, Chapter 01 Wl
Wl Globalizatio
n
True / False Questions
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1. A company does not need a large size to facilitate, and benefit from, the globalizati
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on of markets.
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True False
2. Companies hope to lower their overall cost structure or improve the qualit
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
y or functionality of their product offering through globalization of product
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ion.
True False
3. The most global markets currently are markets for consumer products.
Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
4. Outsourcing is a process that is limited to manufacturing enterprises.
Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
5. The World Bank has focused on policing the world trading system and making s
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ure nation-states adhere to the rules laid down in trade treaties.
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
6. The World Bank is known as the lender of the last resort.
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
7. One of the UN's central mandates is the promotion of higher standards of living,
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
full employment, and conditions of economic and social progress and developm
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ent.
True False
8. The Uruguay Round, finalized in December 1993, reduced protection for paten
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ts, trademarks, and copyrights.
Wl Wl Wl
True False
,9. "Beggar thy neighbor" retaliatory trade policies involved countries progressively lo
Wl Wl Wl Wl Wl Wl Wl Wl Wl
wering trade barriers against each other, which contributed to the Great Depression
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
of the 1930s.
Wl Wl
, 10. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in C
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
hina to take advantage of the lower labor costs there. This is an example of foreign
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl W
ldirect investment. Wl
True False
11. World Bank gives an aid of 100 million dollars to Kenya for creating rural health
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
care facilities. This is an example of foreign direct investment.
Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
12. The lowering of barriers to international trade enables firms to view the world, ra
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ther than a single country, as their market.
Wl Wl Wl Wl Wl Wl Wl
True False
13. According to WTO data, the volume of world merchandise trade has grown faster t
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
han the world economy since 1950.
Wl Wl Wl Wl Wl
True False
14. The cost of microprocessors continues to fall, while their power increases.
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
This statement supports the predictions made by Moore's Law.
Wl Wl Wl Wl Wl Wl Wl Wl
True False
15. Non-
U.S. firms increasingly began to invest across national borders because they wanted t
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
o disperse production activities to optimal locations and to build a direct presence in
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl W
lmajor foreign markets.
Wl Wl
True False
16. A current trend in international business is the decline of medium-
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
sized and small multinationals, known as mini-multinationals.
Wl Wl Wl Wl Wl Wl
True False
17. The globalization of the world economy has resulted in a relative increase in
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
Wlthe dominance of U.S. firms in the global marketplace.
Wl Wl Wl Wl Wl Wl Wl Wl
True False
18. Doing business in Russia involves risks because the country has shown signs of shi
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
fting back toward greater state involvement in economic activity and authoritarian g
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
overnment.
True False
19. Globalization critics argue that the decline in unskilled wage rates is due to the migr
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ation of low- Wl Wl
wage manufacturing jobs offshore and a corresponding reduction in demand for unskill
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
Wl Globalizatio
n
True / False Questions
Wl Wl Wl
1. A company does not need a large size to facilitate, and benefit from, the globalizati
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
on of markets.
Wl Wl
True False
2. Companies hope to lower their overall cost structure or improve the qualit
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
y or functionality of their product offering through globalization of product
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ion.
True False
3. The most global markets currently are markets for consumer products.
Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
4. Outsourcing is a process that is limited to manufacturing enterprises.
Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
5. The World Bank has focused on policing the world trading system and making s
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ure nation-states adhere to the rules laid down in trade treaties.
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
6. The World Bank is known as the lender of the last resort.
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
7. One of the UN's central mandates is the promotion of higher standards of living,
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
full employment, and conditions of economic and social progress and developm
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ent.
True False
8. The Uruguay Round, finalized in December 1993, reduced protection for paten
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ts, trademarks, and copyrights.
Wl Wl Wl
True False
,9. "Beggar thy neighbor" retaliatory trade policies involved countries progressively lo
Wl Wl Wl Wl Wl Wl Wl Wl Wl
wering trade barriers against each other, which contributed to the Great Depression
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
of the 1930s.
Wl Wl
, 10. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in C
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
hina to take advantage of the lower labor costs there. This is an example of foreign
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl W
ldirect investment. Wl
True False
11. World Bank gives an aid of 100 million dollars to Kenya for creating rural health
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
care facilities. This is an example of foreign direct investment.
Wl Wl Wl Wl Wl Wl Wl Wl Wl
True False
12. The lowering of barriers to international trade enables firms to view the world, ra
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ther than a single country, as their market.
Wl Wl Wl Wl Wl Wl Wl
True False
13. According to WTO data, the volume of world merchandise trade has grown faster t
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
han the world economy since 1950.
Wl Wl Wl Wl Wl
True False
14. The cost of microprocessors continues to fall, while their power increases.
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
This statement supports the predictions made by Moore's Law.
Wl Wl Wl Wl Wl Wl Wl Wl
True False
15. Non-
U.S. firms increasingly began to invest across national borders because they wanted t
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
o disperse production activities to optimal locations and to build a direct presence in
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl W
lmajor foreign markets.
Wl Wl
True False
16. A current trend in international business is the decline of medium-
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
sized and small multinationals, known as mini-multinationals.
Wl Wl Wl Wl Wl Wl
True False
17. The globalization of the world economy has resulted in a relative increase in
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
Wlthe dominance of U.S. firms in the global marketplace.
Wl Wl Wl Wl Wl Wl Wl Wl
True False
18. Doing business in Russia involves risks because the country has shown signs of shi
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
fting back toward greater state involvement in economic activity and authoritarian g
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
overnment.
True False
19. Globalization critics argue that the decline in unskilled wage rates is due to the migr
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
ation of low- Wl Wl
wage manufacturing jobs offshore and a corresponding reduction in demand for unskill
Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl Wl
