Deck 14: Globalization: Managing Effectively in a Global Economic Environment

Question 1

The smallest BRIC country in terms of population is Brazil.

Answer 1

False

Question 2

Many people feel that as globalization increases,war becomes less likely.

Answer 2

True

Question 3

The end of Stalin's reign marked the demise of Communist rule in the Soviet Union.

Answer 3

False

Question 4

Offshoring is a form of outsourcing.

Question 5

The U.S.industry that has suffered the most losses from globalization is manufacturing.

Question 6

The World Trade Organization's two main functions are to oversee international trade and to provide a more objective forum to settle trade disputes.

Question 7

Hybridization presents a more negative outlook of the future than McDonaldization.

Question 8

Fortunately,the United States did not engage in distributing propaganda during the Cold War.

Question 9

Dealing with software piracy and counterfeiting is a major disadvantage of doing business with China.

Question 10

By 2008,Russia was the world's largest producer of biofuels.

Question 11

ECOSOC is a division of the UN that focuses on improving the standard of living within UN member states.

Question 12

The arrival of the Portuguese royal family in Brazil in the early 19th century brought on a period of prosperity.

Question 13

Globalization includes the exchange of money,products,information,services,and expertise between people in different parts of the world.

Question 14

All members of the EU use the same currency,the euro.

Question 15

The World Economic Forum is a non-profit organization.

Question 16

The Association of Southeast Asian Nations is a trade alliance.

Question 17

A disadvantage of doing business with India is that few people in the country speak English.

Question 18

Getting a job in today's world is still a local process in which you are competing with local applicants.

Question 19

The shift in technology that triggered globalization began in the 1970s when businesses began using ICTs first developed in the Cold War.

Question 20

The Cold War was a political and ideological conflict between China and the United States.

Question 21

Which of the following was NOT a characteristic of the Cold War?

A) military antagonism
B) ideological warfare
C) intercultural exchange
D) economic competition

Question 22

What is one point that members on both sides of the debate over globalization can agree on?

A) Globalization decreases trade.
B) Globalization can't be stopped.
C) Globalization brings prosperity to everyone.
D) Globalization only benefits big business.

Question 23

Supporters of globalization claim that it will ________.

A) end war forever
B) promote democracy
C) make war less likely
D) decrease economic opportunities

Question 24

The event that triggered the end of the Cold War was the ________.

A) fall of the Berlin Wall
B) Tiananmen Square massacre
C) Day of Rage
D) Arab oil embargo

Question 25

The Cold War was a(n)________.

A) political and ideological battle between the Soviet Union and the United States
B) bloody conflict between Japan and the United States
C) proxy war between the United States and China
D) ideological battle between the Soviet Union and Eastern Europe

Question 26

Before the advent of globalization,________ were responsible for 70 percent of the world's manufactured exports.

A) the United States, Western Europe, and China
B) North America, Western Europe, and Japan
C) the United States, Canada, and Western Europe
D) Japan, Western Europe, and China

Question 27

Propaganda is a form of information that is ________.

A) communicated in written form only
B) communicated on broadcast media only
C) usually honest and unbiased
D) biased and used to further an agenda

Question 28

Which competing interests do countries consider when seeking trade agreements?

A) limiting environmental impacts and standardizing labor practices
B) attaining goods and protecting domestic industry
C) protecting domestic industry and promoting cultural diversity
D) attaining goods and decreasing labor costs

Question 29

Which of the following has the most specific oversight responsibility for international trade?

A) World Trade Organization
B) G-20
C) World Economic Forum
D) United Nations Economic and Social Council

Question 30

Proxy wars between superpowers during the Cold War were fought in all of the following countries EXCEPT ________.

A) Korea
B) Mexico
C) Afghanistan
D) Vietnam

Question 31

In which of the following did social media play a significant role?

A) the Cold War
B) Tiananmen Square protests
C) fall of the Berlin Wall
D) the Arab Spring

Question 32

People against globalization think that it will ________.

A) make war more likely
B) cause more countries to become Communist
C) destroy local cultures in developing countries
D) cause repressive governments to gain power in developing countries

Question 33

Which of the following has NOT been a major driver of globalization over the past few decades?

A) changes in technology
B) environmental concerns
C) political shifts
D) economic trends

Question 34

One response of U.S.companies to the 2008 global recession has been a shift toward ________.

A) increased importing
B) increased exporting
C) globalization
D) localization

Question 35

Years of living under centrally-planned Communist rule left the economies of Iron Curtain countries ________.

A) as agrarian-based societies
B) ready for globalization
C) as centers of industrial production
D) in economic ruin

Question 36

Why is the United States hamstrung with respect to having influence over political activities in China?

A) China owes the United States over $2 trillion.
B) The United States owes China over $2 trillion.
C) China owns every major U.S. bank.
D) The United States owns many factories in China.

Question 37

Eastern European countries behind the Iron Curtain favored ________.

A) capitalism
B) communism
C) free trade
D) outsourcing

Question 38

Which of the following is NOT addressed by the basic tenets of the World Trade Organization?

A) legally binding contracts
B) sustainability
C) transparency
D) exclusion of reciprocity

Question 39

Which of the following is NOT a worldwide trade alliance?

A) European Union (EU)
B) Association of Southeast Asian Nations (ASEAN)
C) Union of South American Nations (UNASUR)
D) Group of Twenty (G-20)

Question 40

What resource has a significant effect on international relations?

A) oil
B) steel
C) timber
D) precious metals

Question 41

India and China represent a great opportunity for companies because they have ________.

A) enormous populations
B) poorly educated people who can be sold any goods
C) people with large amounts of disposable wealth
D) no rule of law

Question 42

Which of the following is a key difficulty people have doing business in India?

A) taxes
B) legal restrictions
C) language barriers
D) social prejudices

Question 43

Under ________,countries participating in an alliance transfer some of their power to the union in exchange for certain benefits.

A) hybridization
B) globalization
C) supranationalism
D) internationalism

Question 44

Brazil is the world's largest producer of ________.

A) petroleum
B) steel
C) plant-based biofuels
D) manufactured exports

Question 45

Which of the following is a key disadvantage to doing business with Russia?

A) weak rule of law
B) poorly educated population
C) expensive labor
D) little technical expertise

Question 46

The homogenization of business products and services with a focus on standardization and efficiency is called ________.

A) cultural clash
B) hybridization
C) McDonaldization
D) WTO tenet

Question 47

Why are the BRIC countries gathering so much attention from the business community?

A) BRIC countries are the fastest growing markets in the world.
B) BRIC countries have the most natural resources in the world.
C) BRIC countries have the highest per capita incomes in the world.
D) BRIC countries have the greatest value of imports in the world.

Question 48

According to Vittorio Colao,CEO of Vodafone,there is no such thing as ________.

A) globalization
B) culture
C) global culture
D) local culture

Question 49

What is global finance?

A) elimination of trade barriers
B) supply and demand of money
C) pro-growth policies in developing countries
D) promoting higher living standards

Question 50

Which of the following had the largest economy in the world in 2011?

A) China
B) the United States
C) India
D) the European Union

Question 51

What is the primary goal of a trade alliance?

A) to increase trade within a particular region
B) to limit migration of labor
C) to lower prices for domestic goods
D) to decrease budget deficits

Question 52

In the process of offshoring,jobs are ________.

A) always transferred to foreign countries
B) always transferred from foreign countries to domestic economy
C) transferred to island locations
D) always high paying

Question 53

Which country experienced a serious depression in the 1990s?

A) China
B) Russia
C) Brazil
D) India

Question 54

EuroDisney failed in its first years because Disney ________.

A) charged too much money for tickets
B) failed to build a large enough facility
C) failed to recognize legal differences between France and the United States
D) failed to recognize cultural differences between France and the United States

Question 55

The idea that globalization will lead to a multifaceted world culture with parts that are connected but still distinct and separate is called ________.

A) cultural uniformity
B) hybridization
C) McDonaldization
D) enculturation

Question 56

In the coming decade,wages for Chinese workers are expected to ________.

A) rise above wage levels in the United States
B) rise, but still be far below wage levels in the United States
C) be determined by the World Economic Forum
D) comply with the Fair Minimum Wage Act of 2007

Question 57

Which of the following is NOT a method of triggering inflation?

A) selling government bonds
B) increasing interest rates
C) raising tax rates
D) printing money

Question 58

Which of the following trade alliances aims to phase out tariffs by 2019?

A) North American Free Trade Agreement
B) Asia-Pacific Economic Cooperation
C) the European Union
D) Union of South American Nations

Question 59

India's economy is primarily focused on ________.

A) services
B) technology
C) manufacturing
D) agriculture

Question 60

Which country was the largest holder of foreign debt in the world in 2011?

A) the United States
B) China
C) Russia
D) Greece

Question 61

Which of the following is NOT a disadvantage of doing business in China?

A) human rights violations
B) piracy and counterfeiting
C) high health care costs
D) pollution problems

Question 62

Bianca is president of a premium home furnishings manufacturer in the United States.After visiting Rio on vacation,she is interested in doing business with Brazil.Which of the following is NOT a potential risk that could give Bianca second thoughts?

A) economic instability
B) high tariffs
C) potential political strife
D) protectionism

Question 63

Poorvi's company produces organic snack foods.To meet growing demand,she can expand the existing production,packing and shipping facility.Instead,Poorvi will expand production in-house and subcontract packing and shipping to companies in an adjacent industrial park.Which process is Poorvi implementing?

A) outsourcing
B) offshoring
C) job migration
D) diversification

Question 64

Which EU member does not use the euro as its currency?

A) Great Britain
B) Greece
C) Germany
D) Spain

Question 65

Manuel is an economic analyst in Argentina.One of his projects is running models to determine the most effective approach to creating a single market system with neighboring countries.Which of the following is the focus of Manuel's work?

A) NAFTA
B) APEC
C) UNASUR
D) CAFTA

Question 66

Tony's pizza chain experienced amazing growth throughout the United States.When he expanded into foreign markets,he retained the same menu that drove the company's initial success.In three years,all the foreign restaurants failed.What was Tony's strategic error?

A) supranationalism
B) standardization
C) hybridization
D) McDonaldization

Question 67

Tamara is planning to establish a company,and wants to secure resources and marketing channels in multiple countries at the same time.What is the best strategy for Tamara to achieve the company's goals?

A) establish licensing agreements
B) emphasize hybridization of operations
C) use a global new venture start-up model
D) focus on ramping up exports

Question 68

Tricia recently began a new job in a formerly isolated socialist country that is transitioning into a market-based economy.Walking around the fast-growing city,she is surprised to see billboards glorifying the country's leaders and policies.What is Tricia experiencing?

A) offshoring
B) propaganda
C) McDonaldization
D) supranationalism

Question 69

Supporters of globalization claim that it will end poverty by ________.

A) bringing inexpensive products to people in poor countries
B) allowing people in poor countries to see how people in industrialized countries live
C) having organizations invest in underdeveloped regions
D) bringing cheap labor into poor countries

Question 70

Ahmed is CEO of Cook-Rite,a company that manufactures kitchen appliances.Recently he decided to add a third shift to help lower the company's per-unit production costs.What business strategy is Ahmed implementing?

A) outsourcing
B) economy of scale
C) mechanization
D) hybridization

Question 71

Which of the following is NOT considered a key competency for working in another country?

A) adaptability
B) communication
C) organizational awareness
D) global finance

Question 72

Which of the following is a primary function of the World Trade Organization?

A) to keep wages low in developing countries
B) to settle trade disputes
C) to raise wages in developing countries
D) to protect against global warming

Question 73

Donell is researching the benefits and challenges of doing business in China for his economics class.Which of the following is NOT considered a potential disadvantage to doing business with China?

A) safety standards
B) human rights violations
C) environmental sustainability
D) health care costs

Question 74

Estella has always wanted to help make a positive impact on the world in her career.So she is excited to start her new job with a nonprofit organization that combines the talents of business,political,social,and intellectual leaders around the world.Where does Estella work?

A) World Economic Forum
B) United Nations Economic and Social Council
C) International Coach Federation
D) World Trade Organization

Question 75

Seth is CEO of U.S.-based Fun Tyme Toys.For the past ten years the company has manufactured its products in Southeast Asia.Following the 2008 global recession,Seth began shifting production to the Midwest in the U.S.What practice is Fun Tyme Toys implementing?

A) globalization
B) hybridization
C) localization
D) McDonaldization

Question 76

Troy's small startup software company,Zapp App,has experienced tremendous growth and is ready to go international.However,he has concerns about losing revenue to pirating and counterfeiting.Which country poses the greatest risk for Zapp App?

A) China
B) India
C) Brazil
D) Russia

Question 77

You are thinking of launching an Internet campaign to promote your new band,Global Warning.In which country would your campaign have the lowest penetration based on Internet access?

A) China
B) India
C) Brazil
D) Russia

Question 78

Jamal is chief economic advisor in the government of one of the world's top-level economies.One of his responsibilities is to travel with the country's leader to attend the meetings of the ________.

A) World Trade Organization
B) World Economic Forum
C) Group of Eight
D) United Nations Economic and Social Council

Question 79

Laurent is CEO of a software firm in central France.After monitoring the Russian economy since the end of the Cold War,Laurent feels it is time to explore business opportunities in the country.Which of the following issues would present a challenge to Laurent's mission?

A) Russian wages
B) geographic proximity
C) Russian law
D) Russian education

Question 80

Tam is working on a research project for school; assessing the impacts of a particular trade alliance on its members' countries.Compared to his classmates,Tam feels lucky because he only needs to examine three countries.What is the focus of Tam's project?

A) NAFTA
B) CAFTA
C) ASEAN
D) APEC