Mgt Ch 6

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

C) Purchase raw materials, components, or supplies from sellers in other countries

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

B) 104,000.

Government has distinctive resources and competencies including:

D) All of the Above

An example of an international financial and trade institution is:

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

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

False

Globalization is accepted worldwide and creates little controversy.

False

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

False

Only manufacturing jobs are being lost through globalization.

False

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

A) A central state control system

The term sector refers to broad divisions of a whole.

True

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

True

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

A) General Electric

The primary purpose of the International Monetary Fund is to:

A) Lend foreign currency to member countries.

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.

Global market channels involve a firm producing goods in:

A)Their home country and exporting them to other countries.

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

C) The Kimberley Process.

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

C) The collapse of former communist states of central and eastern Europe.

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

C) Walmart.

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

False

The loan policies of the World Bank:

Impose strict restrictions on debtor countries which can sometimes lead to hardship.

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

True

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

True

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

True

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

True

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

True

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

True

The purpose of the World Trade Organization is to:

B) Eliminate barriers to free trade among nations.

The term "race to the bottom" refers to:

B) Moving production jobs to the country with the lowest labor cost.

A firm that has global operations has:

B) Some or all of their manufacturing or service operations abroad.

Single-party rule by communist parties still remains in:

B) Vietnam.

Experts attribute the growth of nongovernmental organizations to:

C) Greater openness in many societies.

Technological innovation has aided the spread of globalization by:

C) Leveling the playing field and allowing all to participate on an equal footing in global commerce.

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

C) North Korea

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

C) Sell, make, and buy.

The most important agreement which codifies human rights is the:

C) The Universal Declaration of Human Rights.

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

C) Weak health and safety regulations.

Which transportation system improvement has aided the acceleration of globalization?

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

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

False

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

B) All import restrictions are illegal unless proven scientifically.

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

B) The size of the member nation's economy.

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

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

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

D) All of the Above 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.

The acceleration of globalization has been driven by:

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

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

D) The poorest 57 percent.

The World Trade Organization is based in the United States.

False