QUESTION Which of the following statements reflects the trend in the changing nature of multinational enterprises? A. Global business activity is increasingly being dominated by large U.S. multinational corporations. B. The number of medium-size and small multinationals is decreasing continuously. C. The ranks of the world’s largest 100 multinationals are dominated by firms from developing […]
QUESTION Which of the following statements supports the claim that the gap between the rich and poor nations of the world has gotten wider because of globalization? A. There are many countries that suffer from totalitarian governments. B. A quarter of the countries with a GDP per capita of less than $1,000 in 1960 had […]
QUESTION Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former communist nations of East Europe and central Asia? A. The high levels of economic development in these countries B. The signs of growing unrest and totalitarian tendencies seen in these countries C. […]
QUESTION A concern voiced by critics of globalization is that today’s increasingly interdependent global economy shifts economic power toward: A. supranational organizations such as the World Trade Organization. B. the communist states of eastern Europe and central Asia. C. the medium-size and small U.S. multinationals. D. the national governments of the countries participating in globalization. […]
QUESTION In the past two decades, the majority of Latin American countries have: A. experienced a decline in the health of their economies. B. sold state-owned enterprises to private investors. C. been characterized by low growth, high debt, and hyperinflation. D. restricted investment by foreign firms. E. discouraged both democracy and free market reforms. […]
QUESTION Universal Lingo, a U.K.-based language translation company employing just 65 people worldwide, has an annual turnover of $1.5 million. In this context, Universal Lingo is most likely to be classified as a(n): A. large domestic firm. B. mini-multinational firm. C. greenfield firm. D. foreign firm. E. multinational giant. ANSWER B A trend in […]
QUESTION Which of the following statements reflects the nature of the global economy of the twenty-first century? A. National economies are becoming less integrated into a single and interdependent economic system. B. The number of nations joining the ranks of the developed world has reduced. C. Countries have extensively adopted liberal economic policies. D. There […]
QUESTION Which of the following statements is a general implication of globalization? A. Globalization is inevitable. B. From a purely economic perspective, globalization is all good. C. Globalization has no negative impacts on the economies of the developed world. D. Globalization has reduced the risks associated with global financial contagion. E. As a result of […]
QUESTION An argument in support of the falling barriers to international trade and investment is that the falling barriers: A. prohibit countries from specializing in the production of goods and services. B. drive the global economy toward greater prosperity. C. reduce the need to export jobs overseas. D. increase the bargaining power of business firms […]
QUESTION Which of the following has increased in the United States as a result of globalization? A. Unemployment rate B. Price of goods and services C. Demand for unskilled workers D. Standard of living E. Income equality between workers in skilled and unskilled sectors ANSWER A The popular feeling is that when corporations such […]
