Deck 1: The Rise of Globalization

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.

Answer 1

True

Question 2

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

Answer 2

True

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.

Answer 3

D

Question 4

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

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

Question 6

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

Question 7

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

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.

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.

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.

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.

Question 12

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

Question 13

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

Question 14

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

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.

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

Question 17

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

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.

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.

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.

Question 21

In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on _____.

A) politics
B) integrity
C) accountability
D) transparency
E) democracy

Question 22

The International Center for the Settlement of Investment Disputes performs which of the following functions?

A) Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
B) Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies
C) Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets
D) Provides political risk coverage for private investments made in developing countries
E) Works on issues related to foreign investment disputes

Question 23

Which of the following is NOT true regarding property rights?

A) Protection of property rights has always been fundamental to market economies.
B) Studies have shown that countries that have successfully adapted to globalization guarantee property rights.
C) Less globalized countries offer less property rigiht protection.
D) In economies in Central Asia and parts of Africa and the Middle East, property rights are well defined.
E) Countries without property rights will most likely fall behind nations that guarantee property rights.

Question 24

The Multilateral Investment Guarantee Agency performs which of the following functions?

A) Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
B) Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies
C) Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets
D) Provides political risk coverage for private investments made in developing countries
E) Works on issues related to foreign investment disputes

Question 25

In Brazil, if there are government organizations that create strong incentives for private investment and operate under a system of checks and balances that function best in a democratic system of government, they could be classified as which of these?

A) Transparent organizations
B) Antitrust corporations
C) Adaptive institutions
D) Emerging markets
E) Capital markets

Question 26

The most recent device(s)that enables greatest ease in portability and accessibility of information is (are)the _____.

A) magazines
B) newspapers
C) Internet
D) smart phones
E) computer

Question 27

India and Brazil have been moving towards more open trade and free market policies. These countries can be described as

A) emerging market economies.
B) open-door economies.
C) industrialized countries.
D) common market economies.
E) the World Bank countries.

Question 28

Trade without discrimination, freer trade, predictability, promotion of fair competition, and _____ are the five principles of the multilateral trading system.

A) integrated capital markets
B) encouragement of economic reform in developing countries
C) liberalization of the trading system
D) nontariff trade
E) international

Question 29

The concept of curtailing agricultural subsidies in developed economies was incorporated into the ninth round to trade negotiations called the _____.

A) "Dallas Round"
B) "Toronoto Round"
C) "Sparta Round"
D) "Kabul Round"
E) "Doha Round"

Question 30

Which of the following is NOT a main purpose of the IMF?

A) Provide a forum for cooperation on international monetary problems
B) Facilitate the sustainable growth of international trade
C) Promote exchange rate stability
D) Lend countries foreign exchange when needed
E) Provide long-term low-interest social sector and infrastructure loans

Question 31

What was the initial primary role of the World Bank?

A) To aide in the reconstruction of Europe after World War II
B) To help eradictate communicable diseases
C) To try to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression.
D) To deal primarily with tariff negotiations
E) To provide loans and take equity position in private companies

Question 32

Trade expansion has been a leading factor in global integration, especially since the early _____.

A) 1650s
B) 1760s
C) 1890s
D) 1970s
E) 2000s

Question 33

The International Bank for Reconstruction and Development performs which of the following functions?

A) Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
B) Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in theose economies
C) Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets
D) Provides political risk coverage for private investments made in developing countries
E) Works on issues related to foreign investment disputes

Question 34

A sustainable decoupling process would eventually lead to _____.

A) a multi-polar world
B) globalization
C) outsourcing
D) importing
E) exporting

Question 35

In ABC country, a system of responsibility in which an authority, such as the government, is not answerable for its actions, it would be described as having the lack of _____.

A) banking system
B) integrity
C) accountability
D) transaction-based exporting
E) trustworthiness

Question 36

GATT refers to which of the following?

A) General Agreement of Tariffs and Trade
B) Great American Trade Tax
C) Gift of American Treaty Tips
D) General Articles on Tariffs and Trade
E) Great Articles on Tariffs and Trade

Question 37

Which of the following is NOT an objective of the WTO?

A) Reviewing national trade policies
B) Acting as a form for trade negotiations
C) Helping eradictate communicable diseases
D) Settling trade disputes
E) Administering trade agreements

Question 38

The rules, enforcement mechanisms, and organizations that support market transactions are referred to as _____.

A) industries
B) companies
C) businesses
D) corporations
E) institutions

Question 39

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 can be described as a(an)__________.

A) interdependent world
B) industrialized world
C) globalized economy
D) multi-polar world
E) diverse world

Question 40

According to the authors, which of the following is NOT true regarding globalization lessons for developing countries?

A) Import oriented nations must switch to concentrate on domestication.
B) Export oriented nations must diversify their market to include major emerging markets.
C) Countries emphasizing exports should base their strategy on their true competitive advantage.
D) For countries with large populations, the size of the domestic market remains most important.
E) Overindulgence can lead to disaster.

Question 41

A stock exchange where long-term financial instruments such as stocks and bonds can be bought and sold refers to _______.

Question 42

Illicit dealings undermine economic performance by doing all of the following EXCEPT:

A) decreasing costs.
B) raising competition.
C) thwarting competition.
D) reducing transparency.
E) raising insecurity.

Question 43

All of the following countries can be considered globalization "winners" EXCEPT:

A) China
B) Central Asia
C) India
D) Brazil
E) South Africa

Question 44

The only way workers in industrialized countries can compete with their counterparts in the developing world will be through:

A) increased use of the cost leadership strategy.
B) increased diversity within the organization.
C) increased empowerment of employees.
D) increased productivity by using technologically-intensive manufacturing technologies.
E) increased flat organization structure.

Question 45

The socio-economic reform process of eliminating trade, investment, cultural, information technology, and political barriers across countries, which in turn could lead to increased economic growth and geo-political integration and interdependence among nations of the world refers to ________.

Question 46

Successive waves of globalization include characteristics such as the expansion of trade, the diffusion of technology, extensive migration, and _____.

A) improvements in country infrastructure
B) increased employee morale
C) improved healthcare
D) financial independence
E) cross-fertilization of diverse cultures

Question 47

________ are economic policy changes that promote private sector development, competitive markets, market-pricing, freer trade, and deregulation.

Question 48

The _____ describes the perceived economic gap between countries or people with easy access to digital and information technology and those with very limited or no access.

A) bandwith
B) digital era
C) digital divide
D) gigabyte number
E) Y2K gap

Question 49

Which of the following is NOT true regarding globalization's "winners" and "losers?"

A) Brazil has been flourishing due to gloablization.
B) According to the World Bank, more than 400 million Chinese citizens have climbed out of poverty since the implementation of economic reform that started in their country.
C) Those that suffer most from the effects of globalization are those countries that have not been able to seize the opportunities to participate in this process.
D) Unfortunately, globalization only creates winners in industralized countries such as the United States.
E) Efforts to hold back globalizaiton or technological progress are bound to fail.

Question 50

McDonalds' consumer products are made primarily of renewable materials; some of the material comes from recycled fiber. The restaurants also utilize LED light fixtures. McDonald's is engaging in _____.

A) future sourcing
B) global warming
C) next-generation consumer hook
D) digital divide
E) sustainable development

Question 51

_______ refers to a fundamental global shift in which industrialized country-dependent developing economies begin to grow based on their own underlying economic strengths rather than the ups and downs of the world's richest countries.

Question 52

ABC Technology touts in their advertisements that their technology can transfer huge amount of data and other information in a second via the Internet. This describes ABC's _____ in technology.

A) brandwith
B) digital server
C) digital divide
D) gigabytes
E) Y2K

Question 53

Which of the following is NOT true regarding the global use of information technology?

A) Our globe relies on the Internet for business and social activity.
B) Broadband prices have been falling.
C) The IT revolution has been relatively slow.
D) Internet-related technologies help reduce corporate and societal hierarchies.
E) Internet and wireless technologies could make many authoritarian governments uneasy.

Question 54

All of the following are arguments against globalization EXCEPT:

A) it may lead to an increase in the apperance of old industries.
B) it may lead to a loss of control over economic policies and developments.
C) it may lead to an erosion of communities.
D) it can be a force of exploitation and injustice.
E) it can cause job losses and stagnant wages.

Question 55

Which of the following is NOT true regarding results from a survey by the World Bank on corporate social responsibility (CSR)?

A) CSR practices are now a significant factor in determining where multinational companies conduct business.
B) 90% of the companies surveyed have board-approved policies on environmental management.
C) 90% of multinationals will make their decisions based on CSR issues with regard to foreign direct investment.
D) CSR issues consistently implemented for the long term lead to sustainable business and development.
E) CSR includes issues such as labor rights, corruption, human rights, community health, and land rights.

Question 56

Countries that are implementing more open trade and free market policies are called ______.

Question 57

The international financial environment in which exchange rates and international payments for goods and services are conducted refers to _________.

Question 58

A world economy in which the engines of growth could comprise several major industrialized and emerging market economies such as the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone is called ______.

Question 59

Of the following, which is NOT true regarding the Internet and cell phone era?

A) Fortunately, the next billion users will be the same as the first billion
B) The majority of users will be from developing countries
C) Text messaging will likely predominate emerging economies; mobile phone usage
D) Countries are skipping the use of land-line technology and jumping to wireless systems
E) Developing countries may "leapfrog" an entire generation of technology

Question 60

Which of the following is NOT true regarding globalization?

A) It guarantees that quality of life for all people will increase.
B) It creates winners and losers.
C) It has the potential to increase the quality of life for people.
D) Some multinational companies will utilize globalization may try to pay substandard wages to the workers they employ in developing countries.
E) Export barriers may need to be imposed by the WTO to help regulate the actions of multinational companies.

Question 61

Scenario - T & M Computers
Thomas Benson and Matthew Roderick started a small computer business ten years ago in Rapid City, South Dakota. Armed only with determination and innovative designs, Thomas and Matthew were driven to achieve success for their company, T & M Computers. Their hard work has indeed, paid off. Since the inception of the company, the two owners have watched their business grow and demand for their products increase.
Four years ago due to this high product demand, they went international with their business operations. Thomas and Matthew now have international business operations in Singapore, France, Turkey, and Great Britain. Further operational expansion is anticipated within the next year and the company plans to begin operations in Spain, Greece, and Italy.
The owner's hard work and dynamic ideas have proven quite profitable for the company. Thomas and Matthew are pleased with how their operation has grown into becoming a major international business worthy of competing with Intel and Microsoft. T & M Computers may well be the next giant recognized in the field of computer software.
T & M Computers are conducting international business operations in world areas, which have recently undergone financial turmoil. Of the following, which organization is most likely to provide assistance in providing global financial stability?

A) International Monetary Fund
B) The United Nations
C) The World Bank
D) The Global Center for Financial Restructuring
E) The World Trade Organization

Question 62

The period of transformation that adjusts lifestyles to make the Internet and wireless technologies a part of everyday life refers to the ______.

Question 63

Scenario - T & M Computers
Thomas Benson and Matthew Roderick started a small computer business ten years ago in Rapid City, South Dakota. Armed only with determination and innovative designs, Thomas and Matthew were driven to achieve success for their company, T & M Computers. Their hard work has indeed, paid off. Since the inception of the company, the two owners have watched their business grow and demand for their products increase.
Four years ago due to this high product demand, they went international with their business operations. Thomas and Matthew now have international business operations in Singapore, France, Turkey, and Great Britain. Further operational expansion is anticipated within the next year and the company plans to begin operations in Spain, Greece, and Italy.
The owner's hard work and dynamic ideas have proven quite profitable for the company. Thomas and Matthew are pleased with how their operation has grown into becoming a major international business worthy of competing with Intel and Microsoft. T & M Computers may well be the next giant recognized in the field of computer software.
Which one of the following would T & M Computers least expect to be a negative influence from the sovereign governments within the nations where their business operations are located?

A) Military hostilities
B) Protectionist policies
C) Promotion of economic growth and job creation
D) Stiff environmental standards
E) Stringent immigration policies

Question 64

Economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially or economically is called ______.

Question 65

______ is a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism.

Question 66

Scenario - The Everline Corporation
The Everline Corporation is a multinational business that provides state-of-the-art digital communication capabilities to its global customers. Originally operating as a U.S. domestic business based in Duluth, Minnesota, Everline quickly seized on the opportunity provided by international expansion. Within two years, the corporation had expanded into fourteen foreign nations found throughout the Middle East, Europe, Asia, and South America.
Everline understands the vital importance of offering effective and affordable communication products to its customers. It realizes the value consumers place on being able to communicate with businesses without delays or hassles. The corporation recognizes its customers need to quickly and efficiently communicate with others in the global marketplace of today.
Fueled by its staff of innovative and highly skilled communication engineers, the future for Everline looks more and more promising. Communication needs around the globe continue to grow and this business stands ready to fill the demand. With net profits expected to reach one billion dollars in the next year, this company is decidedly reaping the rewards of its hard work.
The Everline Corporation is currently conducting its international communication business during a period of time that is experiencing rapid changes and challenges. Individuals and organizations are adjusting their lifestyles and methods of operations to fully utilize the modern communication technologies available in the marketplace. The time period Everline is currently operating under is best classed as which one of the following terms?

A) Digital proliferation
B) Modern communication era
C) Digital divide
D) Communication decade
E) Digital era

Question 67

Scenario - T & M Computers
Thomas Benson and Matthew Roderick started a small computer business ten years ago in Rapid City, South Dakota. Armed only with determination and innovative designs, Thomas and Matthew were driven to achieve success for their company, T & M Computers. Their hard work has indeed, paid off. Since the inception of the company, the two owners have watched their business grow and demand for their products increase.
Four years ago due to this high product demand, they went international with their business operations. Thomas and Matthew now have international business operations in Singapore, France, Turkey, and Great Britain. Further operational expansion is anticipated within the next year and the company plans to begin operations in Spain, Greece, and Italy.
The owner's hard work and dynamic ideas have proven quite profitable for the company. Thomas and Matthew are pleased with how their operation has grown into becoming a major international business worthy of competing with Intel and Microsoft. T & M Computers may well be the next giant recognized in the field of computer software.
T & M Computers plans to begin operations in areas that recently needed financial assistance and undergone certain levels of reconstruction and reorganizing to their economies. Which organization listed below is most likely to have played an integral part in this?

A) The World Trade Organization
B) The World Bank Group
C) The International Development Association
D) The International Finance Corporation
E) The sovereign government of Greece

Question 68

A system of responsibility in which an authority, such as the government, is answerable for its actions refers to ________.

Question 69

Present the arguments against globalization. Do you agree or disagree with them? Support your position using examples.

Question 70

_______ refers to lowering and/or removing trade barriers such as tariffs, quotas, and subsidies.

Question 71

Differentiate between the International Monetary Fund and the World Bank as institutions facilitating globalization.

Question 72

The perceived economic gap between countries or people with easy access to digital and information technology (and its benefits)and those with very limited access, or none at all refers to the ________.

Question 73

The World Trade Organization has no role in facilitating globalization. Do you agree? Defend your position.

Question 74

Given the rapid advancements in technology in developed countries and fast pace of globalization, it is not possible to bridge the global digital divide. Do you agree with this statement? Why or why not? Explain.

Question 75

Identify and explain the characteristics of strong institutional structure necessary to adapt to globalization.

Question 76

______ are government organizations that create strong incentives for private investment and operate under a system of checks and balances.

Question 77

_______ refers to the amount of data and other information that can be transferred in a second via the Internet.

Question 78

The rules, enforcement mechanisms, and organizations that support market transactions are called ______.

Question 79

National laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms are called _______.

Question 80

Identify and describe any two key policy measures that make globalization sustainable.