Chapter 06 – The Challenges of Globalization
1. (p. 125) Globalization directly and indirectly influences the politics, environment, geopolitics,
and economics of virtually every country in the world.
2. (p. 126) Although many firms conduct business across national boundaries, most global
commerce is carried out by a small number of powerful firms.
3. (p. 127) Global commerce has taken place for hundreds of years, dating back to the 15th
century.
4. (p. 128) The World Bank makes currency exchange easier for member countries so that they
can participate in global trade.
5. (p. 129) The World Trade Organization is based in the United States.
6. (p. 130) The World Trade Organization conducts negotiations, called “cycles,” on various
topics, rotating its meetings among different cities.
Chapter 06 – The Challenges of Globalization
7. (p. 130) Under the World Trade Organization’s most favored nation rule, member countries
may not discriminate against foreign products for any reason.
8. (p. 131) Globalization is accepted worldwide and creates little controversy.
9. (p. 131) Productivity rises more quickly when countries produce goods and services for which
they have a natural talent.
10. (p. 133) Only manufacturing jobs are being lost through globalization.
11. (p. 134) Critics of globalization support the spread of American ideals and culture throughout
the rest of the world.
12. (p. 135) Most nations in the world share similar political, social and economic beliefs.
13. (p. 135) At the beginning of the 20th century, no country in the world had universal suffrage.
14. (p. 138) Even as the world has become freer politically and economically, inequality has
grown.
Chapter 06 – The Challenges of Globalization
15. (p. 139) The term sector refers to broad divisions of a whole.
16. (p. 126) Global market channels involve a firm producing goods in:
Difficulty: Medium
17. (p. 126) A firm that has global operations has:
Difficulty: Medium
18. (p. 126) A firm that would like to develop a global supply chain would:
Chapter 06 – The Challenges of Globalization
19. (p. 126) The three strategies of globalization can be summarized using what three words?
Difficulty: Easy
20. (p. 126) According to the United Nations, how many transnational corporations operate in
the global economy?
Difficulty: Hard
21. (p. 127) In 2006, the leading nonfinancial transnational corporation, with foreign assets
totaling $443 million was:
Difficulty: Hard
22. (p. 127) The acceleration of globalization has been driven by:
Chapter 06 – The Challenges of Globalization
23. (p. 127) Technological innovation has aided the spread of globalization by:
Difficulty: Medium
24. (p. 127) Which transportation system improvement has aided the acceleration of
Difficulty: Easy
25. (p. 127) Which is an example of a social and political reform that has led to the acceleration
of globalization?
Difficulty: Hard
26. (p. 128) An example of an international financial and trade institution is:
Chapter 06 – The Challenges of Globalization
27. (p. 128) Representation on the World Bank’s board of directors is based on:
Difficulty: Medium
28. (p. 128) The loan policies of the World Bank:
Difficulty: Medium
29. (p. 128) The primary purpose of the International Monetary Fund is to:
Difficulty: Medium
30. (p. 129) The purpose of the World Trade Organization is to:
Chapter 06 – The Challenges of Globalization
31. (p. 130) Under the World Trade Organization’s most-favored nation rule:
Difficulty: Hard
32. (p. 131) The theory of comparative advantage states that:
Difficulty: Hard
33. (p. 131 – 132) An individual who is a supporter of globalization would argue that it helps the
developing world by:
Chapter 06 – The Challenges of Globalization
34. (p. 132) Which U.S. company is the best example of using globalization to reduce the price
of its products?
Difficulty: Easy
35. (p. 133) A critic of globalization might argue that companies decide to manufacture in China
mainly because of China’s:
Difficulty: Easy
36. (p. 134) Unocal Corporation’s controversial gas pipeline was built in which country that was
notorious for human rights abuses?
Difficulty: Medium
37. (p. 135) According to the United Nations, a feature of democracy is:
Chapter 06 – The Challenges of Globalization
38. (p. 135) Single-party rule by communist parties still remains in:
Difficulty: Medium
39. (p. 136) The most important agreement which codifies human rights is the:
Difficulty: Hard
40. (p. 137) A society where economic power is concentrated in the hands of government
officials and political authorities is called:
Difficulty: Medium
41. (p. 137) The Heritage Foundation scored which nation of the world among the most
repressed in 2009?
Chapter 06 – The Challenges of Globalization
42. (p. 139) The richest 1 percent of the people in the world receive as much income annually
as:
Difficulty: Medium
43. (p. 140) Experts attribute the growth of nongovernmental organizations to:
Difficulty: Hard
44. (p. 140) Government has distinctive resources and competencies including:
Difficulty: Easy
45. (p. 141) Collaborative partnerships:
Chapter 06 – The Challenges of Globalization
6-11
46. (p. 126 – 128) What is a transnational company? How do these companies operate in the global
marketplace?
47. (p. 128 – 131) Describe the roles of the World Bank, International Monetary Fund, and World
Trade Organization in the acceleration of globalization.
48. (p. 131 – 135) Discuss the benefits and costs of globalization. Provide examples of how
globalization has helped or harmed individual nations and the world economy.
49. (p. 136 – 139) Compare and contrast the world’s political and economic systems and their
effects on globalization.
50. (p. 139 – 141) How can collaborative partnerships help global problem solving?
51. (p. 140) Outline and discuss the major attributes of the three major sectors.