Question 1

Explain the trends in world trade and foreign direct investment over the last half century.

Accepted Answer

Since 1950,the volume of world merchandi...

Question 2

Firms based in _____ accounted for 14.7 percent of the stock of foreign direct investment in 2007,up from only 1.1 percent in 1980.

Accepted Answer

A)  Asia
B)  developing countries
C)  United Kingdom
D)  NAFTA regionE) A) and D)
F) None of the above

Question 3

Technological innovations have facilitated all of the following except:

Accepted Answer

A)  globalization of production.
B)  globalization of markets.
C)  creation of electronic global marketplaces.
D)  creation of absolutely homogeneous consumer markets.E) B) and C)
F) C) and D)

Question 4

Underlying the trend towards greater globalization is technological change and a decline in barriers to the free flow of goods,services,and capital.

Accepted Answer

A) True 
 B)False

Question 5

The majority of U.S.firms that export are large multinationals that employ 500 or more people.

Accepted Answer

A) True 
 B)False

Question 6

Identify the incorrect statement regarding the former Communist nations of Europe and Asia.

Accepted Answer

A)  The economies of most of the former Communist states are very strong and developed.
B)  Many of the former Communist nations of Europe and Asia share a commitment to free market economies.
C)  As a result of disturbing signs of growing unrest and totalitarian tendencies,the risks involved in doing business in these countries is very high.
D)  For about half a century these countries were essentially closed to Western international business.E) B) and C)
F) All of the above

Question 7

Supporters of debt relief argue that new democratic governments in poor nations should not be forced to honor debts that their corrupt and dictatorial predecessors incurred and mismanaged long ago.

Accepted Answer

A) True 
 B)False

Question 8

According to critics of globalization,today's interdependent global economy limits a nation's national sovereignty.

Accepted Answer

A) True 
 B)False

Question 9

The globalization of markets and production and the resulting growth of world trade,foreign direct investment,and imports all imply that firms are finding their home markets protected from foreign competitors.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following countries has been the largest recipient of foreign direct investment and received about $70 billion a year in inflows in 2005 and 2006?

Accepted Answer

A)  Brazil
B)  Russia
C)  India
D)  ChinaE) None of the above
F) A) and B)

Question 11

If the critics of globalization are correct,all of the following things must be shown except:

Accepted Answer

A)  the share of national income received by labor,as opposed to the share received by the owners of capital should have declined in advanced nations.
B)  even though labor's share of the economic pie may have declined,living standards need not deteriorate if the size of the total pie has increased sufficiently to offset the decline in labor's share.
C)  the decline in labor's share of national income must be due to moving production to low-wage countries,as opposed to improving production technology and productivity.
D)  economic growth in developed nations has offset the fall in unskilled workers' share of national income,raising their living standards.E) A) and B)
F) A) and C)

Question 12

Declining barriers to cross-border trade and investment cannot be taken for granted.

Accepted Answer

A) True 
 B)False

Question 13

The shift toward a more integrated and interdependent world economy is referred to as globalization.

Accepted Answer

A) True 
 B)False

Question 14

Since the collapse of communism at the end of the 1980s,the erstwhile communist nations have transformed their economies by encouraging all of the following except:

Accepted Answer

A)  privatizing state-owned enterprises.
B)  regulating markets.
C)  increasing competition.
D)  welcoming investment by foreign businesses.E) A) and D)
F) A) and B)

Question 15

According to supporters of free trade,as countries get richer they enact tougher environmental and labor regulations.

Accepted Answer

A) True 
 B)False

Question 16

Critics of globalization maintain that the apparent decline in real wage rates of unskilled workers

Accepted Answer

A)  owes far more to a technology-induced shift within advanced economies toward jobs that require significant education and skills.
B)  is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers.
C)  has been impacted most by technological change.
D)  can be checked by increasing society's investment in education to reduce the supply of unskilled workers.E) A) and C)
F) A) and B)

Question 17

The reduction in the average tariff rates on manufactured products since 1950 implies all of the following except that

Accepted Answer

A)  firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality.
B)  the economies of the world's nation states are becoming more intertwined.
C)  nations are becoming increasingly independent of each other for important goods and services.
D)  the world has become significantly wealthier since 1950.E) A) and B)
F) B) and D)

Question 18

According to the United Nations most changes between 1992 and 2005 to laws governing FDI have resulted in a less favorable environment for FDI.

Accepted Answer

A) True 
 B)False

Question 19

Debt continues to be a major burden for poorer nations as they strive to get ahead.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?

Accepted Answer

A)  Reduced transportation costs.
B)  Government regulations.
C)  Issues associated with economic and political risk.
D)  Barriers to foreign direct investment.E) None of the above
F) A) and B)

Exam 1: Globalization

According to critics of globalization,today's interdependent global economy limits a nation's national sovereignty.

Correct AnswerverifiedShow Answer

Technological innovations have facilitated all of the following except:

Correct AnswerverifiedShow Answer

Underlying the trend towards greater globalization is technological change and a decline in barriers to the free flow of goods,services,and capital.

Correct AnswerverifiedShow Answer

Declining barriers to cross-border trade and investment cannot be taken for granted.

Correct AnswerverifiedShow Answer

Which of the following is not an impediment that makes it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe?

Correct AnswerverifiedShow Answer

Debt continues to be a major burden for poorer nations as they strive to get ahead.

Correct AnswerverifiedShow Answer

If the critics of globalization are correct,all of the following things must be shown except:

Correct AnswerverifiedShow Answer

Supporters of debt relief argue that new democratic governments in poor nations should not be forced to honor debts that their corrupt and dictatorial predecessors incurred and mismanaged long ago.

Correct AnswerverifiedShow Answer

The majority of U.S.firms that export are large multinationals that employ 500 or more people.

Correct AnswerverifiedShow Answer

The reduction in the average tariff rates on manufactured products since 1950 implies all of the following except that

Correct AnswerverifiedShow Answer

Firms based in _____ accounted for 14.7 percent of the stock of foreign direct investment in 2007,up from only 1.1 percent in 1980.

Correct AnswerverifiedShow Answer

Critics of globalization maintain that the apparent decline in real wage rates of unskilled workers

Correct AnswerverifiedShow Answer

According to supporters of free trade,as countries get richer they enact tougher environmental and labor regulations.

Correct AnswerverifiedShow Answer

Identify the incorrect statement regarding the former Communist nations of Europe and Asia.

Correct AnswerverifiedShow Answer

According to the United Nations most changes between 1992 and 2005 to laws governing FDI have resulted in a less favorable environment for FDI.

Correct AnswerverifiedShow Answer

The globalization of markets and production and the resulting growth of world trade,foreign direct investment,and imports all imply that firms are finding their home markets protected from foreign competitors.

Correct AnswerverifiedShow Answer

The shift toward a more integrated and interdependent world economy is referred to as globalization.

Correct AnswerverifiedShow Answer

Explain the trends in world trade and foreign direct investment over the last half century.

Correct AnswerverifiedSince 1950,the volume of world merchandi...View AnswerShow Answer

Since the collapse of communism at the end of the 1980s,the erstwhile communist nations have transformed their economies by encouraging all of the following except:

Correct AnswerverifiedShow Answer

Which of the following countries has been the largest recipient of foreign direct investment and received about $70 billion a year in inflows in 2005 and 2006?

Correct AnswerverifiedShow Answer

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Since 1950,the volume of world merchandi...
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