Deck 6: The Challenges of Globalization

Question 1

The term sector refers to broad divisions of a whole.

Answer 1

True

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

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

Answer 3

True

Question 4

Only manufacturing jobs are being lost through globalization.

Question 5

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 6

Even as the world has become freer politically and economically,inequality has grown.

Question 7

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

Question 8

The World Trade Organization is based in the United States.

Question 9

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

Question 10

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.

Question 11

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

Question 12

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 13

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

Question 14

Globalization is accepted worldwide and creates little controversy.

Question 15

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 16

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

Question 17

Global commerce has taken place for hundreds of years,dating back to the 15^th century.

Question 18

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

Question 19

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

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 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 22

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 23

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 24

In 2010,the leading nonfinancial transnational corporation,with foreign assets totaling over $551 million was:

A) General Electric.
B) Vodafone.
C) General Motors.
D) BP.

Question 25

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 26

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 27

The term "race to the bottom" refers to:

A) Seeking to mine rich 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 is no longer relevant.

Question 28

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 29

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 30

Which is an example of a social and political reform that has led to the acceleration of globalization?

A) Economic sanctions against North Korea.
B) Efforts to deter drug trafficking from Colombia.
C) The collapse of former communist states of central and eastern Europe.
D) The European Union's penalties against Microsoft for unfair competition.

Question 31

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 32

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 33

The loan policies of the World Bank:

A) Are generous to developing countries seeking to expand their educational systems.
B) Impose strict restrictions on debtor countries which can sometimes lead to hardship.
C) Are generally only available to rich nations.
D) Are open to any company conducting business abroad.

Question 34

Technological innovation has aided the spread of globalization by:

A) Building advanced technologies that can be sold in the global marketplace.
B) Building advanced technologies that can be bought in the global marketplace.
C) Leveling the playing field and allowing all to participate on an equal footing in global commerce.
D) All of the above.

Question 35

The acceleration of globalization has been driven by:

A) Technological innovation.
B) Transportation systems.
C) Social and political reforms.
D) All of the above.

Question 36

Which transportation system improvement has aided the acceleration of globalization?

A) Airfreight.
B) High-speed rail.
C) New oceangoing vessels.
D) All of the above.

Question 37

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 38

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 39

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 40

Single-party rule by communist parties still remains in:

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

Question 41

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 42

The richest 1 percent of the people in the world receives as much income annually as:

A) The wealthiest 5 percent.
B) 100 percent of the middle class.
C) The poorest 99 percent.
D) The poorest 57 percent.

Question 43

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

Question 44

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 45

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

Question 46

How can global action networks help global problem solving?

Question 47

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

Question 48

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 49

Describe the roles of the World Bank,International Monetary Fund,and World Trade Organization in the acceleration of globalization.

Question 50

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.