Question 1

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Accepted Answer

A) True 
 B)False

Question 2

_____ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production.

Accepted Answer

A)  Globalization of markets
B)  Production orientation
C)  Commoditization
D)  Globalization of productionE) A) and D)
F) C) and D)

Question 3

A company has to be a major multinational corporation to facilitate,and benefit from,the globalization of markets.

Accepted Answer

A) True 
 B)False

Question 4

Over its entire history,the WTO has promoted the lowering of barriers to cross-border trade and investment.

Accepted Answer

A) True 
 B)False

Question 5

Growing income inequality is a result of:

Accepted Answer

A)  the wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted.
B)  decline in the value of the dollar as compared to other currencies and consequent increase in inflation levels.
C)  rising unemployment levels in both developed and developing nations due to large-scale migration from developing countries to developed nations.
D)  decreasing investment in education which in turn reduces the supply of skilled workers.E) B) and C)
F) A) and B)

Question 6

The most global markets currently are markets for consumer products.

Accepted Answer

A) True 
 B)False

Question 7

The growing integration of the world economy into a single,huge marketplace is:

Accepted Answer

A)  increasing the intensity of competition in a range of manufacturing and service industries.
B)  now showing signs of retreat,following the recent global financial crisis.
C)  causing most economies to strengthen their protectionist policies.
D)  causing a general decline in the level of competition among domestic companies.E) A) and C)
F) None of the above

Question 8

Highly indebted poor countries (HIPCs)are those economies that will be better served by pursuing protectionist policies than by free trade.

Accepted Answer

A) True 
 B)False

Question 9

Globalization results in a greater degree of _____ across markets than would be present otherwise.

Accepted Answer

A)  regulatory control
B)  diversity
C)  homogeneity
D)  heterogeneityE) None of the above
F) All of the above

Question 10

The minimum that a firm has to do to engage in international business is to:

Accepted Answer

A)  export or import products from other countries.
B)  invest directly in operations in another country.
C)  establish joint ventures or strategic alliances with companies in other countries.
D)  license products to companies in other countries.E) B) and C)
F) A) and D)

Question 11

Which of the following statements best supports the claim that "greater uniformity replaces diversity" in the context of global markets?

Accepted Answer

A)  Because of differences in business systems and legal regulations,companies have to customize their marketing strategies,product features,and operating practices to best match conditions in a particular country.
B)  As rival global firms follow each other across countries,they bring with them their brand names,products,and marketing strategies from other national markets,thus creating homogeneity across markets.
C)  Truly innovative companies succeed by developing products that serve specific needs of the local markets.
D)  The volume of goods,services,and investment crossing national borders has expanded at a slower rate than world output for more than half a century.E) A) and C)
F) All of the above

Question 12

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

Accepted Answer

A)  the growing volume of international trade.
B)  the growing share of world output for the United States.
C)  the rising costs of containerization.
D)  the lowering of transportation costs.E) B) and D)
F) B) and C)

Question 13

Free trade alone,some argue,is a necessary but not sufficient prerequisite to help HIPCs bootstrap themselves out of poverty.They also recommend:

Accepted Answer

A)  a mixed economy.
B)  weaker property rights laws.
C)  more protection from competition for domestic companies.
D)  large-scale debt relief.E) B) and D)
F) None of the above

Question 14

Boeing outsources nearly 30% of the production of its aircraft to foreign suppliers.What could be the rationale behind such a move?

Accepted Answer

A)  It is difficult for firms like Boeing to achieve the optimal dispersion of their productive activities to locations around the globe.
B)  Outsourcing to foreign suppliers is in accordance with diplomatic treaties signed with other countries.
C)  Foreign suppliers are not governed by strict regulations followed by companies in the U.S.and Boeing also saves on tax payments.
D)  A global web of suppliers yields a better final product,which enhances the chances of Boeing winning a greater share of total orders for aircraft.E) B) and D)
F) A) and B)

Question 15

The Internet has acted as a regulatory brake on unfettered international trade in business.

Accepted Answer

A) True 
 B)False

Question 16

_____ refers to the shift toward a more integrated and interdependent world economy.

Accepted Answer

A)  Universalization
B)  Mass customization
C)  Globalization
D)  InternationalizationE) C) and D)
F) B) and D)

Question 17

The motive behind the high tariffs imposed by nations on imports of manufactured goods prior to World War II was to:

Accepted Answer

A)  deter any possible attempts to undermine national sovereignty.
B)  protect domestic industries from foreign competition.
C)  boost national revenues affected by the Great Depression.
D)  prevent multinational companies from taking away jobs based in those countries.E) B) and C)
F) A) and D)

Question 18

What is globalization of markets? How do global companies such as IKEA,Starbucks,and McDonald's facilitate the creation of a global market?

Accepted Answer

The globalization of markets refers to t...

Question 19

Substantial impediments,such as barriers to foreign direct investment,make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe.

Accepted Answer

A) True 
 B)False

Question 20

As firms follow each other around the world,they bring with them many of the assets that served them well in other national markets.Thus,greater diversity replaces uniformity.

Accepted Answer

A) True 
 B)False

Exam 1: Globalization

As firms follow each other around the world,they bring with them many of the assets that served them well in other national markets.Thus,greater diversity replaces uniformity.

Correct AnswerverifiedShow Answer

_____ refers to the shift toward a more integrated and interdependent world economy.

Correct AnswerverifiedShow Answer

Globalization results in a greater degree of _____ across markets than would be present otherwise.

Correct AnswerverifiedShow Answer

Boeing outsources nearly 30% of the production of its aircraft to foreign suppliers.What could be the rationale behind such a move?

Correct AnswerverifiedShow Answer

The Internet has acted as a regulatory brake on unfettered international trade in business.

Correct AnswerverifiedShow Answer

Growing income inequality is a result of:

Correct AnswerverifiedShow Answer

What is globalization of markets? How do global companies such as IKEA,Starbucks,and McDonald's facilitate the creation of a global market?

Correct AnswerverifiedThe globalization of markets refers to t...View AnswerShow Answer

A company has to be a major multinational corporation to facilitate,and benefit from,the globalization of markets.

Correct AnswerverifiedShow Answer

The most global markets currently are markets for consumer products.

Correct AnswerverifiedShow Answer

Highly indebted poor countries (HIPCs)are those economies that will be better served by pursuing protectionist policies than by free trade.

Correct AnswerverifiedShow Answer

Many of the former Communist nations of Europe and Asia seem to share a commitment to democratic policies and free market economies.

Correct AnswerverifiedShow Answer

Which of the following statements best supports the claim that "greater uniformity replaces diversity" in the context of global markets?

Correct AnswerverifiedShow Answer

The minimum that a firm has to do to engage in international business is to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Substantial impediments,such as barriers to foreign direct investment,make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe.

Correct AnswerverifiedShow Answer

_____ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production.

Correct AnswerverifiedShow Answer

The motive behind the high tariffs imposed by nations on imports of manufactured goods prior to World War II was to:

Correct AnswerverifiedShow Answer

Free trade alone,some argue,is a necessary but not sufficient prerequisite to help HIPCs bootstrap themselves out of poverty.They also recommend:

Correct AnswerverifiedShow Answer

The growing integration of the world economy into a single,huge marketplace is:

Correct AnswerverifiedShow Answer

Over its entire history,the WTO has promoted the lowering of barriers to cross-border trade and investment.

Correct AnswerverifiedShow Answer

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The globalization of markets refers to t...
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