Deck 1: Globalization

Question 1

The role of the World Bank is to provide financing for national economic development efforts.

Answer 1

True

Question 2

Imports are goods and services purchased abroad and brought into a country.

Answer 2

True

Question 3

NAFTA is the international organization that enforces the rules of international trade worldwide.

Answer 3

False

Question 4

A characteristic of the world's least-global nations is low levels of corruption.

Question 5

Extranets give distributors and suppliers access to a company's database to place orders or restock inventories electronically.

Question 6

The term "globalization of production" refers to convergence in buyer preferences in markets around the world.

Question 7

The rules of the international monetary system are enforced by the World Bank.

Question 8

Critics of globalization argue that it eliminates jobs in developing nations.

Question 9

Multinational corporations (MNCs)have direct investments abroad in multiple countries.

Question 10

The power of the General Agreement on Tariffs and Trade (GATT)to settle trade disputes is what sets it apart from the World Trade Organization (WTO).

Question 11

The World Trade Organization's dispute settlement system has the ability to penalize offending nations.

Question 12

The General Agreement on Tariffs and Trade (GATT)was designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

Question 13

Flexible labor markets allow workers to be redeployed rapidly to sectors of the economy where they are highly valued.

Question 14

A born global firm is a company that engages in international business from or near its inception.

Question 15

Products marketed in all countries essentially without any changes are known as continental products.

Question 16

Supporters and critics of globalization appear to agree that globalization prevents dislocation in labor markets.

Question 17

Resistance to worldwide trade agreements has resulted in some nations placing greater emphasis on regional pacts.

Question 18

International business is any commercial transaction that crosses the borders of two or more nations.

Question 19

Pro-globalization economists believe globalization increases wealth in both developed and developing nations.

Question 20

Gross national product (GNP)is the value of all goods and services imported into a country over a one-year period.

Question 21

Any commercial transaction that crosses the borders of two or more nations is known as ________.

A)domestic marketing
B)market segmentation
C)international business
D)global manufacturing

Question 22

As a result of globalization,Argonia finds that its national borders are becoming less relevant.This indicates that Argonia is undergoing ________.

A)denationalization
B)standardization
C)reorganization
D)internationalization

Question 23

Small companies selling traditional products benefit from ________.

A)the barriers to trade that restrict their products from crossing domestic boundaries
B)increased investment by foreign competitors in domestic markets
C)government policies that seek to regulate the flow of capital across national borders
D)technology that lowers the costs and difficulties of global communication

Question 24

Critics of globalization believe the overall gains that accrue to national economies are worth the lost livelihoods of some workers.

Question 25

The term ________ refers to entities cooperating across national boundaries.

A)internationalization
B)supranationalism
C)denationalization
D)multiculturalism

Question 26

The rise of a new international entity called the ________ suggests that any company,regardless of age,experience,and resources,can engage in international business.

A)transnational corporation
B)multinational corporation
C)born global firm
D)global firm

Question 27

Small businesses will be completely immune to events in the international business environment.

Question 28

Which of the following refers to the use of computer networks to purchase,sell,or exchange products; service customers; and collaborate with partners?

A)e-commerce
B)telecommuting
C)data virtualization
D)virtual hosting

Question 29

Olive oil prepared in a small Italian oil press factory and sold by large supermarkets in the United States is an example of a ________.

A)net national product
B)U)S.export
C)U)S.import
D)gross domestic product

Question 30

________ is an effective alternative to traditional distribution channels for firms that sell digitized products.

A)Dual licensing
B)Electronic distribution
C)Visual merchandising
D)Digital switchover

Question 31

A business that has direct investments (in the form of marketing or manufacturing subsidiaries)abroad in several countries is called a ________.

A)dummy corporation
B)shell corporation
C)multinational corporation
D)domestic corporation

Question 32

International firms tend to support reasonable labor and environmental laws to expand future local markets for their businesses.

Question 33

________ are all goods and services sold abroad and sent out of a country.

A)Net national products
B)Exports
C)Gross domestic products
D)Imports

Question 34

Which of the following terms applies to the sale of a particular brand of jeans manufactured in the U.S.and sold in Canadian stores?

A)exporting
B)outsourcing
C)insourcing
D)importing

Question 35

________ is the trend toward greater economic,cultural,political,and technological interdependence among national institutions and economies.

A)Privatization
B)Heterogenization
C)Globalization
D)Decentralization

Question 36

Goods and services purchased abroad and brought into a country are called ________.

A)gross domestic products
B)exports
C)gross national products
D)imports

Question 37

Which of the following refers to convergence in buyer preferences in markets around the world?

A)heterogenization of markets
B)globalization of markets
C)segmentation of markets
D)nationalization of markets

Question 38

Export-processing zones are special areas in which companies engage in tariff-free importing and exporting.

Question 39

Research shows that pollution-intensive U.S.companies tend to invest in nations with lenient environmental standards.

Question 40

Globalization is characterized by ________.

A)the demise of democracy within a nation
B)national boundaries becoming less relevant
C)the fortification of trade barriers
D)rigid foreign relations policies

Question 41

Gentian Violet is a dye manufacturing company that uses computer networks to sell its products,service customers,and collaborate with partners.Which of the following technologies is the company engaging in this scenario?

A)rapid prototyping
B)e-business
C)simulation
D)console automation

Question 42

The purpose of the General Agreement on Tariffs and Trade (GATT)was to ________.

A)create an international currency
B)regulate exchange rates
C)create regional trade organizations
D)promote free trade

Question 43

The population of a(n)________ market is mostly rural and is characterized by poor infrastructure with little credit or collateral.

A)emerging
B)traditional
C)developed
D)virtual

Question 44

________ place limits on the quantity of a product being imported.

A)Embargoes
B)Trade blocs
C)Nontariff barriers
D)Anti-dumping duties

Question 45

________ markets are characterized by the rural population migrating to cities for better pay and thus,overloading cities' infrastructures.

A)Traditional
B)Emerging
C)Virtual
D)Developed

Question 46

An established consumer market that primarily comprises the middle class and possesses efficient infrastructure is characteristic of ________ markets.

A)emerging
B)frontier
C)traditional
D)developed

Question 47

Two major forces that underlie the expansion of globalization are falling barriers to trade and investment,and ________.

A)elevation of nationalism
B)rise of closed economies
C)political stagnation
D)technological innovation

Question 48

Konesia is a country in which rising incomes are increasing the global demand for basic products and services.Which of the following is the type of market featured in this country?

A)traditional market
B)emerging market
C)feudal market
D)virtual market

Question 49

The three main goals of the World Trade Organization (WTO)are to help the free flow of trade,help negotiate the further opening of markets,and ________.

A)measure the extent of globalization across the world
B)settle trade disputes between its members
C)accelerate technological innovation
D)fund small traders in developing nations

Question 50

Kireki is a small country with a corrupt government.Its population is rural for most part and citizens have few or no legal rights.Which of the following is the type of market featured in Kireki?

A)developed market
B)traditional market
C)emerging market
D)virtual market

Question 51

A major flaw of the original General Agreement on Tariffs and Trade (GATT)was that it lacked the power to ________.

A)displace the WTO
B)reduce nontariff barriers to international trade
C)govern exchange rates
D)enforce world trade rules

Question 52

The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________.

A)gross domestic product (GDP)
B)gross world product (GWP)
C)gross national product (GNP)
D)gross state product (GSP)

Question 53

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs indicates ________.

A)egalitarianism
B)denationalization
C)generalizability
D)sustainability

Question 54

Whereas relocating production to low-cost locales traditionally meant production of goods almost exclusively,it increasingly applies to the production of ________.

A)domestic products
B)perishables
C)services
D)global brands

Question 55

Which of the following is an example of globalization of production?

A)Canadian consumers who import food products from Australia
B)A German company which sells car components to British car makers
C)A U.S.company that builds a computer hardware manufacturing facility in India
D)A Swiss watch manufacturer that builds a manufacturing facility in Switzerland

Question 56

Most companies today operate in an environment of increased transparency and scrutiny regarding their business activities.This is due to ________.

A)the rise of the social media
B)the prosperity of developing nations
C)the heterogeneity in markets
D)labor market flexibility in developing nations

Question 57

Some nations encourage ________ because of recent resistance to worldwide trade agreements.

A)regional pacts
B)homogeneous markets
C)product standardization
D)domestic manufacturing

Question 58

________ is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service.

A)Global offering
B)Globalization of production
C)Global governance
D)Globalization of markets

Question 59

As former competitors in many industries link up to challenge others on a worldwide basis,________ occurs.

A)segregation
B)denationalization
C)consolidation
D)technological stagnation

Question 60

The ________ replaced the institution of GATT while retaining all of the former GATT agreements.

A)World Trade Organization
B)Federation of International Trade Association
C)Commonwealth of Nations
D)International Monetary Fund

Question 61

Globalization tends to foster two important values,tolerance and ________.

A)nationalization
B)diversity
C)authoritarianism
D)heterogeneity

Question 62

Which of the following terms is used to refer to widespread job turnover throughout an economy?

A)redeployment
B)restructuring
C)onboarding
D)churning

Question 63

Critics of globalization say that global consumer-goods companies destroy ________ .

A)the homogenization of markets
B)societal conformity
C)free trade areas
D)cultural diversity

Question 64

Which of the following was created to regulate fixed exchange rates and enforce the rules of the International monetary system?

A)International Monetary Fund
B)World Trade Organization
C)European Union
D)World Bank

Question 65

Which of the following actions can be adopted by developed nations to lessen the negative effects of globalization?

A)restrict the import of goods from developing countries
B)slash agricultural subsidies that hurt the exports of developing nations
C)discontinue foreign-aid programs to developing countries
D)pressurize developing nations to fend for themselves in matters of health and education

Question 66

________ involves the idea that a nation-state is autonomous,cannot intervene in the affairs of other nations,and can enter into binding international agreements.

A)National sovereignty
B)Authoritarianism
C)Cultural liberalism
D)Communalism

Question 67

Opponents argue that globalization ________.

A)eliminates manufacturing jobs in developed nations
B)generates labor market flexibility in developed nations
C)brings an end to practices like outsourcing
D)slows down the employment rate in developing nations

Question 68

Globalization is criticized because it ________.

A)does not generate labor market flexibility in developing nations
B)prevents developed countries from outsourcing work to developing nations
C)creates fewer manufacturing jobs in developing nations
D)exploits workers in low-wage nations

Question 69

According to the opponents of globalization,which of the following occurs as a result of worker dislocation brought about by globalization?

A)increased labor costs for companies
B)lower workers' wages in developed nations
C)surfeit of jobs in developed nations
D)increased investment in individual education

Question 70

The KOF Index measures the ________.

A)distribution of the global workforce
B)extent of globalization
C)gross regional product of an area
D)extent of technological innovation in a nation

Question 71

Supporters affirm that globalization ________.

A)brings an end to practices like outsourcing
B)causes worker dislocation that gradually lowers wages
C)increases wealth and efficiency in all countries
D)curbs market flexibility in developed nations

Question 72

Each ________ is composed of unique cultural,political,legal,and economic characteristics that define business activity within that nation's borders.

A)capital market
B)national business environment
C)international bond market
D)operational center

Question 73

The global business environment consists of four distinct elements: the forces of globalization,national business environments,the international business environment,and ________.

A)domestic investment opportunities
B)technological innovation
C)international firm management
D)multinational corporations

Question 74

The ________ is an agency created to provide financing for national economic development efforts.

A)Global Financial Markets Association
B)World Trade Organization
C)Financial Stability Board
D)World Bank

Question 75

A special region in which companies can engage in tariff-free importing and exporting is called a(n)________.

A)preferential trade area
B)export-processing zone
C)customs union
D)economic union

Question 76

Scenario: Topsy Turvey Toys and Ureshi Toys
Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys,a Japan-based toy manufacturer with production facilities in twelve nations.Ureshi Toys markets its toys globally without modification.
Topsy Turvey Toys buying its merchandise from Ureshi Toys is an example of ________.

A)importing
B)exporting
C)outsourcing
D)insourcing

Question 77

Crystal inc.is a multifaceted company that deals with the mining,cutting,and selling of diamonds.It gives distributors and suppliers access to its database to place orders or restock inventories electronically and automatically.Which of the following is the network implemented in the company?

A)intranet
B)chaosnet
C)extranet
D)ethernet

Question 78

To minimize the economic inequality within developing nations,studies suggest that the nations can boost incomes of their poorest citizens by ________.

A)rejecting globalization and sheltering themselves from exploitation
B)embracing globalization and integrating themselves into the global economy
C)fortifying trade barriers and discouraging exports
D)encouraging economic independence and restricting imports

Question 79

Which of the following statements is true of developing countries that have embraced globalization?

A)The countries have experienced an increase in life expectancy.
B)As a result of extensive commercialism,there has been a decline in personal income.
C)Relying upon developed countries for technology has rendered their talent pool stagnant.
D)Their rich cultural diversity hasn't been affected by exposure to new cultures.

Question 80

Trade unions claim that by permitting international firms to continually move to nations with ________,globalization reduces labor's bargaining power and forces overall labor standards lower.

A)better factory facilities
B)higher resource accessibility
C)lower labor standards
D)lower labor density