, Chapter 01 re r
e Globalizatio
n
True / False Questions
re re re
1. A company does not need a large size to facilitate, and benefit from, the globalization
re re re re re re re re re re re re re re re
of markets.
re
True False
2. Companies hope to lower their overall cost structure or improve the quality
re re re re re re re re re re re re
or functionality of their product offering through globalization of production.
re re re re re re re re re
True False
3. The most global markets currently are markets for consumer products.
re re re re re re re re re
True False
4. Outsourcing is a process that is limited to manufacturing enterprises.
re re re re re re re re re
True False
5. The World Bank has focused on policing the world trading system and making sure
re re re re re re re re re re re re re
nation-states adhere to the rules laid down in trade treaties.
re re re re re re re re re re
True False
6. The World Bank is known as the lender of the last resort.
re re re re re re re re re re re
True False
7. One of the UN's central mandates is the promotion of higher standards of living, fu
re re re re re re re re re re re re re re
ll employment, and conditions of economic and social progress and development.
re re re re re re re re re re
True False
8. The Uruguay Round, finalized in December 1993, reduced protection for patents
re re re re re re re re re re
, trademarks, and copyrights.
re re re
, True False
9. "Beggar thy neighbor" retaliatory trade policies involved countries progressively lowe
re re re re re re re re re
ring trade barriers against each other, which contributed to the Great Depression of th
re re re re re re re re re re re re re
e 1930s.
re
, 10. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in Chin
re re re re re re re re re re re re re re
a to take advantage of the lower labor costs there. This is an example of foreign direc
re re re re re re re re re re re re re re re re
t investment.
re
True False
11. World Bank gives an aid of 100 million dollars to Kenya for creating rural health car
re re re re re re re re re re re re re re re
e facilities. This is an example of foreign direct investment.
re re re re re re re re re
True False
12. The lowering of barriers to international trade enables firms to view the world, rath
re re re re re re re re re re re re re
er than a single country, as their market.
re re re re re re re
True False
13. According to WTO data, the volume of world merchandise trade has grown faster tha
re re re re re re re re re re re re re
n the world economy since 1950.
re re re re re
True False
14. The cost of microprocessors continues to fall, while their power increases. Th
re re re re re re re re re re re
is statement supports the predictions made by Moore's Law.
re re re re re re re re
True False
15. Non-
U.S. firms increasingly began to invest across national borders because they wanted to
re re re re re re re re re re re re re
disperse production activities to optimal locations and to build a direct presence in maj
re re re re re re re re re re re re re
or foreign markets.
re re
True False
16. A current trend in international business is the decline of medium-
re re re re re re re re re re
sized and small multinationals, known as mini-multinationals.
re re re re re re
True False
17. The globalization of the world economy has resulted in a relative increase in t
re re re re re re re re re re re re re
he dominance of U.S. firms in the global marketplace.
re re re re re re re re
True False
18. Doing business in Russia involves risks because the country has shown signs of shifti
re re re re re re re re re re re re re
ng back toward greater state involvement in economic activity and authoritarian gover
re re re re re re re re re re re
nment.
True False
19. Globalization critics argue that the decline in unskilled wage rates is due to the migrati
re re re re re re re re re re re re re re
on of low-
re re
wage manufacturing jobs offshore and a corresponding reduction in demand for unskille
re re re re re re re re re re re
e Globalizatio
n
True / False Questions
re re re
1. A company does not need a large size to facilitate, and benefit from, the globalization
re re re re re re re re re re re re re re re
of markets.
re
True False
2. Companies hope to lower their overall cost structure or improve the quality
re re re re re re re re re re re re
or functionality of their product offering through globalization of production.
re re re re re re re re re
True False
3. The most global markets currently are markets for consumer products.
re re re re re re re re re
True False
4. Outsourcing is a process that is limited to manufacturing enterprises.
re re re re re re re re re
True False
5. The World Bank has focused on policing the world trading system and making sure
re re re re re re re re re re re re re
nation-states adhere to the rules laid down in trade treaties.
re re re re re re re re re re
True False
6. The World Bank is known as the lender of the last resort.
re re re re re re re re re re re
True False
7. One of the UN's central mandates is the promotion of higher standards of living, fu
re re re re re re re re re re re re re re
ll employment, and conditions of economic and social progress and development.
re re re re re re re re re re
True False
8. The Uruguay Round, finalized in December 1993, reduced protection for patents
re re re re re re re re re re
, trademarks, and copyrights.
re re re
, True False
9. "Beggar thy neighbor" retaliatory trade policies involved countries progressively lowe
re re re re re re re re re
ring trade barriers against each other, which contributed to the Great Depression of th
re re re re re re re re re re re re re
e 1930s.
re
, 10. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in Chin
re re re re re re re re re re re re re re
a to take advantage of the lower labor costs there. This is an example of foreign direc
re re re re re re re re re re re re re re re re
t investment.
re
True False
11. World Bank gives an aid of 100 million dollars to Kenya for creating rural health car
re re re re re re re re re re re re re re re
e facilities. This is an example of foreign direct investment.
re re re re re re re re re
True False
12. The lowering of barriers to international trade enables firms to view the world, rath
re re re re re re re re re re re re re
er than a single country, as their market.
re re re re re re re
True False
13. According to WTO data, the volume of world merchandise trade has grown faster tha
re re re re re re re re re re re re re
n the world economy since 1950.
re re re re re
True False
14. The cost of microprocessors continues to fall, while their power increases. Th
re re re re re re re re re re re
is statement supports the predictions made by Moore's Law.
re re re re re re re re
True False
15. Non-
U.S. firms increasingly began to invest across national borders because they wanted to
re re re re re re re re re re re re re
disperse production activities to optimal locations and to build a direct presence in maj
re re re re re re re re re re re re re
or foreign markets.
re re
True False
16. A current trend in international business is the decline of medium-
re re re re re re re re re re
sized and small multinationals, known as mini-multinationals.
re re re re re re
True False
17. The globalization of the world economy has resulted in a relative increase in t
re re re re re re re re re re re re re
he dominance of U.S. firms in the global marketplace.
re re re re re re re re
True False
18. Doing business in Russia involves risks because the country has shown signs of shifti
re re re re re re re re re re re re re
ng back toward greater state involvement in economic activity and authoritarian gover
re re re re re re re re re re re
nment.
True False
19. Globalization critics argue that the decline in unskilled wage rates is due to the migrati
re re re re re re re re re re re re re re
on of low-
re re
wage manufacturing jobs offshore and a corresponding reduction in demand for unskille
re re re re re re re re re re re
