Deck 20: Globalization

Question 1

China offers a large,willing,and high-cost labor force to the multinational corporations of the world.

Answer 1

False

Question 2

In the era of deglobalization,the value chain was compact and geographically contained.

Answer 2

True

Question 3

After the Great Depression,states did not return to more market-based trade policies until shortly after World War II.

Answer 3

False

Question 4

Tariffs make the price of traded goods more expensive.

Question 5

After 1900,the world never again experienced periods of deglobalization.

Question 6

Export processing zones do not benefit their host countries or their TNCs.

Question 7

Outsourcing is excluded from consideration of global value chains.

Question 8

More than 80 percent of global investment today is carried out within national borders.

Question 9

The world's largest firms are concentrated in three regions: European Union,North America,and China.

Question 10

Globalization can be carried out through the movement of factors of production.

Question 11

Capitalist economic systems are distinguished by the fact that almost everyone has to buy on the market whatever they consume.

Question 12

Steamships have never been successfully used for transoceanic transportation.

Question 13

The value chain of clothing production,when it comes to final assembly,is not labor intensive.

Question 14

It is possible to trace international trade back thousands of years.

Question 15

The more labor-intensive part of the value chain of clothing production is more likely to take place in high-wage countries than in low-wage countries.

Question 16

Economic ties between neighboring countries are thinner than ties between countries located farther away from each other.

Question 17

A commonly used measure of global economic integration is trade as a proportion of gross domestic product (GDP).

Question 18

Since 1900,the ebb and flow of globalization has been governed mainly by socioeconomic factors.

Question 19

The world has been able to reverse the degree of globalization through state action.

Question 20

The role of the transnational corporations (TNCs)is a poor indicator of the importance of regionalization over globalization.

Question 21

Which two modes of transportation around the middle of the nineteenth century were truly revolutionary?

A)steamship and automobiles
B)steamship and railway
C)railway and roads
D)railway and subway

Question 22

Which of the following features of the capitalist system distinguishes it from other systems?

A)rising prices
B)market independence
C)market dependence
D)expanding transportation infrastructure

Question 23

Which of the following activities is NOT a dimension of globalization?

A)international trade
B)targeted investment at home
C)the movement of capital
D)the movement of labor

Question 24

Gross domestic product (GDP)is equal to the value of __________.

A)the consumer price index
B)all exports sold regionally within a defined period
C)all imports sold domestically within a defined period
D)all goods and services sold within a defined period

Question 25

Between 1820 and 1914,more than __________ miles of railroad were laid in the United States

A)250,000
B)350,000
C)450,000
D)550,000

Question 26

Even critics of the North American Free Trade Agreement (NAFTA)agree that it has engendered a net gain in jobs north and south of the U.S.-Mexico border.

Question 27

To date,the ways in which culture is being globalized is not very visible.

Question 28

In the nineteenth century,which group represented a reliable source of demand?

A)politicians
B)farmers
C)city residents
D)new immigrants

Question 29

The United States has never instituted state-led development policies.

Question 30

Which of the following technologies is recognized as the primary engine behind the communications revolution of the nineteenth century?

A)the telephone
B)the telegraph
C)radio
D)trans-Atlantic mail

Question 31

Before __________,economic production and consumption had to be largely local.

A)price convergence
B)the spread of international trade
C)foreign investment
D)the advent of the railway

Question 32

After 1913,the process of globalization that had begun in the nineteenth century began to __________.

A)accelerate
B)accelerate regionally but decrease globally
C)decrease
D)decrease regionally but accelerate globally

Question 33

Employers in the United States have used the threat of moving production overseas as a means of gaining advantages over employees.

Question 34

Prior to the rise of capitalism,what was the traditional means of survival among peasants?

A)selling produced goods at local markets
B)working for wages in rural communities
C)working their own land with their own labor
D)leasing their own land for agricultural production

Question 35

What two things had to occur before globalization could really take off in the nineteenth century?

A)a change in transportation and communication
B)a change in infrastructure and a transformation of economic systems
C)an increase in the pool of labor and rising levels of education
D)accumulated capital and price stability

Question 36

Another name for state-led development is export-substituting industrialization.

Question 37

In the 1870s,what group of indicators signaled a turning point in global economic integration?

A)the degree of trade and the flow of investment
B)the degree of trade and the convergence of international prices
C)the degree of trade,the flow of investment,and the convergence of international prices
D)the convergence of international prices and the convergence of international wage rates

Question 38

__________ is a commonly used measure of global economic integration.

A)volume of trade
B)gross domestic product (GDP)
C)trade as a proportion of gross domestic product (GDP)
D)gross domestic product (GDP)as a proportion of trade

Question 39

An economic system in which the market for produced goods is limited is said to be __________.

A)antecapitalist
B)metacapitalist
C)precapitalist
D)protocapitalist

Question 40

Globalization is __________.

A)a world in which every country consumes only what it produces for itself
B)the integration of economic activities across national borders
C)moving from a condition in which economies are linked to each other in various ways to economic isolation
D)the flow of labor that adds to the pool of workers in one country while reducing it in another

Question 41

Smaller regions of the world where economic integration is particularly noticeable include all the following regions EXCEPT __________.

A)East Asia
B)Europe and North Africa
C)North America
D)South America

Question 42

The ebb and flow of globalization since 1900 has been governed mainly by __________ factors.

A)economic
B)political
C)social
D)technological

Question 43

After the Great Depression,what was the most important factor that worked against the resumption of globalized economic integration?

A)continued instability in Europe
B)devalued American currency
C)the power of the state
D)the spread of communism

Question 44

Most trade and foreign investment is actually carried out by __________.

A)central banks
B)entrepreneurs
C)price discriminators
D)transnational corporations

Question 45

The trade intensity index is the ratio of __________.

A)intraregional trade share relative to global trade
B)intraregional trade share relative to the region's share in global trade
C)interregional trade share relative to global trade
D)one TNC's share of intraregional trade relative to another TNC's share

Question 46

Since the 1970s,governments across the world have enacted which type of economic policy?

A)industry-protective policies
B)labor-supportive policies
C)market-based policies
D)risk-averse policies

Question 47

Where does most of the trading and investment activity of TNCs take place?

A)in neighboring or nearby countries
B)in far-flung regions of the world
C)within their home countries
D)in the European Union,North America,and Japan

Question 48

Which two instruments of economic policy helped states gain more control over the flow of economic activity in the period of deglobalization that followed the Great Depression?

A)capital controls and currency devaluation
B)currency devaluation and import quotas
C)tariffs and capital controls
D)tariffs and capital investments

Question 49

Where are the top migration corridors located?

A)between neighboring countries
B)between neighboring continents
C)between countries that line the Pacific Ocean
D)between undeveloped countries

Question 50

After the Great Depression,countries wanted __________.

A)more international control over regional economic blocs
B)less international control over regional economic blocs
C)more control over their economies
D)better credit terms from the International Monetary Fund

Question 51

A tariff _________ the price of goods.

A)raises
B)lowers
C)destabilizes
D)equalizes

Question 52

Consider the course of globalization from the nineteenth century to today.After a period of increasing globalization that began in the nineteenth century,when did the process of deglobalization start?

A)after World War I
B)during the Great Depression
C)at the start of World War II
D)after World War II

Question 53

Which of the following statements about global investment is true?

A)Factories and firms are as footloose as popular images of globalization would have us believe.
B)Since 2000,more than 80 percent of global investment is carried out outside national borders.
C)Since the 1990s,global investment has been in the range of 10 to 20 percent.
D)Since the 1970s,global investment has risen steadily in all parts of the world except North America.

Question 54

When a government makes it harder for an investor who,seeking diversification,wishes to move money offshore,it is exercising __________.

A)capital accumulation
B)capital control
C)currency devaluation
D)currency exchange

Question 55

What is a tariff?

A)A tariff is a tax imposed on imports or exports.
B)A tariff is a levy imposed on agricultural imports.
C)A tariff is an insurance payment against macroeconomic shocks.
D)A tariff is a penalty imposed on emerging industrial conglomerates.

Question 56

Evidence suggests that globalization is promoting __________.

A)a flattening out of the world as a whole
B)densely woven ties between all corners of the world
C)interchangeable migration corridors
D)regional economic blocs

Question 57

When firms from one country make investments in another,it is known as _________.

A)direct foreign investment (DFI)
B)direct licensing (DL)
C)foreign direct investment (FDI)
D)investment transfer authorization (ITA)

Question 58

What evidence supports the conclusion that economic integration clusters around small regions?

A)that average distance that imports and exports travel rises as economic integration increases
B)that average distance that imports and exports travel falls as economic integration increases
C)that average distance that imports and exports travel stays relatively even as economic integration increases
D)that average distance that imports and exports travel rises and falls in tandem with the business cycle

Question 59

England and France were extensive international traders in the years before 1914.Why was this likely so?

A)England and France were deeply integrated with their colonial empires.
B)England and France were less reliant on their colonial empires as trading partners than were other European colonizers.
C)England and France were rapidly shedding ties to their least profitable colonies.
D)England and France were slower than other European countries in granting independence to their colonies before 1914.

Question 60

As more of what is produced across the world comes from international investment as opposed to investment by local firms,we say that __________.

A)domestic production is becoming more aggregated
B)domestic production is becoming more integrated
C)international production is becoming more aggregated
D)international production is becoming more integrated

Question 61

Which of the following steps in the global value chain is a worker in China more likely to perform?

A)assembling components
B)designing components
C)producing components
D)post-sale servicing of components

Question 62

What are export processing zones famous for?

A)high wages for laborers and tax breaks for TNCs
B)low wages for laborers and tax breaks for TNCs
C)high wages for laborers and tax breaks and other special privileges for TNCs
D)low wages and tax breaks for laborers
UNDERSTAN

Question 63

Labor-intensive garment industry assembly operators are __________.

A)less likely to locate in the United States than in the Caribbean
B)more likely to locate in the United States than in Mexico
C)less likely to locate in export processing zones than inner cities
D)more likely to avoid high wages associated with export processing zones than are other types of manufacturers

Question 64

In China,export manufacturing has blossomed __________.

A)in agricultural regions
B)in coastal regions
C)in interior regions
D)in the Cantonese-speaking regions of southern China

Question 65

Capital-intensive industry involves a lot of what?

A)high-technology machinery
B)outsourcing
C)value chains
D)manual labor

Question 66

What is the main promise of globalization?

A)cross-cultural exchange
B)spread of democracy
C)economic growth
D)trade union solidarity

Question 67

Steps in global value chains typically take place __________.

A)under one roof
B)in one country
C)in different locations across the globe
D)in different locations within neighboring regions

Question 68

How long is the actual working day for Chinese laborers in export processing zones?

A)8 hours
B)8 hours,with occasional overtime
C)10 to 11 hours a day
D)10 to 14 hours a day

Question 69

What kind of labor force does China offer TNCs?

A)a small but willing labor force
B)a large,willing,low-cost labor force
C)a large,low-cost,but relatively inflexible labor force
D)a large,willing,but relatively high-wage labor force

Question 70

In the production of clothing,which step is considered more capital intensive than the others?

A)spinning of thread
B)weaving of fabric
C)final assembly of clothing
D)selling of clothing

Question 71

In the era of deglobalization,__________ was uncommon.

A)insourcing
B)downsizing
C)outsourcing
D)rightsizing

Question 72

TNCs often set up production facilities in export processing zones for which of the following reasons?

A)cheaper labor and fewer worker protections
B)fewer worker protections and better managerial capabilities
C)better managerial capabilities and better labor-management relations
D)better labor-management relations and simpler employment contracts

Question 73

In union-organizing drives at places of work in the United States,what tactic has been particularly successful at countering organizers,according to a study commissioned by the U.S.Trade Deficit Review Commission?

A)plant closure
B)threat of flight to other locations
C)threat of strike
D)consistent communication across different media channels

Question 74

The speed and flexibility of the Chinese labor force derives from what?

A)the fact that Chinese workers are incentivized with special privileges
B)the fact that Chinese workers pay no taxes
C)the fact that Chinese workers are healthier than their American counterparts
D)the fact that Chinese workers work far longer and harder than American workers

Question 75

What do global value chains organize?

A)consumption
B)government expenditures
C)investment
D)production

Question 76

Of the following locations,which is less likely than the others to operate as a garment industry export processing zone?

A)Dubuque,Iowa
B)Santiago,Dominican Republic
C)Matamoros,Mexico
D)Tijuana,Mexico

Question 77

In the production of clothing,which step is considered less capital intensive than the others?

A)spinning of thread
B)weaving of fabric
C)final assembly of clothing
D)selling of clothing

Question 78

The state-led development model employed in the developing world in the middle decades of the twentieth century in Latin America,Asia,the Middle East,and Africa shared all of the following practices EXCEPT __________.

A)free trade
B)market regulation
C)price controls
D)anticompetitive industry supports

Question 79

What is a "labor dispatch agency"?

A)an in-house worker care center that offers psychological counseling to workers
B)an outside workers' union that monitors labor-management disputes
C)an outside bureau that frees employers from contractual relationships with employees
D)an in-house outsourcing intermediary that reassigns migrant laborers to new production facilities

Question 80

Globalization occurring in the cultural domains is best described as a(n)__________.

A)one-way transmission
B)independent ecosystem
C)two-way street
D)four-way intersection