69) To be classified as an MNE, a company must have productive activities in at least ________
countries.
A) two
B) three
C) four
D) twenty
70) Supporters of globalization maintain that the apparent decline in real wage rates of unskilled
workers
A) is due to technological changes that create greater demand for skilled workers.
B) is due to the migration of low-wage manufacturing jobs offshore.
C) can be checked by increasing government ownership of enterprises.
D) can be checked by limiting free trade and foreign investment.
71) A study published in 2011 by the OECD noted that
A) the real household income of unskilled workers in the United States increased more in
comparison to that of skilled workers.
B) in almost all countries real income levels declined over the 20-year period studied.
C) the falling unemployment rates brought gains to low-wage workers and fairly broad-based
wage growth.
D) the gap between the poorest and richest segments of society in some OECD countries had
widened.
72) A number of econometric studies have found consistent evidence of a hump-shaped
relationship between income levels and pollution levels. According to this, as an economy grows
and income levels rise
A) initially the pollution levels remain low.
B) after a while, the pollution levels decrease.
C) the pollution levels also rise in proportion to the economic growth.
D) there is increasing industrialization, which leads to greater pollution.
73) NAFTA was passed only after
A) China agreed to establish a higher minimum wage.
B) the United States agreed to limit the number of jobs that could be outsourced.
C) Mexico committed to tougher enforcement of environmental protection regulations.
D) Canada committed to establish new limits on FDI.
74) Globalization is criticized because it increases the power of
A) governments to own enterprises.
B) unskilled labor to form labor unions.
C) supranational organizations over nation-states.
D) nation-states to regulate markets and reduce competition.
75) The World Trade Organization has estimated that the developed nations of the world can raise
global economic welfare by $128 billion by
A) removing subsidies given to their agricultural producers.
B) increasing tariff barriers to trade in agriculture.
C) increasing outsourcing of manufacturing processes.
D) reducing defense expenditure.
76) Which of the following is viewed by large segments of the population in many countries as a
detrimental effect of antiglobalization?
A) job growth in industries under attack from foreign competitors
B) upward pressure on the wage rates of unskilled workers
C) environmental degradation
D) cultural isolationism of global media and MNEs
77) While the hump-shaped relationship between income levels and pollution levels seems to hold
across a wide range of pollutants, ________ represent an important exception.
A) sulfur dioxide emissions
B) lead concentrations
C) carbon dioxide emissions
D) water quality standards
78) Based on several studies, the data suggest that real wages
A) for unskilled workers have decreased while real wages for skilled workers have increased.
B) for both skilled and unskilled labor have decreased.
C) for both skilled and unskilled labor have increased.
D) for unskilled workers have increased while real wages for skilled worker have decreased.
79) Which of the following is a reason that little progress has been made toward the ambitious
goals set at the 1992 Earth Summit in Rio de Janeiro?
A) China has shown a strong appetite to adopt tighter pollution controls.
B) Political cooperation in the U.S. Congress promotes domestic action.
C) There is a culture of denial in the United States.
D) Trade liberalization efforts have not been rolled back.
80) The two largest emitters of carbon dioxide are
A) China and the United States.
B) China and the United Kingdom.
C) Canada and the United States.
D) Mexico and the United States.
81) In 2000, the United Nations established the ________ to reduce the number of people who live
in extreme poverty by 2015.
A) Millennium Development Goals
B) Twenty–First Century Goals
C) Globalization Rejuvenation Goals
D) U.N. Humanistic Goals
82) Which of the following is true of HIPCs?
A) About 100 nations fall in this category.
B) The average debt burden has never been more than 75 percent of the value of the HIPC’s
economy.
C) Servicing heavy debt leaves HIPCs with little left to invest in public infrastructure.
D) The annual cost of serving debt consumes about 30 percent of HIPC export earnings.
83) Which of the following is true of the supporters of debt relief for HIPCs?
A) They argue that free trade alone is sufficient to bring HIPCs out of poverty.
B) They argue that new democratic governments should be forced to honor debts incurred by
previous corrupt predecessors.
C) They include Bono, the Dalai Lama, and Jeffrey Sachs among their ranks.
D) They are working against the policies of the IMF and World Bank.
84) An international business, unlike a multinational enterprise,
A) needs to have manufacturing units in at least two foreign nations.
B) needs to manufacture products or provide services that target a global market.
C) need not customize its products to the requirements of national markets.
D) need not invest directly in operations in other countries.
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85) Issy‘s Ice Cream is an international business. As such, it
A) needs to have manufacturing units in at least two foreign nations.
B) needs to manufacture products or provide services that target a global market.
C) need not customize its products to the requirements of national markets.
D) invests in international trade or investment.
86) Which of the following statements is true regarding an international business?
A) An international business needs to invest directly in operations in other countries.
B) An international business needs to have homogenous practices across countries.
C) An international business can be managed in the same way that a domestic business is
managed.
D) An international business must find ways to work within the limits imposed by government
intervention.
87) How does managing an international business differ from managing a domestic business?
A) International managers are more experienced.
B) Countries differ in their cultures and systems.
C) Countries want to do business with their neighbors.
D) Countries want to keep their transactions simple.
88) Which of the following is true regarding international businesses?
A) All MNEs are international businesses.
B) Only firms that export products are international businesses.
C) Only firms that invest abroad are international businesses.
D) All international businesses are MNEs.