Chapter 01
Globalization
Multiple Choice Questions
41. Since the collapse of communism at the end of the 1980s, the erstwhile communist nations
have transformed their economies by globalizing their markets. This involves _____.
A. regulating markets
B. privatizing state-owned enterprises
C. decreasing competition
D. reducing foreign investment
42. Which of the following is a consequence of globalization?
A. Decreasing interdependence between national economies
B. Increasing outsourcing of services
C. Differentiation of material culture
D. Increase in barriers to cross-border trade
,43. Which of the following has enabled globalization of markets?
A. Differentiation amongst national markets
B. Falling barriers to cross border trade
C. Reduced homogeneity of material culture across the world
D. Increased government ownership of factors of production
44. Which of the following factors hinders globalization of consumer goods market?
A. National differences in tastes and preferences
B. Higher production costs in developed nations
C. Homogenization of material culture
D. Increasing outsourcing of goods and services
45. Globalization of markets results in markets becoming _____.
A. less interdependent
B. less diverse
C. more protected
D. less competitive
,46. A U.S. Investment firm, Fin-Smart, set up a customer service call center in India to take
advantage of the lower labor costs. This is called _____.
A. homogenizing markets
B. vertical integration
C. outsourcing
D. horizontal integration
47. Early outsourcing efforts were primarily confined to _____.
A. health care
B. service activities
C. technological research
D. manufacturing activities
48. Which of the following is NOT an impediment that makes it difficult for firms to achieve the
optimal dispersion of their productive activities to locations around the globe?
A. Reduced tariffs on imports of manufactured goods
B. Government regulations
C. Issues associated with economic and political risk
D. Barriers to foreign direct investment
, 49. The General Agreement on Tariffs and Trade (GATT) was responsible for _____.
A. protecting government owned enterprises
B. policing the global marketplace
C. limiting nuclear testing
D. promoting environment friendly technology
50. The ______ is primarily responsible for policing the world trading system and making sure
nation-states adhere to the rules laid down in trade treaties signed by member states.
A. International Development Association
B. World Bank
C. International Court of justice
D. World Trade Organization
51. The World Trade Organization promotes _____.
A. lowering of barriers to cross-border trade and investment
B. infrastructural development in poor nations through low-interest loans
C. state ownership of major enterprises
D. regulation of national economies
Globalization
Multiple Choice Questions
41. Since the collapse of communism at the end of the 1980s, the erstwhile communist nations
have transformed their economies by globalizing their markets. This involves _____.
A. regulating markets
B. privatizing state-owned enterprises
C. decreasing competition
D. reducing foreign investment
42. Which of the following is a consequence of globalization?
A. Decreasing interdependence between national economies
B. Increasing outsourcing of services
C. Differentiation of material culture
D. Increase in barriers to cross-border trade
,43. Which of the following has enabled globalization of markets?
A. Differentiation amongst national markets
B. Falling barriers to cross border trade
C. Reduced homogeneity of material culture across the world
D. Increased government ownership of factors of production
44. Which of the following factors hinders globalization of consumer goods market?
A. National differences in tastes and preferences
B. Higher production costs in developed nations
C. Homogenization of material culture
D. Increasing outsourcing of goods and services
45. Globalization of markets results in markets becoming _____.
A. less interdependent
B. less diverse
C. more protected
D. less competitive
,46. A U.S. Investment firm, Fin-Smart, set up a customer service call center in India to take
advantage of the lower labor costs. This is called _____.
A. homogenizing markets
B. vertical integration
C. outsourcing
D. horizontal integration
47. Early outsourcing efforts were primarily confined to _____.
A. health care
B. service activities
C. technological research
D. manufacturing activities
48. Which of the following is NOT an impediment that makes it difficult for firms to achieve the
optimal dispersion of their productive activities to locations around the globe?
A. Reduced tariffs on imports of manufactured goods
B. Government regulations
C. Issues associated with economic and political risk
D. Barriers to foreign direct investment
, 49. The General Agreement on Tariffs and Trade (GATT) was responsible for _____.
A. protecting government owned enterprises
B. policing the global marketplace
C. limiting nuclear testing
D. promoting environment friendly technology
50. The ______ is primarily responsible for policing the world trading system and making sure
nation-states adhere to the rules laid down in trade treaties signed by member states.
A. International Development Association
B. World Bank
C. International Court of justice
D. World Trade Organization
51. The World Trade Organization promotes _____.
A. lowering of barriers to cross-border trade and investment
B. infrastructural development in poor nations through low-interest loans
C. state ownership of major enterprises
D. regulation of national economies
