GlobalgBusinessgTodaygGlobalg8thgEditiongHillgTestgBank
Answersgaregatgthegendgofgeachgchapter
Chapterg01gGlobalizationgTr
ueg/gFalsegQuestions
1. Asgagresultgofgglobalization,gweghavegbeengmovinggtowardgagworldgingwhichgnationalgeconom
iesgaregrelativelygself-containedgentities.
True False
2. Bygofferinggthegsamegbasicgproductgworldwide,gfirmsghelpgtogcreategagglobalgmark
et.gTrue False
3. Agcompanyghasgtogbegthegsizegofgagmultinationalggiantgtogfacilitate,gandgbenefitgfrom,gt
hegglobalizationgofgmarkets.
True False
4. Asgagresultgofgglobalization,gcompaniesgrarelygneedgtogcustomizegmarketinggstrategies,gprodu
ctgfeatures,gandgoperatinggpracticesgingdifferentgcountries.
True False
5. Globalizationghasgresultedginggreaterguniformitygreplacinggdiversitygacrossgnationalgmarket
s.gTrue False
6. Asgfirmsgfollowgeachgothergaroundgthegworld,gtheygbringgwithgthemgmanygofgthegassetsgt
hatgservedgthemgwellgingothergnationalgmarkets.gThus,ggreatergdiversitygreplacesguniformity.
True False
7. Substantialgimpediments,gsuchgasgbarriersgtogforeigngdirectginvestment,gmakegitgdifficultgforgfir
msgtogachievegthegoptimalgdispersiongofgtheirgproductivegactivitiesgtoglocationsgaroundgthegglobe.
True False
8. ThegWorldgTradegOrganization,gthegInternationalgMonetarygFundgandgitsgsisterginstitutiongt
hegWorldgBank,gandgthegUnitedgNationsgweregallgcreatedgbygvoluntarygagreementgbetweengindivid
ualgnation-gstates.
True False
,9. ThegInternationalgMonetarygFundgandgthegWorldgBankgweregbothgcreatedging1944gbyg44gnatio
nsgthatgmetgatgBrettongWoods,gNewgHampshire.
True False
10. ThegWTOgisgseengasgtheglendergofglastgresortgtognation-
statesgwhosegeconomiesgaregingturmoilgandgwhosegcurrenciesgareglosinggvaluegagainstgthosegofgoth
ergnations.
True False
11. ThegIMFgisglessgcontroversialgthangitsgsisterginstitution,gthegWorldgBan
k.gTrue False
12. Ingreturngforgloans,gthegIMFgrequiresgnation-
statesgtogadoptgspecificgeconomicgpoliciesgaimedgatgreturninggtheirgtroubledgeconomiesgtogstabilityga
ndggrowth.
True False
13. Foreigngdirectginvestmentg(FDI)goccursgwhengagfirmginvestsgresourcesgingbusinessgactiviti
esgoutsidegitsghomegcountry.
True False
14. AftergWorldgWargII,gthegadvancedgnationsgofgthegWestgcommittedgthemselvesgtogincreasi
nggbarriersgtogthegfreegflowgofggoods,gservices,gandgcapitalgbetweengnations.
True False
15. ThegUruguaygRound,gheldgundergthegumbrellagofgGATT,gextendedgGATTgtogcovergservicesgasgw
ellgasgmanufacturedggoods.
True False
16. Thegloweringgofgtradegandginvestmentgbarriersgallowsgfirmsgtogbasegproductiongatgthegopti
malglocationgforgthatgactivity.
True False
17. Asgagresultgofginternationalgtrade,gthegeconomiesgofgthegworld’sgnation-
statesgaregbecomingglessgintertwined.
True False
18. Thegglobalizationgofgmarketsgandgproductiongandgthegresultingggrowthgofgworldgtrade,gforei
gngdirectginvestment,gandgimportsgallgimplygthatgfirmsgaregfindinggitgeasiergtogprotectgthemselvesgfr
om
thegattackgofgforeigngcompetitors.
,True False
19. Containerizationghasgrevolutionizedgthegtransportationgbusiness,gsignificantlygloweringgthegcos
tsgofgshippingggoodsgoverglonggdistances.
True False
20. Whilegadvancesgingtelecommunicationsgaregcreatinggagglobalgaudience,gadvancesg
ingtransportationgaregcreatinggagglobalgvillage.
True False
21. Thegrealgcostsgofginformationgprocessinggandgcommunicationghavegfallengdramaticallygingthegp
astgtwogdecades.
True False
22. ThegInternetghasgbeengagmajorgforcegfacilitatingginternationalgtradegingservice
s.gTrue False
23. Countriesgthatgmarkedlygincreasedgtheirgsharegofgworldgoutputgfromg1960gtog2010ginclud
edgGermany,gFrance,gandgthegUnitedgKingdom.
True False
24. ThegUnitedgStatesgaccountedgforgagsignificantlyglargergsharegofgthegworldgeconomyging2011gtha
ngitgdidgingtheg1960's.
True False
25. Beginninggingtheg1970s,gEuropeangandgJapanesegfirmsgbegangtogshiftglabor-
intensivegmanufacturinggoperationsgfromgdevelopinggnationsgtogtheirghomegcountriesgwhereglabor
gcostsgwereglower.
True False
26. Thegstockgofgforeigngdirectginvestmentgrefersgtogthegtotalgcumulativegvaluegofgforei
gnginvestmentsgingagcountry.
True False
27. Throughoutgtheg1990s,gthegamountgofginvestmentgdirectedgatgbothgdevelopedgandgdevelopi
nggnationsgincreasedgdramatically
True False
, 28. Amonggdevelopinggnations,gtheglargestgrecipientgofgforeigngdirectginvestmentghasgbeengChin
a.gTrueg g False
29. Althoughgmostginternationalgtradegandginvestmentgisgstillgconductedgbyglargegfirms,gma
nygmedium-
gsizegandgsmallgbusinessesgaregbecominggincreasinglyginvolvedginginternationalgtradegandginvest
ment.
True False
30. ThegrisegofgthegInternetgisgincreasinggthegbarriersgthatgsmallgfirmsgfacegingbuildingginternatio
nalgsales.
True False
31. ManygofgthegformergCommunistgnationsgofgEuropegandgAsiagseemgtogsharegagcommitment
gtogdemocraticgpoliciesgandgfreegmarketgeconomies.
True False
32. Ingthegpastgquartergcentury,gthegvolumegofgcross-
bordergtradegandginvestmentghasgbeenggrowingglessgrapidlygthangglobalgoutput.
True False
33. Onegconcerngfrequentlygvoicedgbygglobalizationgopponentsgisgthatgfallinggbarriersgtoginternation
algtradegdestroygmanufacturinggjobsgingwealthygadvancedgeconomiesgsuchgasgthegUnitedgStatesgandg w
esterngEurope.
True False
34. Itgisgpossiblegthatgeconomicggrowthgingdevelopedgnationsghasgoffsetgthegfallgingthegshare
gofgnationalgincomegenjoyedgbygunskilledgworkers,graisinggtheirglivinggstandards.
True False
35. Onegconcerngofgglobalizationgopponentsgisgthatgitgunderminesgtheginfluencegofgsupranation
algorganizationsgandgpromotesgthegsovereigntygofgindividualgnation-states.
True False
36. Inggeneral,gasgcountriesggetgricher,gtheygenactgtoughergenvironmentalgandglaborgregulations.
Answersgaregatgthegendgofgeachgchapter
Chapterg01gGlobalizationgTr
ueg/gFalsegQuestions
1. Asgagresultgofgglobalization,gweghavegbeengmovinggtowardgagworldgingwhichgnationalgeconom
iesgaregrelativelygself-containedgentities.
True False
2. Bygofferinggthegsamegbasicgproductgworldwide,gfirmsghelpgtogcreategagglobalgmark
et.gTrue False
3. Agcompanyghasgtogbegthegsizegofgagmultinationalggiantgtogfacilitate,gandgbenefitgfrom,gt
hegglobalizationgofgmarkets.
True False
4. Asgagresultgofgglobalization,gcompaniesgrarelygneedgtogcustomizegmarketinggstrategies,gprodu
ctgfeatures,gandgoperatinggpracticesgingdifferentgcountries.
True False
5. Globalizationghasgresultedginggreaterguniformitygreplacinggdiversitygacrossgnationalgmarket
s.gTrue False
6. Asgfirmsgfollowgeachgothergaroundgthegworld,gtheygbringgwithgthemgmanygofgthegassetsgt
hatgservedgthemgwellgingothergnationalgmarkets.gThus,ggreatergdiversitygreplacesguniformity.
True False
7. Substantialgimpediments,gsuchgasgbarriersgtogforeigngdirectginvestment,gmakegitgdifficultgforgfir
msgtogachievegthegoptimalgdispersiongofgtheirgproductivegactivitiesgtoglocationsgaroundgthegglobe.
True False
8. ThegWorldgTradegOrganization,gthegInternationalgMonetarygFundgandgitsgsisterginstitutiongt
hegWorldgBank,gandgthegUnitedgNationsgweregallgcreatedgbygvoluntarygagreementgbetweengindivid
ualgnation-gstates.
True False
,9. ThegInternationalgMonetarygFundgandgthegWorldgBankgweregbothgcreatedging1944gbyg44gnatio
nsgthatgmetgatgBrettongWoods,gNewgHampshire.
True False
10. ThegWTOgisgseengasgtheglendergofglastgresortgtognation-
statesgwhosegeconomiesgaregingturmoilgandgwhosegcurrenciesgareglosinggvaluegagainstgthosegofgoth
ergnations.
True False
11. ThegIMFgisglessgcontroversialgthangitsgsisterginstitution,gthegWorldgBan
k.gTrue False
12. Ingreturngforgloans,gthegIMFgrequiresgnation-
statesgtogadoptgspecificgeconomicgpoliciesgaimedgatgreturninggtheirgtroubledgeconomiesgtogstabilityga
ndggrowth.
True False
13. Foreigngdirectginvestmentg(FDI)goccursgwhengagfirmginvestsgresourcesgingbusinessgactiviti
esgoutsidegitsghomegcountry.
True False
14. AftergWorldgWargII,gthegadvancedgnationsgofgthegWestgcommittedgthemselvesgtogincreasi
nggbarriersgtogthegfreegflowgofggoods,gservices,gandgcapitalgbetweengnations.
True False
15. ThegUruguaygRound,gheldgundergthegumbrellagofgGATT,gextendedgGATTgtogcovergservicesgasgw
ellgasgmanufacturedggoods.
True False
16. Thegloweringgofgtradegandginvestmentgbarriersgallowsgfirmsgtogbasegproductiongatgthegopti
malglocationgforgthatgactivity.
True False
17. Asgagresultgofginternationalgtrade,gthegeconomiesgofgthegworld’sgnation-
statesgaregbecomingglessgintertwined.
True False
18. Thegglobalizationgofgmarketsgandgproductiongandgthegresultingggrowthgofgworldgtrade,gforei
gngdirectginvestment,gandgimportsgallgimplygthatgfirmsgaregfindinggitgeasiergtogprotectgthemselvesgfr
om
thegattackgofgforeigngcompetitors.
,True False
19. Containerizationghasgrevolutionizedgthegtransportationgbusiness,gsignificantlygloweringgthegcos
tsgofgshippingggoodsgoverglonggdistances.
True False
20. Whilegadvancesgingtelecommunicationsgaregcreatinggagglobalgaudience,gadvancesg
ingtransportationgaregcreatinggagglobalgvillage.
True False
21. Thegrealgcostsgofginformationgprocessinggandgcommunicationghavegfallengdramaticallygingthegp
astgtwogdecades.
True False
22. ThegInternetghasgbeengagmajorgforcegfacilitatingginternationalgtradegingservice
s.gTrue False
23. Countriesgthatgmarkedlygincreasedgtheirgsharegofgworldgoutputgfromg1960gtog2010ginclud
edgGermany,gFrance,gandgthegUnitedgKingdom.
True False
24. ThegUnitedgStatesgaccountedgforgagsignificantlyglargergsharegofgthegworldgeconomyging2011gtha
ngitgdidgingtheg1960's.
True False
25. Beginninggingtheg1970s,gEuropeangandgJapanesegfirmsgbegangtogshiftglabor-
intensivegmanufacturinggoperationsgfromgdevelopinggnationsgtogtheirghomegcountriesgwhereglabor
gcostsgwereglower.
True False
26. Thegstockgofgforeigngdirectginvestmentgrefersgtogthegtotalgcumulativegvaluegofgforei
gnginvestmentsgingagcountry.
True False
27. Throughoutgtheg1990s,gthegamountgofginvestmentgdirectedgatgbothgdevelopedgandgdevelopi
nggnationsgincreasedgdramatically
True False
, 28. Amonggdevelopinggnations,gtheglargestgrecipientgofgforeigngdirectginvestmentghasgbeengChin
a.gTrueg g False
29. Althoughgmostginternationalgtradegandginvestmentgisgstillgconductedgbyglargegfirms,gma
nygmedium-
gsizegandgsmallgbusinessesgaregbecominggincreasinglyginvolvedginginternationalgtradegandginvest
ment.
True False
30. ThegrisegofgthegInternetgisgincreasinggthegbarriersgthatgsmallgfirmsgfacegingbuildingginternatio
nalgsales.
True False
31. ManygofgthegformergCommunistgnationsgofgEuropegandgAsiagseemgtogsharegagcommitment
gtogdemocraticgpoliciesgandgfreegmarketgeconomies.
True False
32. Ingthegpastgquartergcentury,gthegvolumegofgcross-
bordergtradegandginvestmentghasgbeenggrowingglessgrapidlygthangglobalgoutput.
True False
33. Onegconcerngfrequentlygvoicedgbygglobalizationgopponentsgisgthatgfallinggbarriersgtoginternation
algtradegdestroygmanufacturinggjobsgingwealthygadvancedgeconomiesgsuchgasgthegUnitedgStatesgandg w
esterngEurope.
True False
34. Itgisgpossiblegthatgeconomicggrowthgingdevelopedgnationsghasgoffsetgthegfallgingthegshare
gofgnationalgincomegenjoyedgbygunskilledgworkers,graisinggtheirglivinggstandards.
True False
35. Onegconcerngofgglobalizationgopponentsgisgthatgitgunderminesgtheginfluencegofgsupranation
algorganizationsgandgpromotesgthegsovereigntygofgindividualgnation-states.
True False
36. Inggeneral,gasgcountriesggetgricher,gtheygenactgtoughergenvironmentalgandglaborgregulations.
