Deck 4: Business in a Globalized World

Question 1

Most nations in the world share similar political,social and economic beliefs.

Answer 1

False

Question 2

Although many firms conduct business across national boundaries,most global commerce is carried out by a small number of powerful firms.

Answer 2

True

Question 3

A firm that would like to develop a global supply chain would:

A) Manufacture components or supplies in other countries.
B) Sell raw materials, components or supplies produced at home abroad.
C) Purchase raw materials, components, or supplies from sellers in other countries.
D) Check products that were manufactured abroad for defects in their home country.

Answer 3

C

Question 4

The World Bank makes currency exchange easier for member countries so that they can participate in global trade.

Question 5

Globalization is accepted worldwide and creates little controversy.

Question 6

Global market channels involve a firm producing goods in:

A) Their home country and exporting them to other countries.
B) Their home country to sell at home.
C) A foreign country to sell at home.
D) A foreign country to sell abroad.

Question 7

According to the United Nations,how many transnational corporations operate in the global economy?

A) 49,000.
B) 104,000.
C) 290,000.
D) 900,000.

Question 8

At the beginning of the 20^th century,no country in the world had universal suffrage.

Question 9

The World Trade Organization conducts negotiations,called "cycles," on various topics,rotating its meetings among different cities.

Question 10

Globalization directly and indirectly influences the politics,environment,geopolitics,and economics of virtually every country in the world.

Question 11

Under the World Trade Organization's most favored nation rule,member countries may not discriminate against foreign products for any reason.

Question 12

Even small local businesses often compete with global companies from around the world.

Question 13

Only manufacturing jobs are being lost through globalization.

Question 14

Critics of globalization support the spread of American ideals and culture throughout the rest of the world.

Question 15

The main purpose of inversion is to reduce corporate income tax obligations.

Question 16

The importing of foreign goods by U.S.firms is called foreign direct investment.

Question 17

A firm that has global operations has:

A) All of their manufacturing and service operations abroad.
B) Some or all of their manufacturing or service operations abroad.
C) Manufacturing but not service operations abroad.
D) Service but not manufacturing operations abroad.

Question 18

The term sector refers to broad divisions of a whole.

Question 19

Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

Question 20

The three strategies of globalization can be summarized using what three words?

A) Channels, operations, and chains.
B) Export, locate, and purchase.
C) Sell, make, and buy.
D) Ethics, import, and sell.

Question 21

A free enterprise system refers to:

A) Economic assets that are privately owned and exchanged in an open market.
B) Property ownership by a centralized government.
C) A mix of privately owned and government controlled economic assets.
D) An index of economic freedom.

Question 22

The Heritage Foundation scored which nation of the world among the most repressed in 2012?

A) Hong Kong.
B) Australia.
C) North Korea.
D) Singapore.

Question 23

The theory of comparative advantage states that:

A) Productivity rises more quickly when countries produce goods and services for which they have a natural talent.
B) Productivity decreases when countries produce goods and services based on their natural resources.
C) All countries start out on an equal playing field.
D) Countries that operate under a policy of isolationism have a comparative advantage.

Question 24

An individual who is a supporter of globalization would argue that it helps the developing world by:

A) Giving entrepreneurs access to foreign investment funds to support economic development.
B) Allowing new ideas and technological innovations to spread quickly.
C) Providing people in developing countries with more jobs.
D) All of the above.

Question 25

The purpose of the World Trade Organization is to:

A) Impose barriers to free trade among nations.
B) Eliminate barriers to free trade among nations.
C) Develop trading partnerships between rich and poor nations.
D) Decrease globalization and free trade.

Question 26

The term "race to the bottom" refers to:

A) Seeking to mine valuable minerals from the bottom of the ocean.
B) Moving production jobs to the country with the lowest labor cost.
C) Efforts to deconstruct the assembly process in manufacturing industries.
D) An old concept of globalization that is no longer relevant.

Question 27

Microfinance refers to:

A) Banks lending money to a very small number of businesses.
B) Banks lending money to low-income businesses.
C) Banks lending very small amounts of money to wealthy businesses.
D) Banks charging low fees for all business loans.

Question 28

Which of the following statements accurately describe the practice of tax inversion?

A) A company shifts their headquarters to a foreign country.
B)
B) A company decreases cash holdings in a foreign country.
C) A company increases debt in their home country.
D) Both A and C, but not

Question 29

Representation on the World Bank's board of directors is based on:

A) The size of the member nation's population.
B) The size of the member nation's economy.
C) The size of the member nation's land mass.
D) Equal representation of all member nations.

Question 30

What U.S.company is the best example of using globalization to reduce the price of its products?

A) K-Mart.
B) Toys R Us.
C) Walmart.
D) Macy's.

Question 31

The primary purpose of the International Monetary Fund is to:

A) Lend foreign currency to member countries.
B) Exchange one currency for another.
C) Consolidate the debt facing third world nations.
D) Collect the interest on loans made by the World Bank to third-world nations.

Question 32

A society where economic power is concentrated in the hands of government officials and political authorities is called:

A) A central state control system.
B) A social democracy.
C) A political control system.
D) A military dictatorship.

Question 33

Assets that a person accumulates and owns at a certain point in time are called:

A) Income.
B) Equity.
C) Wealth.
D) Microfinance.

Question 34

A critic of globalization might argue that companies decide to manufacture in China mainly because of China's:

A) Strict law enforcement.
B) High environmental standards.
C) Weak health and safety regulations.
D) Strong worker unions.

Question 35

Under the World Trade Organization's most-favored nation rule:

A) All import restrictions imposed by other nations on their goods are illegal unless a cultural waiver is issued.
B) All import restrictions are illegal unless proven scientifically.
C) Most-favored nations can impose heavy tariffs on other nations.
D) Most-favored nations can oppose the dumping of goods by any nation in their home market.

Question 36

Single-party rule by communist parties still remains in:

A) Lithuania.
B) Vietnam.
C) Thailand.
D) Russia.

Question 37

The primary goal of a "vulture fund" is to:

A) Provide countries with debt-relief.
B) Pay back loans in default.
C) Increase global financial stability.
D) Make a profit.

Question 38

According to the United Nations,a feature of democracy is:

A) Fair elections.
B) An independent media.
C) A government with power balanced among executive, legislative, and judicial branches.
D) All of the above.

Question 39

An example of an international financial and trade institution is:

A) World Bank.
B) International Monetary Fund.
C) World Trade Organization.
D) All of the above.

Question 40

The most important agreement which codifies human rights is the:

A) The American Civil Liberties Act.
B) The Versailles Treaty.
C) The Universal Declaration of Human Rights.
D) The U.S. Declaration of Independence.

Question 41

Discuss the benefits and costs of globalization.Provide examples of how globalization has helped or harmed individual nations and the world economy.

Question 42

Compare and contrast the world's political and economic systems and their effects on globalization.

Question 43

Describe the roles of the World Bank,International Monetary Fund,and World Trade Organization as international financial and trade institutions.

Question 44

Explain global wealth and power inequalities.What are the special challenges of serving the "bottom of the pyramid" sector?

Question 45

Government has distinctive resources and competencies including:

A) Knowledge of public policy.
B) Ability to enforce the rules.
C) Revenue from taxation.
D) All of the above.

Question 46

Which statement(s)below are true about global income?

A) Income is how much one earns in a day or a year.
B) Income at the bottom of the pyramid varies from place to place.
C)
C) Around 400 billion people globally sit at the bottom of the pyramid.
D) Both A and B, but not

Question 47

What is a transnational corporation? How do these corporations operate in the global marketplace?

Question 48

How can global action networks help global problem solving?

Question 49

The percentage of global wealth concentrated at the Bottom of the Pyramid is:

A) 8 percent.
B) 22 percent.
C) 60 percent.
D) 70 percent.

Question 50

An example of a Global Action Network,or GAN,is:

A) The World Trade Organization.
B) Nongovernmental organizations.
C) The Kimberley Process.
D) The Heritage Foundation.

Question 51

Experts attribute the growth of nongovernmental organizations to:

A) The creation of global stock exchanges and enhanced currency transactions.
B) The globalization of marketing and converging consumer preferences.
C) Greater openness in many societies.
D) All of the above.

Question 52

Explain the theory of competitive advantage.