Question 1

Which of the following has seen a positive change from 1960 to 2010?

Accepted Answer

The share of world output accounted for by developing nations has seen a positive change, increasing from around 20% in 1960 to over 40% in 2010.

Question 2

Which of the following is most likely to be observed in today's global economy?

Accepted Answer

Developing nations such as China and India are experiencing rapid economic growth, making them increasingly influential in the global economy. The U.S. share of world output and dominance in world trade have been gradually declining in recent years. Large entrepreneurial firms may have a significant presence, but they are not dominating the international business scene. The majority of nations no longer have centrally planned economies.

Question 3

Which of the following is a benefit of lowering the barriers to international trade?

Accepted Answer

Lowering barriers to international trade allows firms to expand their customer base from a single country to multiple countries. This can lead to increased sales, profits, and economies of scale.

Note: A is incorrect because protecting domestic industries from competition can actually stifle innovation and competitiveness. C, D, and E are incorrect because there is no evidence to suggest that lowering barriers to international trade promotes communism or hinders globalization.

Question 4

Gerald gifted his son,David,a computer two years ago.Recently,he decided to gift his daughter,Julian,a computer of her own.In the context of the two year gap between the purchase of both the computers and Moore's law,it is most likely that:

Accepted Answer

Moore's law states that the number of transistors on a microprocessor will double every 18-24 months, resulting in increased computing power. Therefore, since Gerald purchased David's computer two years ago, it is likely that Julian's computer, which was purchased more recently, will have a more advanced microprocessor with better power than that of David's. Therefore, the correct answer is D.

Question 5

Which of the following countries has seen a relative decline in its share of world output between 1960 and 2010?

Accepted Answer

The United States experienced a relative decline in its share of world output between 1960 and 2010 as other countries, particularly emerging economies, grew at a faster rate.

Question 6

_____ was the world's most dominant industrial power in the early 1960s.

Accepted Answer

During the early 1960s, the United States was a dominant industrial power due to its post-World War II economic growth and technological advancements. It had a high standard of living, strong manufacturing industries, and a significant influence on the global economy. India, Brazil, Spain, and China were not at the same level of industrial power as the United States during this time.

Question 7

The _____ has been a major force facilitating international trade in services.

Accepted Answer

The advent of the Internet has been a major force facilitating international trade in services by enabling faster and easier communication, transfer of information and data, and remote access to services such as consulting, education, and software development. This has led to the growth of outsourcing and offshoring of services, particularly in the information technology sector.

Question 8

While the lowering of trade barriers made globalization of markets and production a theoretical possibility,which of the following has made it a tangible reality?

Accepted Answer

Major advances in communication, information processing, and transportation technologies have made it possible for companies to coordinate their activities and production processes across borders, and to reach customers in different parts of the world in a more efficient and cost-effective manner. This has led to the creation of global supply chains and the globalization of production.

Question 9

Which of the following statements is true about the Internet and World Wide Web?

Accepted Answer

The Internet and World Wide Web make it easier for buyers and sellers to find each other, regardless of where they are located. This is due to the increased connectivity and accessibility provided by the technology. The other choices are not true and are actually opposite of the benefits of the Internet and World Wide Web.

Question 10

Development of the microprocessor is most likely to be considered the single most important innovation in technology because:

Accepted Answer

The development of the microprocessor has enabled the explosive growth of low-cost computing, leading to increased access to technology and information for people worldwide. This has had a significant impact on many aspects of society, including communication, education, and business, and is therefore regarded as one of the most important innovations in technology. The other choices do not accurately reflect the impact of the microprocessor on the world economy and international relations.

Question 11

Due to the changing economic geography,many of tomorrow's economic opportunities are most likely to be found in the:

Accepted Answer

Developing nations such as China, India, and Brazil have been experiencing high rates of economic growth in recent years and are projected to continue to do so in the future. This presents opportunities for businesses to tap into these growing markets and expand their operations. In contrast, many of the rich industrialized nations of the world have slower rates of economic growth and may not present as many opportunities for growth and development. The centrally planned economies of the communist world have largely transitioned to market-based economies and may not offer significant economic opportunities. The United States is a developed economy with slower growth rates compared to developing nations. Finally, countries that are not members of the World Trade Organization may be limited in their economic opportunities due to trade barriers and other factors.

Question 12

Which of the following has been declining in the developing nations of the world such as China,India,Russia,Indonesia,Thailand,South Korea,Mexico,and Brazil ?

Accepted Answer

In 2012, firms based in developing nations accounted for 18.9 percent of the stock of foreign direct investment, up from only 1 percent in 1980. Firms based in Hong Kong, South Korea, Singapore, Taiwan, India, and mainland China accounted for much of this investment.

Question 13

Richard has recently purchased a computer for $600.Compared to the $900 computer which he had purchased way back in 2010,the new one seems to be more efficient in terms of the price he has paid and the power of the microprocessor technology.This phenomenon is best explained by:

Accepted Answer

Moore's Law states that the number of transistors on a microprocessor chip will double approximately every two years, resulting in an increase in performance and decrease in cost. This explains why Richard's new computer, purchased at a lower cost than his previous one, is more efficient in terms of microprocessor technology.

Question 14

The advent of containerization has:

Accepted Answer

Containerization has significantly lowered the costs of shipping goods over long distances by allowing for more efficient loading, unloading, and transfer between modes of transport.

Question 15

Which of the following statements is true about the implications of technological innovations for the globalization of markets?

Accepted Answer

While technological innovations have indeed facilitated the globalization of production, national differences in consumer preferences and business practices remain significant barriers to the globalization of markets. The concept of the "global village" may be taking shape, but it is far from fully realized.

Question 16

Which of the following has been detrimental to the globalization of markets and production?

Accepted Answer

National differences in culture, consumer preferences, and business practices have made it difficult for companies to create standardized products and marketing strategies that can be applied worldwide. This has hindered the globalization of markets and production. The other options have typically been beneficial to globalization.

Question 17

Since 1980,the world's containership fleet has more than quadrupled,reflecting in part the:

Accepted Answer

The increasing size of the world's containership fleet is mainly due to the growing volume of international trade, as containerships are used to transport goods across the globe.

Question 18

_____ predicts that the power of microprocessor technology doubles and the cost of production falls every 18 months.

Accepted Answer

Moore's law, named after Gordon Moore, co-founder of Intel, predicts that the number of transistors in a microprocessor chip will double every 18-24 months, resulting in an exponential increase in processing power and a decrease in cost of production. This law has held true since it was first proposed in 1965, and has been a driving force behind the rapid advancement of technology over the past few decades.

Question 19

In the context of the changing demographics of the global economy,which of the following has seen a decline?

Accepted Answer

The passage suggests that the changing demographics of the global economy have caused a decline in the U.S. share of world exports of goods and services, making option B the correct answer. Option A suggests that economic development and industrialization in developing nations have declined, which is not suggested in the passage. Option C suggests deregulation in centrally planned economies of the communist world, which is not mentioned in the passage. Option D suggests a decline in the share of world output for several Asian countries, which is also not mentioned in the passage. Option E suggests a decline in economic opportunities in developing nations, which is not suggested in the passage.

Question 20

Which of the following statements is true about the changing demographics of the global economy?

Accepted Answer

This statement is true as the U.S. dominance in export markets has decreased due to the emergence of Japan, Germany, and newly industrialized countries like China, South Korea, and Brazil.

Answer: D
 This statement is false as other developed nations like Japan and European countries have also experienced a decline in their relative standing in the share of world output.

Therefore, the best choice is A.

Quiz 1: Globalization