Question 1

To sustain globalization, nations must build institutions that support all of the following EXCEPT
A)democratic systems of government.
B)free markets.
C)command economies.
D)independent judiciaries.
E)a free press.

Accepted Answer

Command economies are not consistent with the principles of globalization, which emphasize the importance of free markets and competition. Therefore, institutions that support command economies would not be necessary or desirable in a globalized world. However, democratic systems of government, free markets, independent judiciaries, and a free press are all important institutions that support globalization by promoting transparency, accountability, and the rule of law.

Question 2

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)establishment of "most favored nation" status

Accepted Answer

The answer of Trade without discrimination, freer trade, predictability, promotion...

Question 3

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 economies.
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.

Accepted Answer

The authors do not state that import oriented nations must switch to concentrate on domestication. Instead, they suggest that countries should base their strategy on their true competitive advantage and that countries emphasizing exports should diversify their market to include major emerging economies. They also highlight the importance of balancing trade and consumption levels to avoid overindulgence and potential disasters. The authors also mention that for countries with large populations, the size of the domestic market remains important, but they do not suggest that import-oriented nations must switch to concentrating on domestication.

Question 4

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

Accepted Answer

The efforts of the politicians in India are focused on creating a system of full disclosure and openness, which is synonymous with transparency. This system aims to avoid corruption and cronyism, which can only be achieved through accountability and integrity, but the primary focus is on transparency. Therefore, the best choice is option D, transparency.

Question 5

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)bandwith
B)digital server
C)digital divide
D)gigabytes
E)Y2K

Accepted Answer

Bandwidth refers to the capacity of a network to transmit data. ABC Technology's claim implies that they have a high bandwidth, which allows for fast data transfer.

Question 6

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.

Accepted Answer

Illicit dealings such as corruption, bribery, and money laundering increase costs for businesses by introducing unnecessary expenses such as bribes or kickbacks. Therefore, they do not decrease costs. All the other options are negative effects of illicit dealings on economic performance, as they decrease competition, reduce transparency, and increase insecurity.

Question 7

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(n)__________.
A)interdependent world
B)industrialized world
C)globalized economy
D)multi-polar world
E)diverse world

Accepted Answer

A multi-polar world refers to a world where multiple countries have significant economic and geopolitical influence, rather than a single dominant country. This would be the case if the engines of growth included not just the United States, but also the European Union, China, India, Brazil, Russia, and South Africa.

Question 8

Which of the following is NOT true regarding competitive markets?
A)Successfully globalized economies strive to attain competitive markets at home.
B)Governments try to minimize the role of state-owned enterprises in market economies.
C)Regulations that promote free domestic markets also tend to promote globalization.
D)Antitrust laws must be eliminated if competitive markets re to be sustained.
E)Antitrust laws interfere with the natural growth of successful businesses.

Accepted Answer

Antitrust laws are regulations that aim to promote competition by preventing monopolies or anti-competitive behavior in the market. They are essential for sustaining competitive markets and ensuring that no single entity has too much control or influence over the market. Therefore, antitrust laws must not be eliminated if competitive markets are to be sustained.

Question 9

Which of the following is NOT an objective of the WTO?
A)Reviewing national trade policies
B)Acting as a forum for trade negotiations
C)Naming commissioners to local trade organizations
D)Settling trade disputes
E)Administering trade agreements

Accepted Answer

The WTO does not have the objective of naming commissioners to local trade organizations. Its objectives are mainly focused on promoting free and fair trade, ensuring transparency in trade policies, reviewing national trade policies, facilitating trade negotiations, settling trade disputes, and administering trade agreements.

Question 10

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

Accepted Answer

The description of the government organizations in the question fits the definition of adaptive institutions, which are defined as organizations and structures that promote economic and social development by adapting to changing circumstances and supporting private investment. This term is commonly used to describe institutions in developing or emerging economies like Brazil. The other options are not as relevant or accurate in describing the scenario presented.

Question 11

All of the following are arguments against globalization EXCEPT:
A)it may lead to an increase in the appearance 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.

Accepted Answer

The statement in option A is not an argument against globalization, as it does not present any negative consequence of globalization. The other options present valid arguments against globalization, such as loss of control over economic policies and developments, erosion of communities, exploitation and injustice, and job losses and stagnant wages.

Question 12

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

Accepted Answer

The Multilateral Investment Guarantee Agency (MIGA) provides political risk coverage for private investments made in developing countries. MIGA helps investors mitigate non-commercial risks and provides an extra layer of protection so they can pursue opportunities in emerging markets with confidence.

Question 13

What was the initial primary role of the World Bank?
A)To aide in the reconstruction of Europe after World War II
B)To provide low-interest mortgage loans to minorities
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

Accepted Answer

The initial primary role of the World Bank, established in 1944, was to aid in the reconstruction and development of territories of its members by facilitating the investment of capital for productive purposes, including the reconstruction of Europe after World War II.

Question 14

​The most recent devices that enable the greatest ease in portability and accessibility of information are ______.
A)​magazines
B)​newspapers
C)​advertisements
D)​smart phones
E)​computers

Accepted Answer

Smart phones are the most recent and widely used devices that enable portability and accessibility of information. They allow users to access information on-the-go, have multiple functionalities, and can easily fit in a pocket or small bag.

Question 15

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

Accepted Answer

This statement is not true. The next billion users will have different socio-economic backgrounds and will require different strategies to connect to the internet and use mobile phones.

Question 16

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.

Accepted Answer

With globalization, companies are facing competition from all around the world, especially from developing countries with lower production costs. In order to remain competitive, companies in industrialized countries need to increase their productivity by adopting technologically-intensive manufacturing technologies. This will allow them to produce goods more efficiently and at a lower cost, which will help them compete with their counterparts in the developing world. Therefore, option D is the best choice.

Question 17

The International Finance Corporation (IFC)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

Accepted Answer

The International Finance Corporation (IFC) provides loans and takes equity positions in private companies of developing countries, and works towards developing capital markets in those economies. This is done to support private sector development and promote economic growth. The other options listed, such as providing social sector loans or political risk coverage, are functions performed by other organizations.

Question 18

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 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

Accepted Answer

The International Bank for Reconstruction and Development (IBRD) supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets. It provides loans at market rates, focusing on middle-income and creditworthy poorer countries. Option A is referring to the International Development Association, not IBRD. Option B is referring to the International Finance Corporation, not IBRD. Option D is referring to the Multilateral Investment Guarantee Agency, not IBRD. Option E is not a function of IBRD.

Question 19

The rapid fall in prices of digital IT equipment and services may
A)reduce the importance of IT in the global economy.
B)spell the end of the digital era.
C)make digital divide a myth.
D)reduce the availability of bandwidth in developed economies.
E)localize the production of goods and services.

Accepted Answer

The rapid fall in prices of digital IT equipment and services will make it more affordable and accessible, reducing the digital divide and making it a myth. This will increase the importance of IT in the global economy and promote localization of production of goods and services, as companies can set up their own IT infrastructure at a lower cost. It will not spell the end of the digital era or reduce the availability of bandwidth in developed economies.

Question 20

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

Accepted Answer

The IMF's main purposes are to promote international monetary cooperation, facilitate international trade, promote exchange rate stability, and lend countries foreign exchange when needed. However, providing long-term low-interest social sector and infrastructure loans is not a main purpose of the IMF.

Quiz 1: The Rise of Globalization

To sustain globalization, nations must build institutions that support all of the following EXCEPT

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

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

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 _____.

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.

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

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(n) __________.

Which of the following is NOT true regarding competitive markets?

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

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?

All of the following are arguments against globalization EXCEPT:

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

What was the initial primary role of the World Bank?

The most recent devices that enable the greatest ease in portability and accessibility of information are ______.

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

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

The International Finance Corporation (IFC) performs which of the following functions?

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

The rapid fall in prices of digital IT equipment and services may

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