Deck 1: Globalization

Question 1

The rules of the international monetary system are enforced by the World Bank.

Answer 1

False

Question 2

Imports are goods and services purchased abroad and brought into a country.

Answer 2

True

Question 3

Products marketed in all countries essentially without any changes are known as sourced products.

Answer 3

False

Question 4

Critics of globalization argue that it eliminates jobs in developing nations.

Question 5

One commonality among the world's least-global nations is low levels of corruption.

Question 6

The power of the General Agreement on Tariffs and Trade (GATT)to settle trade disputes is what sets it apart from its predecessor,the World Trade Organization (WTO).

Question 7

Extranets give distributors and suppliers access to a company's online database to place orders electronically.

Question 8

Today,NAFTA is the international organization that enforces the rules of international trade worldwide.

Question 9

Critics of globalization believe the overall gains that accrue to national economies are worth the lost livelihoods of some workers.

Question 10

A country's GDP per capita is its GDP divided by its population.

Question 11

Gross national product (GNP)is the value of all goods and services produced by a domestic economy over a one-year period.

Question 12

The role of the World Bank is to provide financing for national economic development efforts.

Question 13

International business is any commercial transaction that crosses the borders of two or more nations.

Question 14

Resistance to worldwide trade agreements is causing some nations to place greater emphasis on regional pacts.

Question 15

Flexible labour markets allow workers to be redeployed rapidly to sectors of the economy where they are highly valued.

Question 16

In the World Trade Organization (WTO)dispute settlement system,the WTO has the ability to penalize offending nations.

Question 17

Pro-globalization economists believe globalization increases wealth in both developed and developing nations.

Question 18

The term globalization of production refers to convergence in buyer preferences in markets around the world.

Question 19

The General Agreement on Tariffs and Trade (GATT)was designed to promote free trade by reducing both tariffs and nontariff barriers to international trade.

Question 20

Supporters and critics of globalization appear to agree that globalization causes dislocation in labour markets.

Question 21

Robeeze baby shoes,made in Canada and sold in Russia,are an example of which of the following?

A)Canadian export
B)outsourced product
C)globally licensed product
D)Canadian import

Question 22

Which of the following refers to convergence in buyer preferences in markets around the world?

A)Homogenization of markets
B)Globalization of markets
C)Internationalization of markets
D)Denationalization of markets

Question 23

The most remarkable facilitator of societal and commercial changes today is prompted by _______________.

A)increasing imports
B)international business networks
C)improvements in telecommunications
D)use of computer networks and e-commerce

Question 24

The world today is experiencing a trend toward more porous national boundaries.

Question 25

Any commercial transaction that crosses the borders of two or more nations is known as ________.

A)an export
B)e-business
C)international business
D)an import

Question 26

________ is the trend toward greater economic,cultural,political,and technological interdependence among national institutions and economies.

A)International business
B)Denationalization
C)Globalization
D)E-business

Question 27

A born global firm is a company that engages in international business from or near its inception.

Question 28

Olive oil made in Italy and sold in Canada is an example of which of the following?

A)Global brand
B)Canadian export
C)Canadian import
D)Standardized product

Question 29

Which of the following is most likely not an effect of globalization?

A)Increases in the variety of capital flows across national borders
B)Increases in the economic isolation of developing countries
C)Increases in the rate at which products are diffused worldwide
D)Increases in the volume of cross-border transactions

Question 30

Opponents of globalization argue that it causes a "race to the bottom" in environmental conditions.

Question 31

All goods and services purchased abroad and brought into a country are called ________.

A)domestic products
B)exports
C)national products
D)imports

Question 32

Which of the following is defined as the use of computer networks to purchase,sell,or exchange products;service customers;and collaborate with partners?

A)E-commerce
B)Intranet
C)International business
D)Extranet

Question 33

The revenues of the world's largest businesses are lower in value than the gross domestic products of the smallest nations.

Question 34

Multinational corporations (MNCs)have direct investments abroad in multiple countries.

Question 35

________ are all goods and services sold abroad and sent out of a country.

A)Global products
B)Exports
C)Global licences
D)Imports

Question 36

International firms tend to support reasonable labour and environmental laws to expand future local markets for their businesses.

Question 37

Research shows that only large companies can export successfully.

Question 38

Some businesses can become completely immune to events in the international business environment.

Question 39

It is rare for a business to search for production bases and markets at the same time.

Question 40

Research shows that pollution-intensive US companies tend to invest in nations with stricter environmental standards.

Question 41

Innovations in ______________________ are helping globalize markets and production.

A)production materials
B)packaging
C)tariff collection
D)the shipping industry

Question 42

The three main goals of the ________ are to help the free flow of trade,help negotiate the further opening of markets,and settle trade disputes between its members.

A)General Agreement on Tariffs and Trade (GATT)
B)World Trade Organization (WTO)
C)World Bank
D)International Monetary Fund (IMF)

Question 43

Taxes levied on traded goods are known as which of the following?

A)Quotas
B)Import barriers
C)Tariffs
D)Export levies

Question 44

All of the following represent examples of regional trade agreements EXCEPT ________.

A)WTO
B)EU
C)APEC
D)NAFTA

Question 45

An anthropologist may want to examine the influence of globalization on ____________.

A)the living standards
B)the culture of people
C)education levels
D)trade relationships

Question 46

Two major forces that underlie the expansion of globalization are ________ and ________.

A)deregulation of tourism;the rise of nationalism
B)economic interdependence;the decline of international organizations
C)increasing trade barriers;political unrest
D)falling barriers to trade and investment;technological innovation

Question 47

Which of the following are products marketed in all countries essentially without any changes?

A)National products
B)Adapted products
C)Global products
D)Locally responsive products

Question 48

________ is defined as the dispersal of production activities to locations that help a company achieve its cost-minimization or quality-maximization objectives for a good or service.

A)Importing
B)Globalization of production
C)Global strategy development
D)Globalization of markets

Question 49

In the KOF Index of Globalization,Canada ranks number 7 in terms of _________.

A)overall globalization
B)economic globalization
C)political globalization
D)social globalization

Question 50

A limit placed on the quantity of an imported product is known as which of the following?

A)Import sanction
B)Tariff
C)Embargo
D)Nontariff barrier

Question 51

The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________.

A)gross domestic product (GDP)
B)trade balance
C)gross national product (GNP)
D)production quotient

Question 52

The KOF Index of Globalization considers a factor that measures the flow of ideas and information in a country.This is _______________ globalization.

A)technological
B)social
C)economic
D)political

Question 53

________ helps nations to produce a greater amount of output.

A)Increasing tariffs
B)Improvements in technology
C)Openness to trade
D)E-commerce

Question 54

Whereas relocating production to low-cost locales traditionally meant production of ________ almost exclusively,it increasingly applies to the production of ________.

A)services;goods
B)imports;exports
C)goods;services
D)domestic products;global brands

Question 55

Which of the following is an example of the globalization of production?

A)Canadian consumers buy foods imported from Australia.
B)A Chinese company sells textiles to European car makers.
C)A US company builds a manufacturing facility in India.
D)A Swiss watch manufacturer builds a manufacturing facility in Switzerland.

Question 56

The purpose of the General Agreement on Tariffs and Trade (GATT)was to ________.

A)create an international currency
B)regulate exchange rates
C)create regional trade organizations
D)promote free trade

Question 57

Denationalization refers to ________.

A)a loss of sovereignty among nations
B)national boundaries becoming less relevant
C)cooperation between nations to reduce trade barriers
D)attempts by international organizations to resolve trade conflicts

Question 58

Which of the following is an example of a service that a company might produce in a foreign country to benefit from low-cost labour?

A)House cleaning
B)Dental care
C)Appliance repair
D)Research & development

Question 59

Which of the following most likely represents the greatest accomplishment of the 1994 revision of the GATT?

A)Creation of the World Trade Organization
B)Creation of regional trade agreements
C)Creation of the World Bank
D)Creation of the International Monetary Fund

Question 60

A major flaw of the original General Agreement on Tariffs and Trade (GATT)was that it lacked the power to ________.

A)erect barriers to trade
B)dismantle bilateral trade agreements
C)govern exchange rates
D)enforce world trade rules

Question 61

The International Monetary Fund serves each of the following purposes EXCEPT ________.

A)promoting international monetary cooperation
B)facilitating balanced growth of international trade
C)encouraging competitive exchange devaluation
D)making financial resources temporarily available to members

Question 62

Which of the following helped launch the second age of globalization?

A)The end of the Cold War
B)The end of the Korean War
C)The collapse of the Berlin Wall
D)The end of the Second World War

Question 63

Scenario: Tacky Toys and Mushi Toys
Tacky Toys,a Canada-based toy retailer,buys all its merchandise from Mushi Toys,a Japan-based toy manufacturer with production facilities in 12 nations.Mushi Toys markets its toys globally without modification.
Tacky Toys buying its merchandise from Mushi Toys is an example of ________.

A)importing
B)bartering
C)exporting
D)globalization

Question 64

Key characteristics of born global firms are an ________ and knowledge-based organizational capabilities.

A)inventive R&D centre
B)insular management style
C)integrated global network
D)innovative culture

Question 65

The three main branches of the debate over income inequality include each of the following EXCEPT ________.

A)inequality within nations
B)inequality in nongovernmental organizations
C)inequality between nations
D)global inequality

Question 66

A business that has direct investments (in the form of marketing or manufacturing subsidiaries)abroad in multiple countries is called a ________.

A)born global firm
B)multinational corporation
C)multiregional company
D)international corporation

Question 67

A special region in which companies can engage in tariff-free importing and exporting is called a(n)________.

A)regional economic integration zone (REIZ)
B)international customs zone (ICZ)
C)export-processing zone (EPZ)
D)free trade development zone (FTDZ)

Question 68

The first age of globalization extended from ________.

A)the mid-1700s to the 1850s
B)the mid-1800s to the 1920s
C)1920 to 1950
D)1960 to 2000

Question 69

For 75 years,from the start of the First World War to the end of the Cold War,there was a geographic divide between ________,and an ideological divide between ________.

A)North and South;protectionism and socialism
B)North and South;regionalism and globalization
C)East and West;regionalism and globalization
D)East and West;communism and capitalism

Question 70

The "global business environment" consists of four distinct elements: globalization,national business environments,the international business environment,and ________.

A)falling trade and investment barriers
B)international firm management
C)technological innovation
D)multinational corporations

Question 71

According to the KOF Index of Globalization,_____________ is the overall most globalized country.

A)Switzerland
B)Singapore
C)United States
D)Belgium

Question 72

Trade unions claim that globalization ________________________ .

A)strengthens global labour standards
B)slows down production
C)lowers global labour standards
D)increases worker discontent

Question 73

The first age of globalization was halted by all of the following EXCEPT ________.

A)the Great Depression
B)the Russian Revolution
C)the First World War
D)the Cold War

Question 74

According to the opponents of globalization,which of the following occurs as a result of worker dislocation brought about by globalization?

A)Increased labour costs for companies.
B)Gradual lowering of workers' wages.
C)Sudden widespread wage decreases.
D)Increased investment in individual education.

Question 75

Which of the following makes the world market more accessible for companies that sell traditional products by lessening the cost and difficulties associated with global communication?

A)Technology
B)Franchising opportunities
C)Licensing
D)Financial capital

Question 76

Opponents of globalization argue that globalization causes environmental conditions to ________.

A)increase gradually
B)remain at status quo levels
C)decline slightly,then level off
D)decline significantly

Question 77

The ________ is an agency created to provide financing for national economic development efforts.

A)International Monetary Fund
B)World Trade Organization
C)European Union
D)World Bank

Question 78

The world's least global nations have one commonality,which is ________________.

A)high import tariffs
B)growing services sectors
C)low levels of technological connectivity
D)inept political leadership

Question 79

Which of the following was created to regulate fixed exchange rates and enforce the rules of the dealing with international monies?

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

Question 80

Supporters of globalization argue that openness to international trade in a developing nation will ______________________ .

A)bring in workers from developed countries
B)raise per capita income in that country
C)increase emigration to developed countries
D)inspire local workers to work harder