Question 1

The term sector refers to broad divisions of a whole.

Accepted Answer

The term sector is used to refer to broad divisions of a whole, such as the different sectors of the economy (e.g. agriculture, manufacturing, services) or the different sectors of society (e.g. public, private, nonprofit).

Question 2

Although many firms conduct business across national boundaries,most global commerce is carried out by a small number of powerful firms.

Accepted Answer

This is because large multinational corporations have the resources and infrastructure to operate on a global scale, while smaller firms may lack the necessary resources to do so. Thus, global commerce is generally dominated by a few large firms.

Question 3

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Accepted Answer

When a country focuses on producing goods and services in which they have a comparative advantage or natural talent, their productivity increases as they can efficiently utilize their resources and get better returns on their investments. This idea is known as the principle of comparative advantage, which was introduced by economist David Ricardo. Thus, countries can improve their productivity by focusing on producing goods and services for which they have a natural talent.

Question 4

Only manufacturing jobs are being lost through globalization.

Accepted Answer

Globalization affects all types of jobs, not just manufacturing. Jobs in service industries, such as customer service and IT support, have also been impacted by globalization.

Question 5

A firm that has global operations has:
A) All of their manufacturing and service operations abroad.
B) Some or all of their manufacturing or service operations abroad.
C) Manufacturing but not service operations abroad.
D) Service but not manufacturing operations abroad.

Accepted Answer

A firm with global operations may have some or all of their manufacturing or service operations abroad. It is not necessary for all operations to be located abroad for a firm to be considered "global."

Question 6

Even as the world has become freer politically and economically,inequality has grown.

Accepted Answer

Although there has been progress in terms of political and economic freedom, inequality has also grown, both within and between countries. This is evidenced by statistics such as the widening income gap, the concentration of wealth in the hands of a few, and the persistence of poverty and deprivation for many.

Question 7

Most nations in the world share similar political,social and economic beliefs.

Accepted Answer

Most nations in the world have their unique political, social and economic beliefs that may be different from those of other nations. While some similarities may exist, it is not accurate to say that most nations share similar beliefs in these areas.

Question 8

The World Trade Organization is based in the United States.

Accepted Answer

The World Trade Organization (WTO) is not based in the United States. Its headquarters are located in Geneva, Switzerland.

Question 9

Globalization directly and indirectly influences the politics,environment,geopolitics,and economics of virtually every country in the world.

Accepted Answer

Globalization has far-reaching effects on various aspects of a country's functioning, including its political, environmental, geopolitical, and economic policies and practices. It promotes international cooperation, trade, and investment, but can also bring about challenges such as job displacement, cultural homogenization, and environmental degradation. Consequently, globalization has become a topic of debate and discussion among policymakers, scholars, and citizens worldwide.

Question 10

A firm that would like to develop a global supply chain would:
A) Manufacture components or supplies in other countries.
B) Sell raw materials, components or supplies produced at home abroad.
C) Purchase raw materials, components, or supplies from sellers in other countries.
D) Check products that were manufactured abroad for defects in their home country.

Accepted Answer

To develop a global supply chain, a firm would need to purchase raw materials, components, or supplies from sellers in other countries. This means that the firm would need to establish relationships with suppliers in various countries around the world to ensure a steady supply of materials. By doing so, the firm can take advantage of lower production costs in other countries, access new markets, and improve its overall competitiveness. Manufacturing components or supplies in other countries (A) or selling raw materials, components, or supplies produced at home abroad (B) are also part of a global supply chain strategy, but they may not be as effective or efficient as purchasing from other countries. Checking products that were manufactured abroad for defects in their home country (D) is more of a quality control measure than a supply chain strategy.

Question 11

At the beginning of the 20^th century,no country in the world had universal suffrage.

Accepted Answer

The right to vote was restricted to property-owning men in many countries, and women and minorities were often excluded from the political process. It was not until later in the 20th century that universal suffrage became more widespread.

Question 12

According to the United Nations,how many transnational corporations operate in the global economy?
A) 49,000.
B) 104,000.
C) 290,000.
D) 900,000.

Accepted Answer

As of the latest available data, the United Nations Conference on Trade and Development (UNCTAD) reports that there are approximately 104,000 transnational corporations operating in the global economy. This figure highlights the extensive network of multinational enterprises and their subsidiaries that play a significant role in international trade and investment.

Question 13

Under the World Trade Organization's most favored nation rule,member countries may not discriminate against foreign products for any reason.

Accepted Answer

The most favored nation rule (MFN) requires WTO members to extend the same treatment to all other WTO members, with no discrimination or preferences given to any particular member. This applies to products as well as services and intellectual property rights. Therefore, member countries may not discriminate against foreign products for any reason under the MFN rule.

Question 14

Globalization is accepted worldwide and creates little controversy.

Accepted Answer

Globalization remains a controversial topic with differing viewpoints on its impact on economies, social structures, and culture.

Question 15

Global market channels involve a firm producing goods in:
A) Their home country and exporting them to other countries.
B) Their home country to sell at home.
C) A foreign country to sell at home.
D) A foreign country to sell abroad.

Accepted Answer

Global market channels involve a firm producing goods in their home country and exporting them to other countries. This is known as international trade, which allows businesses to expand their customer base, increase revenue, and diversify their operations.

Question 16

The World Trade Organization conducts negotiations,called "cycles," on various topics,rotating its meetings among different cities.

Accepted Answer

The World Trade Organization conducts negotiations called "rounds," not "cycles," and these negotiations typically take place at the WTO's headquarters in Geneva, Switzerland, rather than rotating among different cities.

Question 17

Global commerce has taken place for hundreds of years,dating back to the 15^th century.

Accepted Answer

Global commerce has been happening for centuries, dating back to the 15th and 16th centuries with the Age of Exploration and the establishment of trade routes between Europe, Asia, and Africa.

Question 18

The World Bank makes currency exchange easier for member countries so that they can participate in global trade.

Accepted Answer

The World Bank's primary focus is on providing financial and technical assistance to developing countries for development programs (e.g., infrastructure, health, education) that are expected to improve their economic prospects and quality of life, not on facilitating currency exchange for trade purposes.

Question 19

Critics of globalization support the spread of American ideals and culture throughout the rest of the world.

Accepted Answer

Critics of globalization are typically opposed to the spread of American ideals and culture, seeing it as a form of cultural imperialism and a threat to diversity and local traditions.

Question 20

The three strategies of globalization can be summarized using what three words?
A) Channels, operations, and chains.
B) Export, locate, and purchase.
C) Sell, make, and buy.
D) Ethics, import, and sell.

Accepted Answer

The three strategies of globalization are selling, making, and buying. Option A uses different words not commonly associated with globalization strategies. Option B only includes actions and does not encompass the full scope of globalization strategies. Option D includes one action (sell) and one concept (ethics) that is not always directly related to globalization strategies.

Quiz 6: The Challenges of Globalization

The term sector refers to broad divisions of a whole.

Although many firms conduct business across national boundaries,most global commerce is carried out by a small number of powerful firms.

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Only manufacturing jobs are being lost through globalization.

A firm that has global operations has:

Even as the world has become freer politically and economically,inequality has grown.

Most nations in the world share similar political,social and economic beliefs.

The World Trade Organization is based in the United States.

Globalization directly and indirectly influences the politics,environment,geopolitics,and economics of virtually every country in the world.

A firm that would like to develop a global supply chain would:

At the beginning of the 20th century,no country in the world had universal suffrage.

According to the United Nations,how many transnational corporations operate in the global economy?