Globalization Quiz

Play an AI-generated podcast conversation about this lesson

Which of the following best describes globalization?

The advancement of modern communications technology for service activities

The merging of historically distinct and separate national markets into one global marketplace (correct)

The sourcing of goods to take advantage of differences in cost and quality of factors of production

The existence of significant differences between national markets

What types of products are considered global in nature?

Products that have significant differences between national markets

Products that are sourced locally

Products that serve universal needs (correct)

Products that are outsourced for manufacturing

What is the main purpose of outsourcing in the globalization of production?

To ensure competitors remain unchanged among nations

To take advantage of differences in cost and quality of factors of production (correct)

To source goods locally to support national markets

To limit the advancement of modern communications technology

What are the factors of production that are considered in the globalization of production?

Labor, energy, land, and capital Signup and view all the answers

What was early outsourcing primarily confined to?

Manufacturing Signup and view all the answers

What has advanced outsourcing today for service activities?

Modern communications technology Signup and view all the answers

What is the main difference between national markets in the context of globalization?

The existence of significant differences between national markets Signup and view all the answers

What is the primary driver of the globalization of production?

Sourcing goods to take advantage of differences in cost and quality Signup and view all the answers

What is the main impact of globalization on competitors among nations?

Competitors may not change among nations Signup and view all the answers

What is the scope of the global marketplace in the context of globalization?

One huge global marketplace Signup and view all the answers

Which factor has contributed to the rise of mini-multinationals in international trade?

The decrease in global barriers to trade Signup and view all the answers

Which region has experienced a decrease in debt and inflation, attracting more private investors and expanding economies?

Latin America Signup and view all the answers

Why do critics argue that globalization leads to a decline in labor income?

The outsourcing of services to other countries Signup and view all the answers

What is one of the main arguments made by supporters of globalization?

The benefits of free trade outweigh the costs Signup and view all the answers

What is the main concern raised by critics of globalization in relation to labor and environmental regulations?

They increase manufacturing costs Signup and view all the answers

What is one of the factors that critics suggest has contributed to the widening gap between rich and poor nations?

Expanding populations in developing countries Signup and view all the answers

Why do critics argue that the power of supranational organizations is a threat to national sovereignty?

Supranational organizations shift power away from national governments Signup and view all the answers

What is one of the challenges in managing international business compared to managing purely domestic business?

Different range of problems Signup and view all the answers

What does the text suggest is the main reason for the decline in labor income for unskilled workers?

Technological changes Signup and view all the answers

What has contributed to the growth of medium and small sized businesses in international trade?

The internet lowering barriers Signup and view all the answers

Which organization polices the world trading system and ensures nation-states adhere to the rules?

World trade organization (WTO) Signup and view all the answers

What is the role of the International Monetary Fund (IMF)?

Maintain order in the international monetary system Signup and view all the answers

Which organization focuses on making low-interest loans to cash-strapped governments in poor nations that wish to undertake significant infrastructure investments?

World bank Signup and view all the answers

How many member countries are there in the United Nations (UN)?

193 Signup and view all the answers

What are the four basic purposes of the UN charter?

Maintain international peace and security, develop friendly relations among nations, cooperate in solving international problems and promote respect for human rights, be a center for harmonizing the actions of nations Signup and view all the answers

Which group compromises finance ministers and central bank governors of the 19 largest economies in the world, plus representatives from the European Union and the European Central Bank?

Group of twenty (G20) Signup and view all the answers

What are the drivers of globalization?

Increasing trade and investment barriers, increasing cultural distance, changing demographics of the global economy, advancements in transportation technology Signup and view all the answers

What is the single most important innovation since World War II in terms of communications?

The microprocessor Signup and view all the answers

What does Moore's law predict about microprocessor technology?

The power of microprocessor technology doubles and its cost of production falls in half every 18 months Signup and view all the answers

What has significantly reduced cultural distance and brought some convergence of consumers' tastes and preferences?

The internet Signup and view all the answers