Deck 1: Globalization

Question 1

_______ are the two macro factors that seem to underlie the trend toward greater globalization.

A)The increase in global economic stability, and the slowdown in technological change
B)The increase in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and global economic stability
C)The decline in barriers to the free flow of goods, services, and capital that has occurred in the past 10 years, and the slowdown in technological change
D)The decline in barriers to the free flow of goods, services, and capital that has occurred since the end of World War II, and technological change
E)Technological Change and the convergence of global product preferences

Answer 1

D

Question 2

The _______ was created in 1944 by 44 nations that met in Breton Woods, New Hampshire.

A)International bank
B)World Monetary Fund
C)World Trade Organization
D)International Monetary Fund
E)United Nations

Answer 2

D

Question 3

The _______ is seen as the lender of last resort to nation-states whose economies are in turmoil and currencies are losing value against those of other nations.

A)International Monetary Fund
B)International bank
C)United Nations
D)Canada's Export Development Corporation
E)Bank of Canada

Answer 3

A

Question 4

In producing its products, Bombardier sources goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production.This practice is made possible by the globalization of:

A)finance
B)production
C)markets
D)process design
E)consumer demand

Question 5

The most global of markets are not markets for __________, where national differences in tastes and preferences are still often important enough to act as a break on globalization.

A)services
B)consumer goods
C)staples
D)insurance and banking
E)industrial goods

Question 6

The global dispersal of productive activities is:

A)limited to large firms only
B)limited to medium firms only
C)limited to small firms only
D)limited to large and medium firms
E)found in all sized firms

Question 7

Sourcing goods and services from locations around the globe is known as __________.

A)melding of markets
B)integration of markets
C)deregulation
D)globalization of production
E)globalization of markets

Question 8

Which of the following refers to the exporting of goods or services to consumers in another country?

A)situational commerce
B)world exchange
C)international trade
D)cross-national barter
E)foreign investment

Question 9

The trend toward a more integrated and interdependent global economic system that has been in place for many years is commonly referred to as:

A)market standardization
B)cross-border integration
C)globalization
D)consumerism
E)nationalization

Question 10

Although Inco is a Canadian company, it has invested substantial business resources in activities outside Canada.This practice is referred to as:

A)transnational commerce
B)foreign direct investment
C)international trade
D)organizational diversification
E)outsourcing

Question 11

Examples of _______ include Coca-Cola and Pepsi, Ford and Toyota, Bombardier and Embraer, and Caterpillar and Komatsu.

A)service goods
B)international brands
C)homogeneous products
D)global competition
E)market integration

Question 12

The two of the three main components of globalization are:

A)the globalization of markets and the globalization of production
B)the globalization of production and the globalization of finance
C)the standardization of technology and the globalization of markets
D)the globalization of finance and the globalization of accounting
E)the globalization of consumers and the globalization of marketing

Question 13

The globalization of __________ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labour, energy, land, and capital).

A)information technology
B)process design
C)markets
D)production
E)R&D

Question 14

Globalization results in a greater degree of __________ across markets than would be present otherwise.

A)diversification
B)diversity
C)homogeneity
D)heterogeneity
E)uniformity

Question 15

Matrikon HYPERLINK "" exports a number of products to users in other countries.This practice is referred to as __________.

A)world exchange
B)international trade
C)cross-national barter
D)situational commerce
E)multinational diversification

Question 16

XYZ, Inc.is an auto parts distributing warehouse that exports many of its products to consumers in other countries.XYZ Inc.can be described as engaging in:

A)international trade.
B)cross-border investments.
C)product development.
D)trading barriers.
E)international procurement.

Question 17

The most global of markets is in what area?

A)services
B)consumer goods
C)industrial goods
D)intellectual capital
E)entertainment

Question 18

According to the text, the propensity of firms to outsource many of their productive activities to different suppliers around the world has resulted in the creation of __________ products.

A)multi-domestic
B)cross-national
C)global
D)cross-cultural
E)transborder

Question 19

The investing of resources in business activities outside a firm's home country is referred to as:

A)international trade
B)domestic direct investment
C)transnational barter
D)foreign direct investment
E)outsourcing

Question 20

With membership of 192 countries, the _______________ was established to preserve peace through international cooperation and collective security.

A)World Monetary Fund
B)The International Monetary Fund
C)International bank
D)United Nations
E)NATO

Question 21

The lowering of trade barriers to international trade has

A)enabled firms to approach the world as their market
B)enabled firms to be a domestic company in their home country.
C)decreased the volume of production.
D)created an increase of diverse partnerships.
E)encouraged firms to retrench in their home markets.

Question 22

Many of the changes that countries have made pertaining to foreign direct investment regulations have:

A)made it harder for foreign companies to enter their markets
B)made it easier for foreign companies to enter their markets
C)had no effect on the ease upon which foreign companies can enter their markets
D)made it easier to foreign producers of raw materials to enter their markets but more difficult for foreign producers of finished products to enter their markets
E)prevented the expropriation of business assets by a foreign government

Question 23

According to your text, between 1950 to 2000, as world trade expanded by 20 times, world output grew by about _______.

A)12 percent
B)1 percent
C)25 percent
D)6 ½ times
E)20 times

Question 24

Average tariff rates have ______________ since 1950.

A)risen
B)fallen
C)stayed the same
D)risen then fallen
E)fallen then risen

Question 25

Evidence suggests that FDI is playing a(n):

A)decreasing role in the world economy
B)increasing role in the world economy for services but a decreasing role in the world economy for manufactured goods
C)increasing role in the world economy for manufactured goods but a decreasing role in the world economy for services
D)increasing role in the world economy
E)a limited role in the world economy

Question 26

_______ is the theory that predicts that the power of microprocessor technology doubles and the cost of production falls every 18 months.

A)Brennan's Theorem
B)Bailey's Law
C)Moore's Law
D)Ivan's Law
E)Global Micro Accelerant (GMA) Law

Question 27

The agency established at the 1993 Uruguay Round to police the international trading system is the __________.

A)Global Trade Enforcement Administration
B)World Tariff and Trade Bureau
C)International Trade Enforcement Agency
D)World Trade Organization
E)The European bank of Reconstruction and Development

Question 28

According to our textbook, the growing integration of the world economy is:

A)increasing the intensity of competition within the home market of a company in a wide range of manufacturing and service industries
B)decreasing the intensity of global competition in manufacturing industries, and increasing the intensity of domestic competition in services
C)increasing the intensity of global competition in manufacturing industries, and decreasing the intensity of domestic competition in services
D)narrowing the scope of global competition in a wide range of service, commodity, and manufacturing industries
E)Widening the opportunities for competing with manufacturing companies within their home market and narrowing the opportunities for competing with service companies in their home market.

Question 29

The acronym GATT stands for:

A)Global Agreement on Taxation and Tariffs
B)Global Association of Technology and Trade
C)General Agreement on Taxation and Trademarks
D)General Agreement on Tariffs and Trade
E)General Accord of Transportation and Trade

Question 30

Which of the following statements is consistent with data from the World Trade Organization?

A)the volume of world trade has grown faster than the volume of world output since the 1950s.
B)the volume of world trade has grown slower than the volume of world output since the 1950s.
C)the volume of world trade and the volume of world output have grown at approximately the same rate since the 1950s.
D)the volume of world trade and the volume of world output have remained constant since the 1950s.
E)the volume of world trade is inversely related to the growth of world output.

Question 31

Which of the following is a major cause for lowering the trade barriers of markets and production?

A)Technological change
B)Increased labour mobility
C)Elastic demand
D)Corporate greed
E)Consumer demand

Question 32

Which of the following was not an outcome of the Uruguay Round of the GATT?

A)reduced trade barriers
B)extended GATT to cover services as well as manufactured goods
C)established the World Trade Organization
D)provided extended protection for patents, trademarks, and copyrights
E)reduced agricultural subsidies

Question 33

The acronym WTO stands for:

A)Western Trade Organization
B)World Tax Organization
C)World Trade Organization
D)World Tariff Organization
E)World Trade Operations

Question 34

According to our textbook, the single most important technological innovation has been the development of the __________.

A)telegraph
B)microprocessor
C)ocean container
D)airplane
E)telephone

Question 35

Suppose Petro Canada, an international oil company, had a complaint about a trade issue.The __________, a governing body established at the Uruguay Round in 1993 to police the international trading system, is an organization that Petro Canada could take its complaint to.

A)World Trade Organization
B)International Trade Monitoring Bureau
C)World Tariff and Trade Agency
D)International Trade Monitoring Agency
E)The United Nations

Question 36

Between 1990 and 2000, the total flow of FDI from all countries increase by about _______?

A)2 times
B)3 times
C)4 times
D)5 times
E)6 times

Question 37

Under the umbrella of GATT there have been eight rounds of negotiations among member states.The _______ was the most recent round of negotiations.

A)Uruguay Round
B)Malaysian Symposium
C)German Round
D)New Zealand Symposium
E)Cancun Round

Question 38

The __________ is a treaty designed to remove barriers to the free flow of goods, services, and capital between nations.

A)Global Agreement on Tariffs and Commerce
B)United Nations Treaty on Trade
C)General Agreement on Tariffs and Trade
D)Multi-National Agreement on Tariffs and Commerce
E)The ILO

Question 39

The average yearly outflow of FDI increased from about $14 billion in 1970 to a record of _______________ in 2007, though it has fallen more recently.

A)$550 billion
B)$73 billion
C)$1.73 trillion
D)$2.75 trillion
E)$11.8 trillion

Question 40

The globalization of markets, the growth of world trade, and the increase in FDI has had what effect? ______________.

A)a decrease in production
B)a decrease in world trade
C)companies find their home markets under attack from foreign competitors
D)companies are reducing their profits
E)companies are during to protectionist measures

Question 41

In recent years, all of the following countries have seen their relative share of world output fall except:

A)United States
B)France
C)Germany
D)China
E)Japan

Question 42

According to your text, the World Bank estimates that today's developing nations may account for more than _______ percent of world economic activity by 2020.

A)35
B)50
C)55
D)65
E)60

Question 43

Which of the following is an example of a developing nation?

A)Thailand
B)Britain
C)Japan
D)United States
E)Canada

Question 44

According to our textbook, by the year 2007 online sales hit almost ____________ in Canada.

A)$1 billion
B)$16 billion
C)$63 billion
D)$350 million
E)$591 million

Question 45

If we look into the future, most forecasts now predict a __________ in world output accounted for by developing nations such as China, India, Indonesia, and South Korea, and a __________ in the share enjoyed by rich industrialized countries such as Britain, Japan, and the United States.

A)rapid rise; rapid decline
B)slight rise; slight decline
C)rapid decline; rapid rise
D)rapid rise; slight decline
E)stay the same; slight decline

Question 46

_______ was not mentioned in our textbook as major innovation in transportation technology.

A)Commercial jet aircraft
B)Super freighters
C)E-commerce
D)The introduction of containerization
E)Both containerization and e-commerce were not mentioned

Question 47

In 1963, the U.S.accounted for _________ percent of world manufacturing output.

A)80.0
B)12.8
C)65.6
D)40.3
E)24.6

Question 48

Which country was the world's most dominant industry power was in the early 1960s?

A)Japan
B)The United Kingdom
C)Germany
D)The United States
E)Canada

Question 49

Although the characteristics of the global economy have changed dramatically over the past 50 years, as late as the 1960s all of the following demographic characteristics were true except:

A)the U.S.dominated the world economy
B)small, U.S.entrepreneurial firms dominated the international business scene
C)the U.S.dominated the world foreign direct investment picture
D)the U.S.was the world's largest industrial power
E)the U.S.dominated world trade

Question 50

As of 2006, _______ was the world's largest exporter.

A)the United States
B)China
C)Japan
D)Germany
E)France

Question 51

Which of the following had the greatest share of the world's exports in 2006 from greatest to least?

A)United States, Japan, China
B)Japan, Germany, United States
C)United States, Germany, Canada
D)China, United States, Japan
E)United States, France, China

Question 52

The relative decline of the developed countries' share of world output _________________.

A)will reduce the living standards of the citizens of developed countries.
B)will increase competition for scarce resources and create political instability.
C)reflects the growing economic and industrial strength of developing countries.
D)will decrease prices but also reduce wages in Canada
E)will decrease job opportunities in Canada

Question 53

As of September 2009 there are over _______ million Internet users in Canada.

A)230
B)458
C)59
D)25
E)19

Question 54

The World Bank has estimated that if current trends continue and based on purchasing power parity, by 2020 the __________ economy could be larger than that of the United States.

A)Russian
B)Chinese
C)Japanese
D)British
E)German

Question 55

Due to containerization, the transportation costs associated with the globalization of production have:

A)remained the same
B)increased dramatically
C)declined
D)increased slightly
E)reduced insurance costs

Question 56

In 2007, the U.S.'s largest trade partner was ___________________.

A)United Kingdom
B)Mexico
C)China
D)Canada
E)South Korea

Question 57

The greatest current potential of the Web seems to be in the ____________ arena.

A)business-to-business
B)consumer-to-business
C)consumer-to-consumer
D)business-to-consumer
E)business-to-government

Question 58

_______ is not considered to be a "developing" nation.

A)Brazil
B)India
C)China
D)France
E)Mexico

Question 59

As a result of a variety of innovations, the real costs of information processing and communication have __________ over the past two decades.

A)fallen slightly
B)increased slightly
C)remained constant
D)fallen dramatically
E)had no impact on the cost of international business

Question 60

According to your textbook, between 1930 and 1990, the cost of a three-minute phone call between New York and London fell from $244.65 to $3.32.This decrease can be mainly contributed to

A)open communication between governments.
B)the advent of the microprocessor.
C)continuing efforts to globalize.
D)high corporate ethical standards.
E)the deregulation of the telecommunications industry

Question 61

What is the total cumulative value of foreign investments is referred to as?

A)accumulation of foreign direct investments
B)portfolio of foreign direct investments
C)stock of foreign direct investments
D)set of foreign direct investments
E)stock of foreign ownership

Question 62

In the 1960s, the two countries with the largest share of world output were:

A)United States and Japan
B)Britain and the United States
C)United States and Germany
D)Britain and Japan
E)United States and France

Question 63

Disturbing signs of growing unrest and totalitarian tendencies continue to be seen in many _______ states.

A)Western European
B)European
C)Northern European
D)Eastern European
E)South American states

Question 64

In the 1960s, what was then seen as an economic threat to Europe?

A)The dominance of U.S.firms
B)Technological innovations
C)Low-cost transportation
D)Low-cost global communication networks
E)Reduction in trade barriers

Question 65

Many East European countries have joined the European Union and although _________________ their long term business prospects remain positive.

A)The economies of most of the former Communist states are not very strong
B)Many of the former Communist nations of Europe and Asiado not share a commitment to free market economies
C)As a result of low wages, the risks involved in doing business in these countries is very high
D)For about half a century these countries were essentially opento Western international business
E)they are suffering from a labour shortage

Question 66

Carmanah Technologies, is a small firm of 105 people that operates in several different foreign countries.It would be appropriate to refer to Carmanah Technologiesas a:

A)aspiring-multinational
B)mini-multinational
C)insignificant-multinational
D)emerging-multinational
E)domestic multinational

Question 67

Recentlythere has been _______ in the number of multinationals from developing countries, especially when you look at smaller firms.

A)a significant growth
B)no change
C)a significant decline
D)some growth
E)some decline

Question 68

The decline of the U.S.in its dominance of the global economy can be explained by two factors.These are:

A)the globalization of the world economy and China's rise to the top rank of economic powers
B)the fall of communism in Eastern Europe and the republics of the former Soviet Union and Japan's rise to the top rank of economic powers
C)the globalization of the world economy and Japan's rise to the top rank of economic powers
D)a decrease in trade barriers worldwide and China's rise in economic power
E)the growth of democratic institutions in China

Question 69

Between 2008-2009, FDI Inward Stock

A)fell for all counties and regions
B)rose only in North America
C)rose in all areas
D)fell only in the European Union
E)fell only in the Developed economies

Question 70

What are mini-multinationals?

A)multinational firms from relatively small countries
B)multinational firms that have been involved in international business for less than five years
C)multinational firms that operate in three or less foreign countries
D)medium-sized and small multinationals
E)subsidiaries of multinationals

Question 71

What kind of enterprise is a business that has productive activities in two or more countries?

A)cross-cultural
B)multinational
C)varied-national
D)diverse-national
E)multi-domestic

Question 72

General Electric Corporation has productive activities in a number of countries.As a result, it would be appropriate to refer to General Electric as a __________ corporation.

A)transnational
B)diverse-national
C)cross-national
D)multinational
E)global

Question 73

Reflecting the dominance of the United States in the global economy, U.S.firms accounted for _______________ percent of worldwide foreign direct investment flows in the 1960s.

A)25.7
B)34.6
C)55.1
D)66.3
E)47.2

Question 74

Which of the following statements is not true regarding the majority of Latin American countries?

A)governments are selling state-owned enterprises to private investors
B)foreign investment is welcome
C)debt and inflation are down
D)neither democracy nor free market reforms have seemed to take hold
E)None of these answers is correct

Question 75

Since the 1960s, what has been a notable trend regarding multinational enterprises?

A)the decline of the multinational enterprise
B)the decline of the Canadian multinational enterprise
C)the rise of non-U.S.multinationals
D)the decline of the Japanese multinational enterprise
E)the rise of U.S.multinationals

Question 76

The foreign direct investment by non-U.S.firms was motivated primarily by the following two factors:

A)the desire to disperse production activities to optimal locations; and the desire to build a direct presence in major foreign markets
B)the desire to disperse production activities to optimal locations; and the desire to influence foreign exchange rates
C)the desire to influence foreign exchange rates; and the desire to influence political developments in foreign countries
D)the desire to build a direct presence in major foreign markets; and the desire to influence political developments in foreign countries
E)the desire to reduce dependence on the United States and to increase direct access to markets

Question 77

Since the 1960s, there have been two notable trends in the demographics of the multinational enterprise.These two trends have been:

A)the rise of non-U.S.multinationals and the disappearance of mini-multinationals
B)the decline of non-U.S.multinationals and the decline of mini-multinationals
C)the decline of non-U.S.multinationals and the growth of mini-multinationals
D)the rise of non-U.S.multinationals and the growth of mini-multinationals
E)the rise of U.S.multinationals and the growth of mini-multinationals

Question 78

IcecultureInc of Ontario emplyes 50 people and exports around the world.It would be considered a _______________

A)a multinational company
B)a transnational company
C)a cross-border national company
D)a mini-multinational
E)a U.S.dominated company

Question 79

Between 2008-2009, Canada's imports from all countries.

A)rose
B)stayed the same
C)fell
D)showed a different pattern to Canada's exports to all countries
E)fell then rose

Question 80

Since 2000s, the percentage of foreign direct investment inflows accounted for by developing countries has generally:

A)decreased
B)never been determined
C)remained constant
D)increased
E)had no impact on their standard of living