Introduction to global business test bank

,Chapter 1: The Rise of Globalization
n n n n n




TRUE/FALSE

1. Withnbusinessnbecomingnincreasinglynglobal,nitsnsuccess,nfortunately,ndependsnonlynonnthen
domesticnenvironment.

ANS: F PTS: 1 DIF: Difficulty:nModerate
REF: p.n4 OBJ: LO:n01-01 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nComprehension

2. Evennthoughnbusinessnisnglobal,nthencreditncrisisnofn2008,nstartednbynannAmericann investmentnb
ank,nwasnlimitedntonthenAmericanneconomynwithnfortunatelynnonimpactnonnthenglobalneconom
y.

ANS: F PTS: 1 DIF: Difficulty:nChallenging
REF: p.n3 OBJ: LO:n01-01 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nAnalysis

3. Keynaspectsnofnglobalizationnincludentheneliminationnofnbarriersntontradenandninformationnt
echnology.

ANS: T PTS: 1 DIF: Difficulty:nModerate
REF: p.n5 OBJ: LO:n01-01 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nAnalysis

4. Sonfarnglobalizationnhasnmadenitnpossiblenforngoods,nservices,nandncapital,ntoncrossnnationalnb
ordersnbutnnotntechnologynandnculture.

ANS: F PTS: 1 DIF: Difficulty:nModerate
REF: p.n5 OBJ: LO:n01-01 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nAnalysis

5. Then“soft”nqualitiesnessentialntonglobalizationnincludenopenness,nprotectionism,n
accountability,nconnectivity,ndemocracy,nandncentralization.

ANS: F PTS: 1 DIF: Difficulty:nChallenging
REF: p.n6 OBJ: LO:n01-01 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nAnalysis

6. Ansustainablendecouplingnprocessnwouldneventuallynleadntonanmulti-polarnworld—
anworldneconomyninnwhichnthenenginesnofngrowthncouldncomprisenthenUnitednStates,nthenEur
opeannUnion,nChina,nIndia,nBrazil,nRussia,nandnSouthnAfricanrathernthannthenUnitednStatesna
lone.

ANS: T PTS: 1 DIF: Difficulty:nChallenging
REF: p.n9 OBJ: LO:n01-01 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nAnalysis

, 7. Thenopennessnandnproliferationnofnglobalizationnandnfreentraden rulesncannbestnbenattributedntont
heninterwarnperiodn betweennWorldnWarnInandnII.

ANS: F PTS: 1 DIF: Difficulty:nChallenging
REF: p.n10 OBJ: LO:n01-02 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nAnalysis

8. AsnpartnofnthenWorldnBank’snStrategicnFramework,ntherenarenfivenfocusnareasnthatnaccommoda
tenandnfacilitatenthenglobalizationnprocessnincludingnitsnanalyticalnandnadvisorynrolensupporting
nnationalnpoliciesntonstrengthennfreenmarketninstitutionsnandninfrastructurenthatnhasnprovidednth

enpotentialnforncreatingnlargengainsnfromn trade.

ANS: T PTS: 1 DIF: Difficulty:nChallenging
REF: p.n12 OBJ: LO:n01-02 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nEvaluation

9. FornWorldnTradenOrganization,nincreasingntradenbarriersnhasnbeennonenofnthenmostnsimplisticn
waysntonencouragentradenandnglobalization.

ANS: F PTS: 1 DIF: Difficulty:nModerate
REF: p.n13 OBJ: LO:n01-02 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nComprehension

10. Thenfoundationsnofnthenglobalizednbusinessnworldnarenpolitical—
andnsonarenthenbiggestnthreatsntonthensystem.

ANS: T PTS: 1 DIF: Difficulty:nChallenging
REF: p.n15 OBJ: LO:n01-03 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nAnalysis

11. Countriesnthatnhavensuccessfullynadaptedntonglobalizationnrealizenthatntheyncannotnsucceedn
withoutnhigh-qualityn governmentnmanagementnatnhome.

ANS: T PTS: 1 DIF: Difficulty:nModerate
REF: p.n18 OBJ: LO:n01-04 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nComprehension

12. Inncommunistnandnstate-
controlledneconomiesnlikenthoseninnCentralnAsianpropertynrightsneitherndonnotnexistnornarennotn
wellndefinednwhichndiscouragesndomesticnandnforeignn investorsnfromnmakingnlong-
termncommitmentsninnthesencountries.

ANS: T PTS: 1 DIF: Difficulty:nModerate
REF: p.n18 OBJ: LO:n01-04 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nEvaluation

13. MorenglobalizedneconomiesnlikenNewnZealandnandnSingaporenranknatnthentopninnindexnforna
bsencenofncorruptionnbynTransparencyn International.

ANS:n T PTS: 1 DIF: Difficulty:nChallenging

, REF: p.n19 OBJ: LO:n01-04 NAT:n BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nEvaluation

14. Becausenbroadbandnpricesnhavenbeennfalling,ngovernmentsninnemergingneconomiesnsuchnasnIn
dianandnSouthnAfricanarenfacilitatingnthenspreadnofnbroadbandntonruralntownsnandnvillagesntonpro
videninstantnaccessntonmarketninformationnandngovernmentnprogramsntonremotenvillagersnwhic
hnwillnenablenpolicymakersntonmaximizentheneconomicnpotentialnofnremotencommunitiesnandnm
akenglobalizationnsustainable.

ANS: T PTS: 1 DIF: Difficulty:nModerate
REF: p.n20 OBJ: LO:n01-05 NAT: BUSPROG:nAnalytic
STA: DISC:nInformationnTechnology KEY:n Bloom's:nEvaluation

15. Criticsnarguenthatnopenntradenandnforeignndirectn investmentnalwaysntakenjobsnfromnworkersn innd
evelopingneconomiesnandntransfernthemntonworkersninnadvancednindustrialncountriesnwhichnlea
venthenworkersn innthendevelopingncountry,noutnofnwork.

ANS: F PTS: 1 DIF: Difficulty:nModerate
REF: p.n23 OBJ: LO:n01-06 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nEvaluation

16. AnsurveynbynthenWorldnBanknindicatesnthatnofnthencompaniesnsurveyed;nunfortunately,nonlyn3
0npercentnhavenboard-
approvednpoliciesnonnenvironmentalnmanagementnindicatingnthatncorporatensocialnresponsibi
litynpracticesnhavenbecomenanninsignificantnfactorninndeterminingnwherenmultinationalncorpor
ationsnconductnbusiness.

ANS: F PTS: 1 DIF: Difficulty:nChallenging
REF: p.n24 OBJ: LO:n01-06 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nEvaluation

MULTIPLEnCHOICE

1. Ofnthenfollowing,nwhichn isnNOTntruen regardingnthencreditncrisis?
a. Itnaffectednfarmersn innBurkinanFaso.
b. Itnaffectednminersnandnsteelnworkersn inn Ukraine.
c. Itnaffectednassemble-linenworkersn innSingapore.
d. Itnaffectednwhite-collarnworkersnatn informationntechnologynfirmsninnIreland.
e. Itnhadnannimpactnonlynonnitsncountrynofnorigin-nthen UnitednStates.
ANS: E PTS: 1 DIF: Difficulty:nEasy
REF: p.n3 OBJ: LO:n01-01 NAT: BUSPROG:nAnalytic
STA: DISC:nEnvironmentalnInfluence KEY:n Bloom's:nEvaluation

2. BraziliannJuice,nanmanufacturernofnhealthynfruitnjuicesninn Brazil,nsellsnjuiceninnsixndifferentnc
ountriesnincludingn UnitednStates.nBraziliannjuicen isnengagingnin
a. economicndevelopmentninnUnitednStates.
b. exercisingnnontariffnbarriersninn Brazil.
c. unfairntradenpractices.
d. globalization.