Question 1

The volume of goods,services and investment crossing national borders expanded faster than did world output every year during the last two decades of the 20^th century.

Accepted Answer

This statement is true, as globalization led to an increase in international trade and investment during the late 20th century.

Question 2

In addition to reducing trade barriers,many countries have also been progressively removing restrictions on barriers to foreign direct investment.

Accepted Answer

It is true that many countries have been removing restrictions on barriers to foreign direct investment in addition to reducing trade barriers.

Question 3

Because of the global presence of widely accepted products like McDonalds,Coca-Cola,and Apple's iPod,national markets are disappearing.

Accepted Answer

The global presence of widely accepted products like McDonalds, Coca-Cola, and Apple's iPod indicates the increasing interconnectedness and globalization of markets, leading to the convergence of consumer preferences and the erosion of national market boundaries.

Question 4

Currently most global markets are markets for consumer goods.

Accepted Answer

The answer of Currently most global markets are markets for...

Question 5

The Tim Hortons case study is an example of what?

Accepted Answer

The Tim Hortons case study is an example of the difficulty of Canadian firms expanding internationally, particularly into the US market. The case highlights the challenges faced by Tim Hortons as it tried to establish a foothold in the highly competitive US market through partnerships, acquisitions, and franchising. Despite initial success, the company faced a number of key strategic and operational issues that ultimately led to its acquisition by Burger King in 2014.

Question 6

Managing an international business is different from managing a purely domestic business for all of the following reasons except:

Accepted Answer

The statement is incorrect as the range of problems confronted by a manager in an international business is wider due to cultural differences, varying legal systems, and language barriers. Hence, all options except C are valid reasons for why managing an international business differs from managing a domestic business.

Question 7

Sourcing goods and services from locations around the globe is known as the globalization of markets.

Accepted Answer

Sourcing goods and services from locations around the globe is known as global sourcing, not the globalization of markets. The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace.

Question 8

Supranational organizations such as the WTO are criticized for

Accepted Answer

The answer of Supranational organizations such as the WTO are...

Question 9

The global economy is moving progressively towards a world in which national economies are relatively isolated from each other.

Accepted Answer

The statement is not accurate. The global economy is actually moving towards a world that is increasingly interconnected and interdependent, with countries relying on each other for trade, investment, and technology transfer. This trend is supported by the growth of regional and international trade agreements, the rise of multinational corporations, and the integration of financial markets.

Question 10

Currently most global markets are markets for consumer goods.

Accepted Answer

The answer of Currently most global markets are markets for...

Question 11

Although many companies have lowered their overall cost structure and have improved the quality of their products by dispersing their production activities to locations around the world,this activity is confined primarily to large firms.

Accepted Answer

Many small and medium-sized enterprises (SMEs) also engage in dispersing their production activities globally to benefit from lower costs and improved product quality, leveraging globalization and technological advancements to compete more effectively.

Question 12

Currently most global markets are for industrial goods and materials that serve a universal need the world over.

Accepted Answer

This statement is true. Many global markets are for industrial goods and materials that are needed in various countries and regions around the world. Examples of such goods include oil, steel, and machinery.

Question 13

General Agreement on Tariffs and Trade is what the acronym GATT stands for.

Accepted Answer

GATT stands for General Agreement on Tariffs and Trade.

Question 14

As markets globalize and an increasing proportion of business activity transcends national borders,there is a need for institutions to help manage,regulate and police the global market place.

Accepted Answer

The statement is true as the globalization of markets has led to the need for international institutions to regulate and manage the global market place. Examples of such institutions include the World Trade Organization, the International Monetary Fund, and the World Bank.

Question 15

To benefit from the globalization of markets,a company has to be a multinational firm.

Accepted Answer

While multinational firms can benefit from the globalization of markets, it is not a requirement. Smaller companies and even startups can also take advantage of global markets through online platforms, outsourcing, and partnerships with international firms.

Question 16

The International Monetary Fund (IMF)is often seen as the leader of last resort to nation states whose economies are in economic turmoil.

Accepted Answer

The International Monetary Fund (IMF) is an international organization that provides loans and financial assistance to member countries experiencing economic difficulties, and is often viewed as a lender of last resort.

Question 17

The world's poorest nations have also faced __________.

Accepted Answer

The phrase "world's poorest nations" implies that these countries have low levels of economic development and are struggling with poverty. The term "economic stagnation" refers to a situation in which there is little or no economic growth, which is a common challenge faced by poor nations. Therefore, option D is the most appropriate choice.

Question 18

The International Monetary Fund and the World Bank were both created in 1944 by 44 nations that met at Bretton Woods,New Hampshire.

Accepted Answer

This statement is true.

Question 19

The advanced nations of the East committed themselves after World War II to removing barriers to the free flow of goods,services,and capital between nations.

Accepted Answer

After World War II, it was primarily Western nations, particularly those in North America and Western Europe, that committed themselves to removing barriers to the free flow of goods, services, and capital between nations. This was part of the broader effort to establish a liberal international economic order. Eastern nations, especially those under Soviet influence, were more inclined towards economic policies that emphasized state control and were less open to free trade.

Question 20

What is the primary purpose of the World Trade Organization?

Accepted Answer

The primary purpose of the World Trade Organization is to arbitrate trade disputes between member countries. It is responsible for ensuring that international trade flows as smoothly, predictably, and freely as possible. While it may address certain environmental and labor issues in the context of trade, its main focus is on trade-related matters.

Quiz 1: Globalization

The volume of goods,services and investment crossing national borders expanded faster than did world output every year during the last two decades of the 20th century.

In addition to reducing trade barriers,many countries have also been progressively removing restrictions on barriers to foreign direct investment.

Because of the global presence of widely accepted products like McDonalds,Coca-Cola,and Apple's iPod,national markets are disappearing.

Currently most global markets are markets for consumer goods.

The Tim Hortons case study is an example of what?

Managing an international business is different from managing a purely domestic business for all of the following reasons except:

Sourcing goods and services from locations around the globe is known as the globalization of markets.

Supranational organizations such as the WTO are criticized for

The global economy is moving progressively towards a world in which national economies are relatively isolated from each other.

Currently most global markets are markets for consumer goods.

Although many companies have lowered their overall cost structure and have improved the quality of their products by dispersing their production activities to locations around the world,this activity is confined primarily to large firms.

Currently most global markets are for industrial goods and materials that serve a universal need the world over.

General Agreement on Tariffs and Trade is what the acronym GATT stands for.

As markets globalize and an increasing proportion of business activity transcends national borders,there is a need for institutions to help manage,regulate and police the global market place.

To benefit from the globalization of markets,a company has to be a multinational firm.

The International Monetary Fund (IMF)is often seen as the leader of last resort to nation states whose economies are in economic turmoil.

The world's poorest nations have also faced __________.

The International Monetary Fund and the World Bank were both created in 1944 by 44 nations that met at Bretton Woods,New Hampshire.

The advanced nations of the East committed themselves after World War II to removing barriers to the free flow of goods,services,and capital between nations.

What is the primary purpose of the World Trade Organization?

The volume of goods,services and investment crossing national borders expanded faster than did world output every year during the last two decades of the 20^th century.