International Business
Chapter 01
Globalization
True / False Questions
1. (p. 4) The notion that national economies are relatively self-contained entities is on the rise.
FALSE
2. (p. 4) For the last 50 years, the volume of goods, services and investment crossing national borders has consistently expanded faster than world output.
TRUE
3. (p. 4) Today, the world economy is fast moving toward a world in which barriers to cross-border trade and investment are declining.
TRUE
4. (p. 6) The shift toward a more integrated and interdependent world economy is referred to as globalization.
TRUE
5. (p. 6) The merging of historically distinct and separate markets into one huge global marketplace is known as the globalization of markets.
TRUE
6. (p. 6) The majority of U.S. firms that export are large multinationals that employ 500 or more people.
FALSE
7. (p. 6) The most global markets currently are markets for industrial goods and materials that serve a universal need the world over.
TRUE
8. (p. 7) Outsourcing is a process that is limited to manufacturing enterprises.
FALSE
9. (p. 9) Because of their nature, service activities cannot be outsourced to other companies.
FALSE
10. (p. 10) The World Bank is responsible for maintaining order in the American monetary system.
FALSE
11. (p. 11) One of the UN central mandates is the promotion of higher standards of living, full employment and conditions of economic and social progress and development.
TRUE
12. (p. 11) Underlying the trend towards greater globalization is technological change and a decline in barriers to the free flow of goods, services and capital.
TRUE
13. (p. 12) According to the United Nations most changes between 1992 and 2005 to laws governing FDI have resulted in a less favorable environment for FDI.
FALSE
14. (p. 12) According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950.
TRUE
15. (p. 12) The expansion of world trade implies that nations are becoming less
Globalization
True / False Questions
1. (p. 4) The notion that national economies are relatively self-contained entities is on the rise.
FALSE
2. (p. 4) For the last 50 years, the volume of goods, services and investment crossing national borders has consistently expanded faster than world output.
TRUE
3. (p. 4) Today, the world economy is fast moving toward a world in which barriers to cross-border trade and investment are declining.
TRUE
4. (p. 6) The shift toward a more integrated and interdependent world economy is referred to as globalization.
TRUE
5. (p. 6) The merging of historically distinct and separate markets into one huge global marketplace is known as the globalization of markets.
TRUE
6. (p. 6) The majority of U.S. firms that export are large multinationals that employ 500 or more people.
FALSE
7. (p. 6) The most global markets currently are markets for industrial goods and materials that serve a universal need the world over.
TRUE
8. (p. 7) Outsourcing is a process that is limited to manufacturing enterprises.
FALSE
9. (p. 9) Because of their nature, service activities cannot be outsourced to other companies.
FALSE
10. (p. 10) The World Bank is responsible for maintaining order in the American monetary system.
FALSE
11. (p. 11) One of the UN central mandates is the promotion of higher standards of living, full employment and conditions of economic and social progress and development.
TRUE
12. (p. 11) Underlying the trend towards greater globalization is technological change and a decline in barriers to the free flow of goods, services and capital.
TRUE
13. (p. 12) According to the United Nations most changes between 1992 and 2005 to laws governing FDI have resulted in a less favorable environment for FDI.
FALSE
14. (p. 12) According to WTO data, the volume of world merchandise trade has grown faster than the world economy since 1950.
TRUE
15. (p. 12) The expansion of world trade implies that nations are becoming less