65) According to the opponents of globalization, which of the following occurs as a result of
worker dislocation brought about by globalization?
A) increased labor costs for companies
B) lower workers’ wages in developed nations
C) surfeit of jobs in developed nations
D) increased investment in individual education
66) Opponents argue that globalization ________.
A) eliminates manufacturing jobs in developed nations
B) generates labor market flexibility in developed nations
C) brings an end to practices like outsourcing
D) slows down the employment rate in developing nations
67) Globalization is criticized because it ________.
A) does not generate labor market flexibility in developing nations
B) prevents developed countries from outsourcing work to developing nations
C) creates fewer manufacturing jobs in developing nations
D) exploits workers in low-wage nations
68) Supporters affirm that globalization ________.
A) brings an end to practices like outsourcing
B) causes worker dislocation that gradually lowers wages
C) increases wealth and efficiency in all countries
D) curbs market flexibility in developed nations
69) Which of the following terms is used to refer to widespread job turnover throughout an
economy?
A) redeployment
B) restructuring
C) onboarding
D) churning
70) Trade unions claim that by permitting international firms to continually move to nations with
________, globalization reduces labor’s bargaining power and forces overall labor standards
lower.
A) better factory facilities
B) higher resource accessibility
C) lower labor standards
D) lower labor density
71) A special region in which companies can engage in tariff-free importing and exporting is
called a(n) ________.
A) preferential trade area
B) export-processing zone
C) customs union
D) economic union
72) To minimize the economic inequality within developing nations, studies suggest that the
nations can boost incomes of their poorest citizens by ________.
A) rejecting globalization and sheltering themselves from exploitation
B) embracing globalization and integrating themselves into the global economy
C) fortifying trade barriers and discouraging exports
D) encouraging economic independence and restricting imports
73) Which of the following statements is true of developing countries that have embraced
globalization?
A) The countries have experienced an increase in life expectancy.
B) As a result of extensive commercialism, there has been a decline in personal income.
C) Relying upon developed countries for technology has rendered their talent pool stagnant.
D) Their rich cultural diversity hasn’t been affected by exposure to new cultures.
74) Critics of globalization say that global consumer-goods companies destroy ________ .
A) the homogenization of markets
B) societal conformity
C) free trade areas
D) cultural diversity
75) Globalization tends to foster two important values, tolerance and ________.
A) nationalization
B) diversity
C) authoritarianism
D) heterogeneity
76) Each ________ is composed of unique cultural, political, legal, and economic characteristics
that define business activity within that nation’s borders.
A) capital market
B) national business environment
C) international bond market
D) operational center
77) ________ involves the idea that a nation-state is autonomous, cannot intervene in the affairs
of other nations, and can enter into binding international agreements.
A) National sovereignty
B) Authoritarianism
C) Cultural liberalism
D) Communalism
78) The global business environment consists of four distinct elements: the forces of
globalization, national business environments, the international business environment, and
________.
A) domestic investment opportunities
B) technological innovation
C) international firm management
D) multinational corporations
79) Which of the following actions can be adopted by developed nations to lessen the negative
effects of globalization?
A) restrict the import of goods from developing countries
B) slash agricultural subsidies that hurt the exports of developing nations
C) discontinue foreign-aid programs to developing countries
D) pressurize developing nations to fend for themselves in matters of health and education
Scenario: Topsy Turvey Toys and Ureshi Toys
Topsy Turvey Toys is a U.S.-based toy retailer that buys all its merchandise from Ureshi Toys, a
Japan-based toy manufacturer with production facilities in twelve nations. Ureshi Toys markets
its toys globally without modification.
80) Topsy Turvey Toys buying its merchandise from Ureshi Toys is an example of ________.
A) importing
B) exporting
C) outsourcing
D) insourcing
81) Ureshi Toys selling its products to Topsy Turvey Toys is an example of ________.
A) outsourcing
B) insourcing
C) exporting
D) importing
82) The products that Ureshi Toys manufactures are examples of ________.
A) global products
B) niche products
C) intangible products
D) customized products
83) Ureshi Toys is an example of a(n) ________.
A) domestic company
B) multinational company
C) direct importer
D) shell corporation
Scenario: Jeans Unlimited
Jeans Unlimited produces clothing for young adults. It designs its clothes at its New York
headquarters and produces them at facilities located in two Southeast Asian countries. The
company recently received negative press after one of its facilities was found using questionable
labor practices, such as, employing children and operating in a manner that damages the
environment.
84) Jeans Unlimited manufactures its clothing at facilities located in two Southeast Asian
countries. The dispersal of manufacturing activities by the company indicates ________.
A) customization of products
B) niche marketing
C) globalization of markets
D) globalization of production
85) Which of the following arguments against globalization, if true, could be made using Jeans
Unlimited as an example?
A) Globalization results in the government making nearly all economy-related decisions.
B) Globalization permits the use of unethical practices as long as it brings the company profits.
C) Globalization causes companies to produce goods in nations with the most lenient labor
regulations.
D) Globalization places least emphasis on corporate social responsibility.
86) Jeans Unlimited plans to set up new facilities that are designed specifically to reduce impact
on the environment. The management has emphasized on recycling and reusing most of their
resources. What concept is the company emphasizing on in this scenario?
A) sustainability
B) standardization
C) ethnocentricity
D) industrialization
Scenario: Donna Bader, Globalization opponent
Donna Bader spent her final year at college studying the effect of various economic factors on
the economy of developing nations. Based on the results of her study, she concluded that
globalization does these countries more harm than good.
87) Which of the following statements, if true, strengthens Donna’s argument?
A) People in low-wage nations have a high mortality rate and no access to healthcare facilities.
B) Because of the increase in employment opportunities, workers from developing countries
flock to developed countries.
C) Low-wage nations tend to have poorly developed transport and communication systems.
D) Many companies take advantage of lenient labor laws by setting up facilities in low-income
countries.
88) Which of the following statements, if true, weakens her argument?
A) The employment rate of developed nations has been declining because of international
outsourcing.
B) With the exposure to new technology and cultural trends, the standard of living in developing
countries has improved.
C) People in high-wage countries often can’t afford hospital care without financial assistance.
D) Labor market flexibility across the world has seen little improvement over the last decade.
89) Upon what assumption does Donna’s conclusion rest?
Donne assumes that ________.
A) there are no factors other than globalization which influence the economic conditions of a
country
B) the welfare of individuals matters less than the economic prosperity of a nation
C) globalization does not affect the employment rate of developed and developing countries
D) the wages paid to all individuals within developed countries are equal
90) Her argument is vulnerable to criticism because it fails to ________.
A) quantify the disparity between high-income and low-income nations
B) show that political and cultural factors have been taken into account
C) demonstrate the importance of market flexibility
D) highlight the environmental effect of globalization
91) Summarize each benefit a company might obtain from the globalization of markets.
92) How might a company benefit from the globalization of production?
93) Identify the World Trade Organization’s (WTO) three main goals and explain how the WTO
differs from the General Agreement on Tariffs and Trade (GATT).
94) One argument in the debate surrounding globalization is about the inequality between
nations. Discuss the major points of the inequality between nations argument and describe how
falling barriers to trade and investment might help reduce the inequality between nations.
95) Compare and contrast the purposes of the World Bank and the International Monetary Fund.
96) Globalization’s impact on jobs and wages is an important topic for debate. Discuss the major
points for globalization in the jobs and wages debate, and describe how the actions of large
multinational corporations affect the issues in the jobs and wages debate.
97) Explain how technological innovation has benefitted entrepreneurs.
98) Describe key characteristics of a born global firm, and explain why a born global firm would
be attuned to international firm management.
99) Explain globalization of production and its benefits. Why should a company study
international firm management if its leadership commits to globalization of production?
100) Describe the global business environment and each of its four elements.