75) A supporter of globalization would agree that
A) environmental regulations need to be standardized around the world to equalize the economy.
B) free trade agreements should be tied to higher environmental standards.
C) tougher environmental regulations ultimately result in economic progress.
D) a lack of environmental standards results in more job opportunities in developed nations.
E) stricter labor standards eventually result in an economic downturn.
76) Econometric studies show a hump-shaped relationship between income levels and pollution
levels. Which of these statements reflects that relationship?
A) As an economy grows and income levels rise, initially pollution levels also rise.
B) Decreasing income levels lead to an increase in pollution levels.
C) As an economy grows, pollution levels show a constant increase.
D) Economies that are in turmoil reflect pollution levels that are diminishing.
E) Income levels do not have any correlation with pollution levels.
77) A concern voiced by critics of globalization is that today’s increasingly interdependent global
economy shifts economic power toward
A) supranational organizations such as the World Trade Organization.
B) the communist states of eastern Europe and central Asia.
C) the medium-size and small U.S. multinationals.
D) the national governments of the countries participating in globalization.
E) nations that have authoritarian forms of government.
78) The WTO arbitrates trade disputes between its member states. What is one power of particular
interest that the WTO can use?
A) It can restrict the membership of nations in other supranational organizations such as the United
Nations.
B) It can grant loans to cash-strapped governments in poor nations.
C) It supersedes IMF and has complete authority over IMF’s actions.
D) It can issue a ruling instructing a member state to change trade policies that violate GATT
regulations.
E) It can make decisions related to international trade without considering the collective interests
of member states.
79) When compared to the past, the gap between rich and poor nations today has
A) shown no significant change
B) gotten bigger.
C) become inexistent.
D) become balanced.
E) gotten smaller.
80) Free trade alone, some argue, is a necessary but not sufficient prerequisite to help “highly
indebted poorer countries” (HIPCs) bootstrap themselves out of poverty. They also recommend
implementing
A) a highly regulated command economy.
B) weaker property rights laws.
C) weaker labor regulations.
D) large-scale debt relief.
E) rapid expansion in population.
81) One suggestion for helping poor countries enjoy the benefits of free trade is for richer nations
to reduce barriers to importing products from those nations particularly for textiles and ________
products.
A) electronic
B) agricultural
C) service
D) financial
E) manufacturing
82) The minimum that a firm has to do to engage in international business is to
A) export or import products from other countries.
B) invest directly in operations in another country.
C) establish joint ventures or strategic alliances with companies in other countries.
D) export low-wage manufacturing jobs to companies in other countries.
E) develop franchises and subsidiaries in other countries.
83) Sun-Jun is the executive general manager of a U.S.-based multinational corporation. Marisol is
a manager in a similar position but works for an American company that operates only in the U.S.
and does not engage in international business. In this context, which business function will be most
typically exclusive to Sun-Jun?
A) marketing a product or service
B) maintaining healthy relations with the U.S. government
C) developing a business strategy
D) adhering to labor and environmental standards
E) choosing an appropriate mode for entering a particular foreign country
84) What is globalization? Explain, with examples, how global companies can facilitate the
creation of a global market.
85) Discuss how small- and medium-size firms can benefit from the globalization of markets.
86) What are the roles of the International Monetary Fund (IMF) and the World Bank? Which of
these institutions is more controversial? Why?
87) Discuss the role of the United Nations and explain the four purposes of the organization.
88) Explain the factors that led to the Great Depression of the 1930s.
89) Describe the implications that result as the volume of world trade continues to grow faster than
world GDP.
90) Briefly discuss the ways in which technological change has affected globalization.
91) Define containerization and explain how it has changed the way goods are transported around
the world.
92) In the context of international trade and investment, describe how the former communist
nations of Europe and Asia have been changing.
93) Elaborate on why globalization is not inevitable.
94) Discuss how supporters and opponents of globalization regard its effect on jobs and income.
95) Analyze the antiglobalization protest that took place in Seattle in December 1999. What was
being protested? Did the protest succeed? How was the protest viewed by the world?
96) Explain how supporters of globalization view the idea that the decline in unskilled wage rates
and the demand for unskilled workers is due to the migration of low-wage manufacturing jobs
offshore.
97) What are the various reasons for economic stagnation in many of the world’s poorest
countries?
98) What are some of the challenges faced by managers of an international business?
99) How is managing an international business different from managing a purely domestic
business?