Chapter 01 - Globalization
Chapter 01
Globalization
True / False Questions
1. Globalization refers to the shift toward a more integrated and interdependent world
economy.
True False
2. Tastes and preferences of consumers in different nations are beginning to converge on
some global norm.
True False
3. A company has to be a major multinational corporation to facilitate, and benefit from, the
globalization of markets.
True False
4. Because of globalization, companies rarely need to customize marketing strategies, product
features, and operating practices in different countries.
True False
5. The most global markets currently are markets for consumer products.
True False
6. As firms follow each other around the world, they bring with them many of the assets that
served them well in other national markets. Thus, greater diversity replaces uniformity.
True False
1-1
,Chapter 01 - Globalization
7. Substantial impediments, such as barriers to foreign direct investment, make it difficult for
firms to achieve the optimal dispersion of their productive activities to locations around the
globe.
True False
8. The GATT succeeded the World Trade Organization (WTO).
True False
9. Over its entire history, the WTO has promoted the lowering of barriers to cross-border
trade and investment.
True False
10. The IMF is less controversial than its sister concern, the World Bank.
True False
11. The IMF is often seen as the lender of last resort to nation-states whose economies are in
turmoil.
True False
12. After World War I, the advanced nations of the West committed themselves to removing
barriers to the free flow of goods, services, and capital between nations.
True False
13. World merchandise trade includes trade in manufactured goods, agricultural goods, and
services.
True False
1-2
,Chapter 01 - Globalization
14. Trade in services now accounts for more than half of the value of all international trade.
True False
15. The volume of world output has grown faster than the volume of world merchandise trade
since the 1950s, according to data from the World Trade Organization.
True False
16. Moore's Law predicts that the power of microprocessor technology doubles and its cost of
production declines in half every 18 months.
True False
17. As transportation costs associated with the globalization of production decline, dispersal
of production to geographically separate locations becomes more economical.
True False
18. The Internet has acted as a regulatory brake on unfettered international trade in business.
True False
19. In any society, the media are the primary conveyors of culture.
True False
20. The dominance of large multinational British firms on the international business scene is
one of the changing trends of globalization.
True False
21. As the world's largest industrial power, the United States accounted for a significantly
larger share of the world economy in 2008 than it did in the 1960's.
True False
1-3
, Chapter 01 - Globalization
22. Most forecasts now predict a rapid rise in world output accounted for by developing
nations such as China, India, and South Korea, and a relative decline in the share enjoyed by
rich industrialized countries such as Britain and the United States.
True False
23. In the 1970s, European and Japanese firms began to shift labor-intensive manufacturing
operations from their home markets to developing nations where labor costs were lower.
True False
24. The stock of foreign direct investment refers to the total cumulative value of foreign
investments in a country.
True False
25. A slump in foreign direct investment into developed nations from 1998 to 2000 was
followed by a surge in 2001 to 2003.
True False
26. In the 1960s, global business activity was dominated by large Japanese multinational
corporations.
True False
27. Many of the former Communist nations of Europe and Asia seem to share a commitment
to democratic policies and free market economies.
True False
28. Throughout most of Latin America, governments have sold state-owned enterprises to
private investors and foreign investment is welcomed.
True False
1-4
Chapter 01
Globalization
True / False Questions
1. Globalization refers to the shift toward a more integrated and interdependent world
economy.
True False
2. Tastes and preferences of consumers in different nations are beginning to converge on
some global norm.
True False
3. A company has to be a major multinational corporation to facilitate, and benefit from, the
globalization of markets.
True False
4. Because of globalization, companies rarely need to customize marketing strategies, product
features, and operating practices in different countries.
True False
5. The most global markets currently are markets for consumer products.
True False
6. As firms follow each other around the world, they bring with them many of the assets that
served them well in other national markets. Thus, greater diversity replaces uniformity.
True False
1-1
,Chapter 01 - Globalization
7. Substantial impediments, such as barriers to foreign direct investment, make it difficult for
firms to achieve the optimal dispersion of their productive activities to locations around the
globe.
True False
8. The GATT succeeded the World Trade Organization (WTO).
True False
9. Over its entire history, the WTO has promoted the lowering of barriers to cross-border
trade and investment.
True False
10. The IMF is less controversial than its sister concern, the World Bank.
True False
11. The IMF is often seen as the lender of last resort to nation-states whose economies are in
turmoil.
True False
12. After World War I, the advanced nations of the West committed themselves to removing
barriers to the free flow of goods, services, and capital between nations.
True False
13. World merchandise trade includes trade in manufactured goods, agricultural goods, and
services.
True False
1-2
,Chapter 01 - Globalization
14. Trade in services now accounts for more than half of the value of all international trade.
True False
15. The volume of world output has grown faster than the volume of world merchandise trade
since the 1950s, according to data from the World Trade Organization.
True False
16. Moore's Law predicts that the power of microprocessor technology doubles and its cost of
production declines in half every 18 months.
True False
17. As transportation costs associated with the globalization of production decline, dispersal
of production to geographically separate locations becomes more economical.
True False
18. The Internet has acted as a regulatory brake on unfettered international trade in business.
True False
19. In any society, the media are the primary conveyors of culture.
True False
20. The dominance of large multinational British firms on the international business scene is
one of the changing trends of globalization.
True False
21. As the world's largest industrial power, the United States accounted for a significantly
larger share of the world economy in 2008 than it did in the 1960's.
True False
1-3
, Chapter 01 - Globalization
22. Most forecasts now predict a rapid rise in world output accounted for by developing
nations such as China, India, and South Korea, and a relative decline in the share enjoyed by
rich industrialized countries such as Britain and the United States.
True False
23. In the 1970s, European and Japanese firms began to shift labor-intensive manufacturing
operations from their home markets to developing nations where labor costs were lower.
True False
24. The stock of foreign direct investment refers to the total cumulative value of foreign
investments in a country.
True False
25. A slump in foreign direct investment into developed nations from 1998 to 2000 was
followed by a surge in 2001 to 2003.
True False
26. In the 1960s, global business activity was dominated by large Japanese multinational
corporations.
True False
27. Many of the former Communist nations of Europe and Asia seem to share a commitment
to democratic policies and free market economies.
True False
28. Throughout most of Latin America, governments have sold state-owned enterprises to
private investors and foreign investment is welcomed.
True False
1-4
