Question 1

Which statement reflects the changing demographics of the global economy?

Accepted Answer

A)   U.S. dominance in export markets has waned as Japan, Germany, and a number of newly industrialized countries have taken a larger share of world exports.
B)   The change in the position of the United States in terms of the share of world output is the result of the absolute decline in the health of the U.S. economy.
C)   From 1960 to 2010, countries that experienced a large decrease in their share of world output include Japan, Thailand, Malaysia, Taiwan, and South Korea.
D)   The United States is the only developed nation to see its relative standing in the share of world output slip.
E)   Today, roughly half the globe-the centrally planned economies of the communist world-is off-limits to Western international businesses.F) B) and C)
G) A) and E)

Question 2

Discuss the role of the United Nations and explain the four purposes of the organization.

Accepted Answer

The United Nations (UN) was established ...

Question 3

Those who support globalization recognize that while some concessions occur during the process of globalization, ultimately, it still works because

Accepted Answer

A)   all retaliatory trade policies have been eliminated.
B)   the benefits outweigh the costs.
C)   democratic governments follow this pattern.
D)   the costs affect very few people.
E)   nations need to import goods they are efficient at producing.F) B) and D)
G) C) and D)

Question 4

The minimum that a firm has to do to engage in international business is to

Accepted Answer

A)   export or import products from other countries.
B)   invest directly in operations in another country.
C)   establish joint ventures or strategic alliances with companies in other countries.
D)   export low-wage manufacturing jobs to companies in other countries.
E)   develop franchises and subsidiaries in other countries.F) A) and C)
G) C) and D)

Question 5

According to many influential economists, the increase in international trade and cross-border investment will result in an increase in the prices of goods and services.

Accepted Answer

A) True 
 B)False

Question 6

One result of the Uruguay Round was

Accepted Answer

A)   increased trade and investment barriers.
B)   excluding the trade of services from international trade.
C)   transforming the World Trade Organization into GATT.
D)   enhanced protection for patents, trademarks, and copyrights.
E)   promoting the worldwide rise of communism.F) A) and D)
G) C) and D)

Question 7

Define containerization and explain how it has changed the way goods are transported around the world.

Accepted Answer

In addition to developments in communica...

Question 8

What are mini-multinationals?

Accepted Answer

A)   multinational firms from relatively small countries in terms of area
B)   multinationals from the developing nations of the world
C)   multinational firms that operate in only one foreign country
D)   medium- and small-size multinationals
E)   subsidiaries of large multinationals in foreign countriesF) B) and E)
G) A) and D)

Question 9

Elaborate on why globalization is not inevitable.

Accepted Answer

The world may be moving toward a more gl...

Question 10

Savvy Skin Care, a U.S.-based beauty products manufacturer, has set up a manufacturing plant in Hong Kong. This is an example of

Accepted Answer

A)   foreign direct investment.
B)   international trade.
C)   exporting.
D)   global rivalry.
E)   the globalization of markets.F) B) and D)
G) None of the above

Question 11

Due to the changing economic geography, many of tomorrow's economic opportunities are most likely to be found in the

Accepted Answer

A)   rich industrialized nations of the world like Great Britain and Germany.
B)   centrally planned economies of the communist world.
C)   United States.
D)   developing nations of the world such as China, India, and Brazil.
E)   countries that are currently not members of the World Trade Organization.F) A) and B)
G) C) and D)

Question 12

One criticism of globalization is that falling trade barriers encourage companies to locate manufacturing activities in another country to take advantage of lower wage rates.

Accepted Answer

A) True 
 B)False

Question 13

A supporter of globalization would agree that

Accepted Answer

A)   environmental regulations need to be standardized around the world to equalize the economy.
B)   free trade agreements should be tied to higher environmental standards.
C)   tougher environmental regulations ultimately result in economic progress.
D)   a lack of environmental standards results in more job opportunities in developed nations.
E)   stricter labor standards eventually result in an economic downturn.F) A) and E)
G) B) and D)

Question 14

During the 1960s, centrally planned economies associated with the communist world became open to Western international businesses.

Accepted Answer

A) True 
 B)False

Question 15

Michelle, an Italian fashion designer, sells her merchandise by exporting it to retail stores in the United States, United Kingdom, and Brazil. According to this information, Michelle is participating in

Accepted Answer

A)   foreign direct investment.
B)   globalization of production.
C)   international trade.
D)   multinational enterprise.
E)   outsourcing.F) A) and D)
G) A) and B)

Question 16

Discuss how small- and medium-size firms can benefit from the globalization of markets.

Accepted Answer

A company does not have to be the size o...

Question 17

In the context of international trade and investment, describe how the former communist nations of Europe and Asia have been changing.

Accepted Answer

Many of the former communist nations of ...

Question 18

Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically.

Accepted Answer

A) True 
 B)False

Question 19

Many believe that globalization has created a convergence in

Accepted Answer

A)   the volume of goods and services produced.
B)   foreign exchange transaction law.
C)   environmental and labor laws.
D)   consumer taste preferences.
E)   the regulation of markets.F) D) and E)
G) B) and D)

Question 20

A positive economic change from 1960 to 2018 was seen in the

Accepted Answer

A)   growth of the centrally planned economies of the communist world.
B)   U.S. position in the world economy and world trade picture.
C)   share of world output enjoyed by rich industrialized countries such as Great Britain, Germany, and France.
D)   share of world output accounted for by developing nations.
E)   prevalence of independent and self-contained national economies.F) B) and D)
G) D) and E)

Exam 1: Globalization

During the 1960s, centrally planned economies associated with the communist world became open to Western international businesses.

Correct AnswerverifiedShow Answer

One result of the Uruguay Round was

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According to many influential economists, the increase in international trade and cross-border investment will result in an increase in the prices of goods and services.

Correct AnswerverifiedShow Answer

Discuss how small- and medium-size firms can benefit from the globalization of markets.

Correct AnswerverifiedA company does not have to be the size o...View AnswerShow Answer

What are mini-multinationals?

Correct AnswerverifiedShow Answer

A supporter of globalization would agree that

Correct AnswerverifiedShow Answer

Throughout the 1990s, the amount of investment directed at both developed and developing nations increased dramatically.

Correct AnswerverifiedShow Answer

Which statement reflects the changing demographics of the global economy?

Correct AnswerverifiedShow Answer

One criticism of globalization is that falling trade barriers encourage companies to locate manufacturing activities in another country to take advantage of lower wage rates.

Correct AnswerverifiedShow Answer

Elaborate on why globalization is not inevitable.

Correct AnswerverifiedThe world may be moving toward a more gl...View AnswerShow Answer

A positive economic change from 1960 to 2018 was seen in the

Correct AnswerverifiedShow Answer

Many believe that globalization has created a convergence in

Correct AnswerverifiedShow Answer

Define containerization and explain how it has changed the way goods are transported around the world.

Correct AnswerverifiedIn addition to developments in communica...View AnswerShow Answer

Those who support globalization recognize that while some concessions occur during the process of globalization, ultimately, it still works because

Correct AnswerverifiedShow Answer

Due to the changing economic geography, many of tomorrow's economic opportunities are most likely to be found in the

Correct AnswerverifiedShow Answer

Michelle, an Italian fashion designer, sells her merchandise by exporting it to retail stores in the United States, United Kingdom, and Brazil. According to this information, Michelle is participating in

Correct AnswerverifiedShow Answer

The minimum that a firm has to do to engage in international business is to

Correct AnswerverifiedShow Answer

Discuss the role of the United Nations and explain the four purposes of the organization.

Correct AnswerverifiedThe United Nations (UN) was established ...View AnswerShow Answer

Savvy Skin Care, a U.S.-based beauty products manufacturer, has set up a manufacturing plant in Hong Kong. This is an example of

Correct AnswerverifiedShow Answer

In the context of international trade and investment, describe how the former communist nations of Europe and Asia have been changing.

Correct AnswerverifiedMany of the former communist nations of ...View AnswerShow Answer

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A company does not have to be the size o...
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The world may be moving toward a more gl...
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In addition to developments in communica...
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verified

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Correct Answer
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The United Nations (UN) was established ...
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Many of the former communist nations of ...
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