Chapter 1
Globalization and the Multinational
Corporation
DIFFICULTY LEVEL: EASY
1.1 Which one of the following was created in an effort to promote free trade?
a. World Trade Organization
b. the Sarbanes-Oxley Act
c. multilateral development banks
d. the Organization for Economic Cooperation and Development
International efforts to promote free trade, p. 3
1.2 Which one of the following is an investment from which the payoff over time is derived
from the performance of an underlying asset?
a. a common stock certificate
b. a derivative security
c. a corporate bond
, d. a mortgage bond
The new financial landscape, p. 8
1.3 What is the name for the shifting of non-strategic functions to specialist firms to reduce
costs?
a. Outsourcing
b. Multinational Company
c. Globalization
d. Transnational Corporations
Recent developments, p. 3
,1.4 According to the United Nations Conference on Trade and Development, what percentage of
international trade in 2003 occurred from multinational companies?
a. 70%
b. 60%
c. 65%
d. 50%
How multinational corporations are affecting free trade, p. 5
1.5 The World Bank’s main goal is to ensure the stability of ________.
a. the international monetary and financial system only in developed countries
b. the international monetary and financial system in developing countries
c. the international monetary and financial system in both developed and
developing countries
d. only the financial system in both developed and developing countries
The world bank, p. 19
1.6 Which of the following is NOT a protectionist tendency?
a. Tariffs
b. Comparative Advantage
, c. Non-tariff barriers
d. Quotas
The growth of international trade, p. 2
1.7 This organization was established in 1995 to replace the GATT Treaty.
a. ASEAN
b. EEC
c. NAFTA
d. WTO
International efforts to promote free trade, p. 3
Globalization and the Multinational
Corporation
DIFFICULTY LEVEL: EASY
1.1 Which one of the following was created in an effort to promote free trade?
a. World Trade Organization
b. the Sarbanes-Oxley Act
c. multilateral development banks
d. the Organization for Economic Cooperation and Development
International efforts to promote free trade, p. 3
1.2 Which one of the following is an investment from which the payoff over time is derived
from the performance of an underlying asset?
a. a common stock certificate
b. a derivative security
c. a corporate bond
, d. a mortgage bond
The new financial landscape, p. 8
1.3 What is the name for the shifting of non-strategic functions to specialist firms to reduce
costs?
a. Outsourcing
b. Multinational Company
c. Globalization
d. Transnational Corporations
Recent developments, p. 3
,1.4 According to the United Nations Conference on Trade and Development, what percentage of
international trade in 2003 occurred from multinational companies?
a. 70%
b. 60%
c. 65%
d. 50%
How multinational corporations are affecting free trade, p. 5
1.5 The World Bank’s main goal is to ensure the stability of ________.
a. the international monetary and financial system only in developed countries
b. the international monetary and financial system in developing countries
c. the international monetary and financial system in both developed and
developing countries
d. only the financial system in both developed and developing countries
The world bank, p. 19
1.6 Which of the following is NOT a protectionist tendency?
a. Tariffs
b. Comparative Advantage
, c. Non-tariff barriers
d. Quotas
The growth of international trade, p. 2
1.7 This organization was established in 1995 to replace the GATT Treaty.
a. ASEAN
b. EEC
c. NAFTA
d. WTO
International efforts to promote free trade, p. 3
