Question 1

NAFTA is better integrated as a single market than the EU or the allied Asian countries.

Accepted Answer

Even though long-standing cultural differences remain, and the EU has recently experienced some substantial challenges, the EU is more integrated as a single market than NAFTA, CAFTA, or the allied Asian countries.

Question 2

Procter & Gamble (P&G) has strategically leveraged social media to improve its long-term brand image.

Accepted Answer

Procter & Gamble (P&G) has strategically leveraged social media to improve its long-term brand image. In 2010, P&G unveiled a Billion Acts of Green™ Facebook application which allows people to "make a pledge to lessen their environmental impact and promote environmentally beneficial habits to friends and family via social media channels."

Question 3

Foreign direct investment fell dramatically over the last decade in most regions of the world.

Accepted Answer

Foreign direct investment (FDI)-the term used to indicate the amount invested in property, plant, and equipment in another country-has been growing at a healthy rate.

Question 4

As a result of some continuing problems, the international business climate in Poland has not done well.

Accepted Answer

Although the relatively swift transition to a market economy has been very difficult for the Polish people, with very high inflation initially, continuing unemployment, and the decline of public services, Poland's economy has done relatively well.

Question 5

Like most South American economies, Brazil's economy is faced with grave economic problems.Its GDP through 2011 continued to fall, and inflation and unemployment increased.

Accepted Answer

Brazil's economy has evolved into a flourishing system. Though Brazil's GDP has slowed somewhat since 2011, its growth continues to outpace most developed nations. This economy outweighs that of any other South American country and is quickly becoming a worldwide presence.

Question 6

The report of the Goldman Sachs global economics team estimated that the economies of the four BRIC nations will surpass the collective economies of the G7 nations by 2032.

Accepted Answer

In 2011, Goldman Sachs estimated that the economies of Brazil, Russia, India, and China (the four "BRIC" economies) will surpass the collective economies of the G7 nations by 2032.

Question 7

Multinational corporations can be defined as firms having operations in more than one country, international sales, and a nationality mix of nationalities among managers and owners.

Accepted Answer

An MNC is a firm that has operations in more than one country, international sales, and a mix of nationalities among managers and owners.

Question 8

Despite claims by Facebook, social media has not significantly connected people across the globe.

Accepted Answer

We live in a world interconnected by social media. Through online networking, the way we connect with others has drastically changed. Virtually anyone on the globe is only a few clicks away. In fact, the average number of links separating any two random people on Facebook is now only 4.74.

Question 9

The ultimate objective of the EU is to eliminate all trade barriers among member countries.

Accepted Answer

The ultimate objective of the EU is to eliminate all trade barriers among member countries (like between the states in the United States).

Question 10

The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments is called international management.

Accepted Answer

International management is the process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural contexts.

Question 11

United States multinationals have more foreign direct investment in Germany than any other country.

Accepted Answer

The United States has considerable foreign direct investment in Canada, more than in any other country except the United Kingdom.

Question 12

Internationalization is the vision of creating one world unit, a single market entity.

Accepted Answer

Internationalization is the process of a business crossing national and cultural borders. Globalization is the vision of creating one world unit, a single market entity.

Question 13

The countries of the Association of Southeast Asian nations are challenging China's position as destinations for low-cost production and export.

Accepted Answer

The Association of Southeast Asian Nations (ASEAN) is advancing trade and economic integration and now poses challenges to China as a region of relatively low cost production and export.

Question 14

One of the ways that Russia is attempting to get its economy going is by removing many administered prices and subsidies and letting free market forces take over.

Accepted Answer

Each of the individual republics that made up the U.S.S.R. in turn declared their independence and now are attempting to shift from a centrally planned to a market-based economy. The Russian Republic has the largest population, territory, and influence, but others, such as Ukraine, also are industrialized and potentially important in the global economy. Of most importance to the study of international management are the Russian economic reforms, the dismantling of Russian price controls (allowing supply and demand to determine prices), and privatization (converting the old communist-style public enterprises to private ownership).

Question 15

In recent years, Canadian firms have begun investing heavily in the United States.

Accepted Answer

In recent years, Canadian firms have begun investing heavily in the United States while gaining international investment from both the United States and elsewhere.

Question 16

Mexico believes that the United States is its most important market and that little effort should go into expanding trade with Europe and Asia at least for now.

Accepted Answer

Mexico's trade with both the EU and Asia is on the rise, which is important to Mexico as it wants to reduce its overreliance on the U.S. market.

Question 17

Nongovernmental organizations believe that everyone benefits from globalization, as evidenced in lower prices, greater availability of goods, better jobs and access to technology.

Accepted Answer

As the pace of global integration quickens, so have the cries against globalization and the emergence of new concerns over mounting global pressures. Nongovernmental organizations have become more active in expressing concerns about the potential shortcomings of economic globalization.

Question 18

Emerging markets are developing economies that exhibit sustained economic reform and growth.

Accepted Answer

Emerging markets are developing economies that exhibit sustained economic reform and growth.

Question 19

Marketers must be responsive to social networks.

Accepted Answer

Social media has changed how consumers search for products and services. With the data available from their friends about products and services, consumers know what they want without traditional marketing campaigns. This trend means that marketers must be responsive to social networks.

Question 20

NAFTA is a free trade agreement among the United States, Canada, and Mexico that has in essence removed all barriers to trade and investment among the three nations.

Accepted Answer

Partly as a result of the slow progress in multilateral trade negotiations, the United States and many other countries have pursued bilateral and regional trade agreements. The United States, Canada, and Mexico make up the North American Free Trade Agreement (NAFTA), which in essence has removed all barriers to trade among these countries and created a huge North American market.

Quiz 1: Globalization and International Linkages

NAFTA is better integrated as a single market than the EU or the allied Asian countries.

Procter & Gamble (P&G) has strategically leveraged social media to improve its long-term brand image.

Foreign direct investment fell dramatically over the last decade in most regions of the world.

As a result of some continuing problems, the international business climate in Poland has not done well.

Like most South American economies, Brazil's economy is faced with grave economic problems.Its GDP through 2011 continued to fall, and inflation and unemployment increased.

The report of the Goldman Sachs global economics team estimated that the economies of the four BRIC nations will surpass the collective economies of the G7 nations by 2032.

Multinational corporations can be defined as firms having operations in more than one country, international sales, and a nationality mix of nationalities among managers and owners.

Despite claims by Facebook, social media has not significantly connected people across the globe.

The ultimate objective of the EU is to eliminate all trade barriers among member countries.

The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, and cultural environments is called international management.

United States multinationals have more foreign direct investment in Germany than any other country.

Internationalization is the vision of creating one world unit, a single market entity.

The countries of the Association of Southeast Asian nations are challenging China's position as destinations for low-cost production and export.

One of the ways that Russia is attempting to get its economy going is by removing many administered prices and subsidies and letting free market forces take over.

In recent years, Canadian firms have begun investing heavily in the United States.

Mexico believes that the United States is its most important market and that little effort should go into expanding trade with Europe and Asia at least for now.

Nongovernmental organizations believe that everyone benefits from globalization, as evidenced in lower prices, greater availability of goods, better jobs and access to technology.

Emerging markets are developing economies that exhibit sustained economic reform and growth.

Marketers must be responsive to social networks.

NAFTA is a free trade agreement among the United States, Canada, and Mexico that has in essence removed all barriers to trade and investment among the three nations.