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 Richard purchased a computer for $600 in 2014. Compared to the $900 computer that he had purchased way back in 2010, the new one seems to be more efficient in terms of the price he has paid and the power of the microprocessor technology. This is best explained by: A. product liability. B. property […]
QUESTION Which of the following is most likely to be observed in today’s global economy? A. Increasing U.S. share of world output B. Large U.S. entrepreneurial firms dominating the international business scene C. Increasing U.S. dominance in the world economy and world trade picture D. Most of the nations being governed by centrally planned economies […]
QUESTION The advent of containerization has: A. made the economies of the world’s nation-states less intertwined. B. made moving goods from one mode of transport to another extremely labor-intensive. C. significantly lowered the costs of shipping goods over long distances. D. slowed down the globalization of markets and production. E. increased costs of coordinating and […]
QUESTION Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012? A. United States B. Thailand C. Japan D. China E. South Korea ANSWER A In the early 1960s, the United States was still by far the world’s dominant industrial power. In 1960, the […]
