Question 1

Gerald bought his son, David, a computer two years ago. Recently, he decided to buy his daughter, Julian, a computer of her own. In the context of the two-year gap between the purchase of both the computers and Moore's law, it is most likely that:

Accepted Answer

A)  Gerald paid a higher price for Julian's computer.
B)  David's computer will have a microprocessor with better power than that of Julian's.
C)  both David's and Julian's computers would cost Gerald the same price.
D)  the microprocessor in Julian's computer will be more advanced in terms of power than that of David's.
E)  the power of the microprocessors, in both David and Julian's computers, would be the same.F) C) and E)
G) B) and E)

Question 2

Early outsourcing efforts were primarily confined to:

Accepted Answer

A)  accounting services.
B)  manufacturing activities.
C)  testing services.
D)  educational activities.
E)  consulting services.F) A) and B)
G) A) and C)

Question 3

As a result of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries.

Accepted Answer

A) True 
 B)False

Question 4

Discuss the arguments for and against globalization regarding jobs and income.

Accepted Answer

Globalization opponents argue that falli...

Question 5

Universal Lingo, a U.K.-based language translation company employing just 65 people worldwide, has an annual turnover of $1.5 million. In this context, Universal Lingo is most likely to be classified as a(n) :

Accepted Answer

A)  large domestic firm.
B)  mini-multinational firm.
C)  greenfield firm.
D)  foreign firm.
E)  multinational giant.F) B) and C)
G) None of the above

Question 6

The lowering of trade and investment barriers:

Accepted Answer

A)  protects domestic industries from foreign competition.
B)  was not an agenda of the Uruguay Round.
C)  allows firms to base production at optimal locations outside their home country.
D)  creates an unfavorable environment for FDI.
E)  caused the Great depression of the 1930s.F) A) and C)
G) A) and E)

Question 7

The growing income inequality is a result of the wages for skilled workers being discounted.

Accepted Answer

A) True 
 B)False

Question 8

The United States accounted for a significantly larger share of the world economy in 2012 than it did in the 1960s.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following identifies the motivation for much of the foreign direct investment by non-U.S. firms?

Accepted Answer

A)  The desire to disperse production activities to optimal locations
B)  The need to suppress emerging economies such as China, India, and Brazil
C)  The demand for skilled workers in foreign nations
D)  The lack of adequate environmental regulations
E)  The establishment of multinational treatiesF) A) and C)
G) B) and E)

Question 10

Which of the following is the most appropriate solution to the problem of rising carbon dioxide emissions in developed economies?

Accepted Answer

A)  Roll back the trade liberalization efforts that have fostered economic growth and globalization.
B)  Tie free trade agreements to the implementation of fewer environmental and labor laws in less developed countries.
C)  Get the nations of the world to agree to policies designed to limit pollutant emissions.
D)  Increase the export of low-wage manufacturing jobs to developing nations.
E)  Restrict international trade and investment only to services.F) C) and E)
G) All of the above

Question 11

Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances.

Accepted Answer

A) True 
 B)False

Question 12

Highly indebted poor countries (HIPCs) can bootstrap themselves out of poverty by pursuing retaliatory trade policies rather than free trade policies.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following has been declining in the developing nations of the world such as China, India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil?

Accepted Answer

A)  Economic opportunities for international trade
B)  Industrialization
C)  Contribution toward the share of world output
D)  The stock of foreign direct investment
E)  Barriers to the free flow of goods, services, and capitalF) D) and E)
G) C) and D)

Question 14

Richard purchased a computer for $600 in 2014. Compared to the $900 computer that he had purchased way back in 2010, the new one seems to be more efficient in terms of the price he 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) A) and B)
G) None of the above

Question 15

"Exporting jobs" to low-wage nations has contributed to:

Accepted Answer

A)  higher living standards in those countries that "export" the jobs.
B)  higher unemployment in wealthy advanced economies such as the United States.
C)  an increase in the income levels in those nations that "export" the jobs.
D)  lower standards of living in those countries to which the jobs are exported.
E)  reduced specialization in the production of goods and services.F) A) and B)
G) C) and E)

Question 16

Which of the following is a macro factor underlying the trend toward greater globalization?

Accepted Answer

A)  Rise of communism across the globe
B)  Increase in nationalization of private organizations
C)  Increase in diversity in consumer tastes and preferences
D)  Increase in trade regulations across the globe
E)  Dramatic developments in information processing and other technologiesF) B) and D)
G) None of the above

Question 17

The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity.

Accepted Answer

A) True 
 B)False

Question 18

By offering the same basic product worldwide, firms help to create a global market.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements reflects the trend in the changing nature of multinational enterprises?

Accepted Answer

A)  Global business activity is increasingly being dominated by large U.S. multinational corporations.
B)  The number of medium-size and small multinationals is decreasing continuously.
C)  The ranks of the world's largest 100 multinationals are dominated by firms from developing economies.
D)  The Internet is increasing the barriers that small firms face in building international sales.
E)  International business is conducted not just by large firms but also by medium-size and small enterprises.F) C) and D)
G) B) and C)

Question 20

While the lowering of trade barriers made globalization of markets and production a theoretical possibility, which of the following has made it a tangible reality?

Accepted Answer

A)  The advances in communication, information processing, and transportation technologies
B)  The rise of communism and the need for independent economies on a global scale
C)  The increasing diversity in consumer tastes and preferences worldwide
D)  The increasing differences in the material culture the world over
E)  The decreasing significance of the World Trade OrganizationF) C) and D)
G) A) and D)

Exam 1: Globalization

"Exporting jobs" to low-wage nations has contributed to:

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Which of the following is the most appropriate solution to the problem of rising carbon dioxide emissions in developed economies?

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The United States accounted for a significantly larger share of the world economy in 2012 than it did in the 1960s.

Correct AnswerverifiedShow Answer

Gerald bought his son, David, a computer two years ago. Recently, he decided to buy his daughter, Julian, a computer of her own. In the context of the two-year gap between the purchase of both the computers and Moore's law, it is most likely that:

Correct AnswerverifiedShow Answer

The lowering of trade and investment barriers:

Correct AnswerverifiedShow Answer

By offering the same basic product worldwide, firms help to create a global market.

Correct AnswerverifiedShow Answer

While the lowering of trade barriers made globalization of markets and production a theoretical possibility, which of the following has made it a tangible reality?

Correct AnswerverifiedShow Answer

Universal Lingo, a U.K.-based language translation company employing just 65 people worldwide, has an annual turnover of $1.5 million. In this context, Universal Lingo is most likely to be classified as a(n) :

Correct AnswerverifiedShow Answer

The growing income inequality is a result of the wages for skilled workers being discounted.

Correct AnswerverifiedShow Answer

Richard purchased a computer for $600 in 2014. Compared to the $900 computer that he had purchased way back in 2010, the new one seems to be more efficient in terms of the price he has paid and the power of the microprocessor technology. This is best explained by:

Correct AnswerverifiedShow Answer

Early outsourcing efforts were primarily confined to:

Correct AnswerverifiedShow Answer

Which of the following identifies the motivation for much of the foreign direct investment by non-U.S. firms?

Correct AnswerverifiedShow Answer

Which of the following statements reflects the trend in the changing nature of multinational enterprises?

Correct AnswerverifiedShow Answer

Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances.

Correct AnswerverifiedShow Answer

The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity.

Correct AnswerverifiedShow Answer

Discuss the arguments for and against globalization regarding jobs and income.

Correct AnswerverifiedGlobalization opponents argue that falli...View AnswerShow Answer

As a result of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries.

Correct AnswerverifiedShow Answer

Which of the following has been declining in the developing nations of the world such as China, India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil?

Correct AnswerverifiedShow Answer

Highly indebted poor countries (HIPCs) can bootstrap themselves out of poverty by pursuing retaliatory trade policies rather than free trade policies.

Correct AnswerverifiedShow Answer

Which of the following is a macro factor underlying the trend toward greater globalization?

Correct AnswerverifiedShow Answer

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Globalization opponents argue that falli...
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