Chapter 01 b
bGlobalizatio
n
Trueb/bFalsebQuestions
1. Abcompanybdoesbnotbneedbablargebsizebtobfacilitate,bandbbenefitbfrom,bthebglobalizationbofbmarkets.
True False
2. Companiesbhopebtoblowerbtheirboverallbcostbstructureborbimprovebthebqualityborbfunctionalitybofbtheir
bproductbofferingbthroughbglobalizationbofbproduction.
True False
3. Thebmostbglobalbmarketsbcurrentlybarebmarketsbforbconsumerbproducts.
True False
4. Outsourcingbisbabprocessbthatbisblimitedbtobmanufacturingbenterprises.
True False
5. ThebWorldbBankbhasbfocusedbonbpolicingbthebworldbtradingbsystembandbmakingbsurebnation-
statesbadherebtobthebrulesblaidbdownbinbtradebtreaties.
True False
6. ThebWorldbBankbisbknownbasbtheblenderbofbtheblastbresort.
True False
7. OnebofbthebUN'sbcentralbmandatesbisbthebpromotionbofbhigherbstandardsbofbliving,bfullbemployment,band
bconditionsbofbeconomicbandbsocialbprogressbandbdevelopment.
True False
8. ThebUruguaybRound,bfinalizedbinbDecemberb1993,breducedbprotectionbforbpatents,btrademarks,band
bcopyrights.
True False
9. "Beggarbthybneighbor"bretaliatorybtradebpoliciesbinvolvedbcountriesbprogressivelybloweringbtrade
bbarriersbagainstbeachbother,bwhichbcontributedbtobthebGreatbDepressionbofbtheb1930s.
True False
10. RiversbInc.,babU.S.bbasedbsportsbapparelbmanufacturer,bsetsbupbabproductionbunitbinbChinabtobtake
1-1
Copyrightb©b2017bMcGraw-HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGraw-
Hillb Education.
, badvantagebofbtheblowerblaborbcostsbthere.bThisbisbanbexamplebofbforeignbdirectbinvestment.
True False
1-2
Copyrightb©b2017bMcGraw-HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGraw-
Hillb Education.
,11. WorldbBankbgivesbanbaidbofb100bmillionbdollarsbtobKenyabforbcreatingbruralbhealthbcarebfacilities.bThisbis
banbexamplebofbforeignbdirectbinvestment.
True False
12. Thebloweringbofbbarriersbtobinternationalbtradebenablesbfirmsbtobviewbthebworld,bratherbthanbabsingle
bcountry,basbtheirbmarket.
True False
13. AccordingbtobWTObdata,bthebvolumebofbworldbmerchandisebtradebhasbgrownbfasterbthanbthebworld
beconomybsinceb1950.
True False
14. Thebcostbofbmicroprocessorsbcontinuesbtobfall,bwhilebtheirbpowerbincreases.bThisbstatementbsupports
bthebpredictionsbmadebbybMoore'sbLaw.
True False
15. Non-
U.S.bfirmsbincreasinglybbeganbtobinvestbacrossbnationalbbordersbbecausebtheybwantedbtobdispersebprod
uctionbactivitiesbtoboptimalblocationsbandbtobbuildbabdirectbpresencebinbmajorbforeignbmarkets.
True False
16. Abcurrentbtrendbinbinternationalbbusinessbisbthebdeclinebofbmedium-
sizedbandbsmallbmultinationals,bknownbasbmini-multinationals.
True False
17. ThebglobalizationbofbthebworldbeconomybhasbresultedbinbabrelativebincreasebinbthebdominancebofbU.S.
bfirmsbinbthebglobalbmarketplace.
True False
18. DoingbbusinessbinbRussiabinvolvesbrisksbbecausebthebcountrybhasbshownbsignsbofbshiftingbbackbtoward
bgreaterbstatebinvolvementbinbeconomicbactivitybandbauthoritarianbgovernment.
True False
19. Globalizationbcriticsbarguebthatbthebdeclinebinbunskilledbwagebratesbisbduebtobthebmigrationbofblow-
wagebmanufacturingbjobsboffshorebandbabcorrespondingbreductionbinbdemandbforbunskilledbworkers.
True False
20. Evidencebsuggestsbthatbtechnologicalbchangebhasbhadbabbiggerbimpactbthanbglobalizationbonbthe
bdecliningbsharebofbnationalbincomebenjoyedbbyblabor.
True False
21. Accordingbtobsupportersbofbfreebtrade,basbcountriesbgetbricherbtheybcommitbgreaterbviolationbof
benvironmentalbandblaborbregulations.
True False
1-3
Copyrightb©b2017bMcGraw-HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGraw-
Hillb Education.
, 22. Accordingbtobcriticsbofbglobalization,btoday'sbinterdependentbglobalbeconomyblimitsbabnation'sbnational
bsovereignty.
True False
23. Supportersbofbdebtbreliefbarguebthatbnewbdemocraticbgovernmentsbinbpoorbnationsbshouldbnotbbe
bforcedbtobhonorbdebtsbincurredbbybcorruptbandbdictatorialbpredecessors.
True False
24. Abfirmbdoesbnotbhavebtobbecomebabmultinationalbenterprisebtobengagebinbinternationalbbusiness.
True False
25. Managingbanbinternationalbbusinessbisbmuchbeasierbthanbmanagingbabdomesticbbusiness.
True False
MultiplebChoicebQuestions
26. Thebshiftbtowardbabmorebintegratedbandbinterdependentbworldbeconomybisbreferredbtobasb .
A. outsourcing
B. internationalbmarketing
C. privatizatio
bn
D. globalizatio
bn
27. Inb2008bandb2009,btheb
becamebthebforumbthoughbwhichbmajorbnationsbattemptedbtoblaunchba
bcoordinatedbpolicybresponsebtobthebglobalbfinancialbcrisis,bwhichbstartedbinbAmerica.
A. GATT
B. GroupbofbTenb(G20)
C. GroupbofbTwentyb(G20)
D. WorldbTradebOrganization
1-4
Copyrightb©b2017bMcGraw-HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGraw-
Hillb Education.
bGlobalizatio
n
Trueb/bFalsebQuestions
1. Abcompanybdoesbnotbneedbablargebsizebtobfacilitate,bandbbenefitbfrom,bthebglobalizationbofbmarkets.
True False
2. Companiesbhopebtoblowerbtheirboverallbcostbstructureborbimprovebthebqualityborbfunctionalitybofbtheir
bproductbofferingbthroughbglobalizationbofbproduction.
True False
3. Thebmostbglobalbmarketsbcurrentlybarebmarketsbforbconsumerbproducts.
True False
4. Outsourcingbisbabprocessbthatbisblimitedbtobmanufacturingbenterprises.
True False
5. ThebWorldbBankbhasbfocusedbonbpolicingbthebworldbtradingbsystembandbmakingbsurebnation-
statesbadherebtobthebrulesblaidbdownbinbtradebtreaties.
True False
6. ThebWorldbBankbisbknownbasbtheblenderbofbtheblastbresort.
True False
7. OnebofbthebUN'sbcentralbmandatesbisbthebpromotionbofbhigherbstandardsbofbliving,bfullbemployment,band
bconditionsbofbeconomicbandbsocialbprogressbandbdevelopment.
True False
8. ThebUruguaybRound,bfinalizedbinbDecemberb1993,breducedbprotectionbforbpatents,btrademarks,band
bcopyrights.
True False
9. "Beggarbthybneighbor"bretaliatorybtradebpoliciesbinvolvedbcountriesbprogressivelybloweringbtrade
bbarriersbagainstbeachbother,bwhichbcontributedbtobthebGreatbDepressionbofbtheb1930s.
True False
10. RiversbInc.,babU.S.bbasedbsportsbapparelbmanufacturer,bsetsbupbabproductionbunitbinbChinabtobtake
1-1
Copyrightb©b2017bMcGraw-HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGraw-
Hillb Education.
, badvantagebofbtheblowerblaborbcostsbthere.bThisbisbanbexamplebofbforeignbdirectbinvestment.
True False
1-2
Copyrightb©b2017bMcGraw-HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGraw-
Hillb Education.
,11. WorldbBankbgivesbanbaidbofb100bmillionbdollarsbtobKenyabforbcreatingbruralbhealthbcarebfacilities.bThisbis
banbexamplebofbforeignbdirectbinvestment.
True False
12. Thebloweringbofbbarriersbtobinternationalbtradebenablesbfirmsbtobviewbthebworld,bratherbthanbabsingle
bcountry,basbtheirbmarket.
True False
13. AccordingbtobWTObdata,bthebvolumebofbworldbmerchandisebtradebhasbgrownbfasterbthanbthebworld
beconomybsinceb1950.
True False
14. Thebcostbofbmicroprocessorsbcontinuesbtobfall,bwhilebtheirbpowerbincreases.bThisbstatementbsupports
bthebpredictionsbmadebbybMoore'sbLaw.
True False
15. Non-
U.S.bfirmsbincreasinglybbeganbtobinvestbacrossbnationalbbordersbbecausebtheybwantedbtobdispersebprod
uctionbactivitiesbtoboptimalblocationsbandbtobbuildbabdirectbpresencebinbmajorbforeignbmarkets.
True False
16. Abcurrentbtrendbinbinternationalbbusinessbisbthebdeclinebofbmedium-
sizedbandbsmallbmultinationals,bknownbasbmini-multinationals.
True False
17. ThebglobalizationbofbthebworldbeconomybhasbresultedbinbabrelativebincreasebinbthebdominancebofbU.S.
bfirmsbinbthebglobalbmarketplace.
True False
18. DoingbbusinessbinbRussiabinvolvesbrisksbbecausebthebcountrybhasbshownbsignsbofbshiftingbbackbtoward
bgreaterbstatebinvolvementbinbeconomicbactivitybandbauthoritarianbgovernment.
True False
19. Globalizationbcriticsbarguebthatbthebdeclinebinbunskilledbwagebratesbisbduebtobthebmigrationbofblow-
wagebmanufacturingbjobsboffshorebandbabcorrespondingbreductionbinbdemandbforbunskilledbworkers.
True False
20. Evidencebsuggestsbthatbtechnologicalbchangebhasbhadbabbiggerbimpactbthanbglobalizationbonbthe
bdecliningbsharebofbnationalbincomebenjoyedbbyblabor.
True False
21. Accordingbtobsupportersbofbfreebtrade,basbcountriesbgetbricherbtheybcommitbgreaterbviolationbof
benvironmentalbandblaborbregulations.
True False
1-3
Copyrightb©b2017bMcGraw-HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGraw-
Hillb Education.
, 22. Accordingbtobcriticsbofbglobalization,btoday'sbinterdependentbglobalbeconomyblimitsbabnation'sbnational
bsovereignty.
True False
23. Supportersbofbdebtbreliefbarguebthatbnewbdemocraticbgovernmentsbinbpoorbnationsbshouldbnotbbe
bforcedbtobhonorbdebtsbincurredbbybcorruptbandbdictatorialbpredecessors.
True False
24. Abfirmbdoesbnotbhavebtobbecomebabmultinationalbenterprisebtobengagebinbinternationalbbusiness.
True False
25. Managingbanbinternationalbbusinessbisbmuchbeasierbthanbmanagingbabdomesticbbusiness.
True False
MultiplebChoicebQuestions
26. Thebshiftbtowardbabmorebintegratedbandbinterdependentbworldbeconomybisbreferredbtobasb .
A. outsourcing
B. internationalbmarketing
C. privatizatio
bn
D. globalizatio
bn
27. Inb2008bandb2009,btheb
becamebthebforumbthoughbwhichbmajorbnationsbattemptedbtoblaunchba
bcoordinatedbpolicybresponsebtobthebglobalbfinancialbcrisis,bwhichbstartedbinbAmerica.
A. GATT
B. GroupbofbTenb(G20)
C. GroupbofbTwentyb(G20)
D. WorldbTradebOrganization
1-4
Copyrightb©b2017bMcGraw-HillbEducation.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGraw-
Hillb Education.
