Question 1

Because broadband prices have been falling, governments in emerging economies such as India and South Africa are facilitating the spread of broadband to rural towns and villages to provide instant access to market information and government programs to remote villagers which will enable policymakers to maximize the economic potential of remote communities and make globalization sustainable.

Accepted Answer

The statement correctly notes that governments in emerging economies are facilitating the spread of broadband to rural areas to provide access to market information and government programs for remote villagers. This can help maximize economic potential and make globalization sustainable. The availability of broadband is also leading to falling prices, as noted in the statement.

Question 2

More globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by Transparency International.

Accepted Answer

Transparency International's Corruption Perceptions Index consistently ranks New Zealand and Singapore among the top countries for low levels of corruption, indicating a positive correlation between globalization and reduced corruption.

Question 3

Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United States. Brazilian juice is engaging in
A) economic development in United States.
B) exercising nontariff barriers in Brazil.
C) unfair trade practices.
D) globalization.
E) the World Trade Bank Group.

Accepted Answer

Brazilian Juice selling their product in six different countries including the United States indicates that the company is globalizing their business.

Question 4

The foundations of the globalized business world are political-and so are the biggest threats to the system.

Accepted Answer

The political environment, including factors such as government policies and regulations, trade agreements, and political stability, heavily influences the functioning of the globalized business world. Similarly, political events such as wars, economic sanctions, and political instability can pose significant threats to the global economy and trade.

Question 5

Which of the following is NOT a key aspect of globalization?
A) The elimination of barriers to trade
B) Investment
C) Financial independence
D) Culture
E) Information technology

Accepted Answer

Financial independence is not a key aspect of globalization. The other options listed (elimination of barriers to trade, investment, culture, and information technology) are all central to the idea of globalization.

Question 6

Countries that have successfully adapted to globalization realize that they cannot succeed without high-quality government management at home.

Accepted Answer

Countries that have been successful in adapting to globalization have realized that effective domestic governance is crucial to their success. This means having institutions that can provide a stable and predictable regulatory environment, enforce property rights, ensure the rule of law, and promote stability and security. Without these elements, foreign investment and economic integration will be limited, and countries will struggle to generate sustainable economic growth.

Question 7

The "soft" qualities essential to globalization include openness, protectionism, accountability, connectivity, democracy, and centralization.

Accepted Answer

The statement is incorrect. The "soft" qualities essential to globalization include openness, flexibility, adaptability, diversity, collaboration, and innovation.

Question 8

As part of the World Bank's Strategic Framework, there are five focus areas that accommodate and facilitate the globalization process including its analytical and advisory role supporting national policies to strengthen free market institutions and infrastructure that has provided the potential for creating large gains from trade.

Accepted Answer

The statement correctly describes the five focus areas of the World Bank's Strategic Framework.

Question 9

A sustainable decoupling process would eventually lead to a multi-polar world-a world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone.

Accepted Answer

A sustainable decoupling process would promote the growth of multiple countries and lead to a multi-polar world economy, rather than relying solely on the United States as the engine of growth.

Question 10

Even though business is global, the credit crisis of 2008, started by an American investment bank, was limited to the American economy with fortunately no impact on the global economy.

Accepted Answer

This statement is false. The credit crisis of 2008 had a significant impact on the global economy, with many countries experiencing recession and financial instability. The crisis originated in the United States, but its effects were felt worldwide.

Question 11

In communist and state-controlled economies like those in Central Asia property rights either do not exist or are not well defined which discourages domestic and foreign investors from making long-term commitments in these countries.

Accepted Answer

In communist and state-controlled economies, property rights are often not well defined or do not exist, which can discourage investors from making long-term commitments due to the uncertainty of ownership and investment protection.

Question 12

With business becoming increasingly global, its success, fortunately, depends only on the domestic environment.

Accepted Answer

Business success is influenced by various factors, including global economic trends, political stability in different countries, international trade policies, cultural differences, and technological advancements. These factors are beyond the control of the domestic environment and can significantly impact a business's success in the global marketplace.

Question 13

So far globalization has made it possible for goods, services, and capital, to cross national borders but not technology and culture.

Accepted Answer

Globalization has also facilitated the spread of technology and culture across national borders. The internet and social media have played a big role in this process. Furthermore, multinational corporations often bring their technology and values with them when expanding into new markets.

Question 14

For World Trade Organization, increasing trade barriers has been one of the most simplistic ways to encourage trade and globalization.

Accepted Answer

The World Trade Organization (WTO) advocates for the reduction of trade barriers in order to encourage trade and globalization, as increasing trade barriers can hinder international trade and economic growth.

Question 15

Critics argue that open trade and foreign direct investment always take jobs from workers in developing economies and transfer them to workers in advanced industrial countries which leave the workers in the developing country, out of work.

Accepted Answer

While there may be some job displacement in the short term, over time open trade and foreign direct investment can stimulate economic growth and create new job opportunities in developing countries. Additionally, foreign investment can bring in new technology, skills, and knowledge that can benefit local workers and businesses. Thus, the statement is false.

Question 16

Countries that have been moving toward more open trade and free market policies are known as _____.
A) African countries
B) open-door economies
C) industralized countries
D) globalized economies
E) emerging market economies

Accepted Answer

Emerging market economies are countries that are moving towards more open trade and free market policies. These countries have generally been experiencing rapid economic growth and are considered to be of increasing importance in the global economy. Examples of emerging market economies include China, India, Brazil, and Russia.

Question 17

Key aspects of globalization include the elimination of barriers to trade and information technology.

Accepted Answer

The elimination of barriers to trade and advancements in information technology are key aspects of globalization.

Question 18

The openness and proliferation of globalization and free trade rules can best be attributed to the interwar period between World War I and II.

Accepted Answer

The interwar period between World War I and II was marked by economic nationalism and the retreat from globalization and free trade. It was not until after World War II that countries began to establish more open trade relations and a global trade system.

Question 19

A survey by the World Bank indicates that of the companies surveyed; unfortunately, only 30 percent have board-approved policies on environmental management indicating that corporate social responsibility practices have become an insignificant factor in determining where multinational corporations conduct business.

Accepted Answer

The percentage of companies with board-approved environmental policies does not directly determine the significance of corporate social responsibility in business decisions. Other factors and practices also play a role.

Question 20

Of the following, which is NOT true regarding the credit crisis?
A) It affected farmers in Burkina Faso.
B) It affected miners and steel workers in Ukraine.
C) It affected assemble-line workers in Singapore.
D) It affected white-collar workers at information technology firms in Ireland.
E) It had an impact only on its country of origin- the United States.

Accepted Answer

The credit crisis had a global impact and affected various countries beyond the United States, including but not limited to Burkina Faso, Ukraine, Singapore, and Ireland.

Quiz 1: The Rise of Globalization