Question 1

In the 1970s,European and Japanese firms began to shift labor-intensive manufacturing operations from their home markets to developing nations where labor costs were lower.

Accepted Answer

In the 1970s,European and Japanese firms began to shift labor-intensive manufacturing operations from their home markets to developing nations where labor costs were lower.

Question 2

Due to benefits associated with free trade and investment,the gap between the rich and poor nations of the world has reduced.

Accepted Answer

In 1870,the average income per capita in the world's 17 richest nations was 2.4 times that of all other countries.In 1990,the same group was 4.5 times as rich as the rest.Hence,despite the benefits associated with free trade and investment,gap between the rich and poor nations of the world has only widened.

Question 3

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Accepted Answer

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Question 4

Support for the antiglobalization effort goes beyond a core group of anarchists.

Accepted Answer

The large scale of antiglobalization efforts demonstrates that support for the cause goes beyond a core of anarchists.Large segments of the population in many countries believe that globalization has detrimental effects on living standards and the environment.

Question 5

Most forecasts now predict a rapid rise in world output accounted for by developing nations such as China,India,and South Korea,and a relative decline in the share enjoyed by rich industrialized countries such as Britain and the United States.

Accepted Answer

As emerging economies such as China,India,and Brazil continue to grow,a further relative decline in the share of world output and world exports accounted for by the United States and other long-established developed nations seems likely.

Question 6

Throughout most of Latin America,governments have sold state-owned enterprises to private investors and foreign investment is welcomed.

Accepted Answer

Throughout most of Latin America,debt and inflation are down,governments have sold state-owned enterprises to private investors,foreign investment is welcomed,and the region's economies have expanded.

Question 7

The merging of historically distinct and separate national markets into one huge global marketplace is referred to as the:

Accepted Answer

Globalization of markets involves moving away from an economic system in which national markets are distinct entities,isolated by trade barriers and barriers of distance,time,and culture,and toward a system in which national markets are merging into one global market.

Question 8

_____ refers to the shift toward a more integrated and interdependent world economy.

Accepted Answer

Globalization refers to the shift toward a more integrated and interdependent world economy.Globalization has several facets,including the globalization of markets and the globalization of production.

Question 9

A firm that imports products from other countries can be termed an international business.

Accepted Answer

A firm does not have to become a multinational enterprise,investing directly in operations in other countries,to engage in international business.All a firm has to do is export or import products from other countries.

Question 10

The range of problems confronted by a manager in an international business is wider and the problems themselves are more complex than those confronted by a manager in a domestic business.

Accepted Answer

The range of problems confronted by a manager in an international business is wider and the problems themselves are more complex than those confronted by a manager in a domestic business.

Question 11

In the 1960s,global business activity was dominated by large Japanese multinational corporations.

Accepted Answer

In the 1960s,global business activity was dominated by large US multinational corporations.

Question 12

As the world's largest industrial power,the United States accounted for a significantly larger share of the world economy in 2008 than it did in the 1960's.

Accepted Answer

By 2008,the United States accounted for 20.7 percent of world GDP,still the world's largest industrial power but down significantly in relative size (40.3 percent)since the 1960s.

Question 13

The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country.

Accepted Answer

The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country.

Question 14

Automobile companies promote different car models in different countries depending on a range of factors such as demographics,local taste,local fuel costs,income levels,traffic congestion,and cultural values.This demonstrates that:

Accepted Answer

Significant differences still exist among national markets along many relevant dimensions,including consumer tastes and preferences,distribution channels,culturally embedded value systems,business systems,and legal regulations.These differences frequently require companies to customize marketing strategies,product features,and operating practices to best match conditions in a particular country.

Question 15

Highly indebted poor countries (HIPCs)are those economies that will be better served by pursuing protectionist policies than by free trade.

Accepted Answer

Free trade is a necessary prerequisite along with large-scale debt relief to help HIPCs bootstrap themselves out of poverty.

Question 16

A slump in foreign direct investment into developed nations from 1998 to 2000 was followed by a surge in 2001 to 2003.

Accepted Answer

A surge in foreign direct investment from 1998 to 2000 was followed by a slump from 2001 to 2003 associated with a slowdown in global economic activity after the collapse of the financial bubble of the late 1990s and 2000.

Question 17

One concern of globalization opponents is that it undermines the influence of international organizations and promotes the sovereignty of individual nation-states.

Accepted Answer

One concern voiced by critics of globalization is that today's increasingly interdependent global economy shifts economic power away from national governments and toward supranational organizations such as the World Trade Organization,the European Union,and the United Nations.

Question 18

Despite all the talk about the emerging global village,differences between countries such as cultures and political systems are profound and enduring.

Accepted Answer

Despite all the talk about the emerging global village,differences such as cultures and political systems between countries are profound and enduring.

Question 19

What percentage of exporting firms in the United States are small businesses that employ less than 100 people?

Accepted Answer

In the United States,nearly 90 percent of firms that export are small businesses employing less than 100 people,and their share of total U.S.exports has grown steadily over the past decade to now exceed 20 percent.

Question 20

The arguments of those who support globalization are limited by the absence of a compelling body of theory and evidence.

Accepted Answer

There are good theoretical reasons and empirical evidence supporting the argument that declining barriers to international trade and investment do stimulate economic growth,create jobs,and raise income levels.

Quiz 1: Globalization

In the 1970s,European and Japanese firms began to shift labor-intensive manufacturing operations from their home markets to developing nations where labor costs were lower.

Due to benefits associated with free trade and investment,the gap between the rich and poor nations of the world has reduced.

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Support for the antiglobalization effort goes beyond a core group of anarchists.

Most forecasts now predict a rapid rise in world output accounted for by developing nations such as China,India,and South Korea,and a relative decline in the share enjoyed by rich industrialized countries such as Britain and the United States.

Throughout most of Latin America,governments have sold state-owned enterprises to private investors and foreign investment is welcomed.

The merging of historically distinct and separate national markets into one huge global marketplace is referred to as the:

_____ refers to the shift toward a more integrated and interdependent world economy.

A firm that imports products from other countries can be termed an international business.

The range of problems confronted by a manager in an international business is wider and the problems themselves are more complex than those confronted by a manager in a domestic business.

In the 1960s,global business activity was dominated by large Japanese multinational corporations.

As the world's largest industrial power,the United States accounted for a significantly larger share of the world economy in 2008 than it did in the 1960's.

The stock of foreign direct investment refers to the total cumulative value of foreign investments in a country.

Automobile companies promote different car models in different countries depending on a range of factors such as demographics,local taste,local fuel costs,income levels,traffic congestion,and cultural values.This demonstrates that:

Highly indebted poor countries (HIPCs)are those economies that will be better served by pursuing protectionist policies than by free trade.

A slump in foreign direct investment into developed nations from 1998 to 2000 was followed by a surge in 2001 to 2003.

One concern of globalization opponents is that it undermines the influence of international organizations and promotes the sovereignty of individual nation-states.

Despite all the talk about the emerging global village,differences between countries such as cultures and political systems are profound and enduring.

What percentage of exporting firms in the United States are small businesses that employ less than 100 people?

The arguments of those who support globalization are limited by the absence of a compelling body of theory and evidence.