,Chapterg1:gThegRisegofgGlobalization
TRUE/FALSE
1. Withgbusinessgbecominggincreasinglygglobal,gitsgsuccess,gfortunately,gdependsgonlygongth
egdomesticgenvironment.
ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g4 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gComprehension
2. Evengthoughgbusinessgisgglobal,gthegcreditgcrisisgofg2008,gstartedgbygangAmericanginvestme
ntgbank,gwasglimitedgtogthegAmericangeconomygwithgfortunatelygnogimpactgongthegglobalge
conomy.
ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g3 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
3. Keygaspectsgofgglobalizationgincludegthegeliminationgofgbarriersgtogtradegandginformatio
ngtechnology.
ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g5 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
4. Sogfargglobalizationghasgmadegitgpossiblegforggoods,gservices,gandgcapital,gtogcrossgnation
algbordersgbutgnotgtechnologygandgculture.
ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g5 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
5. Theg“soft”gqualitiesgessentialgtogglobalizationgincludegopenness,gprotectionism
,gaccountability,gconnectivity,gdemocracy,gandgcentralization.
ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g6 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
6. Agsustainablegdecouplinggprocessgwouldgeventuallygleadgtogagmulti-polargworld—
agworldgeconomygingwhichgthegenginesgofggrowthgcouldgcomprisegthegUnitedgStates,gtheg
EuropeangUnion,gChina,gIndia,gBrazil,gRussia,gandgSouthgAfricagrathergthangthegUnitedgS
tatesgalone.
ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g9 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
, 7. Thegopennessgandgproliferationgofgglobalizationgandgfreegtradegrulesgcangbestgbegattributedgt
ogtheginterwargperiodgbetweengWorldgWargIgandgII.
ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g10 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
8. AsgpartgofgthegWorldgBank’sgStrategicgFramework,gtheregaregfivegfocusgareasgthatgaccomm
odategandgfacilitategthegglobalizationgprocessgincludinggitsganalyticalgandgadvisorygrolegsupp
ortinggnationalgpoliciesgtogstrengthengfreegmarketginstitutionsgandginfrastructuregthatghasgpro
videdgthegpotentialgforgcreatingglargeggainsgfromgtrade.
ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g12 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
9. ForgWorldgTradegOrganization,gincreasinggtradegbarriersghasgbeengonegofgthegmostgsimplisti
cgwaysgtogencouragegtradegandgglobalization.
ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g13 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gComprehension
10. Thegfoundationsgofgthegglobalizedgbusinessgworldgaregpolitical—
andgsogaregthegbiggestgthreatsgtogthegsystem.
ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g15 OBJ: LO:g01-03 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
11. Countriesgthatghavegsuccessfullygadaptedgtogglobalizationgrealizegthatgtheygcannotgsuccee
dgwithoutghigh-qualityggovernmentgmanagementgatghome.
ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g18 OBJ: LO:g01-04 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gComprehension
12. Ingcommunistgandgstate-
controlledgeconomiesglikegthosegingCentralgAsiagpropertygrightsgeithergdognotgexistgorgaregn
otgwellgdefinedgwhichgdiscouragesgdomesticgandgforeignginvestorsgfromgmakingglong-
termgcommitmentsgingthesegcountries.
ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g18 OBJ: LO:g01-04 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
13. MoregglobalizedgeconomiesglikegNewgZealandgandgSingaporegrankgatgthegtopgingindexgf
orgabsencegofgcorruptiongbygTransparencygInternational.
ANS:g T PTS: 1 DIF: Difficulty:gChallenging
, REF: p.g19 OBJ: LO:g01-04 NAT:g BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
14. Becausegbroadbandgpricesghavegbeengfalling,ggovernmentsgingemerginggeconomiesgsuchgasg
IndiagandgSouthgAfricagaregfacilitatinggthegspreadgofgbroadbandgtogruralgtownsgandgvillagesgt
ogprovideginstantgaccessgtogmarketginformationgandggovernmentgprogramsgtogremotegvillage
rsgwhichgwillgenablegpolicymakersgtogmaximizegthegeconomicgpotentialgofgremotegcommuni
tiesgandgmakegglobalizationgsustainable.
ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g20 OBJ: LO:g01-05 NAT: BUSPROG:gAnalytic
STA: DISC:gInformationgTechnology KEY:g g Bloom's:gEvaluation
15. Criticsgarguegthatgopengtradegandgforeigngdirectginvestmentgalwaysgtakegjobsgfromgworkersgi
ngdevelopinggeconomiesgandgtransfergthemgtogworkersgingadvancedgindustrialgcountriesgwhi
chgleavegthegworkersgingthegdevelopinggcountry,goutgofgwork.
ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g23 OBJ: LO:g01-06 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
16. AgsurveygbygthegWorldgBankgindicatesgthatgofgthegcompaniesgsurveyed;gunfortunately,gonl
yg30gpercentghavegboard-
approvedgpoliciesgongenvironmentalgmanagementgindicatinggthatgcorporategsocialgresponsi
bilitygpracticesghavegbecomeganginsignificantgfactorgingdetermininggwheregmultinationalgco
rporationsgconductgbusiness.
ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g24 OBJ: LO:g01-06 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
MULTIPLEgCHOICE
1. Ofgthegfollowing,gwhichg isgNOTgtruegregardinggthegcreditgcrisis?
a. ItgaffectedgfarmersgingBurkinagFaso.
b. ItgaffectedgminersgandgsteelgworkersgingUkraine.
c. Itgaffectedgassemble-linegworkersgingSingapore.
d. Itgaffectedgwhite-collargworkersgatginformationgtechnologygfirmsgingIreland.
e. Itghadgangimpactgonlygongitsgcountrygofgorigin-gthegUnitedgStates.
ANS: E PTS: 1 DIF: Difficulty:gEasy
REF: p.g3 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
2. BraziliangJuice,gagmanufacturergofghealthygfruitgjuicesgingBrazil,gsellsgjuicegingsixgdiffere
ntgcountriesgincludinggUnitedgStates.gBraziliangjuicegisgengaginggin
a. economicgdevelopmentgingUnitedgStates.
b. exercisinggnontariffgbarriersgingBrazil.
c. unfairgtradegpractices.
d. globalization.
TRUE/FALSE
1. Withgbusinessgbecominggincreasinglygglobal,gitsgsuccess,gfortunately,gdependsgonlygongth
egdomesticgenvironment.
ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g4 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gComprehension
2. Evengthoughgbusinessgisgglobal,gthegcreditgcrisisgofg2008,gstartedgbygangAmericanginvestme
ntgbank,gwasglimitedgtogthegAmericangeconomygwithgfortunatelygnogimpactgongthegglobalge
conomy.
ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g3 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
3. Keygaspectsgofgglobalizationgincludegthegeliminationgofgbarriersgtogtradegandginformatio
ngtechnology.
ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g5 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
4. Sogfargglobalizationghasgmadegitgpossiblegforggoods,gservices,gandgcapital,gtogcrossgnation
algbordersgbutgnotgtechnologygandgculture.
ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g5 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
5. Theg“soft”gqualitiesgessentialgtogglobalizationgincludegopenness,gprotectionism
,gaccountability,gconnectivity,gdemocracy,gandgcentralization.
ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g6 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
6. Agsustainablegdecouplinggprocessgwouldgeventuallygleadgtogagmulti-polargworld—
agworldgeconomygingwhichgthegenginesgofggrowthgcouldgcomprisegthegUnitedgStates,gtheg
EuropeangUnion,gChina,gIndia,gBrazil,gRussia,gandgSouthgAfricagrathergthangthegUnitedgS
tatesgalone.
ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g9 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
, 7. Thegopennessgandgproliferationgofgglobalizationgandgfreegtradegrulesgcangbestgbegattributedgt
ogtheginterwargperiodgbetweengWorldgWargIgandgII.
ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g10 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
8. AsgpartgofgthegWorldgBank’sgStrategicgFramework,gtheregaregfivegfocusgareasgthatgaccomm
odategandgfacilitategthegglobalizationgprocessgincludinggitsganalyticalgandgadvisorygrolegsupp
ortinggnationalgpoliciesgtogstrengthengfreegmarketginstitutionsgandginfrastructuregthatghasgpro
videdgthegpotentialgforgcreatingglargeggainsgfromgtrade.
ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g12 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
9. ForgWorldgTradegOrganization,gincreasinggtradegbarriersghasgbeengonegofgthegmostgsimplisti
cgwaysgtogencouragegtradegandgglobalization.
ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g13 OBJ: LO:g01-02 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gComprehension
10. Thegfoundationsgofgthegglobalizedgbusinessgworldgaregpolitical—
andgsogaregthegbiggestgthreatsgtogthegsystem.
ANS: T PTS: 1 DIF: Difficulty:gChallenging
REF: p.g15 OBJ: LO:g01-03 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gAnalysis
11. Countriesgthatghavegsuccessfullygadaptedgtogglobalizationgrealizegthatgtheygcannotgsuccee
dgwithoutghigh-qualityggovernmentgmanagementgatghome.
ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g18 OBJ: LO:g01-04 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gComprehension
12. Ingcommunistgandgstate-
controlledgeconomiesglikegthosegingCentralgAsiagpropertygrightsgeithergdognotgexistgorgaregn
otgwellgdefinedgwhichgdiscouragesgdomesticgandgforeignginvestorsgfromgmakingglong-
termgcommitmentsgingthesegcountries.
ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g18 OBJ: LO:g01-04 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
13. MoregglobalizedgeconomiesglikegNewgZealandgandgSingaporegrankgatgthegtopgingindexgf
orgabsencegofgcorruptiongbygTransparencygInternational.
ANS:g T PTS: 1 DIF: Difficulty:gChallenging
, REF: p.g19 OBJ: LO:g01-04 NAT:g BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
14. Becausegbroadbandgpricesghavegbeengfalling,ggovernmentsgingemerginggeconomiesgsuchgasg
IndiagandgSouthgAfricagaregfacilitatinggthegspreadgofgbroadbandgtogruralgtownsgandgvillagesgt
ogprovideginstantgaccessgtogmarketginformationgandggovernmentgprogramsgtogremotegvillage
rsgwhichgwillgenablegpolicymakersgtogmaximizegthegeconomicgpotentialgofgremotegcommuni
tiesgandgmakegglobalizationgsustainable.
ANS: T PTS: 1 DIF: Difficulty:gModerate
REF: p.g20 OBJ: LO:g01-05 NAT: BUSPROG:gAnalytic
STA: DISC:gInformationgTechnology KEY:g g Bloom's:gEvaluation
15. Criticsgarguegthatgopengtradegandgforeigngdirectginvestmentgalwaysgtakegjobsgfromgworkersgi
ngdevelopinggeconomiesgandgtransfergthemgtogworkersgingadvancedgindustrialgcountriesgwhi
chgleavegthegworkersgingthegdevelopinggcountry,goutgofgwork.
ANS: F PTS: 1 DIF: Difficulty:gModerate
REF: p.g23 OBJ: LO:g01-06 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
16. AgsurveygbygthegWorldgBankgindicatesgthatgofgthegcompaniesgsurveyed;gunfortunately,gonl
yg30gpercentghavegboard-
approvedgpoliciesgongenvironmentalgmanagementgindicatinggthatgcorporategsocialgresponsi
bilitygpracticesghavegbecomeganginsignificantgfactorgingdetermininggwheregmultinationalgco
rporationsgconductgbusiness.
ANS: F PTS: 1 DIF: Difficulty:gChallenging
REF: p.g24 OBJ: LO:g01-06 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
MULTIPLEgCHOICE
1. Ofgthegfollowing,gwhichg isgNOTgtruegregardinggthegcreditgcrisis?
a. ItgaffectedgfarmersgingBurkinagFaso.
b. ItgaffectedgminersgandgsteelgworkersgingUkraine.
c. Itgaffectedgassemble-linegworkersgingSingapore.
d. Itgaffectedgwhite-collargworkersgatginformationgtechnologygfirmsgingIreland.
e. Itghadgangimpactgonlygongitsgcountrygofgorigin-gthegUnitedgStates.
ANS: E PTS: 1 DIF: Difficulty:gEasy
REF: p.g3 OBJ: LO:g01-01 NAT: BUSPROG:gAnalytic
STA: DISC:gEnvironmentalgInfluence KEY:g g Bloom's:gEvaluation
2. BraziliangJuice,gagmanufacturergofghealthygfruitgjuicesgingBrazil,gsellsgjuicegingsixgdiffere
ntgcountriesgincludinggUnitedgStates.gBraziliangjuicegisgengaginggin
a. economicgdevelopmentgingUnitedgStates.
b. exercisinggnontariffgbarriersgingBrazil.
c. unfairgtradegpractices.
d. globalization.
