MNGT 482 - Chapter 6

Futurist, Allen Hammond, argues that globalization helps to support the spread of democracy and freedom.

True

Gemstones which are mined or stolen by rebels fighting recognized governments are known as conflict diamonds.

True

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

True

The amount owed to the World Bank in the mid 2000s was: A) $11 million. B) $314 million. C) $3 billion. D) $22 billion.

C) $3 billion.

According to the United Nations, how many transnational corporations operate in the global economy? A) 48,000 corporations. B) 79,000 corporations. C) 114,000 corporations. D) 156,000 corporations.

B) 79,000 corporations.

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.

D) All of the above.

An example of an international financial and trade institution (IFTI) is: A) World Bank. B) International Monetary Fund. C) World Trade Organization. D) All of the above.

D) All of the above.

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.

D) All of the above.

The acceleration of globalization has been driven by: A) Communications technology. B) Transportation systems. C) Social and political reforms. D) All of the above.

D) All of the above.

According to the Heritage Foundation, the least economically free nation in 2009 was Cuba.

False

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

The three strategies of globalization can be summarized by sell, buy and ship.

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. B) A social democracy. C) A political control system. D) A military dictatorship.

A) A central state control system.

Global market channels involve: A) A firm producing goods in their home country and exporting them to other countries. B) A firm producing goods in their home country to sell at home. C) A firm producing goods in a foreign country to sell at home. D) A firm producing goods in a foreign country to sell abroad.

A) A firm producing goods in their home country and exporting them to other countries.

Collaborative partnerships: A) Combine the strengths of business, government and NGOs. B) Allow the private sector to improve global conditions without the inefficiency of government. C) Are amateurish and lack financial resources. D) Are short-term focused.

A) Combine the strengths of business, government and NGOs.

Which of the following is not part of the three sector world referenced in the text: A) Media. B) Business. C) Government. D) Civil Society.

A) Media.

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) Countries that produce guns have an advantage over countries that produce butter. C) All countries start out on an equal playing field. D) Countries that operate under a policy of isolationism have a comparative advantage.

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

Thomas Friedman believes the world is becoming increasingly: A) flat. B) tall. C) quick. D) irresponsible.

A) flat.

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 the item is proven scientifically unsafe. 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.

B) All import restrictions are illegal unless the item is proven scientifically unsafe.

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) strictly forbid any debt relief. D) Are open to any company conducting business abroad.

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

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.

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

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.

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

The purpose of the World Trade Organization (WTO) is: A) To impose barriers to free trade among nations. B) To eliminate barriers to free trade among nations. C) To develop trading partnerships between rich and poor nations. D) To decrease globalization and free trade.

B) To eliminate barriers to free trade among nations.

The primary purpose of the International Monetary Fund (IMF) is: A) To lend foreign currency to member countries. B) To make currency exchange easier. C) To consolidate the debt facing third world nations. D) To collect the principal and interest on loans made by The World Bank to third world nations.

B) To make currency exchange easier.

Vodafone is headquartered in: A) United States. B) United Kingdom. C) Germany. D) Finland.

B) United Kingdom.

Which of the following is not part of the G-8? A) Russia. B) France. C) China. D) European Union.

C) China.

A firm that would like to develop a global supply chain would: A) Run a manufacturing plant for raw materials, 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.

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

A Governments primary goal is: A) Safeguard freedoms. B) Wealth creation. C) Societal order. D) Retain heirarchy.

C) Societal order.

Which is an example of a social and political reform that has lead to the acceleration of globalization? A) Economic sanctions against North Korea. B) Efforts to deter drug trafficking from Columbia. C) The fall of the Soviet Union. D) The European Union's penalties against Microsoft for unfair competition.

C) The fall of the Soviet Union.

Arguments against globalization state that companies decide to manufacture in China because of China's: A) Strict law enforcement. B) High environmental standards. C) Weak health and safety regulations. D) Strong worker unions.

C) Weak health and safety regulations.

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.

D) All of the above.

When a corporation becomes a strong force for change in other nations where they operate, this is known as: A) Feeding the beast B) Raising the bottom. C) Comparative advantage. D) Constructive Engagement.

D) Constructive Engagement

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

False

Only manufacturing jobs are being lost through globalization.

False

The United Nations believes there are approximately 109,000 TNCs.

False

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

False

The World Bank allows two representatives from each member nation on the WB's governing board.

False

As the world has become freer politically and economically, the gaps between the richest and poorest countries have risen.

True

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

True

The WTO lent over 2 billion dollars in 2002.

True