Globalization Past Paper PDF

Chapter 01 Globalization   **True / False Questions**\   -------- ---------------------------------------------------------------------------------------------------------- **1.** **The shift toward a more integrated and interdependent world economy is referred to as globalization. \...

Chapter 01 Globalization   **True / False Questions**\   -------- ---------------------------------------------------------------------------------------------------------- **1.** **The shift toward a more integrated and interdependent world economy is referred to as globalization. \  \ True    False** -------- ---------------------------------------------------------------------------------------------------------- ** ** -------- --------------------------------------------------------------------------------------------------------- **2.** **A company does not need a large size to facilitate, and benefit from, the globalization of markets. \  \ True    False** -------- --------------------------------------------------------------------------------------------------------- ** ** -------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------- **3.** **Companies hope to lower their overall cost structure or improve the quality or functionality of their product offering through globalization of production. \  \ True    False** -------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** -------- -------------------------------------------------------------------------- **4.** **The most global markets currently are markets for consumer products. \  \ True    False** -------- -------------------------------------------------------------------------- ** ** -------- ---------------------------------------------------------------------------- **5.** **Outsourcing is a process that is limited to manufacturing enterprises. \  \ True    False** -------- ---------------------------------------------------------------------------- ** ** -------- ----------------------------------------------------------------------------------------------------------------------------------------------------------- **6.** **The health care sector in the U.S. cannot avail the benefits of outsourcing to low-cost producers in other nations because of the nature of the work. \  \ True    False** -------- ----------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** -------- ---------------------------------------------------------------------------------------------------------------------------------------------------- **7.** **The World Bank has focused on policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties. \  \ True    False** -------- ---------------------------------------------------------------------------------------------------------------------------------------------------- ** ** -------- --------------------------------------------------------------- **8.** **The World Bank is known as the lender of the last resort. \  \ True    False** -------- --------------------------------------------------------------- ** ** -------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ **9.** **One of the UN\'s central mandates is the promotion of higher standards of living, full employment, and conditions of economic and social progress and development. \  \ True    False** -------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ** ** --------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **10.** **In 2008 and 2009, the GATT became the forum though which major nations attempted to launch a coordinated policy response to the global financial crisis, which started in America. \  \ True    False** --------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ---------------------------------------------------------------------------------------------------------------- **11.** **The Uruguay Round, finalized in December 1993, reduced protection for patents, trademarks, and copyrights. \  \ True    False** --------- ---------------------------------------------------------------------------------------------------------------- ** ** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **12.** **\"Beggar thy neighbor\" retaliatory trade policies involved countries progressively lowering trade barriers against each other, which contributed to the Great Depression of the 1930s. \  \ True    False** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **13.** **Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China to take advantage of the lower labor costs there. This is an example of foreign direct investment. \  \ True    False** --------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------- **14.** **World Bank gives an aid of 100 million dollars to Kenya for creating rural health care facilities. This is an example of foreign direct investment. \  \ True    False** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------------------------------------------------------- **15.** **The lowering of barriers to international trade enables firms to view the world, rather than a single country, as their market. \  \ True    False** --------- ------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ---------------------------------------------------------------------------------------------------------------------- **16.** **According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950. \  \ True    False** --------- ---------------------------------------------------------------------------------------------------------------------- ** ** --------- ----------------------------------------------------------------------------------------------------------------------------------- **17.** **The expansion of world trade implies that nations are becoming less dependent on each other for important goods and services. \  \ True    False** --------- ----------------------------------------------------------------------------------------------------------------------------------- ** ** --------- -------------------------------------------------------------------------------------------------------------------- **18.** **Over the past 30 years the flow of FDI has accelerated faster than the growth in world trade and world output. \  \ True    False** --------- -------------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **19.** **The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding their home markets protected from foreign competitors. \  \ True    False** --------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ----------------------------------------------------------------------------------------------------------------------------------------------- **20.** **The cost of microprocessors continues to fall, while their power increases. This statement supports the predictions made by Moore\'s Law. \  \ True    False** --------- ----------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- -------------------------------------------------------------------------------------------------------------- **21.** **Efficiency gains associated with containerization have caused transportation costs to fall dramatically. \  \ True    False** --------- -------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------- **22.** **The Internet has developed into the information backbone of the global economy. \  \ True    False** --------- ------------------------------------------------------------------------------------- ** ** --------- ---------------------------------------------------------------------------------------------------------- **23.** **Globalization of markets has resulted in greater differentiation of consumer tastes and preferences. \  \ True    False** --------- ---------------------------------------------------------------------------------------------------------- ** ** --------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **24.** **In the early 1960s, the United States was by far the world\'s dominant industrial power. However by 2009, it lost its dominant position and now, is no longer the world\'s largest industrial power. \  \ True    False** --------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **25.** **Non-U.S. firms increasingly began to invest across national borders because they wanted to disperse production activities to optimal locations and to build a direct presence in major foreign markets. \  \ True    False** --------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------------------------------- **26.** **A multinational enterprise (MNE) is any business that exports or imports products from other countries. \  \ True    False** --------- ------------------------------------------------------------------------------------------------------------- ** ** --------- -------------------------------------------------------------------------------------------------------------------------------------- **27.** **A current trend in international business is the decline of medium-sized and small multinationals, known as mini-multinationals. \  \ True    False** --------- -------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------------------------------------------------------------ **28.** **The globalization of the world economy has resulted in a relative increase in the dominance of U.S. firms in the global marketplace. \  \ True    False** --------- ------------------------------------------------------------------------------------------------------------------------------------------ ** ** --------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **29.** **Doing business in Russia involves risks because the country has shown signs of shifting back toward greater state involvement in economic activity and authoritarian government. \  \ True    False** --------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------------------------------------------------ **30.** **Current trends indicate the world is moving toward an economic system that is more favorable for international business. \  \ True    False** --------- ------------------------------------------------------------------------------------------------------------------------------ ** ** --------- -------------------------------------------------------------------- **31.** **Globalization reduces the risks of global financial contagion. \  \ True    False** --------- -------------------------------------------------------------------- ** ** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **32.** **Globalization critics argue that the decline in unskilled wage rates is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers. \  \ True    False** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- -------------------------------------------------------------------------------------------------------------------------------------------------------- **33.** **Evidence suggests that technological change has had a bigger impact than globalization on the declining share of national income enjoyed by labor. \  \ True    False** --------- -------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- **34.** **Recent evidence indicates that the solution to the problem of stagnant incomes among the unskilled is to be found in increasing government regulation of markets. \  \ True    False** --------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------------------------------------------------------------ **35.** **According to supporters of free trade, as countries get richer they commit greater violation of environmental and labor regulations. \  \ True    False** --------- ------------------------------------------------------------------------------------------------------------------------------------------ ** ** --------- ---------------------------------------------------------------------------------------------------------------------------- **36.** **According to critics of globalization, today\'s interdependent global economy limits a nation\'s national sovereignty. \  \ True    False** --------- ---------------------------------------------------------------------------------------------------------------------------- ** ** --------- --------------------------------------------------------------------------------------------------------------------------------------- **37.** **Critics of globalization suggest that over the last century, the gap between the rich and poor nations of the world has shrunken. \  \ True    False** --------- --------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **38.** **Supporters of debt relief argue that new democratic governments in poor nations should not be forced to honor debts incurred by corrupt and dictatorial predecessors. \  \ True    False** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ---------------------------------------------------------------------------------------------------- **39.** **A firm does not have to become a multinational enterprise to engage in international business. \  \ True    False** --------- ---------------------------------------------------------------------------------------------------- ** ** --------- ----------------------------------------------------------------------------------------------------------------- **40.** **Differences between countries require that an international business vary its practices country by country. \  \ True    False** --------- ----------------------------------------------------------------------------------------------------------------- ** ** --------- ---------------------------------------------------------------------------------------------------------------------------- **41.** **Cross-border business transactions have become easier for international businesses because they use a common currency. \  \ True    False** --------- ---------------------------------------------------------------------------------------------------------------------------- ** ** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------- **42.** **A domestic business must find ways to work within the limits imposed by governmental intervention in the international trade and investment system. \  \ True    False** --------- --------------------------------------------------------------------------------------------------------------------------------------------------------- ** ** --------- ------------------------------------------------------------------------------------------ **43.** **Managing an international business is much easier than managing a domestic business. \  \ True    False** --------- ------------------------------------------------------------------------------------------ ** ** ** ** **\ Multiple Choice Questions\  ** +-----------------------------------+-----------------------------------+ | **44.** | **Since the collapse of communism | | | at the end of the 1980s, the | | | erstwhile communist nations have | | | transformed their economies by | | | globalizing their markets. This | | | involves \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --- | | | **A. ** **regulating markets* | | | * | | | --------- --------------------- | | | --- | | | | | | --------- --------------------- | | | -------------------- | | | **B. ** **privatizing state-o | | | wned enterprises** | | | --------- --------------------- | | | -------------------- | | | | | | --------- --------------------- | | | ------- | | | **C. ** **decreasing competit | | | ion** | | | --------- --------------------- | | | ------- | | | | | | --------- --------------------- | | | ------------ | | | **D. ** **reducing foreign in | | | vestment** | | | --------- --------------------- | | | ------------ | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **45.** | **Which of the following is a | | | consequence of globalization? \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | ----- | | | **A. ** **Decreasing interdep | | | endence between national economie | | | s** | | | --------- --------------------- | | | --------------------------------- | | | ----- | | | | | | --------- --------------------- | | | ------------------- | | | **B. ** **Increasing outsourc | | | ing of services** | | | --------- --------------------- | | | ------------------- | | | | | | --------- --------------------- | | | -------------------- | | | **C. ** **Differentiation of | | | material culture** | | | --------- --------------------- | | | -------------------- | | | | | | --------- --------------------- | | | --------------------------- | | | **D. ** **Increase in barrier | | | s to cross-border trade** | | | --------- --------------------- | | | --------------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **46.** | **Which of the following has | | | enabled globalization of | | | markets? \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ------------------------- | | | **A. ** **Differentiation amo | | | ngst national markets** | | | --------- --------------------- | | | ------------------------- | | | | | | --------- --------------------- | | | ----------------------- | | | **B. ** **Falling barriers to | | | cross border trade** | | | --------- --------------------- | | | ----------------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | -------- | | | **C. ** **Reduced homogeneity | | | of material culture across the w | | | orld** | | | --------- --------------------- | | | --------------------------------- | | | -------- | | | | | | --------- --------------------- | | | --------------------------------- | | | ------- | | | **D. ** **Increased governmen | | | t ownership of factors of product | | | ion** | | | --------- --------------------- | | | --------------------------------- | | | ------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **47.** | **Which of the following factors | | | hinders globalization of consumer | | | goods market? \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ------------------------------- | | | **A. ** **National difference | | | s in tastes and preferences** | | | --------- --------------------- | | | ------------------------------- | | | | | | --------- --------------------- | | | ----------------------------- | | | **B. ** **Higher production c | | | osts in developed nations** | | | --------- --------------------- | | | ----------------------------- | | | | | | --------- --------------------- | | | ------------------- | | | **C. ** **Homogenization of m | | | aterial culture** | | | --------- --------------------- | | | ------------------- | | | | | | --------- --------------------- | | | ----------------------------- | | | **D. ** **Increasing outsourc | | | ing of goods and services** | | | --------- --------------------- | | | ----------------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **48.** | **Globalization of markets | | | results in markets becoming | | | \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ---- | | | **A. ** **less interdependent | | | ** | | | --------- --------------------- | | | ---- | | | | | | --------- ------------------ | | | **B. ** **less diverse** | | | --------- ------------------ | | | | | | --------- -------------------- | | | **C. ** **more protected** | | | --------- -------------------- | | | | | | --------- --------------------- | | | - | | | **D. ** **less competitive** | | | --------- --------------------- | | | - | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **49.** | **A U.S. Investment firm, | | | Fin-Smart, set up a customer | | | service call center in India to | | | take advantage of the lower labor | | | costs. This is called \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ----- | | | **A. ** **homogenizing market | | | s** | | | --------- --------------------- | | | ----- | | | | | | --------- --------------------- | | | ----- | | | **B. ** **vertical integratio | | | n** | | | --------- --------------------- | | | ----- | | | | | | --------- ----------------- | | | **C. ** **outsourcing** | | | --------- ----------------- | | | | | | --------- --------------------- | | | ------- | | | **D. ** **horizontal integrat | | | ion** | | | --------- --------------------- | | | ------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **50.** | **Early outsourcing efforts were | | | primarily confined to \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- ----------------- | | | **A. ** **health care** | | | --------- ----------------- | | | | | | --------- --------------------- | | | --- | | | **B. ** **service activities* | | | * | | | --------- --------------------- | | | --- | | | | | | --------- --------------------- | | | ------- | | | **C. ** **technological resea | | | rch** | | | --------- --------------------- | | | ------- | | | | | | --------- --------------------- | | | --------- | | | **D. ** **manufacturing activ | | | ities** | | | --------- --------------------- | | | --------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **51.** | **Which of the following is NOT | | | an impediment that makes it | | | difficult for firms to achieve | | | the optimal dispersion of their | | | productive activities to | | | locations around the globe? \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | **A. ** **Reduced tariffs on | | | imports of manufactured goods** | | | --------- --------------------- | | | --------------------------------- | | | | | | --------- --------------------- | | | ------- | | | **B. ** **Government regulati | | | ons** | | | --------- --------------------- | | | ------- | | | | | | --------- --------------------- | | | --------------------------------- | | | -- | | | **C. ** **Issues associated w | | | ith economic and political risk** | | | --------- --------------------- | | | --------------------------------- | | | -- | | | | | | --------- --------------------- | | | ---------------------- | | | **D. ** **Barriers to foreign | | | direct investment** | | | --------- --------------------- | | | ---------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **52.** | **The General Agreement on | | | Tariffs and Trade (GATT) was | | | responsible for \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ------------------------ | | | **A. ** **protecting governme | | | nt owned enterprises** | | | --------- --------------------- | | | ------------------------ | | | | | | --------- --------------------- | | | ---------------- | | | **B. ** **policing the global | | | marketplace** | | | --------- --------------------- | | | ---------------- | | | | | | --------- --------------------- | | | --------- | | | **C. ** **limiting nuclear te | | | sting** | | | --------- --------------------- | | | --------- | | | | | | --------- --------------------- | | | -------------------------- | | | **D. ** **promoting environme | | | nt friendly technology** | | | --------- --------------------- | | | -------------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **53.** | **The \_\_\_\_\_\_ is primarily | | | responsible for policing the | | | world trading system and making | | | sure nation-states adhere to the | | | rules laid down in trade treaties | | | signed by member states. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ---------------------- | | | **A. ** **International Devel | | | opment Association** | | | --------- --------------------- | | | ---------------------- | | | | | | --------- ---------------- | | | **B. ** **World Bank** | | | --------- ---------------- | | | | | | --------- --------------------- | | | --------------- | | | **C. ** **International Court | | | of justice** | | | --------- --------------------- | | | --------------- | | | | | | --------- --------------------- | | | --------- | | | **D. ** **World Trade Organiz | | | ation** | | | --------- --------------------- | | | --------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **54.** | **The World Trade Organization | | | promotes \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | --------- | | | **A. ** **lowering of barrier | | | s to cross-border trade and inves | | | tment** | | | --------- --------------------- | | | --------------------------------- | | | --------- | | | | | | --------- --------------------- | | | --------------------------------- | | | ---------------------- | | | **B. ** **infrastructural dev | | | elopment in poor nations through | | | low-interest loans** | | | --------- --------------------- | | | --------------------------------- | | | ---------------------- | | | | | | --------- --------------------- | | | --------------------- | | | **C. ** **state ownership of | | | major enterprises** | | | --------- --------------------- | | | --------------------- | | | | | | --------- --------------------- | | | ----------------- | | | **D. ** **regulation of natio | | | nal economies** | | | --------- --------------------- | | | ----------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **55.** | **Which of the following is true | | | about the International Monetary | | | Fund? \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | ------------------ | | | **A. ** **It is primarily res | | | ponsible for policing the world t | | | rading system.** | | | --------- --------------------- | | | --------------------------------- | | | ------------------ | | | | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | ------- | | | **B. ** **It is seen as the l | | | ender of last resort to nation-st | | | ates whose economies are in turmo | | | il.** | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | ------- | | | | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | -------------- | | | **C. ** **It is responsible f | | | or establishing multinational tre | | | aties to govern the global busine | | | ss system.** | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | -------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | ----------------------- | | | **D. ** **It was established | | | to formulate a coordinated policy | | | response to financial crises in | | | developing nations.** | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | ----------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **56.** | **The \_\_\_\_\_ was established | | | on October 24, 1945, by 51 | | | countries committed to preserving | | | peace through international | | | cooperation and collective | | | security. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------- | | | **A. ** **World Trade Organiz | | | ation** | | | --------- --------------------- | | | --------- | | | | | | --------- -------------------- | | | **B. ** **United Nations** | | | --------- -------------------- | | | | | | --------- --------- | | | **C. ** **G20** | | | --------- --------- | | | | | | --------- ---------------- | | | **D. ** **World Bank** | | | --------- ---------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **57.** | **The G20 was originally | | | established to \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | ------------------------ | | | **A. ** **preserve peace thro | | | ugh international cooperation and | | | collective security** | | | --------- --------------------- | | | --------------------------------- | | | ------------------------ | | | | | | --------- --------------------- | | | --------------------------------- | | | --- | | | **B. ** **maintain order in t | | | he international monetary system* | | | * | | | --------- --------------------- | | | --------------------------------- | | | --- | | | | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | **C. ** **formulate a coordin | | | ated policy response to financial | | | crises in developing nations** | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | --- | | | **D. ** **manage, regulate, a | | | nd police the global marketplace* | | | * | | | --------- --------------------- | | | --------------------------------- | | | --- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **58.** | **\_\_\_\_\_ occurs when a firm | | | exports goods or services to | | | consumers in another country. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ---- | | | **A. ** **International trade | | | ** | | | --------- --------------------- | | | ---- | | | | | | --------- --------------------- | | | ---------- | | | **B. ** **Foreign direct inve | | | stment** | | | --------- --------------------- | | | ---------- | | | | | | --------- --------------------- | | | -- | | | **C. ** **Inward investment** | | | --------- --------------------- | | | -- | | | | | | --------- ----------------- | | | **D. ** **Outsourcing** | | | --------- ----------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **59.** | **In late 2001, the WTO launched | | | a new round of talks in Doha | | | aimed at: \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | ---- | | | **A. ** **helping member stat | | | es to cope with financial crisis. | | | ** | | | --------- --------------------- | | | --------------------------------- | | | ---- | | | | | | --------- --------------------- | | | --------------------------------- | | | -------------------- | | | **B. ** **further liberalizat | | | ion of the global trade and inves | | | tment framework.** | | | --------- --------------------- | | | --------------------------------- | | | -------------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | ------ | | | **C. ** **protecting national | | | economies from global competitio | | | n.** | | | --------- --------------------- | | | --------------------------------- | | | ------ | | | | | | --------- --------------------- | | | --------------------------------- | | | ---------- | | | **D. ** **promoting higher st | | | andards of living in all member s | | | tates.** | | | --------- --------------------- | | | --------------------------------- | | | ---------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **60.** | **Which of the following is NOT | | | included in world merchandise | | | trade? \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --- | | | **A. ** **Manufactured goods* | | | * | | | --------- --------------------- | | | --- | | | | | | --------- --------------------- | | | --- | | | **B. ** **Agricultural goods* | | | * | | | --------- --------------------- | | | --- | | | | | | --------- -------------- | | | **C. ** **Services** | | | --------- -------------- | | | | | | --------- --------------------- | | | **D. ** **Mining products** | | | --------- --------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **61.** | **\_\_\_\_\_ have/has the most to | | | gain from reductions in | | | agricultural tariffs and | | | subsidies that are a part of the | | | Doha agenda. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------- | | | **A. ** **The world\'s develo | | | ped nations** | | | --------- --------------------- | | | --------------- | | | | | | --------- --------------------- | | | ------------ | | | **B. ** **The world\'s poorer | | | nations** | | | --------- --------------------- | | | ------------ | | | | | | --------- --------------------- | | | - | | | **C. ** **European nations** | | | --------- --------------------- | | | - | | | | | | --------- --------------------- | | | -- | | | **D. ** **The United States** | | | --------- --------------------- | | | -- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **62.** | **Which of the following is NOT a | | | consequence of the reduction in | | | trade barriers and restrictions | | | on FDI since 1950? \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | --------------------------------- | | | --------------------- | | | **A. ** **Firms are dispersin | | | g parts of their production proce | | | ss to global locations to drive d | | | own production costs and increase | | | product quality.** | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | --------------------------------- | | | --------------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | -------------------------- | | | **B. ** **The economies of th | | | e world\'s nation states are beco | | | ming more intertwined.** | | | --------- --------------------- | | | --------------------------------- | | | -------------------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | ---- | | | **C. ** **Nations are becomin | | | g more independent of each other | | | for important goods and services. | | | ** | | | --------- --------------------- | | | --------------------------------- | | | --------------------------------- | | | ---- | | | | | | --------- --------------------- | | | --------------------------------- | | | -------- | | | **D. ** **The world has becom | | | e significantly wealthier since 1 | | | 950.** | | | --------- --------------------- | | | --------------------------------- | | | -------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **63.** | **The financial crisis in the | | | U.S. in 2009 was triggered by | | | \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | -------------------------- | | | **A. ** **the global hike in | | | the price of crude oil** | | | --------- --------------------- | | | -------------------------- | | | | | | --------- --------------------- | | | ------------- | | | **B. ** **the slowdown in U.S | | |. imports** | | | --------- --------------------- | | | ------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | --------- | | | **C. ** **the problems in the | | | U.S. subprime mortgage lending m | | | arket** | | | --------- --------------------- | | | --------------------------------- | | | --------- | | | | | | --------- --------------------- | | | -------------------------------- | | | **D. ** **the artificial fixi | | | ng of currency rate by China** | | | --------- --------------------- | | | -------------------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **64.** | **\_\_\_\_\_ predicts that the | | | power of microprocessor | | | technology doubles and its cost | | | of production falls in half every | | | 18 months. \ | | |  \ | | | ** | | | | | | --------- ------------------- | | | **A. ** **Keynes\'s Law** | | | --------- ------------------- | | | | | | --------- ---------------- | | | **B. ** **Say\'s Law** | | | --------- ---------------- | | | | | | --------- ------------------ | | | **C. ** **Moore\'s Law** | | | --------- ------------------ | | | | | | --------- --------------------- | | | ---- | | | **D. ** **Sullivan Principles | | | ** | | | --------- --------------------- | | | ---- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **65.** | **Containerization allows: \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | ----------------- | | | **A. ** **reduction of the ti | | | me needed to get from one locatio | | | n to another.** | | | --------- --------------------- | | | --------------------------------- | | | ----------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | ---------------------- | | | **B. ** **simplification of t | | | ransshipment from one mode of tra | | | nsport to another.** | | | --------- --------------------- | | | --------------------------------- | | | ---------------------- | | | | | | --------- --------------------- | | | ------------------------------ | | | **C. ** **buyers and sellers | | | to find each other easily.** | | | --------- --------------------- | | | ------------------------------ | | | | | | --------- --------------------- | | | --------------------------------- | | | ----------------------------- | | | **D. ** **enterprises to coor | | | dinate and control a globally dis | | | persed production system.** | | | --------- --------------------- | | | --------------------------------- | | | ----------------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **66.** | **The relative decline of the | | | United States in the share of | | | world output and world exports | | | reflects \_\_\_\_. \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------------------------- | | | -------- | | | **A. ** **an increase in the | | | barriers to foreign trade in the | | | U.S.** | | | --------- --------------------- | | | --------------------------------- | | | -------- | | | | | | --------- --------------------- | | | ----------------------------- | | | **B. ** **the deepening of th | | | e global financial crisis** | | | --------- --------------------- | | | ----------------------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | --- | | | **C. ** **the reduced industr | | | ialization in developing nations* | | | * | | | --------- --------------------- | | | --------------------------------- | | | --- | | | | | | --------- --------------------- | | | --------------------------------- | | | ----------- | | | **D. ** **the growth in the e | | | conomic development of the world | | | economy** | | | --------- --------------------- | | | --------------------------------- | | | ----------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **67.** | **In the 1970s, many Japanese | | | firms invested in North America | | | and Europe: \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ------------------------------- | | | **A. ** **to avoid a highly c | | | ompetitive domestic market.** | | | --------- --------------------- | | | ------------------------------- | | | | | | --------- --------------------- | | | -------------------------- | | | **B. ** **to exploit high dom | | | estic tariff barriers.** | | | --------- --------------------- | | | -------------------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | -- | | | **C. ** **as a hedge against | | | unfavorable currency movements.** | | | --------- --------------------- | | | --------------------------------- | | | -- | | | | | | --------- --------------------- | | | ---------------------- | | | **D. ** **to take advantage o | | | f low labor costs.** | | | --------- --------------------- | | | ---------------------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **68.** | **What is the total cumulative | | | value of foreign investments best | | | referred to as? \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | --------------- | | | **A. ** **Accumulation of for | | | eign shares** | | | --------- --------------------- | | | --------------- | | | | | | --------- --------------------- | | | ------ | | | **B. ** **Portfolio investmen | | | ts** | | | --------- --------------------- | | | ------ | | | | | | --------- --------------------- | | | -------------------- | | | **C. ** **Stock of foreign di | | | rect investments** | | | --------- --------------------- | | | -------------------- | | | | | | --------- --------------------- | | | --------- | | | **D. ** **Stock market invest | | | ments** | | | --------- --------------------- | | | --------- | +-----------------------------------+-----------------------------------+ ** ** +-----------------------------------+-----------------------------------+ | **69.** | **Throughout the 1990s, the | | | amount of foreign direct | | | investment directed at both | | | developed and developing nations | | | increased dramatically. This | | | trend reflects: \ | | |  \ | | | ** | | | | | | --------- --------------------- | | | ------------------------ | | | **A. ** **a slowdown in globa | | | l economic activity.** | | | --------- --------------------- | | | ------------------------ | | | | | | --------- --------------------- | | | --------------------------------- | | | -------- | | | **B. ** **the increasing shar | | | e of the U.S. in the total FDI st | | | ock.** | | | --------- --------------------- | | | --------------------------------- | | | -------- | | | | | | --------- --------------------- | | | --------------------------------- | | | --------------- | | | **C. ** **the decline in cros | | | s-border flows of foreign direct | | | investment.** | | | --------- --------------------- | | | --------------------------------- | | | --------------- | | | | | | --------- --------------------- | | | --------------------------------- | | | ------------- | | | **D. ** **the increasing inte | | | rnationalization of business corp | | | orations.** | | | --------- --------------------- | | | --------------------------------- | | | ------------- | +-----------------------------------+-----------------------------------+   +-----------------------------------+-----------------------------------+ | 70. | Which of the following countries | | | has been the largest recipient of | | | foreign direct investment and | | | received about \$60 billion to | | | \$100 billion a year in inflows | | | in 2004-2009? \ | | |   | | | | | | ----- -------- | | | A.  Brazil | | | ----- -------- | | | | | | ----- -------- | | | B.  Russia | | | ----- -------- | | | | | | ----- ------- | | | C.  India | | | ----- ------- | | | | | | ----- ------- | | | D.  China | | | ----- ------- | +-----------------------------------+-----------------------------------+   +-----------------------------------+-----------------------------------+ | 71. | A multinational enterprise (MNE) | | | is a firm that \_\_\_\_. \ | | |   | | | | | | ----- ------------------------- | | | ------------------- | | | A.  exports its products to m | | | ultiple countries | | | ----- ------------------------- | | | ------------------- | | | | | | ----- ------------------------- | | | ------------------------ | | | B.  has production units in m | | | ore than two countries | | | ----- ------------------------- | | | ------------------------ | | | | | | ----- ------------------------- | | | ------------------ | | | C.  does most of its business | | | on the Internet | | | ----- ------------------------- | | | ------------------ | | | | | | ----- ------------------------- | | | ------------------ | | | D.  lists its securities on a | | | public exchange