Chapter 01
Globalization and International Linkages
True / False Questions
1. (p. 6) The process of applying management concepts and techniques in a multinational
environment and adapting management practices to different economic, political and
cultural environments is called international management.
TRUE
Difficulty: Medium
2. (p. 6) Multinational corporations can be defined as firms having operations in more than
one country, international sales and a nationality mix of managers and owners.
TRUE
Difficulty: Easy
3. (p. 8) Internationalization is the vision of creating one world unit, a single market entity.
FALSE
Difficulty: Medium
,4. (p. 10) Nongovernmental organizations believe that everyone benefits from globalization,
as evidenced in lower prices, greater availability of goods, better jobs and access to
technology.
FALSE
Difficulty: Medium
5. (p. 12) NAFTA is a free trade agreement between the United States, Canada and Mexico that
has in essence removed all barriers to trade and investment between the three nations.
TRUE
Difficulty: Medium
,6. (p. 13) NAFTA is better integrated as a single market than the EU or the allied Asian
countries.
FALSE
Difficulty: Medium
7. (p. 13-14) As a result of the political and economic setbacks that Latin American countries
periodically experience, economic growth has come to a near standstill in countries like
Argentina, Chile and Venezuela.
FALSE
Difficulty: Medium
8. (p. 19) Foreign investment and trade rely exclusively on MNCs exporting or setting up
operations locally.
FALSE
Difficulty: Medium
9. (p. 21) United States multinationals have more foreign direct investment in Germany than
any other country.
FALSE
Difficulty: Medium
, 10. (p. 22) In recent years, Canadian firms have begun investing heavily in the United States.
TRUE
Difficulty: Medium
Globalization and International Linkages
True / False Questions
1. (p. 6) The process of applying management concepts and techniques in a multinational
environment and adapting management practices to different economic, political and
cultural environments is called international management.
TRUE
Difficulty: Medium
2. (p. 6) Multinational corporations can be defined as firms having operations in more than
one country, international sales and a nationality mix of managers and owners.
TRUE
Difficulty: Easy
3. (p. 8) Internationalization is the vision of creating one world unit, a single market entity.
FALSE
Difficulty: Medium
,4. (p. 10) Nongovernmental organizations believe that everyone benefits from globalization,
as evidenced in lower prices, greater availability of goods, better jobs and access to
technology.
FALSE
Difficulty: Medium
5. (p. 12) NAFTA is a free trade agreement between the United States, Canada and Mexico that
has in essence removed all barriers to trade and investment between the three nations.
TRUE
Difficulty: Medium
,6. (p. 13) NAFTA is better integrated as a single market than the EU or the allied Asian
countries.
FALSE
Difficulty: Medium
7. (p. 13-14) As a result of the political and economic setbacks that Latin American countries
periodically experience, economic growth has come to a near standstill in countries like
Argentina, Chile and Venezuela.
FALSE
Difficulty: Medium
8. (p. 19) Foreign investment and trade rely exclusively on MNCs exporting or setting up
operations locally.
FALSE
Difficulty: Medium
9. (p. 21) United States multinationals have more foreign direct investment in Germany than
any other country.
FALSE
Difficulty: Medium
, 10. (p. 22) In recent years, Canadian firms have begun investing heavily in the United States.
TRUE
Difficulty: Medium
