlincreases.lThislstat
ementlsupportslthelpredictions lmadelbylMoore'slLaw.
True False
15. Non-
U.S.lfirmslincreasinglylbeganltolinvestlacrosslnationallborderslbecauseltheylwantedltoldispers
elproductionlactivities ltoloptimalllocationslandltolbuildlaldirectlpresencelinlmajorlforeignlmar
kets.
True False
16. Alcurrentltrendlinlinternationallbusinesslisltheldeclineloflmedium-
sizedlandlsmalllmultinationals, lknownlaslmini-multinationals.
True False
17. Thelglobalizationloflthelworldleconomylhaslresultedlinlalrelativelincreaselinltheldom
inanceloflU.S.lfirmslinlthelgloballmarketplace.
True False
18. Doingl businesslinlRussial involveslriskslbecausel thel countryl haslshownl signslofl shiftinglbacklt
owardlgreaterlstatelinvolvement linleconomiclactivitylandlauthoritarianlgovernment.
True False
19. Globalizationlcriticslarguelthatltheldeclinelinlunskilledlwagelrateslisldueltolthelmigrationlofllo
w-
wagelmanufacturingljobsloffshorelandlalcorrespondinglreductionlinldemandlforlunskilledlwork
ers.
True False
, 20. Evidencelsuggestslthatltechnological lchangelhaslhadlalbiggerlimpactlthanlglobalizationlonlth
eldeclininglshareloflnationallincomelenjoyedlbyllabor.
True False
21. Accordingltolsupporters loflfreeltrade,laslcountrieslgetlricherltheylcommitlgreaterlviol
ationloflenvironmental landllaborlregulations.
True False
22. Accordingltolcriticsloflglobalization,ltoday'slinterdependent lgloballeconomyllimitslalnati
on'slnationallsovereignty.
True False
23. Supporterslofldebtlrelieflarguelthatlnewldemocraticlgovernments linlpoorlnationslshouldlnotlb
elforcedltolhonorldebtslincurredlbylcorruptlandldictatoriallpredecessors.
True False
24. Alfirmldoeslnotlhaveltolbecomelalmultinational lenterpriseltolengagelinlinternationallbusin
ess.
True False
25. Managing lanlinternationallbusinesslislmuchleasierlthanlmanaginglaldomesticlbusiness.
True False
MultiplelChoicelQuestions
26. Thelshiftltowardlalmorelintegratedlandlinterdependentlworldleconomylislreferredltolas
.
A. outsourcil
ng
B. international
lmarketing
C. privatizatil
on
D. globalizati
lon
