Which of the following has enabled globalization of markets?
| Question 1.1. Which of the following is a consequence of globalization? (Points : 2) Decreasing interdependence between national economies Increasing outsourcing of services Differentiation of material culture Increase in barriers to cross-border trade |
| Question 2.2. Which of the following has enabled globalization of markets? (Points : 2) Differentiation amongst national markets Falling barriers to cross border trade Reduced homogeneity of material culture across the world Increased government ownership of factors of production |
| Question 3.3. Which of the following factors hinders globalization of consumer goods market? (Points : 2) National differences in tastes and preferences Higher production costs in developed nations Homogenization of material culture Increasing outsourcing of goods and services |
| Question 4.4. Globalization of markets results in markets becoming _____. (Points : 2) less interdependent less diverse more protected less competitive |
| Question 5.5. 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 _____. (Points : 2) homogenizing markets vertical integration outsourcing horizontal integration |
| Question 6.6. Early outsourcing efforts were primarily confined to _____. (Points : 2) health care service activities technological research manufacturing activities |
| Question 7.7. 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? (Points : 2) Reduced tariffs on imports of manufactured goods Government regulations Issues associated with economic and political risk Barriers to foreign direct investment |
| Question 8.8. The General Agreement on Tariffs and Trade (GATT) was responsible for _____. (Points : 2) protecting government owned enterprises policing the global marketplace limiting nuclear testing promoting environment friendly technology |
| Question 9.9. Which of the following is NOT true regarding culture? (Points : 2) Culture is static. Culture varies across and within nations. Culture is a system of values and norms that are shared among a group of people. Culture involves the knowledge and beliefs of people. |
| Question 10.10. Cross-cultural literacy refers to: (Points : 2) an individual’s self-concept derived from perceived membership in a relevant social group. the phenomenon of merging and converging cultures. abstract ideas about what a group believes to be good, right, and desirable. an understanding of how cultural differences can affect business. |
| Question 11.11. _____ is/are best defined as shared assumptions about how things ought to be. (Points : 2) Norms Values Society Culture |
| Question 12.12. The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines: (Points : 2) society. value systems. principles. culture. |
| Question 13.13. Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as: (Points : 2) norms. values. culture. society. |
| Question 14.14. Norms refer to: (Points : 2) the social rules and guidelines that prescribe appropriate behavior in particular situations. a system of values that are shared among a group of people. the routine conventions of everyday life. abstract ideas about what a group believes to be good, right, and desirable. |
| Question 15.15. A group of people who share a common set of values and norms form a: (Points : 2) culture. society. country. caste. |
| Question 16.16. _____ are the routine conventions of everyday life. (Points : 2) Folkways Mores Rites Beliefs |
| Question 17.17. Which of the following refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country? (Points : 2) Economic patriotism Protectionism Free trade Offshoring |
| Question 18.18. Which of the following is a major benefit of engaging in free trade? (Points : 2) It helps to reduce the financial volatility in global markets. It helps the countries protect the jobs that are available to their citizens. It gives countries access to products that they cannot produce. It allows the governments to exert more control on businesses. |
| Question 19.19. David Ricardo’s theory of comparative advantage explains global trade in terms of the _____. (Points : 2) first mover advantage that certain countries and firms enjoy geographical differences between various countries international differences in labor productivity late mover advantage that certain countries and firms possess |
| Question 20.20. Which of the following theories emphasizes the interplay between the proportions in which the factors of production are available in different countries and the proportions in which they are needed for producing particular goods? (Points : 2) Porter’s theory Smith’s theory Ricardo’s theory Heckscher-Ohlin theory |
| Question 21.21. Identify the theory that supports the view that in some cases countries export for the reason that the world market can support only a limited number of firms. (Points : 3) Heckscher-Ohlin theory Smith’s theory Ricardo’s theory New trade theory |
| Question 22.22. Country A exports electronic goods from Country B although there are no underlying differences in factor endowments between the two countries. Which of the following theories explains this anomaly? (Points : 3) Comparative advantage theory New trade theory Ricardo’s theory Smith’s theory |
| Question 23.23. Which of the following observations is consistent with Michael Porter’s theory of national competitive advantage? (Points : 3) Factors such as domestic demand and domestic rivalry determine nations’ dominance on production. Countries should produce only those goods for which they have a comparative advantage. Interplay between the factors of production cause international marketing decisions. International differences in labor productivity determine nations’ supremacy in production. |
| Question 24.24. Which of the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries? (Points : 3) Comparative advantage theory Ricardo’s theory New trade theory Heckscher-Ohlin theory |
| Question 25.25. Which of the following is NOT one of the main instruments of trade policy? (Points : 3) Tariffs Credit portfolios Local content requirements Administrative policies |
| Question 26.26. Specific tariffs are: (Points : 3) levied as a proportion of the value of the imported good. government payment to domestic producers. in the form of manufacturing or production requirements of goods. levied as a fixed charge for each unit of a good imported. |
| Question 27.27. Tariffs do not benefit: (Points : 3) consumers. domestic producers. governments. domestic firms. |
| Question 28.28. Import tariffs: (Points : 3) reduce the price of foreign goods. create efficient utilization of resources. reduce the overall efficiency of the world economy. are unambiguously pro-consumer and anti-producer. |
| Question 29.29. By lowering production costs, _____ help domestic producers compete against foreign imports. (Points : 3) subsidies duties quotas tariffs |
| Question 30.30. Which of the following observations about subsidies is true? (Points : 3) Government subsidies must be paid for, typically by taxing individuals and corporations. Subsidies are used to reduce exports from a sector, often for political reasons. Whether subsidies generate national benefits that exceed their national costs is debatable. Subsidies help foreign producers gain a competitive advantage over domestic producers. |
| Question 31.31. Which of the following is a consequence of subsidies? (Points : 3) Subsidies make domestic producers vulnerable to foreign competition. Subsidies lead to lowered production. Subsidies protect inefficient domestic producers. Subsidies produce revenue for the government. |
| Question 32.32. FDI occurs when a firm: (Points : 3) ships its products from one country to another. invests directly in facilities to produce a product in a foreign country. invests in the shares of another company operating in the same country. grants permission to another company in a different country to use its brand name. |
| Question 33.33. Which of the following is an example of a greenfield investment? (Points : 3) A Chinese sugar maker setting up a sugar crushing facility in Cuba. A Serbian automobile company purchasing a Croatian component manufacturer. A Finnish mobile phone manufacturer expanding its production facility in Finland. An Indian oil exploration company acquiring an oil refining company. |
| Question 34.34. The stock of FDI is: (Points : 3) the amount of FDI undertaken over a given period of time. the total accumulated value of foreign-owned assets at a given time. the flow of FDI out of a country. the amount of foreign direct investment made by domestic companies over a given period of time. |
| Question 35.35. The _____ of FDI refers to the amount of FDI undertaken over a year. (Points : 3) stock net value accumulated value flow |
| Question 36.36. Which of the following is the prime reason why Africa has attracted FDI in recent years? (Points : 3) Growth of the services sector Complete deregulation of markets Wave of privatization Raw material availability |
| Question 37.37. Which of the following summarizes the total amount of resources invested in factories, stores, office buildings, and the like? (Points : 3) Gross capital index Gross fixed capital formation Gross domestic product Gross national product |
| Question 38.38. Which of the following primarily explains why developing nations are characterized by lower percentage of cross-border mergers and acquisitions compared to developed nations? (Points : 3) Fewer target firms to acquire in developing nations Fierce opposition to mergers and acquisitions in developed nations Unwillingness of foreign companies to invest in developing nations Presence of import quotas in developing nations |
| Question 39.39. From least integrated to most integrated, the levels of economic integration are: (Points : 3) a common market, a free trade area, an economic union, a customs union, and a political union. a free trade area, a customs union, a common market, an economic union, and a political union. a customs union, a free trade area, a common market, a political union, and an economic union. a common market, an economic union, a customs union, a free trade area, and a political union. |
| Question 40.40. Country X and Country Y reach an agreement to boost bilateral trade. They agree to remove all barriers to the trade of goods and services. They, however, are free to determine their own trade policies with regard to nonmembers. Which level of economic integration is this an example of? (Points : 3) A customs union An economic union A common market A Free trade area |
| Question 41.41. Which feature of a customs union differentiates it from a free trade area? (Points : 3) Harmonization of members’ tax rates A common currency A common external trade policy toward nonmembers Ability of factors of production to move freely between members |
| Question 42.42. A _____ has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members. (Points : 3) common market customs union free trade area bonded market |
| Question 43.43. Three countries agree to remove barriers to trade between member countries and adopt a common external trade policy toward nonmembers. They also agree to allow people and other factors of production to move freely across their borders. Which level of economic integration is this an example of? (Points : 3) Bonded market Customs union Free trade area Common market |
| Question 44.44. Which feature of a common market differentiates it from a customs union? (Points : 3) Harmonization of members’ tax rates A common currency A common external trade policy toward nonmembers Ability of factors of production to move freely between members |
| Question 45.45. A(n) _____ involves the free flow of products and factors of production between member countries, the adoption of a common external trade policy, a common currency, harmonization of members’ tax rates, and a common monetary and fiscal policy. (Points : 3) economic union common market customs union free trade area |
| Question 46.46. Which feature of an economic union differentiates it from a common market? (Points : 3) Free flow of products and factors of production between member countries A common monetary and fiscal policy A common external trade policy toward nonmembers Ability of factors of production to move freely between members |
