Question 1

According to WTO data,the volume of world merchandise trade has grown faster than the world economy since 1950.

Accepted Answer

WTO data shows that the volume of world merchandise trade has grown on average 3.3% per year between 1950 and 2019, while world GDP has grown on average 2.9% per year during the same period. This means that the volume of world merchandise trade has grown faster than the world economy.

Question 2

According to the United Nations most changes between 1992 and 2005 to laws governing FDI have resulted in a less favorable environment for FDI.

Accepted Answer

Most changes to laws governing FDI between 1992 and 2005 have generally resulted in a more favorable environment for foreign direct investment, as countries sought to attract more foreign capital.

Question 3

Efficiency gains associated with containerization have caused transportation costs to fall dramatically.

Accepted Answer

Containerization has allowed for easier handling of cargo, faster loading and unloading, and increased security during transportation. These efficiency gains have led to lower transportation costs for shippers, ultimately benefiting consumers as well.

Question 4

One of the UN central mandates is the promotion of higher standards of living,full employment,and conditions of economic and social progress and development.

Accepted Answer

One of the UN's core mandates is promoting higher standards of living, full employment, and conditions of economic and social progress and development. This is stated in the United Nations Charter and is a key priority for the organization.

Question 5

The expansion of world trade implies that nations are becoming less dependent on each other for important goods and services.

Accepted Answer

The expansion of world trade actually implies that nations are becoming more interdependent on each other for important goods and services. As countries specialize in producing what they are good at and trade for what they need, they become more reliant on each other for the things they require.

Question 6

Outsourcing is a process that is limited to manufacturing enterprises.

Accepted Answer

Outsourcing can be used by any type of enterprise, not just manufacturing. It involves hiring another company to perform a particular task or service, such as accounting, customer service, or IT support.

Question 7

Moore's Law predicts that the power of microprocessor technology doubles and its cost of production falls by half every 18 months.

Accepted Answer

Moore's Law does predict that the power of microprocessor technology will double and its cost of production will fall by half every 18 months.

Question 8

Today global communication networks and global media are creating a worldwide culture.

Accepted Answer

With the increasing availability and accessibility of communication networks and media, people from different parts of the world can connect and share information easily. This has resulted in the emergence of a global culture, where ideas, beliefs, values, and practices are shared and spread across borders, leading to cultural convergence.

Question 9

The most global markets currently are markets for industrial goods and materials that serve a universal need the world over.

Accepted Answer

Industrial goods and materials such as steel, oil, and chemicals are used in various industries and have a global demand.

Question 10

Declining barriers to cross-border trade and investment cannot be taken for granted.

Accepted Answer

While there has been progress in reducing barriers to cross-border trade and investment, there is always a risk that barriers may be reinstated or new ones introduced. Political, economic, and social factors can all influence the degree of openness to cross-border trade and investment. Therefore, it is important to remain vigilant and work towards further reducing barriers.

Question 11

The majority of U.S.firms that export are large multinationals that employ 500 or more people.

Accepted Answer

According to the Small Business Administration, small businesses represent 98% of all U.S. exporters, and they account for one-third of the value of U.S. merchandise exports. Therefore, the majority of U.S. firms that export are not large multinationals but rather small businesses.

Question 12

The notion that national economies are relatively self-contained entities is on the rise.

Accepted Answer

The statement is false. The concept of globalization and interconnectedness has made national economies highly interdependent and less self-contained.

Question 13

In the period 1950-1990,the world GDP showed a consistent decline as opposed to the volume of exports.

Accepted Answer

The answer of In the period 1950-1990,the world GDP showed...

Question 14

In the early 1960s,the United States was by far the world's dominant industrial power.However by 2006,it lost its dominant position and now,is no longer the world's largest industrial power.

Accepted Answer

As of 2006, the United States was still one of the world's largest industrial powers, although it faced increasing competition from countries like China, which eventually surpassed it in manufacturing output.

Question 15

Underlying the trend towards greater globalization is technological change and a decline in barriers to the free flow of goods,services,and capital.

Accepted Answer

Technological advancements such as the internet and transportation technologies have made it easier and cheaper for countries to trade with each other, leading to greater globalization. Additionally, the removal of trade barriers through trade agreements and liberalization policies has further facilitated the flow of goods, services, and capital across borders.

Question 16

During the period 1990 - 2000,the volume of total exports was more than twice the world GDP.

Accepted Answer

The answer of During the period 1990 - 2000,the volume...

Question 17

The merging of historically distinct and separate markets into one huge global marketplace is known as the globalization of markets.

Accepted Answer

The statement accurately defines the concept of globalization of markets.

Question 18

Because of their nature,service activities cannot be outsourced to other companies.

Accepted Answer

Service activities can be outsourced to other companies. In fact, outsourcing some service activities such as customer service or IT support is a common practice in many industries.

Question 19

The shift toward a more integrated and interdependent world economy is referred to as globalization.

Accepted Answer

Globalization refers to the increasing interconnectedness and interdependence of countries and their economies, as well as the increased flow of goods, services, capital, and people across borders.

Question 20

The globalization of markets and production and the resulting growth of world trade,foreign direct investment,and imports all imply that firms are finding their home markets protected from foreign competitors.

Accepted Answer

The statement is incorrect. The globalization of markets and production implies that firms are facing increased competition from foreign competitors in their home markets.

Quiz 1: Globalization