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A) new technologies were creating opportunities for creating mass customization of
products.
B) governments would be threatened by the emergence of global companies and would
limit their development.
C) the future belonged to global companies that sold the same things the same way,
everywhere.
D) increased differentiation of products would mean that costs of production would
become a steadily declining proportion of the selling price.
85) The argument that free trade is the best strategy for advancing the world’s economic
development is considered
A) one of the most contentious issues associated with economic globalization.
B) one that has very little support in research studies.
C) a proposition with which almost all economists agree.
D) the basis for much protectionist legislation in emerging markets.
86) What was Theodore Levitt referring to when he said that the future belonged to
corporations that operated “as if the entire world were a single entity; [such an organization] sells
the same things in the same way everywhere”?
A) accommodation
B) globalization
C) standardization
D) customization
87) Data have shown a clear and definitive link between
A) protectionist legislation and enhanced economic welfare of a country.
B) liberalization of trade and reduced disparity in personal income.
C) government subsidies and the development of globally competitive industries.
D) liberalization of trade and economic growth.
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88) One argument against globalization is that it creates a decline in
A) socioeconomic development.
B) better jobs.
C) professional development.
D) environmental conditions.
89) According to supporters of the globalization of trade and investment, free trade
A) creates more and better jobs.
B) benefits all nations and workers.
C) does not cause the loss of high-paying jobs.
D) preserves the individuality of different cultures.
90) Many opponents of globalization believe that the gap between rich and poor has
A) decreased.
B) not been affected.
C) disappeared.
D) increased.
91) What is an argument presented by opponents of globalization?
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A) A report by the Labor Secretariat for the North American Free Trade Agreement
(NAFTA) reported that more than half of firms surveyed used threats to close U.S. operations as
a tool to fight union-organizing efforts.
B) Although labor standards in developing countries are usually lower than in
industrialized countries, they are rising.
C) Multinationals investing in host nations pay higher wages, create new jobs at a faster
rate, and spend more on R&D than do local firms.
D) Developing countries may feel that lower-cost labor constitutes their competitive
advantage and that if they are forced to implement more stringent labor standards, it may damage
their prospects for improved economic development.
92) According to opponents of the globalization of trade and investment,
A) free trade benefits all nations and workers.
B) globalization has caused a dramatic decline in both the proportion and the absolute
number of destitute people in the world.
C) globalization has contributed to a decline in environmental and health conditions.
D) globalization enhances preservation of the uniqueness of different cultures.
93) According to opponents of the globalization of trade and investment
A) globalization has contributed to an improvement in environmental and health
conditions.
B) globalization benefits all nations and workers.
C) globalization has produced uneven results across nations and people.
D) citizens from more globally integrated countries have lower levels of civil liberties
and lower economic prosperity.
94) An opponent of globalization would agree that
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A) globally integrated countries spend more on public education, especially in
developing countries.
B) globalization has had harmful effects on labor and labor standards.
C) countries that have rejected globalization are among the most advanced nations of
the world.
D) globalization has increased the proportion of people in developing countries who live
on $1.25 per day or less.
95) What is one argument in support of globalization?
A) Environmental issues are lessened through globalization.
B) Globalization enhances access to health care for participants.
C) Free trade enhances socioeconomic development.
D) The process of globalization has enhanced the equalization of countries in terms of
political and social economy.
FILL IN THE BLANK. Write the word or phrase that best completes each statement or
answers the question.
96) The operations of a company outside its home or domestic market are known as
________ business.
97) A(n) ________ company is a company with operations in multiple nations.
98) As used in the text, the term ________ means all the forces influencing the life and
development of the firm.
99) The internal forces over which management does have some control, such as the factors
of production and the activities of the organization, are called the ________ forces.
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100) The ________ environment is all the uncontrollable forces originating in the home
country that surround and influence the life and development of the firm.
101) The ________ environment refers to all the uncontrollable forces originating outside the
home country that surround and influence the firm.
102) When an affiliate in one country does business with customers in another, it is operating
in the ________ environment.
103) If Xiaomi’s China operations export smartphones to another country such as India, then
the sales manager is affected by forces of both the domestic environment of China and the
foreign environment of India and therefore is working in the ________ environment.
104) Unconscious reference to your own cultural values when judging behaviors of others in a
new and different environment is known as the ________ criterion.
105) China was the world’s leading manufacturing country for about 1,800 years, until it was
replaced by ________ around 1840.
106) A ________ corporation is an enterprise made up of entities in more than one nation,
operating under a decision making system that allows a common strategy and coherent policies.
107) ________ refers to direct investments in equipment, structures, and organizations in a
foreign country at a level sufficient to obtain significant management control.
108) ________ is the transportation of any domestic good or service to a destination outside a
country or region.
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109) ________ is the transportation of any good or service into a country or region, from a
foreign origination point.
110) Although merchandise exports have grown faster than world output in nearly every year
since 1980, the level of ________ exports worldwide has grown even more rapidly during this
time.
111) According to the text, preferential trading agreements are examples of ________ drivers
of globalization.
112) Advances in computers, including the Internet and network computing, are examples of
________ drivers contributing to the globalization of business operations.
113) A ________ driving force for globalization is the fact that companies are defending their
home markets from competitors by entering the competitors’ home markets to distract them.
114) The tendency toward an international integration of goods, technology, information,
labor, and capital, or the process of making this integration happen, is referred to as ________.
115) Theodore Levitt was the first person to coin the term ________.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
116) Discuss the three environments in which an international company operates.
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117) Identify and discuss the five major kinds of drivers that are leading international firms to
the globalization of their operations.
118) Discuss the arguments supporting and opposing globalization of trade and investment.
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Answer Key
Test name: Module 1
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