Question 1

_______ are the two macro factors that seem to underlie the trend toward greater globalization.
A)The increase in global economic stability, and the slowdown in technological change
B)The increase in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and global economic stability
C)The decline in barriers to the free flow of goods, services, and capital that has occurred in the past 10 years, and the slowdown in technological change
D)The decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and technological change
E)Technological Change and the convergence of global product preferences

Accepted Answer

The decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and technological change are the two macro factors that seem to underlie the trend toward greater globalization. This is because the reduction in trade barriers has made it easier for businesses to operate in other countries, while technological advancements have made it easier to communicate and transport goods across borders, leading to increased globalization.

Question 2

The _______ was created in 1944 by 44 nations that met in Breton Woods, New Hampshire.
A)International bank
B)World Monetary Fund
C)World Trade Organization
D)International Monetary Fund
E)United Nations

Accepted Answer

The International Monetary Fund (IMF) was established in 1944, when representatives of 44 governments met at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire.

Question 3

The _______ is seen as the lender of last resort to nation-states whose economies are in turmoil and currencies are losing value against those of other nations.
A)International Monetary Fund
B)International bank
C)United Nations
D)Canada's Export Development Corporation
E)Bank of Canada

Accepted Answer

The International Monetary Fund (IMF) is specifically designed to provide loans and financial assistance to nations facing economic difficulties such as currency devaluation. It is considered the lender of last resort as it provides assistance when other options have been exhausted.

Question 4

In producing its products, Bombardier sources goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production.This practice is made possible by the globalization of:
A)finance
B)production
C)markets
D)process design
E)consumer demand

Accepted Answer

The practice described in the statement is known as global sourcing, which is a component of global production. It involves sourcing goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production. Therefore, the best choice is B, production.

Question 5

The most global of markets are not markets for __________, where national differences in tastes and preferences are still often important enough to act as a break on globalization.
A)services
B)consumer goods
C)staples
D)insurance and banking
E)industrial goods

Accepted Answer

Consumer goods markets are less global because national differences in tastes and preferences can significantly influence consumer choices, limiting the extent of globalization in these markets.

Question 6

The global dispersal of productive activities is:
A)limited to large firms only
B)limited to medium firms only
C)limited to small firms only
D)limited to large and medium firms
E)found in all sized firms

Accepted Answer

The global dispersal of productive activities is not limited to any particular size of firms. It is found in all sized firms, ranging from small to large.

Question 7

Sourcing goods and services from locations around the globe is known as __________.
A)melding of markets
B)integration of markets
C)deregulation
D)globalization of production
E)globalization of markets

Accepted Answer

Sourcing goods and services from locations around the globe is known as globalization of production.

Question 8

Which of the following refers to the exporting of goods or services to consumers in another country?
A)situational commerce
B)world exchange
C)international trade
D)cross-national barter
E)foreign investment

Accepted Answer

International trade refers to the export of goods or services to consumers in another country.

Question 9

The trend toward a more integrated and interdependent global economic system that has been in place for many years is commonly referred to as:
A)market standardization
B)cross-border integration
C)globalization
D)consumerism
E)nationalization

Accepted Answer

The trend toward a more integrated and interdependent global economic system is commonly referred to as globalization. This process involves the increasing interconnectedness of economies, the flow of goods, services, and ideas across borders, and the growing role of multinational corporations. It has been driven by advancements in technology, transportation, and communication, and has had significant impacts on individual countries, businesses, and consumers.

Question 10

Although Inco is a Canadian company, it has invested substantial business resources in activities outside Canada.This practice is referred to as:
A)transnational commerce
B)foreign direct investment
C)international trade
D)organizational diversification
E)outsourcing

Accepted Answer

Inco's investment in activities outside of Canada is an example of foreign direct investment, where a company invests resources in a foreign country to establish a presence or gain control in a particular market. Transnational commerce refers to the exchange of goods, services, and resources across national borders. International trade is the exchange of goods and services across borders. Organizational diversification is when a company expands its operations by investing in different business areas. Outsourcing is when a company contracts with a third party to perform a specific activity or function. While some of these terms may overlap with foreign direct investment, the best choice for this scenario is B.

Question 11

Examples of _______ include Coca-Cola and Pepsi, Ford and Toyota, Bombardier and Embraer, and Caterpillar and Komatsu.
A)service goods
B)international brands
C)homogeneous products
D)global competition
E)market integration

Accepted Answer

The examples given in the statement suggest that these companies are competing globally across different markets. This type of competition is known as global competition, which makes choice D the best fit. Choice A refers to services, while choices B and E are not relevant to the statement. Choice C refers to products that are identical in nature, which is not necessarily the case with the examples given.

Question 12

The two of the three main components of globalization are:
A)the globalization of markets and the globalization of production
B)the globalization of production and the globalization of finance
C)the standardization of technology and the globalization of markets
D)the globalization of finance and the globalization of accounting
E)the globalization of consumers and the globalization of marketing

Accepted Answer

The two main components of globalization are the globalization of markets and the globalization of production. The globalization of markets refers to the integration and interdependence of national economies into a global market through the exchange of goods, services, and information. The globalization of production refers to the sourcing of goods and services from around the world to take advantage of national differences in the cost and quality of factors of production.

Question 13

The globalization of __________ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labour, energy, land, and capital).
A)information technology
B)process design
C)markets
D)production
E)R&D

Accepted Answer

The globalization of production involves sourcing goods and services from different locations to take advantage of cost and quality differences in factors of production such as labour, energy, land, and capital. This has become increasingly common as companies seek to lower costs and increase efficiency by locating production in countries where these factors are more affordable.

Question 14

Globalization results in a greater degree of __________ across markets than would be present otherwise.
A)diversification
B)diversity
C)homogeneity
D)heterogeneity
E)uniformity

Accepted Answer

The answer of Globalization results in a greater degree of...

Question 15

Matrikon HYPERLINK "" exports a number of products to users in other countries.This practice is referred to as __________.
A)world exchange
B)international trade
C)cross-national barter
D)situational commerce
E)multinational diversification

Accepted Answer

The practice of exporting products to users in other countries is commonly known as international trade.

Question 16

XYZ, Inc.is an auto parts distributing warehouse that exports many of its products to consumers in other countries.XYZ Inc.can be described as engaging in:
A)international trade.
B)cross-border investments.
C)product development.
D)trading barriers.
E)international procurement.

Accepted Answer

XYZ, Inc. is exporting its products to consumers in other countries, which involves crossing borders and engaging in international trade.

Question 17

The most global of markets is in what area?
A)services
B)consumer goods
C)industrial goods
D)intellectual capital
E)entertainment

Accepted Answer

Industrial goods are often standardized and traded globally, making this market highly globalized compared to others.

Question 18

According to the text, the propensity of firms to outsource many of their productive activities to different suppliers around the world has resulted in the creation of __________ products.
A)multi-domestic
B)cross-national
C)global
D)cross-cultural
E)transborder

Accepted Answer

The use of suppliers from around the world creates products that are global in nature, as they incorporate components and expertise from multiple countries.

Question 19

The investing of resources in business activities outside a firm's home country is referred to as:
A)international trade
B)domestic direct investment
C)transnational barter
D)foreign direct investment
E)outsourcing

Accepted Answer

Foreign direct investment refers to the investment of resources by a company in business activities outside of their home country, often by establishing subsidiaries or acquiring existing companies in the foreign market.

Question 20

With membership of 192 countries, the _______________ was established to preserve peace through international cooperation and collective security.
A)World Monetary Fund
B)The International Monetary Fund
C)International bank
D)United Nations
E)NATO

Accepted Answer

The establishment of preserving peace through international cooperation and collective security indicates to the United Nations which consists of 192 member countries. The World Monetary Fund, International Monetary Fund, and International Bank are financial organizations, and NATO is a military alliance.

Quiz 1: Globalization

_______ are the two macro factors that seem to underlie the trend toward greater globalization.

The _______ was created in 1944 by 44 nations that met in Breton Woods, New Hampshire.

The _______ is seen as the lender of last resort to nation-states whose economies are in turmoil and currencies are losing value against those of other nations.

In producing its products, Bombardier sources goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production.This practice is made possible by the globalization of:

The most global of markets are not markets for __________, where national differences in tastes and preferences are still often important enough to act as a break on globalization.

The global dispersal of productive activities is:

Sourcing goods and services from locations around the globe is known as __________.

Which of the following refers to the exporting of goods or services to consumers in another country?

The trend toward a more integrated and interdependent global economic system that has been in place for many years is commonly referred to as:

Although Inco is a Canadian company, it has invested substantial business resources in activities outside Canada.This practice is referred to as:

Examples of _______ include Coca-Cola and Pepsi, Ford and Toyota, Bombardier and Embraer, and Caterpillar and Komatsu.

The two of the three main components of globalization are:

The globalization of __________ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labour, energy, land, and capital) .

Globalization results in a greater degree of __________ across markets than would be present otherwise.

Matrikon HYPERLINK "" exports a number of products to users in other countries.This practice is referred to as __________.

XYZ, Inc.is an auto parts distributing warehouse that exports many of its products to consumers in other countries.XYZ Inc.can be described as engaging in:

The most global of markets is in what area?

According to the text, the propensity of firms to outsource many of their productive activities to different suppliers around the world has resulted in the creation of __________ products.

The investing of resources in business activities outside a firm's home country is referred to as:

With membership of 192 countries, the _______________ was established to preserve peace through international cooperation and collective security.