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Student name:__________
1) Discuss the characteristics of globalization. Use an example in your discussion.
2) Explain what is meant by the globalization of markets. Provide an example. What are the
most global markets?
3) Discuss the concept of the globalization of production.
4) What is the World Trade Organization? What is its role in the world economy?
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5) What is the International Monetary Fund? What is the World Bank? What is their
relationship, if any, with each other?
6) What is the Uruguay Round? List the measures implemented in the Uruguay Round.
7) Explain the trends in world trade and foreign direct investment since 1950.
8) Explain how a company competes using outsourcing. Provide an example.
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9) Discuss the impact of technological change and automation on global markets.
10) Discuss the demographics of world trade since the 1960s. How has the role of the United
States changed? How is world trade expected to change in the future?
11) Why does China represent both opportunities and threats for established international
businesses?
12) Consider whether the shift toward a more integrated and interdependent global economy
is a good thing. Discuss the shift from the eyes of the consumer, the worker, the company, and
the environmentalist.
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13) Discuss what occurred in Seattle in 1999 at the meeting of the WTO and why the events
were important to the future of global trade.
14) Falling barriers to international trade destroy manufacturing jobs in wealthy advanced
economies. Discuss this statement. Do you agree? Why or why not?
15) Why is managing an international business different from managing a purely domestic
business?
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16) What are some of the issues a manager of an international business must confront that a
manager of a domestic business never confronts?
17) ________ refers to the shift toward a more integrated and interdependent world economy.
A) Outsourcing
B) International marketing
C) Privatization
D) Globalization
18) In 2008 and 2009, the _____ became the forum through which major nations attempted to
launch a coordinated policy response to the global financial crisis, which started in America.
A) GATT
B) Group of Ten (G10)
C) Group of Twenty (G20)
D) World Trade Organization
19) The Uruguay Round provided
A) reduced protection for patents, trademarks, and copyrights.
B) enhanced protection for patents, trademarks, and copyrights.
C) increased trade barriers.
D) reduced coverage of services and manufactured goods.
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20) Since the collapse of communism over a quarter of a century ago, formerly communist
nations have transformed their economies by globalizing their markets. This involves
A) regulating markets.
B) privatizing state-owned enterprises.
C) decreasing competition.
D) reducing foreign investment.
21) Which of the following is a consequence of globalization?
A) decreasing interdependence between national economies
B) increasing outsourcing
C) differentiating of material culture
D) increasing barriers to cross-border trade
22) Which of the following factors hinders globalization of consumer goods market?
A) national and cultural differences in tastes and preferences
B) increasing incomes in emerging markets
C) homogenization of material culture
D) increased outsourcing of goods and services
23) Globalization of markets results in markets becoming
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A) less interdependent.
B) less diverse.
C) more protected.
D) less competitive.
24) A U.S. investment firm set up a customer service call center in India to take advantage of
lower labor costs. This is called
A) homogenizing markets.
B) vertical integration.
C) outsourcing.
D) horizontal integration.
25) Early outsourcing efforts were primarily confined to
A) health care.
B) service activities.
C) technological research.
D) manufacturing activities.
26) What impedes firms from achieving the optimal dispersion of their productive activities
to locations around the globe?
A) transportation costs
B) government deregulations
C) reduction of barriers to trade between countries
D) reduction of barriers to foreign direct investment
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27) The General Agreement on Tariffs and Trade (GATT) was responsible for
A) protecting government-owned enterprises.
B) promoting free trade and reducing trade barriers.
C) limiting nuclear testing.
D) promoting environment friendly technology.
28) The ______ is primarily responsible for policing the world trading system and making
sure nation-states adhere to the rules laid down in trade treaties signed by member states.
A) International Development Association
B) World Bank
C) International Court of justice
D) World Trade Organization
29) The World Trade Organization promotes
A) the lowering of barriers to cross-border trade and investment.
B) the development of poor nations through low-interest loans.
C) state ownership of major enterprises.
D) the regulation of national economies.
30) What is true about the International Monetary Fund?
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A) It is primarily responsible for policing the world trading system.
B) It is seen as the lender of last resort to nation-states whose economies are in turmoil.
C) It is responsible for establishing multinational treaties to govern the global business
system.
D) It was established to formulate a coordinated policy response to financial crises in
developing nations.
31) The _____ was established on October 24, 1945, by 51 countries committed to preserving
peace through international cooperation and collective security.
A) World Trade Organization
B) United Nations
C) G20
D) World Bank
32) The G20 was originally established to
A) preserve peace through international cooperation and collective security.
B) maintain order in the international monetary system.
C) formulate a coordinated policy response to financial crises in developing nations.
D) manage, regulate, and police the global marketplace.
33) Which of the following is a factor of production?
A) tariffs
B) transportation costs
C) capital
D) government
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34) Which of the following focuses on making low-interest loans to cash-strapped
governments in poor nations that wish to undertake significant infrastructure investments?
A) the WTO
B) the GATT
C) the World Bank
D) the IMF
35) Which of the following was established to maintain order in the international monetary
system?
A) the WTO
B) the GATT
C) the World Bank
D) the IMF
36) Which of the following is true of the IMF?
A) It is often seen as the lender of first choice to nation-states whose economies are in
turmoil.
B) Its loans come with no strings attached.
C) It is the less controversial of the two sister institutions, the IMF and the World Bank.
D) It has emerged as a significant player in the global economy.
37) The volume of world trade in merchandise is growing faster than world GDP. This
implies that
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A) more firms are dispersing their production processes to global locations.
B) the economies of the world’s nation-states are becoming more independent from each
other.
C) the global economy is headed for a large downward correction.
D) the world is becoming poorer.
38) ________ occurs when a firm exports goods or services to consumers in another country.
A) International trade
B) Foreign direct investment
C) Inward investment
D) Outsourcing
39) In 2009, the financial crisis in the United States was triggered by
A) the global hike in the price of crude oil.
B) the slowdown in U.S. imports, due to political pressure.
C) liberal lending policies by U.S. banks to homeowners.
D) the artificial fixing of the currency rate by China.
40) _____ predicts that the power of microprocessor technology doubles and its cost of
production falls in half every 18 months.
A) Keynes’s Law
B) Say’s Law
C) Moore’s Law
D) Sullivan Principle
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41) Containerization allows
A) reduction of the time needed to get from one location to another.
B) simplification of transshipment from one mode of transport to another.
C) buyers and sellers to find each other easily in a global economy.
D) enterprises to coordinate and control a globally dispersed production system.
42) The volume of world trade in merchandised goods has been
A) growing at the same rate as world GDP.
B) growing faster than world GDP.
C) growing slower than world GDP.
D) declining faster than world GDP.
43) ABC Global has decided to invest resources in business activities outside its home
country.This is called
A) foreign direct investment (FDI).
B) direct international investment (DII).
C) international trade (IT).
D) foreign direct production (FDP).
44) The relative decline of the United States in the share of world output and world exports
reflects
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A) an increase in the barriers to foreign trade in the United States.
B) the deepening of the global financial crisis.
C) the reduced industrialization in developing nations.
D) the growth in the economic development of emerging markets and other
industrialized countries.
45) Why did many Japanese firms invest in North America and Europe in the 1970s?
A) to avoid a highly competitive domestic market
B) to exploit high domestic tariff barriers
C) to provide a hedge against unfavorable currency movements and imposition of trade
barriers
D) to take advantage of low labor costs
46) Throughout the 1990s, the amount of foreign direct investment directed at both
developed and developing nations increased dramatically. This trend reflects
A) a slowdown in global economic activity.
B) the increasing share of the United States in the total FDI stock.
C) the decline in cross-border flows of foreign direct investment.
D) the increasing internationalization of business corporations.
47) Which of the following countries has been the largest recipient of foreign direct
investment and, in 2016, received a record $249.8 billion in inflows?
A) Brazil
B) Russia
C) India
D) China
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48) Toyota is a multinational enterprise (MNE), which is a firm that
A) exports its products to multiple countries.
B) has production activities in more than two countries.
C) does most of its business on the Internet.
D) lists its securities on a public exchange.
49) Since the 1960s, which of the following has been a notable trend in the demographics of
the multinational enterprise?
A) the decline of multinational companies in the manufacturing sector
B) the growth of government-owned multinational enterprises
C) the decline of non-U.S. multinationals
D) the growth of mini-multinationals
50) In the last two decades, Latin American countries such as Brazil, Mexico, and Chile have
A) embraced communist principles.
B) promoted government ownership of enterprises.
C) experienced increasing debt and inflation.
D) welcomed foreign investment.
51) Which of the following is a risk associated with globalization?
A) restrictions on competition
B) global financial contagion
C) excessive market regulation
D) differentiation of markets
52) The rise in the number of mini-multinationals means that
A) small businesses are becoming increasingly involved in international trade and
investment.
B) it is increasingly difficult to enter the large multinational market.
C) countries are working together to minimize MNE influence.
D) there is greater state involvement in industry.
53) The downside of increased globalization is
A) global financial contagions are less likely.
B) a severe crisis in one region can affect the entire globe.
C) one nation may become too powerful.
D) the potential for increased exploitation of undeveloped nations by developed nations.
54) During the past two decades, change in Latin America has been characterized by
A) an increase in debt.
B) hyperinflation.
C) the sale of state-owned enterprises to private investors.
D) protests against foreign investment.