Question 1

Globalization Debate (Scenario)
In his international business class, Professor Jang organizes a debate on the societal effects of market globalization. Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.
-Which of the following most likely supports Rina's argument over Juan's concerning wages and working conditions in developing countries?

Accepted Answer

Rina's argument would likely focus on the positive impacts of globalization on wages and working conditions in developing countries. The example of Vietnam experiencing a significant increase in wages due to the growth of an industry (footwear) as a result of globalization supports the idea that market globalization can lead to improved economic conditions and higher wages in developing countries.

Question 2

Which of the following is an example of offshoring?

Accepted Answer

Offshoring refers to the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. The example of Mayfair Inc. having its IT support services based in India is a clear case of offshoring, where services are provided from a different country to reduce costs or access specialized skills.

Question 3

Globalization Debate (Scenario)
In his international business class, Professor Jang organizes a debate on the societal effects of market globalization. Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.
-Which of the following is Rina most likely to cite as a counter example to Juan's argument regarding the influence of MNEs on national sovereignty?

Accepted Answer

The answer of Globalization Debate (Scenario)
In his international business class,...

Question 4

The first wave of offshoring began in the 1990s with the exodus of service-sector jobs in credit card processing, software code writing, accounting, health care, and banking services.

Accepted Answer

The first wave of offshoring began earlier, in the 1970s and 1980s, primarily with manufacturing jobs. The offshoring of service-sector jobs became more prominent in the 1990s and 2000s.

Question 5

While a degree of cultural imperialism may be at work, it is offset by the countertrend of ________.

Accepted Answer

Local nationalism acts as a countertrend to cultural imperialism by emphasizing and preserving local cultures, traditions, and identities against the homogenizing effects of global cultural influences.

Question 6

To minimize globalization's harm and reap its benefits, governments should strive for nationalized economic regimes.

Accepted Answer

Globalization's benefits can be maximized and its harms minimized through international cooperation, open markets, and adaptable domestic policies rather than through purely nationalized economic regimes, which can limit growth and innovation.

Question 7

The relocation of manufacturing and other value-chain activities to cost-effective locations abroad is known as ________.

Accepted Answer

Offshoring refers to the practice of moving manufacturing or other value-chain activities to foreign locations to reduce costs.

Question 8

An underground economy ________.

Accepted Answer

The underground economy refers to the informal economic sector, which operates outside of the formal regulatory framework and is not monitored by public authorities. It typically involves unreported employment and transactions that may be legal or illegal in nature.

Question 9

In a short essay, explain the concept of sovereignty. How does globalization affect sovereignty?

Accepted Answer

The answer of In a short essay, explain the concept...

Question 10

As the influence of the Chinese economy grows over time, it is likely that Western countries will embrace some of China's cultural attitudes and behaviors.

Accepted Answer

Cultural exchange is a natural byproduct of economic interdependence. As countries engage more deeply in trade and economic activities, they often adopt and adapt elements from each other's cultures, including attitudes and behaviors. Given China's growing economic influence globally, it is likely that Western countries will, to some extent, embrace aspects of Chinese culture. This process is facilitated by globalization and the increasing interconnectedness of the world's economies and cultures.

Question 11

Globalization Debate (Scenario)
In his international business class, Professor Jang organizes a debate on the societal effects of market globalization. Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.
-Rina is most likely to counter Juan's claim regarding environmental effects by pointing out which of the following?

Accepted Answer

Rina Taylor would likely counter Juan's claim about the environmental effects of market globalization by arguing that environmental destruction tends to diminish in the long run as economies develop. This argument is based on the Environmental Kuznets Curve hypothesis, which suggests that as an economy grows, its environmental impact increases up to a point, but then begins to decrease as the country becomes wealthier and can afford cleaner technologies and enforce environmental regulations.

Question 12

In international economics, codetermination refers to the tendency for a financial or monetary crisis in one country to spread rapidly to other countries, due to integrated national economies.

Accepted Answer

Codetermination refers to a practice where workers have a role in the management of a company, often through participation on its board or through workers' councils, not to the spread of financial crises.

Question 13

In a short essay, discuss the impact of globalization on Africa.

Accepted Answer

The answer of In a short essay, discuss the impact...

Question 14

Environmental destruction diminishes as economies develop, at least in the long run.

Accepted Answer

This statement aligns with the Environmental Kuznets Curve (EKC) hypothesis, which suggests that environmental degradation increases with economic growth up to a certain point, after which it begins to decrease as income continues to rise and societies start prioritizing and investing in cleaner technologies and environmental regulations.

Question 15

Discuss the effect of globalization on national culture.

Accepted Answer

The answer of Discuss the effect of globalization on national...

Question 16

Countries that liberalize international trade and investment enjoy faster per-capita economic growth.

Accepted Answer

Countries that liberalize international trade and investment often experience faster per-capita economic growth due to increased access to larger markets, more efficient resource allocation, and the inflow of foreign capital and technology.

Question 17

Large multinationals are not constrained by market forces because they can exert considerable influence on governments through lobbying.

Accepted Answer

Large multinationals, despite their ability to influence governments through lobbying, are still subject to market forces such as competition, supply and demand, and consumer preferences.

Question 18

Globalization Debate (Scenario)
In his international business class, Professor Jang organizes a debate on the societal effects of market globalization. Juan Prince takes a position that highlights the negative effects of market globalization. He emphasizes how multinational enterprises can wield so much influence that they threaten national sovereignty. He also notes the prevalence of low wages and sweatshop conditions as firms utilize low-cost labor abroad. Juan then describes the detrimental effects of corporate pollution on the environment, and he ends his argument by explaining how market globalization helps homogenize national cultures. Rina Taylor is assigned to counter Juan's position.
-Which of the following statements most likely to counters Juan's argument concerning the homogenization of national cultures?

Accepted Answer

A counters Juan's argument by suggesting that globalization's impact on homogenizing national cultures is met with resistance from individuals who emphasize and protect their national identities, thus maintaining cultural diversity.

Quiz 2: Globalization of Markets and the Internationalization of the Firm