Question 1

Sharron purchased a computer for $500 in 2018. Compared to the $900 computer that she purchased in 2011, the new one seems better in terms of the price she has paid and the power of the microprocessor technology. This is best explained by

Accepted Answer

A)   product liability.
B)   property rights.
C)   Moore's law.
D)   purchasing power parity.
E)   sustainable strategies.F) B) and D)
G) A) and D)

Question 2

The amount of foreign direct investment in China has been decreasing since the 1980s.

Accepted Answer

A) True 
 B)False

Question 3

The labor, energy, land, and capital a country relies on to source goods and services are known as

Accepted Answer

A)   trade tariffs.
B)   the globalization of markets.
C)   the marketing mix.
D)   the globalization of production.
E)   factors of production.F) A) and E)
G) A) and D)

Question 4

Clean Chemical Corp. recently moved its operations from Houston, Texas, to Somalia. The decision to move was the result of new federal regulations regarding clean air standards that all chemical corporations are subjected to. A critic of globalization would say this example demonstrates what concern?

Accepted Answer

A)   Free trade discourages firms from advanced nations to move manufacturing facilities to less developed countries.
B)   Facilities in advanced nations are moving to less developed countries that have lower environmental regulations.
C)   Manufacturing enterprises are put at a competitive disadvantage by moving their production facilities to nations that do not have burdensome regulations.
D)   As countries get richer, they relax their environmental and labor regulations.
E)   More countries are working to meet the strict environmental standards set by the U.S. government.F) C) and E)
G) B) and C)

Question 5

Explain how supporters of globalization view the idea that the decline in unskilled wage rates and the demand for unskilled workers is due to the migration of low-wage manufacturing jobs offshore.

Accepted Answer

Globalization critics argue that the dec...

Question 6

Countries that receive loans from the IMF are required to

Accepted Answer

A)   become a member of the United Nations.
B)   allow developed nations to create businesses in their country.
C)   enforce a democratic government.
D)   use the funds to help individual citizens.
E)   adopt specific economic policies to attain stabilization.F) C) and E)
G) B) and D)

Question 7

One suggestion for helping poor countries enjoy the benefits of free trade is for richer nations to reduce barriers to importing products from those nations particularly for textiles and ________ products.

Accepted Answer

A)   electronic
B)   agricultural
C)   service
D)   financial
E)   manufacturingF) A) and B)
G) A) and D)

Question 8

Enhanced protection for patents and trademarks was one focus of the Uruguay Round.

Accepted Answer

A) True 
 B)False

Question 9

Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the

Accepted Answer

A)   migration of low-wage manufacturing jobs offshore.
B)   technology-induced shift toward jobs that require significant education and skills.
C)   increased supply of highly skilled workers.
D)   increasing demand for unskilled workers.
E)   reducing national differences in the cost of labor between developed and developing nations.F) A) and B)
G) All of the above

Question 10

Which statement is a general implication of globalization?

Accepted Answer

A)   Globalization is inevitable.
B)   From a purely economic perspective, globalization is all good.
C)   Globalization has no negative impacts on the economies of the developed world.
D)   Globalization has reduced the risks associated with global financial contagion.
E)   As a result of globalization, a severe crisis in one region of the world can affect the entire globe.F) B) and E)
G) None of the above

Question 11

What country has seen a relative decline in its share of world output between 1960 and 2018?

Accepted Answer

A)   United States
B)   Brazil
C)   Thailand
D)   China
E)   South KoreaF) B) and D)
G) B) and C)

Question 12

Growing income inequality between the skilled and unskilled workers in advanced nations, such as the United States, is a result of the

Accepted Answer

A)   wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted.
B)   decrease in the outsourcing of low-wage manufacturing jobs offshore and a corresponding increase in demand for unskilled workers.
C)   shift within advanced economies toward jobs where the only qualification is the willingness to turn up for work every day.
D)   increasing wage gap between developing and developed nations.
E)   shortage of unskilled workers and an excess supply of highly skilled workers.F) C) and D)
G) D) and E)

Question 13

The Uruguay Round extended GATT to cover services as well as manufactured goods.

Accepted Answer

A) True 
 B)False

Question 14

During early globalization efforts, outsourcing was typically confined to ________ activities.

Accepted Answer

A)   marketing
B)   financial
C)   legal
D)   manufacturing
E)   serviceF) A) and E)
G) B) and D)

Question 15

Royal Teas, a U.K.-based company employing just 30 people worldwide, generates $1.5 million in revenues of which 60 percent comes from exports to Asian countries. Royal Teas is most likely classified as a

Accepted Answer

A)   large domestic firm.
B)   mini-multinational firm.
C)   greenfield firm.
D)   foreign firm.
E)   multinational giant.F) A) and C)
G) C) and E)

Question 16

For foreign direct investment (FDI)  to occur, a firm should primarily

Accepted Answer

A)   conduct cross-border bartering with neighboring countries.
B)   invest resources in business activities outside its home country.
C)   export goods or services to consumers in another country.
D)   import goods or services from producers in another country.
E)   support strong barriers to international trade.F) A) and D)
G) A) and B)

Question 17

The North American Free Trade Agreement (NAFTA)  was formed in 1994 among

Accepted Answer

A)   Canada, Mexico, and the United States.
B)   the United States, Brazil, and Argentina.
C)   Canada, Argentina, and Mexico.
D)   Colombia, Venezuela, and Brazil.
E)   Uruguay, Colombia, and Costa Rica.F) D) and E)
G) B) and C)

Question 18

A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward

Accepted Answer

A)   supranational organizations such as the World Trade Organization.
B)   the communist states of eastern Europe and central Asia.
C)   the medium-size and small U.S. multinationals.
D)   the national governments of the countries participating in globalization.
E)   nations that have authoritarian forms of government.F) All of the above
G) C) and D)

Question 19

A domestic enterprise is any business that has productive activities in at least two countries.

Accepted Answer

A) True 
 B)False

Question 20

A firm has to become a multinational enterprise to engage in international business.

Accepted Answer

A) True 
 B)False

Exam 1: Globalization

The North American Free Trade Agreement (NAFTA) was formed in 1994 among

Correct Answer
verified

Explain how supporters of globalization view the idea that the decline in unskilled wage rates and the demand for unskilled workers is due to the migration of low-wage manufacturing jobs offshore.

Correct Answer
verified
Globalization critics argue that the dec...
View Answer

During early globalization efforts, outsourcing was typically confined to ________ activities.

Correct Answer
verified

The Uruguay Round extended GATT to cover services as well as manufactured goods.

Correct Answer
verified

One suggestion for helping poor countries enjoy the benefits of free trade is for richer nations to reduce barriers to importing products from those nations particularly for textiles and ________ products.

Correct Answer
verified

Countries that receive loans from the IMF are required to

Correct Answer
verified

Sharron purchased a computer for $500 in 2018. Compared to the $900 computer that she purchased in 2011, the new one seems better in terms of the price she has paid and the power of the microprocessor technology. This is best explained by

Correct Answer
verified

The amount of foreign direct investment in China has been decreasing since the 1980s.

Correct Answer
verified

The labor, energy, land, and capital a country relies on to source goods and services are known as

Correct Answer
verified

A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward

Correct Answer
verified

A firm has to become a multinational enterprise to engage in international business.

Correct Answer
verified

Enhanced protection for patents and trademarks was one focus of the Uruguay Round.

Correct Answer
verified

Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the

Correct Answer
verified

Which statement is a general implication of globalization?

Correct Answer
verified

Correct Answer
verified

What country has seen a relative decline in its share of world output between 1960 and 2018?

Correct Answer
verified

A domestic enterprise is any business that has productive activities in at least two countries.

Correct Answer
verified

Growing income inequality between the skilled and unskilled workers in advanced nations, such as the United States, is a result of the

Correct Answer
verified

For foreign direct investment (FDI) to occur, a firm should primarily

Correct Answer
verified

Royal Teas, a U.K.-based company employing just 30 people worldwide, generates $1.5 million in revenues of which 60 percent comes from exports to Asian countries. Royal Teas is most likely classified as a

Correct Answer
verified

Exam 1: Globalization

The North American Free Trade Agreement (NAFTA) was formed in 1994 among

Correct AnswerverifiedShow Answer

Explain how supporters of globalization view the idea that the decline in unskilled wage rates and the demand for unskilled workers is due to the migration of low-wage manufacturing jobs offshore.

Correct AnswerverifiedGlobalization critics argue that the dec...View AnswerShow Answer

During early globalization efforts, outsourcing was typically confined to ________ activities.

Correct AnswerverifiedShow Answer

The Uruguay Round extended GATT to cover services as well as manufactured goods.

Correct AnswerverifiedShow Answer

One suggestion for helping poor countries enjoy the benefits of free trade is for richer nations to reduce barriers to importing products from those nations particularly for textiles and ________ products.

Correct AnswerverifiedShow Answer

Countries that receive loans from the IMF are required to

Correct AnswerverifiedShow Answer

Sharron purchased a computer for $500 in 2018. Compared to the $900 computer that she purchased in 2011, the new one seems better in terms of the price she has paid and the power of the microprocessor technology. This is best explained by

Correct AnswerverifiedShow Answer

The amount of foreign direct investment in China has been decreasing since the 1980s.

Correct AnswerverifiedShow Answer

The labor, energy, land, and capital a country relies on to source goods and services are known as

Correct AnswerverifiedShow Answer

A concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power toward

Correct AnswerverifiedShow Answer

A firm has to become a multinational enterprise to engage in international business.

Correct AnswerverifiedShow Answer

Enhanced protection for patents and trademarks was one focus of the Uruguay Round.

Correct AnswerverifiedShow Answer

Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the

Correct AnswerverifiedShow Answer

Which statement is a general implication of globalization?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What country has seen a relative decline in its share of world output between 1960 and 2018?

Correct AnswerverifiedShow Answer

A domestic enterprise is any business that has productive activities in at least two countries.

Correct AnswerverifiedShow Answer

Growing income inequality between the skilled and unskilled workers in advanced nations, such as the United States, is a result of the

Correct AnswerverifiedShow Answer

For foreign direct investment (FDI) to occur, a firm should primarily

Correct AnswerverifiedShow Answer

Royal Teas, a U.K.-based company employing just 30 people worldwide, generates $1.5 million in revenues of which 60 percent comes from exports to Asian countries. Royal Teas is most likely classified as a

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Globalization critics argue that the dec...
View Answer

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verified

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