Question 1

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 was marked by a rise in protectionism and trade barriers, as countries tried to protect their own economies from the effects of the Great Depression. It was not until after World War II, with the establishment of institutions like the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO), that the principles of globalization and free trade began to gain widespread acceptance.

Question 2

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

Accepted Answer

Business success is influenced by both domestic and international factors in the current globalized business environment. Companies need to consider various external factors such as economic policies, cultural norms, legal regulations, and trade agreements of different countries that they operate in to succeed globally.

Question 3

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 it is true that open trade and foreign direct investment can impact local labor markets, there is no one-size-fits-all answer to whether they always take jobs from workers in developing economies and transfer them to workers in advanced industrial countries. Economic research suggests that trade and foreign investment can also create new job opportunities and increase productivity in developing economies. The impact on local labor markets is complex and depends on many factors, including the specific sectors and industries involved, the skill levels of workers, and the policies and institutions in place to support local workers and firms.

Question 4

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

Accepted Answer

Globalization focuses on the increasing interconnectedness of the world's economies, which is achieved through the elimination of barriers to trade (such as tariffs and quotas) and the advancement of information technology that facilitates global communication and the dissemination of information.

Question 5

The world economy is quickly shifting away from countries with emerging economies.

Accepted Answer

This statement is not true. Emerging economies such as China, India, and Brazil have been playing an increasingly important role in the world economy in recent years.

Question 6

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 considered a key aspect of globalization. The other options, such as elimination of barriers to trade, investment, culture, and information technology, are all important features of globalization.

Question 7

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 lead to a decrease in the dominance of the US in the world economy, allowing for other countries such as China, India, Brazil, Russia, and South Africa to become significant engines of growth. This would result in a multi-polar world economy rather than a sole reliance on the US as the primary driver of economic growth.

Question 8

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

Accepted Answer

The World Trade Organization promotes and facilitates free trade by reducing barriers and promoting the flow of goods and services between countries, not by increasing trade barriers.

Question 9

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 products in multiple countries including the United States indicates involvement in globalization, which refers to the increasing interconnectedness of the world's economies, cultures, and populations.

Question 10

Increasingly, emerging economies are
A)innovative and technologically advanced.
B)sources of inexpensive labor.
C)largely agricultural.
D)simply copying the technologies used in more advanced economies.
E)being left behind in the global economy.

Accepted Answer

Emerging economies are increasingly becoming innovative and technologically advanced. They are investing in research and development, building technology parks, and attracting foreign companies to invest in their technology sectors. This is evidenced by the rise of companies such as Alibaba, Tencent, and Huawei in China, and Infosys, TCS, and Wipro in India.

Question 11

Text messaging will likely be an unimportant component of emerging economies' mobile phone usage because most people in these countries cannot read or write.

Accepted Answer

While literacy rates may be lower in some emerging economies, text messaging is still a popular form of communication due to the widespread use of voice-to-text technology and the ability to send and receive voice messages.

Question 12

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 Perception Index consistently ranks New Zealand and Singapore as among the least corrupt countries in the world.

Question 13

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

Accepted Answer

The foundation of the globalized business world is political in nature as it is shaped by government policies and regulations. Hence, any threats to the system such as changes in political leadership, economic sanctions, or trade policies will also be political in nature.

Question 14

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

The lack of clear and well-defined property rights in communist and state-controlled economies like those in Central Asia does indeed discourage investors, both domestic and foreign, from making long-term commitments in these countries.

Question 15

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

Accepted Answer

The "soft" qualities essential to globalization include openness, accountability, connectivity, democracy, and decentralization. Protectionism and centralization are not considered essential or favorable qualities for globalization.

Question 16

A sustainable decoupling process would eventually lead to _____.
A)a multi-polar world
B)globalization
C)outsourcing
D)transparency
E)income inequity

Accepted Answer

A sustainable decoupling process would eventually lead to a multi-polar world where economic growth is not dependent on the growth of developed countries. This would lead to a more balanced global economy and reduce the inequalities between developed and developing countries.

Question 17

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 economies

Accepted Answer

The answer of Countries that have been moving toward more...

Question 18

There appears to be a clear connection between economic freedom and political freedom.

Accepted Answer

Many studies and historical examples have shown that countries with higher levels of economic freedom tend to also have higher levels of political freedom, while countries with lower levels of economic freedom tend to have lower levels of political freedom. This may be because economic freedom often requires and promotes the rule of law, property rights, and limited government intervention, which can also create a more democratic and free political system.

Question 19

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 accurately describes one of the focus areas of the World Bank's Strategic Framework.

Question 20

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

Accepted Answer

Countries that have successfully adapted to globalization have recognized the importance of having effective government management in place to create an environment that is favorable for economic growth and adaptation to changing global trends. This includes creating policies that promote innovation, entrepreneurship, education, and human capital development. Good governance is necessary to ensure that resources are allocated effectively, corruption is minimized, and public institutions are accountable to citizens. Without good governance, countries cannot succeed in a globalized world economy.

Quiz 1: The Rise of Globalization