Description

1. Withbusinessbecomingincreasinglyglobal,itssuccess,fortunately,dependsonlyonthedomesticenvironment.
2. True
3. False

ANSWER: False

1. Keyaspectsofglobalizationincludetheeliminationofbarrierstotradeandinformationtechnology.
2. True
3. False

ANSWER: True

1. Theworldeconomyisquicklyshiftingawayfromcountrieswithemergingeconomies.
2. True
3. False

ANSWER: False

1. The“soft”qualitiesessentialtoglobalizationincludeopenness,protectionism,accountability,connectivity, democracy, andcentralization.
2. True
3. False

ANSWER: False

1. A sustainable decoupling process would eventually lead to a multi-polar world—a world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone.
2. True
3. False

ANSWER: True

1. The openness and proliferation of globalization and free trade rules can best be attributed to the interwar period between World War I and II.
2. True
3. False

ANSWER: False

1. As part of the World Bank’s Strategic Framework, there are five focus areas that accommodate and facilitate the globalizationprocessincludingitsanalyticalandadvisoryrolesupportingnationalpoliciestostrengthenfreemarket institutionsandinfrastructurethathasprovidedthepotentialforcreatinglargegainsfromtrade.
2. True
3. False

ANSWER: True

1. FortheWorldTradeOrganization,increasingtradebarriershasbeenoneofthemostsimplewaystoencourage trade andglobalization.
2. True
3. False

ANSWER: False

1. Thefoundationsoftheglobalizedbusinessworldarepolitical—andsoarethebiggestthreatstothesystem.
2. True
3. False

ANSWER: True

1. Countriesthathavesuccessfullyadaptedtoglobalizationrealizethattheycannotsucceedwithouthigh-quality government management athome.
2. True
3. False

ANSWER: True

1. Incommunistandstate-controlledeconomieslikethoseinCentralAsiapropertyrightseitherdonotexistorare notwelldefinedwhichdiscouragesdomesticandforeigninvestorsfrommakinglong-termcommitmentsinthese countries.
2. True
3. False

ANSWER: True

1. GlobalizedeconomieslikeNewZealandandSingaporerankatthetopinindexforabsenceofcorruptionby TransparencyInternational.
2. True
3. False

ANSWER: True

1. Textmessagingwilllikelybeanunimportantcomponentofemergingeconomies'mobilephoneusagebecausemost peopleinthesecountriescannotreadorwrite.
2. True
3. False

ANSWER: False

1. Criticsarguethatopentradeandforeigndirectinvestmentalwaystakejobsfromworkersindevelopingeconomies and transfer them to workers in advanced industrial countries which leave the workers in the developing country, out ofwork.
2. True
3. False

ANSWER: False

1. Thereappearstobea clear connection between economic freedom and political freedom.
2. True
3. False

ANSWER: True

1. BrazilianJuice,a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United States. Brazilian juice is engaging in
2. economic development in UnitedStates.
3. exercisingnontariffbarriersinBrazil.
4. unfair tradepractices.
5. globalization.
6. the World Trade BankGroup.

ANSWER: d

1. WhichofthefollowingisNOTa key aspect of globalization?
2. Theeliminationofbarrierstotrade
3. Investment
4. Financialindependence
5. Culture
6. Informationtechnology

ANSWER: c

1. Countriesthathavebeenmovingtowardmoreopentradeandfreemarketpoliciesareknownas .
2. Africancountries
3. open-dooreconomies
4. industralizedcountries
5. globalizedeconomies
6. emergingeconomies

ANSWER: e

1. Increasingly, emerging economiesare
2. innovative and technologicallyadvanced.
3. sources of inexpensivelabor.
4. largelyagricultural.
5. simplycopyingthetechnologiesusedinmoreadvancedeconomies.
6. beingleftbehindintheglobaleconomy.

ANSWER: a

1. A sustainable decoupling process would eventually lead to .
2. a multi-polar world
3. globalization
4. outsourcing
5. transparency
6. incomeinequity

ANSWER: a

1. A world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone can be described as a(n) .
2. interdependentworld
3. industrializedworld
4. globalizedeconomy
5. multi-polarworld
6. diverseworld

ANSWER: d

1. Accordingtotheauthors,whichofthefollowingisNOTtrueregardingglobalizationlessonsfordeveloping countries?
2. Importorientednationsmustswitchtoconcentrateondomestication.
3. Exportorientednationsmustdiversifytheirmarkettoincludemajoremergingeconomies.
4. Countriesemphasizingexportsshouldbasetheirstrategyontheirtruecompetitiveadvantage.
5. Forcountrieswithlargepopulations,thesizeofthedomesticmarketremainsmostimportant.
6. Overindulgence can lead todisaster.

ANSWER: a

1. WhichofthefollowingisNOTa main purpose of the IMF?
2. Providea forum for cooperation on international monetary problems
3. Facilitatethesustainablegrowthofinternationaltrade
4. Promote exchange ratestability
5. Lendcountriesforeignexchangewhenneeded
6. Providelong-termlow-interestsocialsectorandinfrastructureloans

ANSWER: e

1. Whatwasthe initialprimary roleoftheWorldBank?
2. ToaideinthereconstructionofEuropeafterWorldWarII
3. Toprovidelow-interestmortgageloanstominorities
4. Totrytoavoida repetition of the disastrous economic policies that had contributed to the Great Depression.
5. Todealprimarilywithtariffnegotiations
6. Toprovideloansandtakeequitypositioninprivatecompanies

ANSWER: a

1. TheInternationalBankforReconstructionandDevelopmentperformswhichofthefollowingfunctions?
   1. Provideslong-termlow-interestsocialsectorandinfrastructureloanstothepoorestmembersutilizing foreignaidfundsprovidedbyrichnationmembers
   2. Provideloansandtakeequitypositioninprivatecompaniesofdevelopingcountriesandworkstoward developing capital markets inthose economies
   3. Supportsreconstructionandrestructuringofmembercountriesutilizingfundsraisedininternationalcapital markets
   4. Providespoliticalriskcoverageforprivateinvestmentsmadeindevelopingcountries
   5. Worksonissuesrelatedtoforeigninvestmentdisputes

ANSWER: c

1. TheMultilateralInvestmentGuaranteeAgencyperformswhichofthefollowingfunctions?
   1. Provideslong-termlow-interestsocialsectorandinfrastructureloanstothepoorestmembersutilizing foreignaidfundsprovidedbyrichnationmembers
   2. Provideloansandtakeequitypositioninprivatecompaniesofdevelopingcountriesandworkstoward developing capital markets inthose economies
   3. Supportsreconstructionandrestructuringofmembercountriesutilizingfundsraisedininternationalcapital markets
   4. Providespoliticalriskcoverageforprivateinvestmentsmadeindevelopingcountries
   5. Worksonissuesrelatedtoforeigninvestmentdisputes

ANSWER: d

1. TheInternationalFinanceCorporation(IFC)performswhichofthefollowingfunctions?
   1. Provideslong-termlow-interestsocialsectorandinfrastructureloanstothepoorestmembersutilizing foreignaidfundsprovidedbyrichnationmembers
   2. Provideloansandtakeequitypositioninprivatecompaniesofdevelopingcountriesandworkstoward developing capital markets inthose economies
   3. Supportsreconstructionandrestructuringofmembercountriesutilizingfundsraisedininternationalcapital markets
   4. Providespoliticalriskcoverageforprivateinvestmentsmadeindevelopingcountries
   5. Worksonissuesrelatedtoforeigninvestmentdisputes

ANSWER: b

1. WhichofthefollowingisNOTanobjectiveoftheWTO?
2. Reviewing national tradepolicies
3. Actingasa forum for trade negotiations
4. Namingcommissionerstolocaltradeorganizations
5. Settling tradedisputes
6. Administering tradeagreements

ANSWER: c

1. Tradewithoutdiscrimination,freertrade,predictability,promotionoffaircompetition,and are the five principlesofthemultilateraltradingsystem.
2. integrated capitalmarkets
3. encouragementofeconomicreformindevelopingcountries
4. liberalizationofthetradingsystem
5. nontarifftrade
6. establishmentof"mostfavorednation"status

ANSWER: b

1. In Brazil, if there are government organizations that create strong incentives for private investment and operate undera system of checks and balances that function best in a democratic system of government, they could be classified as which of these?
2. Transparentorganizations
3. Antitrustcorporations
4. Adaptiveinstitutions
5. Emergingmarkets
6. Capitalmarkets

ANSWER: c

1. Tosustainglobalization,nationsmustbuildinstitutionsthatsupportallofthefollowingEXCEPT
2. democratic systems ofgovernment.
3. freemarkets.
4. commandeconomies.
5. independentjudiciaries.
6. a free press.

ANSWER: c

1. Themostrecentdevicesthatenablethegreatesteaseinportabilityandaccessibilityofinformationare .
   1. magazines
      1. newspapers
      2. advertisements
         1. smartphones
            1. computers

ANSWER: d

1. In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on

.

1. politics
2. integrity
3. accountability
4. transparency
5. democracy

ANSWER: d

1. WhichofthefollowingisNOTtrueregardingcompetitivemarkets?
2. Successfullyglobalizedeconomiesstrivetoattaincompetitivemarketsathome.
3. Governmentstrytominimizetheroleofstate-ownedenterprisesinmarketeconomies.
4. Regulationsthatpromotefreedomesticmarketsalsotendtopromoteglobalization.
5. Antitrustlawsmustbeeliminatedifcompetitivemarketsretobesustained.
6. Antitrustlawsinterferewiththenaturalgrowthofsuccessfulbusinesses.

ANSWER: d

1. IllicitdealingsundermineeconomicperformancebydoingallofthefollowingEXCEPT:
2. decreasingcosts.
3. raisingcompetition.
4. thwartingcompetition.
5. reducingtransparency.
6. raisinginsecurity.

ANSWER: a

1. ABCTechnologytoutsintheiradvertisementsthattheirtechnologycantransferhugeamountofdataandother informationina second via the Internet. This describes ABC’sin technology.
2. bandwith
3. digitalserver
4. digitaldivide
5. gigabytes
6. Y2K

ANSWER: a

1. TherapidfallinpricesofdigitalITequipmentandservicesmay
2. reducetheimportanceofITintheglobaleconomy.
3. spelltheendofthedigitalera.
4. makedigitaldividea myth.
5. reducetheavailabilityofbandwidthindevelopedeconomies.
6. localizetheproductionofgoodsandservices.

ANSWER: c

1. Ofthefollowing,whichisNOTtrueregardingtheInternetandcellphoneera?
2. Fortunately,thenextbillionuserswillbethesameasthefirstbillion
3. Themajorityofuserswillbefromdevelopingcountries
4. Textmessagingwilllikelypredominateemergingeconomies;mobilephoneusage
5. Countriesareskippingtheuseofland-linetechnologyandjumpingtowirelesssystems
6. Developingcountriesmay“leapfrog”anentiregenerationoftechnology

ANSWER: a

1. AllofthefollowingareargumentsagainstglobalizationEXCEPT:
   1. itmayleadtoanincreaseintheappearanceofoldindustries.
   2. itmayleadtoa loss of control over economic policies and developments.
   3. itmayleadtoanerosionofcommunities.
   4. itcanbea force of exploitation and injustice.
   5. itcancausejoblossesandstagnantwages.

ANSWER: a

1. Theonlywayworkersinindustrializedcountriescancompetewiththeircounterpartsinthedevelopingworldwill bethrough:
2. increaseduseofthecostleadershipstrategy.
3. increaseddiversitywithintheorganization.
4. increased empowerment ofemployees.
5. increasedproductivitybyusingtechnologically-intensivemanufacturingtechnologies.
6. increased flat organizationstructure.

ANSWER: d

1. Anofficeusesprinterpapermadeprimarilyofrecycledpaper.Thisisanexampleofa policy.
2. futuresourcing
3. globalwarming
4. next-generation consumerhook
5. digitaldivide
6. sustainabledevelopment

ANSWER: e

1. WhichofthefollowingisNOTtrueregardingresultsfroma survey by the World Bank on corporate social responsibility (CSR)?
2. CSRpracticesarenowa significant factor in determining where multinational companies conduct business.
3. 90%ofthecompaniessurveyedhaveboard-approvedpoliciesonenvironmentalmanagement.
4. 90%ofmultinationalswillmaketheirdecisionsbasedonCSRissueswithregardtoforeigndirect investment.
5. CSRissuesconsistentlyimplementedforthelongtermleadtosustainablebusinessanddevelopment.
6. CSRincludesissuessuchaslaborrights,corruption,humanrights,communityhealth,andlandrights.

ANSWER: c

1. Successivewavesofglobalizationincludecharacteristicssuchastheexpansionoftrade,thediffusionof technology, extensivemigration,and .
2. improvements in countryinfrastructure
3. increased employeemorale
4. improvedhealthcare
5. financialindependence
6. cross-fertilization of diversecultures

ANSWER: e

1. WhichofthefollowingisNOTtrueregardingglobalization?
2. Itguaranteesthatqualityoflifeforallpeoplewillincrease.
3. It creates winners andlosers.
4. Ithasthepotentialtoincreasethequalityoflifeforpeople.
5. Somemultinationalcompanieswillutilizeglobalizationmaytrytopaysubstandardwagestotheworkers they employ indeveloping countries.
   1. ExportbarriersmayneedtobeimposedbytheWTOtohelpregulatetheactionsofmultinational companies.

ANSWER: a

1. Allofthefollowingcountriescanbeconsideredglobalization“winners”EXCEPT:
2. China
3. NorthKorea
4. India
5. Brazil
6. SouthAfrica

ANSWER: b

1. refers to a fundamental global shift in which industrialized country-dependent developing economies begin to grow based on their own underlying economic strengths rather than the ups and downs of the world’s richest countries.

ANSWER: Decoupling

1. A world economy in which the engines of growth could comprise several major industrialized and emerging market economies such as the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone is called .

ANSWER: multi-polar world

1. The World Bank was conceivedatthe Conference in1944.

ANSWER: Bretton Woods

1. A stock exchange where long-term financial instruments such as stocks and bonds can be bought and sold refers to

.

ANSWER: capital markets

1. Therules,enforcementmechanisms,andorganizationsthatsupportmarkettransactionsarecalled .

ANSWER: institutions

1. A system of responsibility in which an authority, such as the government, is answerable for its actions refers to

.

ANSWER: accountability

1. Nationallawsaimedatmaintainingcompetitioninallsectorsoftheeconomyandpreventingmonopolisticbehavior of firmsarecalled .

ANSWER: antitrust laws

1. TheperiodoftransformationthatadjustslifestylestomaketheInternetandwirelesstechnologiesa part of everyday life refers to the .

ANSWER: digital era

1. The isa system of interlinked documents contained and accessed via the Internet.

ANSWER: web

1. Economicdevelopmentthatmeetstheneedsofthepresentgenerationwithoutcompromisingtheabilityoffuture generationstomeettheirownneeds,whetherenvironmentally,sociallyoreconomicallyiscalled .

ANSWER: sustainable development

1. DifferentiatebetweentheInternationalMonetaryFundandtheWorldBankasinstitutionsfacilitatingglobalization.

ANSWER: Student answers will vary.

1. Analyzetheimpactoftransparencyonglobalization.

ANSWER: Student answers will vary.

1. Identifyanddescribeanytwokeypolicymeasuresthatmakeglobalizationsustainable.

ANSWER: Student answers will vary.

1. Giventherapidadvancementsintechnologyindevelopedcountriesandfastpaceofglobalization,itisnotpossible tobridgetheglobaldigitaldivide.Doyouagreewiththisstatement?Whyorwhynot?Explain.

ANSWER: Student answers will vary.

1. Whatarethebestwaysindustrializedcountriescansupportglobalization's"losers"?Supportyourpositionusing examples.

ANSWER: Student answers will vary.

Scenario – T & M Computers

Thomas Benson and Matthew Roderick started a small computer business ten years ago in Rapid City, South Dakota. Armed only with determination and innovative designs, Thomas and Matthew were driven to achieve success for their company, T & M Computers. Their hard work has indeed, paid off. Since the inception of the company, the two owners have watched their business grow and demand for their products increase.

Four years ago due to this high product demand, they went international with their business operations. Thomas and Matthew now have international business operations in Singapore, France, Turkey, and Great Britain. Further operational expansion is anticipated within the next year and the company plans to begin operations in Spain, Greece, and Italy.

The owner’s hard work and dynamic ideas have proven quite profitable for the company. Thomas and Matthew are pleased with how their operation has grown into becoming a major international business worthy of competing with Intel and Microsoft. T & M Computers may well be the next giant recognized in the field of computer software.

1. T & M Computers are conducting international business operations in world areas, which have recently undergone financial turmoil. Of the following, which organization is most likely to provide assistance in providing global financial stability?
   1. International MonetaryFund
   2. The UnitedNations
   3. The WorldBank
   4. TheGlobalCenterforFinancialRestructuring
   5. The World TradeOrganization

ANSWER: a

1. WhichoneofthefollowingwouldT & M Computers least expect to be a negative influence from the sovereign governments within the nations where their business operations are located?
   1. Militaryhostilities
   2. Protectionistpolicies
   3. Promotionofeconomicgrowthandjobcreation
   4. Stiff environmentalstandards
   5. Stringent immigrationpolicies

ANSWER: c

1. T & M Computers plans to begin operations in areas that recently needed financial assistance and undergone certain levels of reconstruction and reorganizing to their economies. Which organization listed below is most likely to have played an integral part in this?
   1. The World TradeOrganization
   2. The World BankGroup
   3. The International DevelopmentAssociation
   4. The International FinanceCorporation
   5. The sovereign government ofGreece

ANSWER: b

Scenario – The Everline Corporation

The Everline Corporation is a multinational business that provides state-of-the-art digital communication capabilities to its global customers. Originally operating as a U.S. domestic business based in Duluth, Minnesota, Everline quickly seized on the opportunity provided by international expansion. Within two years, the corporation had expanded into fourteen foreign nations found throughout the Middle East, Europe, Asia, and South America.

Everline understands the vital importance of offering effective and affordable communication products to its customers. It realizes the value consumers place on being able to communicate with businesses without delays or hassles. The corporation recognizes its customers need to quickly and efficiently communicate with others in the global marketplace of today.

Fueled by its staff of innovative and highly skilled communication engineers, the future for Everline looks more and more promising. Communication needs around the globe continue to grow and this business stands ready to fill the demand. With net profits expected to reach one billion dollars in the next year, this company is decidedly reaping the rewards of its hard work.

1. TheEverlineCorporationiscurrentlyconductingitsinternationalcommunicationbusinessduringa period of time that is experiencing rapid changes and challenges. Individuals and organizations are adjusting their lifestyles and methods of operations to fully utilize the modern communication technologies available in the marketplace. The time period Everline is currently operating under is best classed as which one of the following terms?
   1. Digitalproliferation
   2. Modern communicationera
   3. Digitaldivide
   4. Communicationdecade
   5. Digitalera

ANSWER: e

1. There is a perceived economic gap among the various foreign customers of the Everline Corporation. This is thought to be mainly the result of the level of access or lack thereof to modern digital information technologies experienced within these individual countries. Considering this perceived economic gap, Everline’s operations may be experiencing influence identified as which of the following?
   1. Digitalstagnation
   2. Digitalera
   3. Digitaldivide
   4. Bandwidth technologyera
   5. Webrevolution

ANSWER: c

1. TheEverlineCorporation’sfuturebusinessplansincludeexpandingintoforeignmarketswheretheuseofmobile Webbrowsingisgrowingrapidly.Whichoneofthefollowingcountrieswouldthisorganizationbeleastlikelyto looktowardtoincludeintheirfutureexpansionplans?
   1. Vietnam
   2. Kenya
   3. India
   4. Germany
   5. Nigeria

ANSWER: d

1. The mangers of the Everline Corporation attribute their company’s continued profitability to the idea that globalization and information technology are closely related to one another. They acknowledge that theinformation technology revolution has occurred almost instantaneously. Which one of the following would not be considered a benefit derived from this so-called revolution?
   1. Societalhierarchieshavegrowninnumbertobetteraccommodateinformation technologychanges.
   2. A more free flow of capital across national boundaries has occurred.
   3. Operating costs have decreased for manybusinesses.
   4. Theproductionofgoodsandserviceshasbecomeglobalized.
   5. The costs of communication arereduced.

ANSWER: a

Scenario – The Renna Company

Established in 1956, the Renna Company has always maintained its operations within the boundaries of the United States. Originally based in Lexington, Kentucky, this company has now expanded operations into thirteen other

U.S. states. While it’s inexpensive and efficient cooling and heating products are in high demand even in foreign markets, this company contends it has no desire for international expansion.

Conducting operations strictly within the U.S. borders does not appear to have limited this company overly

much. It realized net profits of two billion dollars last year and provided gainful employment for over four thousand workers. The leaders of the Renna Company realize greater profits could be attained through international expansion. However, they stand in agreement when they state, “It is not always the money that best defines the worth of an organization.”

The company desire to stay true to its mission statement, which claims, “It will serve the marketplace of the United States with its superior products and provide job opportunities with a fair wage for its employees.” The Renna Company is very proud of its products and enjoys the fact they are produced and sold in the United States of America. This company truly reflects the success possible when holding to the fact that “Made in America” is still a winner.

1. Whichoneofthefollowingstatementsisleastlikelytobea rationale explaining why the Renna Company staunchly desires to avoid global expansion?
   1. Globalizationcancreatea wearing away of old industries.
   2. Globalizationbringsintoplaytheconceptofsustainabledevelopment.
   3. Globalizationcancontributetoanincreaseinenvironmentaldegradation.
   4. Globalexpansionoftenleadstogreaterintegrationandinterdependenceamong economiesandsocieties,whichcanbringaboutinjustices.
   5. Economicchangecomeswitha high price tag including job losses and wages that become stagnant.

ANSWER: b

1. AllofthefollowingareexamplesofcounterargumentstheRennaCompanyshouldconsiderbeforecontinuingwith theirstandofkeepingtheiroperationsstrictlywithinthebordersoftheUnitedStatesexceptwhichone?
   1. Globalexpansionaffordsa strong potential for costs of both product production and product purchase to decrease.
   2. Lifeexpectancymayincreaseformembersofthepopulationwithinthenations involvedinglobalizationduetotheincreasedqualityoflife.
   3. Globalizationcontributestofastereconomicgrowthforthenationsinvolved.
   4. Thequalityoflifeismostlikelytoimproveforthecitizensofthenationsthatare involved with globalization andtrade.
   5. Thewagelevelsofeachnationmaybecomestagnantandsomeworkersmaybecome displaced,havingbeenreplacedbylessexpensiveforeignlabor.

ANSWER: e

1. The Renna Company has a clear understanding of the benefits of economic development. Economic development which meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially or economically is best identified as which one of the following?
   1. Sustainabledevelopment
   2. Reformprocess
   3. Tradeliberalization
   4. Corporate socialresponsibility
   5. Environmentaldegradation

ANSWER: a