Management: A Focus on Leaders, 2e (McKee)
Chapter 14 Globalization: Managing Effectively in a Global Economic Environment
1) Globalization includes the exchange of money, products, information, services, and expertise
between people in different parts of the world.
2) ECOSOC is a division of the UN that focuses on improving the standard of living within UN
member states.
3) Getting a job in today’s world is still a local process in which you are competing with local
applicants.
4) Many people feel that as globalization increases, war becomes less likely.
5) The shift in technology that triggered globalization began in the 1970s when businesses began
using ICTs first developed in the Cold War.
6) The Cold War was a political and ideological conflict between China and the United States.
7) Fortunately, the United States did not engage in distributing propaganda during the Cold War.
8) The World Economic Forum is a non-profit organization.
9) The Association of Southeast Asian Nations is a trade alliance.
10) All members of the EU use the same currency, the euro.
11) The World Trade Organization’s two main functions are to oversee international trade and to
provide a more objective forum to settle trade disputes.
12) Hybridization presents a more negative outlook of the future than McDonaldization.
13) The U.S. industry that has suffered the most losses from globalization is manufacturing.
14) Offshoring is a form of outsourcing.
15) The smallest BRIC country in terms of population is Brazil.
16) The arrival of the Portuguese royal family in Brazil in the early 19th century brought on a
period of prosperity.
17) By 2008, Russia was the world’s largest producer of biofuels.
18) The end of Stalin’s reign marked the demise of Communist rule in the Soviet Union.
19) A disadvantage of doing business with India is that few people in the country speak English.
20) Dealing with software piracy and counterfeiting is a major disadvantage of doing business
with China.
21) One response of U.S. companies to the 2008 global recession has been a shift toward
________.
A) increased importing
B) increased exporting
C) globalization
D) localization
22) Which of the following has NOT been a major driver of globalization over the past few
decades?
A) changes in technology
B) environmental concerns
C) political shifts
D) economic trends
23) Supporters of globalization claim that it will ________.
A) end war forever
B) promote democracy
C) make war less likely
D) decrease economic opportunities
24) People against globalization think that it will ________.
A) make war more likely
B) cause more countries to become Communist
C) destroy local cultures in developing countries
D) cause repressive governments to gain power in developing countries
25) What is one point that members on both sides of the debate over globalization can agree on?
A) Globalization decreases trade.
B) Globalization can’t be stopped.
C) Globalization brings prosperity to everyone.
D) Globalization only benefits big business.
26) The Cold War was a(n) ________.
A) political and ideological battle between the Soviet Union and the United States
B) bloody conflict between Japan and the United States
C) proxy war between the United States and China
D) ideological battle between the Soviet Union and Eastern Europe
27) Eastern European countries behind the Iron Curtain favored ________.
A) capitalism
B) communism
C) free trade
D) outsourcing
28) Proxy wars between superpowers during the Cold War were fought in all of the following
countries EXCEPT ________.
A) Korea
B) Mexico
C) Afghanistan
D) Vietnam
29) Propaganda is a form of information that is ________.
A) communicated in written form only
B) communicated on broadcast media only
C) usually honest and unbiased
D) biased and used to further an agenda
30) Which of the following was NOT a characteristic of the Cold War?
A) military antagonism
B) ideological warfare
C) intercultural exchange
D) economic competition
31) Years of living under centrally-planned Communist rule left the economies of Iron Curtain
countries ________.
A) as agrarian-based societies
B) ready for globalization
C) as centers of industrial production
D) in economic ruin
32) The event that triggered the end of the Cold War was the ________.
A) fall of the Berlin Wall
B) Tiananmen Square massacre
C) Day of Rage
D) Arab oil embargo
33) What resource has a significant effect on international relations?
A) oil
B) steel
C) timber
D) precious metals
34) In which of the following did social media play a significant role?
A) the Cold War
B) Tiananmen Square protests
C) fall of the Berlin Wall
D) the Arab Spring
35) Which competing interests do countries consider when seeking trade agreements?
A) limiting environmental impacts and standardizing labor practices
B) attaining goods and protecting domestic industry
C) protecting domestic industry and promoting cultural diversity
D) attaining goods and decreasing labor costs
36) Before the advent of globalization, ________ were responsible for 70 percent of the world’s
manufactured exports.
A) the United States, Western Europe, and China
B) North America, Western Europe, and Japan
C) the United States, Canada, and Western Europe
D) Japan, Western Europe, and China
37) Which of the following has the most specific oversight responsibility for international trade?
A) World Trade Organization
B) G-20
C) World Economic Forum
D) United Nations Economic and Social Council
38) Which of the following is NOT addressed by the basic tenets of the World Trade
Organization?
A) legally binding contracts
B) sustainability
C) transparency
D) exclusion of reciprocity
39) Why is the United States hamstrung with respect to having influence over political activities
in China?
A) China owes the United States over $2 trillion.
B) The United States owes China over $2 trillion.
C) China owns every major U.S. bank.
D) The United States owns many factories in China.
40) Which of the following is NOT a worldwide trade alliance?
A) European Union (EU)
B) Association of Southeast Asian Nations (ASEAN)
C) Union of South American Nations (UNASUR)
D) Group of Twenty (G-20)
41) Which of the following trade alliances aims to phase out tariffs by 2019?
A) North American Free Trade Agreement
B) Asia-Pacific Economic Cooperation
C) the European Union
D) Union of South American Nations
42) What is the primary goal of a trade alliance?
A) to increase trade within a particular region
B) to limit migration of labor
C) to lower prices for domestic goods
D) to decrease budget deficits
43) What is global finance?
A) elimination of trade barriers
B) supply and demand of money
C) pro-growth policies in developing countries
D) promoting higher living standards
44) Under ________, countries participating in an alliance transfer some of their power to the
union in exchange for certain benefits.
A) hybridization
B) globalization
C) supranationalism
D) internationalism
45) Which of the following had the largest economy in the world in 2011?
A) China
B) the United States
C) India
D) the European Union
46) Which country was the largest holder of foreign debt in the world in 2011?
A) the United States
B) China
C) Russia
D) Greece
47) Which of the following is NOT a method of triggering inflation?
A) selling government bonds
B) increasing interest rates
C) raising tax rates
D) printing money
48) The homogenization of business products and services with a focus on standardization and
efficiency is called ________.
A) cultural clash
B) hybridization
C) McDonaldization
D) WTO tenet
49) The idea that globalization will lead to a multifaceted world culture with parts that are
connected but still distinct and separate is called ________.
A) cultural uniformity
B) hybridization
C) McDonaldization
D) enculturation
50) EuroDisney failed in its first years because Disney ________.
A) charged too much money for tickets
B) failed to build a large enough facility
C) failed to recognize legal differences between France and the United States
D) failed to recognize cultural differences between France and the United States
51) According to Vittorio Colao, CEO of Vodafone, there is no such thing as ________.
A) globalization
B) culture
C) global culture
D) local culture
52) In the process of offshoring, jobs are ________.
A) always transferred to foreign countries
B) always transferred from foreign countries to domestic economy
C) transferred to island locations
D) always high paying
53) India and China represent a great opportunity for companies because they have ________.
A) enormous populations
B) poorly educated people who can be sold any goods
C) people with large amounts of disposable wealth
D) no rule of law
54) Why are the BRIC countries gathering so much attention from the business community?
A) BRIC countries are the fastest growing markets in the world.
B) BRIC countries have the most natural resources in the world.
C) BRIC countries have the highest per capita incomes in the world.
D) BRIC countries have the greatest value of imports in the world.
55) Brazil is the world’s largest producer of ________.
A) petroleum
B) steel
C) plant-based biofuels
D) manufactured exports
56) Which country experienced a serious depression in the 1990s?
A) China
B) Russia
C) Brazil
D) India