Question 1

Which of the following is NOT an objective of the WTO?

Accepted Answer

A)  Reviewing national trade policies 
B)  Acting as a forum for trade negotiations 
C)  Naming commissioners to local trade organizations 
D)  Settling trade disputes 
E)  Administering trade agreements

Question 2

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.
-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?

Accepted Answer

A)  The World Trade Organization 
B)  The World Bank Group 
C)  The International Development Association 
D)  The International Finance Corporation 
E)  The sovereign government of Greece

Question 3

Trade without discrimination,freer trade,predictability,promotion of fair competition,and _____ are the five principles of the multilateral trading system.

Accepted Answer

A)  integrated capital markets 
B)  encouragement of economic reform in developing countries 
C)  liberalization of the trading system 
D)  nontariff trade 
E)  establishment of "most favored nation" status

Question 4

Increasingly,emerging economies are

Accepted Answer

A)  innovative and technologically advanced. 
B)  sources of inexpensive labor. 
C)  largely agricultural. 
D)  simply copying the technologies used in more advanced economies. 
E)  being left behind in the global economy.

Question 5

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.
-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 the information technology revolution has occurred almost instantaneously.Which one of the following would not be considered a benefit derived from this so-called revolution?

Accepted Answer

A)  Societal hierarchies have grown in number to better accommodate information technology changes. 
B)  A more free flow of capital across national boundaries has occurred. 
C)  Operating costs have decreased for many businesses. 
D)  The production of goods and services has become globalized. 
E)  The costs of communication are reduced.

Question 6

In communist and state-controlled economies like those in Central Asia property rights either do not exist or are not well defined which discourages domestic and foreign investors from making long-term commitments in these countries.

Accepted Answer

A) True 
 B)False

Question 7

For the World Trade Organization,increasing trade barriers has been one of the most simple ways to encourage trade and globalization.

Accepted Answer

A) True 
 B)False

Question 8

To sustain globalization,nations must build institutions that support all of the following EXCEPT

Accepted Answer

A)  democratic systems of government. 
B)  free markets. 
C)  command economies. 
D)  independent judiciaries. 
E)  a free press.

Question 9

Globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by Transparency International.

Accepted Answer

A) True 
 B)False

Question 10

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 _____.

Accepted Answer

A)  politics 
B)  integrity 
C)  accountability 
D)  transparency 
E)  democracy

Question 11

A sustainable decoupling process would eventually lead to _____.

Accepted Answer

A)  a multi-polar world 
B)  globalization 
C)  outsourcing 
D)  transparency 
E)  income inequity

Question 12

Critics argue that open trade and foreign direct investment always take jobs from workers in developing economies and transfer them to workers in advanced industrial countries which leave the workers in the developing country,out of work.

Accepted Answer

A) True 
 B)False

Question 13

The foundations of the globalized business world are political-and so are the biggest threats to the system.

Accepted Answer

A) True 
 B)False

Question 14

National laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms are called _______.

Accepted Answer

The answer of National laws aimed at maintaining competition in...

Question 15

Key aspects of globalization include the elimination of barriers to trade and information technology.

Accepted Answer

A) True 
 B)False

Question 16

All of the following countries can be considered globalization "winners" EXCEPT:

Accepted Answer

A)  China 
B)  North Korea 
C)  India 
D)  Brazil 
E)  South Africa

Question 17

The International Finance Corporation (IFC)performs which of the following functions?

Accepted Answer

A)  Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members 
B)  Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies 
C)  Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets 
D)  Provides political risk coverage for private investments made in developing countries 
E)  Works on issues related to foreign investment disputes

Question 18

The rapid fall in prices of digital IT equipment and services may

Accepted Answer

A)  reduce the importance of IT in the global economy. 
B)  spell the end of the digital era. 
C)  make digital divide a myth. 
D)  reduce the availability of bandwidth in developed economies. 
E)  localize the production of goods and services.

Question 19

With business becoming increasingly global,its success,fortunately,depends only on the domestic environment.

Accepted Answer

A) True 
 B)False

Question 20

Countries that have successfully adapted to globalization realize that they cannot succeed without high-quality government management at home.

Accepted Answer

A) True 
 B)False

Exam 1: The Rise of Globalization

Which of the following is NOT an objective of the WTO?

Trade without discrimination,freer trade,predictability,promotion of fair competition,and _____ are the five principles of the multilateral trading system.

Increasingly,emerging economies are

In communist and state-controlled economies like those in Central Asia property rights either do not exist or are not well defined which discourages domestic and foreign investors from making long-term commitments in these countries.

For the World Trade Organization,increasing trade barriers has been one of the most simple ways to encourage trade and globalization.

To sustain globalization,nations must build institutions that support all of the following EXCEPT

Globalized economies like New Zealand and Singapore rank at the top in index for absence of corruption by Transparency International.

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 _____.

A sustainable decoupling process would eventually lead to _____.

Critics argue that open trade and foreign direct investment always take jobs from workers in developing economies and transfer them to workers in advanced industrial countries which leave the workers in the developing country,out of work.

The foundations of the globalized business world are political-and so are the biggest threats to the system.

National laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms are called _______.

Key aspects of globalization include the elimination of barriers to trade and information technology.

All of the following countries can be considered globalization "winners" EXCEPT:

The International Finance Corporation (IFC) performs which of the following functions?

The rapid fall in prices of digital IT equipment and services may

With business becoming increasingly global,its success,fortunately,depends only on the domestic environment.

Countries that have successfully adapted to globalization realize that they cannot succeed without high-quality government management at home.